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Mexico’s Mining Industry

Mexico is a competitive destination for mining investment. An industry with a century-old tradition, mining remains one of the leading sources of income, employment and development in the country. But beyond the mineral wealth required to develop this activity, conditions in Mexico have made it one of the main destinations in the world for mining investment, surpassing countries that are richer in mineral resources.

Mexico is a competitive destination for mining investment. An industry with a century-old tradition, mining remains one of the leading sources of income, employment and development in the country. But beyond the mineral wealth required to develop this activity, conditions in Mexico have made it one of the main destinations in the world for mining investment, surpassing countries that are richer
in mineral resources.

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24 Negocios ProMéxico<br />

arkus nexus,<br />

made-To-measuRe<br />

TeChnoloGiCal<br />

soluTions<br />

This Tijuana-based company has created a<br />

technological eco-system capable of providing<br />

solutions for a wide variety of sectors. Boasting<br />

an attractive business model, it currently<br />

exports 70% of its output to the US.<br />

____<br />

by antonio vázquez<br />

photos courtesy of arkus nexus<br />

Gasoline, insurance and education<br />

may not seem like sectors<br />

that have a lot in common, but<br />

Arkus Nexus, a Mexican company<br />

based in the border city of Tijuana,<br />

Baja California, has come up with a technological<br />

solution tailored to each.<br />

The result of a merger between two<br />

consulting firms specializing in software,<br />

Arkus Nexus has been in business for over<br />

ten years and currently exports approximately<br />

70% of its output to the US.<br />

In the last decade, the company has<br />

grown to the point where it now employs<br />

100 people at its 900-square-meter building<br />

in the heart of Tijuana’s financial district,<br />

the birthplace of Mind Hub (Mexico<br />

Innovation Development), which develops<br />

apps for iPad and other mobile devices targeting<br />

mainly the educational sector.<br />

“Arkus and Nexus fused ten years ago. We<br />

were both originally consulting and software<br />

development firms –which has been our<br />

main line of business– and have exploited<br />

Tijuana’s geographical location: a bilingual,<br />

bicultural eco-system that is close to California,<br />

one of the region’s largest markets,” says<br />

Arkus Nexus founder Jorge Arroyo.<br />

A watershed in the firm’s history was its<br />

participation in the TechBA program back<br />

in 2006. According to Arroyo, TechBA,<br />

which backs the international expansion<br />

of Mexican technological companies, was<br />

the “shove” it needed to enter the US. Since<br />

then, growth has been exponential, maxing<br />

out at 100% in 2012.<br />

In addition to providing quality technological<br />

solutions –Arkus Nexus’ client<br />

portfolio includes the insurance companies<br />

Quadrant and Metlife, Coca Cola and<br />

gas stations in the region–, Arroyo attributes<br />

the company’s success to local talent,<br />

combined with its geographical location<br />

and emphasis on showing its customers a<br />

human face.<br />

“We can reach San Diego in minutes. We<br />

can get on a plane and be in West Coast cities<br />

in the US in no time. Plus, we don’t just<br />

focus on the technical side of the services we<br />

render, but on quality and human resources<br />

on the business side,” Arroyo points out.<br />

“As soon as you get past the barrier and<br />

manage to persuade American customers<br />

to take off their blinders in relation to<br />

Mexico, they realize work methods are<br />

similar in both countries,” interjects Felipe<br />

Fernández, Director of Special Projects<br />

at Arkus Nexus. “We have customers who<br />

come to us and say they feel like they’re<br />

working in Silicon Valley. Our products<br />

sell themselves and I can guarantee that of<br />

every ten executives who come to us, eight<br />

leave extremely satisfied with what we do.”<br />

Over the years, Arkus Nexus has come<br />

to specialize in the development of outsourcing<br />

software, programs for insurance<br />

companies and gasoline stations, and<br />

solutions for the retail sector and medium-sized<br />

companies whose needs can’t be<br />

met by small companies, but that are too<br />

small to be appealing to larger ones.<br />

“There are chains with 10 or 30 stores<br />

for whom the small target isn’t practical<br />

but with whom larger companies aren’t<br />

always willing to work. They have budgets<br />

of 2, 3, even 4 million pesos, which<br />

can be enough to do something interesting,<br />

but this medium-sized market lacks<br />

providers and that’s where we come in<br />

with solutions tailored to their needs,”<br />

explains Fernández.<br />

minD hub, a Technological<br />

eco-sysTem<br />

With Arkus Nexus well on the road<br />

to consolidation, Arroyo decided it was<br />

time to take the next step. His idea was to<br />

bring together local technological companies<br />

under one roof. An idea that materialized<br />

in the form of the Tijuana-based<br />

Negocios ProMéxico 25<br />

In addition to providing<br />

quality technological<br />

solutions, Arroyo<br />

attributes the company’s<br />

success to local talent,<br />

combined with its<br />

geographical location and<br />

emphasis on showing its<br />

customers a human face.<br />

initiative Mind Hub (Mexico Innovation<br />

Development).<br />

Managed by Ulises Elías, a Mexican<br />

specialized in innovation in Denmark,<br />

Mind Hub has six companies that develop<br />

cutting-edge products like Ed Ninja, a<br />

series of iPad apps designed for children<br />

with autism.<br />

In April 2012, Mind Hub launched its<br />

first iPad apps for children with autism,<br />

dyslexia and other learning disorders. That<br />

same year, <strong>Mexico’s</strong> National Council of<br />

Science and Technology (CONACyT) selected<br />

Mind Hub as a beneficiary of the<br />

Support for Innovation Program on the<br />

basis of those applications.<br />

Although its main market is in the US,<br />

Arkus Nexus and Mind Hub aim to expand<br />

their Latin American operations to the<br />

Southern Cone by 2015.<br />

“We want to expand our operations<br />

beyond Tijuana, leverage more regions in<br />

Mexico and take on the retail and gasoline<br />

sectors in Latin America,” says Arroyo. “As<br />

for the commercial side,” he concludes, “we<br />

have our sights set on larger markets and<br />

the natural step is to position ourselves<br />

among larger customers, larger firms.” n<br />

www.arkus-solutions.com

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