What’s Behind Cisco’s $1.35 Billion Investment in Mexico?

Commentary by JP McDaris

Cisco recently announced they would be expanding their presence in Mexico, with plans for direct and indirect investments of more than $1 Billion. The money will go to a support center in Mexico City, expansion of the Cisco Networking Academy program and an expanded IT manufacturing capacity in Mexico.

Of course it’s always good news to create jobs, no matter the economy. And this news further reinforces Mexico’s pre-eminence as an attractive spot for foreign direct investment. But what I find most compelling here is that the money is coming from one of the leading IT players in the world. Traditionally, IT hasn’t been a sector of strength in Mexico, particularly compared to automotive, aerospace, electronics or even medical devices. The knock on Mexican workers was that they were good at following or replicating set procedures that had been established. But when it came to innovation and creativity – prerequisites for success in IT – they fell short.

Mexico’s Commitment to the Future
To me, Cisco re-upping in Mexico challenges this traditional view, if only at the margin. It speaks to an awareness of Mexico’s capability and commitment to train engineers and technicians, whether in the form of on-the-job training or at one of the many academic institutes across the country. Public-private cooperation in education and training is more established in Mexico than in the US, and that strategy will go a long way to securing the future of the Mexican workforce.

On the whole, this story speaks to Mexico’s growing diversification, a better-educated workforce and their ability to attract global corporations.

Source: Cisco Newsroom

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