Global Delivery Locations for BPO

Focus on Latin America (Strategic Focus)

Publication Date	April 2008
Publisher	Datamonitor
Product Type	Report
Pages	30
ISBN Number	not applicable
Product Code	DAT11098

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Summary

Introduction

A detailed analysis of Latin America's capabilities as a sourcing location for IT outsourcing and BPO services.

Scope

This report looks at the opportunities available to IT and BPO vendors in major Latin American locations such as Mexico, Brazil and Argentina.
It also covers developing markets such as Costa Rica, Chile and Uruguay.
It contains analysis of the leading players in the Latin American market, including both local and international providers.
The report also offers recommendations to vendors about how best to utilize Latin America as part of a coherent sourcing strategy.

Report Highlights

Latin America is becoming an increasingly popular destination for IT services and BPO vendors who are looking to provide low-cost services to clients.
This report contains opinions generated from briefings with leading IT services and BPO players.
It also provides in-depth analysis of Latin America as a global sourcing hub.

Reasons to Purchase

Provides a detailed analysis of developments in Latin America, which is an increasingly popular sourcing location for vendors.
Offers an overview of the current competitive landscape in the Latin American It services and BPO market.
Offers recommendations to vendors interested in setting up a sourcing facility in Latin America.

Content

Overview
Catalyst
Summary
Key Messages
- Latin America is becoming increasingly popular as a global sourcing location
- Latin America has a competitive advantage due to proximity and linguistics
- US outsourcing giants dominate the Latin American market
- Many vendors are using Latin America as part of a multi-shore delivery model
- Skill shortages and concerns over stability will hinder the region's growth
Market Opportunity
- Investment in Latin America by foreign IT/BPO companies has increased in recent years
- Investment has been concentrated on the region's more developed economies
- A number of factors are driving the growth of Latin America's IT/BPO sector
- Geographical Proximity
- Client Demand
- Language Skills
- Economic Growth
- Cost of Labor
- Political Stability
- A broad range of services are being offered from Latin American centers
- Challenges remain for vendors investing in Latin America
- The Size of the Labor Pool
- Language as a Barrier
- Outsourcing Industry in Early Stages of Development
- Cultural Differences
Customer Impact
- Benefits to the customer of having services delivered from Latin America
- Nearshore Delivery
- Language Capabilities
- Risk Diversification
- Negative factors must also be considered
- Security Concerns
- Choice of Locations
- Lack of Appropriate Workforce
- Inter-Vertical Competition
- Concerns over Economic Stability
Competitive Landscape
- Latin America's indigenous players are scaling up their global sourcing capabilities
- Mexico
- Brazil
- The US outsourcing giants continue to dominate the Latin American market
- European outsourcers are tapping Latin America's language capabilities
- India's leading players are starting to make a major impact in Latin America
Go to Market
- for vendors looking to set up in Latin America, there are several possible approaches
- Latin America as a Nearshore Location
- Using Latin America as Part of a Multi-Shoring Model
- Tapping into Latin American Expertise in Key Vertical Markets
- Mining
- Life Sciences
- Air Transportation
- The recent activity in Latin America is set to continue
- Increase in Activity is a Relatively Recent Trend
- Opportunities Remain outside Tier One Countries
- Recommendations
- Identify the main objectives
- Recognize that Latin America is not a homogenous region
- Determine the level of client demand
Appendix
- Additional Economic Information
- Methodology
- Further reading
- Ask the analyst
- Datamonitor consulting
- Disclaimer
List of Tables
- Table 1: The three tiers of Latin America's IT outsourcing sector
- Table 2: Time Zone Differences between the US and Major Sourcing Centers
- Table 3: 10 Most Populous Latin American Cities
- Table 4: Economies in Latin America
List of Figures
- Figure 1: GDP Growth in Latin America's Leading Global Sourcing Locations (%)
- Figure 2: Value of Argentinean Peso, January 2002 to May 2003 (US$)
- Figure 3: Population of India vs. the biggest Latin American countries (2007), in millions