The US economy may be faced with some issues but not necessarily US corporations.
Technology spend usually goes up during times of ferment, says Sajan Pillai, Chief Executive Officer of IT services major, UST Global.
US Corporations have two characteristics, he told Business Line while explaining his company’s recent entry into Latin America.
One, they may be headquartered there but have power to redirect resources to whichever part of the world is growing.
Secondly, when things become tougher, it normally means that they would need to invest in technology.
UST Global has tied up with Centro Fox, presidential library and learning centre in Mexico, to facilitate entry into Latin America.
Former Mexican President Vicente Fox, who spearheads Centro Fox activities, was with Pillai during a recent visit here.
“Our plan is to ensure that one-third of the future expansion in Mexico be driven out of technology work for US corporations. “One-third will depend on work from Mexico-based companies and one-third from the rest of Latin American companies,” Pillai said.
UST Global aims to achieve five missions in Mexico, he added. “First, we’re bringing business to Mexico. Second, we’re setting up a large infrastructure and other investments there.
“Third, we’re developing human capital. Fourth, we’re going to help raise productivity in the Mexican private sector and public sector. “And fifth, we want to build and create the brand of Mexico among other nations, among other businesses that we’re doing.”
These are the five building blocks of our relationship, Pillai said.
While being partly corporate social responsibility in nature, UST Global would put it to use to create commercial opportunities.
“We’ll provide people with tools to do business, for instance,” Pillai said.
On future prospects, he said the lower the costs, corporations will consume more of IT.
The higher the amount of spend, the higher the level of net margins, studies show.
So, much bigger numbers will be required in terms of employable hands, Pillai said.
“Demand of IT will rise in the order of magnitudes, not numbers as transactions leapfrog in growth centres of Asia and Latin America.
“For all this to happen, IT is required,” Pillai said.