The Business Year

Xavier Espinosa de los Monteros

MEXICO - Telecoms & IT

Xavier Espinosa de los Monteros

CEO, Latbc

Bio

Xavier Espinosa de los Monteros is the CEO of Latbc

Latbc has grown in the last 20 years by providing solutions to mid-sized companies and helping them develop different solutions to digital transformation.

What opportunities did you identify in the market when establishing Latbc?

In 2022, Latbc turns 20. When we set up the company, there was a market niche in services that consultancy firms did not provide. There were a number of large companies present like SAP, but their services were extremely expensive. We focused on the niche of companies that found those services prohibitively expensive. We started to grow with telecommunication companies, such as Megacable and Totalplay. We have provided services to all the telecommunication companies, including mobile carriers and fixed-line companies. We worked to sell solutions to mid-sized companies, developing different solutions with them, and this is where we experienced growth. We provided added value, and after 19 years we have grown incredibly.

How do you assess the digital transformation of Mexico?

I always address three different topics. One of them is who you are as a company and where you want to be. Then, there is where you can be, and the third factor is what would happen if I do not get to the point at which the others are. This transformation that we are witnessing today was expected. You just need a good idea to do business. We see many opportunities in the fintech business, and today ideas carry considerable value. There is a new generation of professionals focused on customer service. All the factors are being taken into account, including transparency and post-sales. It is a new area of great interest.

You offer many different services. Which are seeing the greatest demand in Mexico?

After the impact of the pandemic, the services in which we are witnessing the largest demand concern analytics. The question of what I can do with my data is a common one. There are companies unrelated to the technology segment that are seeking to become more efficient through data. They are keen to make every process of their business more efficient. We are currently hiring many professionals for this segment in order to cope with the demand. There is great demand for analytics, metrics, and AI in pursuit of valuable data.

A new outsourcing law has been introduced. How are you helping companies to transition within its framework?

There are many companies that do not know what to do with the people they have hired. We do not do outsourcing. What we do is compliance in accordance with the regulation of the law that was implemented in April. We are registered as the law indicates, but we have two service modalities. We have a hub that complies with the requirements of the law that provides a working space for businesses. In this hub, we hire the employees for a project for a third-party, and the third party pays us under a service contract modality. That is not outsourcing because these employees work for us. In this hub, we have spaces separated for each client. These individuals work on one project at a time and then rotate. This also allows us to retain talent. The companies are extremely satisfied with these services. The employees, too, are content with us because we constantly provide challenges for them.

What are your expansion plans?

We are focused on projects in Mexico and Argentina and can cover all the countries in between. Brazil is a difficult country for us. In the past, focusing too much on our international operations distracted us from the opportunities available in Mexico. There are some companies here experiencing tremendous growth, such as Kavak, a wonderful firm. There are many similar examples of companies that have huge growth potential in Mexico and many important start-ups with operations here. We have many projects like those, and we want to focus on that. The most important thing as a business is to focus on what you like, so we want to select the clients that we like.

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