Global Delivery Locations for BPO - Focus on Latin America (Strategic Focus)

Table of Contents

• 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
• Table of Contents
• Table of figures
• Table of tables
• 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