The Underlying Opportunities in LATAM’s Dynamic Outsourcing Market

Many enterprises tend to view Latin America as a complementary outsourcing locale, particularly in cases where specific services portfolio areas require stronger U.S. cultural alignment and language support.
For example, many organizations recognize the growing importance of native language Spanish support for North America and are looking for lower cost global support for languages such as Italian, German, Portuguese, and even Japanese in Brazil, Peru and Argentina. Proximity and time zone alignment are also still strong benefits for choosing nearshore Latin American outsourcing locations.
Strong Regional Growth
Latin America has experienced significant growth in its delivery of IT applications maintenance and engineering outsourcing services. However, while World Trade Organization data shows an impressive 120% growth in South and Central America’s computer and information services exports over the past five years, the region’s outsourcing service delivery is still relatively small in comparison to India.
That said, many Latin American outsourcing operators are actually major Indian companies. Most leading Tier-I Indian providers have multiple service delivery centers throughout Central and Latin America using local resources and leveraging the same optimized delivery processes and tools as those used in India and throughout other traditional global outsourcing locations. One of the ways they, like local operators, are able to gain competitive advantage while mitigating labor and cost risks is by establishing service delivery centers in emerging countries and Tier-II cities.
This type of strategy also exploits significant Latin American business incentives and favorable tax treatments in addition to leveraging local low cost resources with capabilities that truly complement Indian, other Asia, and Eastern European-based services while helping mitigate cultural vulnerabilities. When matured, this model enables Indian providers to deliver improved culturally- and language-enhanced services at a high level without geographic limitations. Such an approach is well proven, having been successfully executed in the Philippines as well as in Eastern European geographies.

Rad more at: The Underlying Opportunities in LATAM’s Dynamic Outsourcing Market By Craig Wright, Principal, Pace Harmon

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