Latin America growing in popularity as a global sourcing location – Computer Business Review

by Dave

Infosys Bangalore CampusImage via Wikipedia

Computer Business Review

The last two years have seen a marked increase in the number of outsourcing vendors utilizing Latin America as a low-cost delivery location. Key examples include major players such as IBM, EDS, Tata Consultancy Services and ACS, all of which have significantly increased their presence in the region since 2006, while providers such as Infosys and Cognizant have opened centers in Latin America for the first time.

Due to its geographical proximity, Latin America can be used as a nearshore location to serve customers in the US. This enables both client and vendor to maintain a close relationship, including more face-to-face meetings, and also means that problems can be solved in real-time, without the delays that inevitably occur when work from the US is offshored to more distant locations such as India or China.

Operating in Latin America also gives clients access to a major pool of native Spanish and Portuguese speakers. Particularly in the case of customer-facing BPO functions, this offers the potential to provide better and more efficient services to the Hispanic community in the US, as well as opening up the Spanish and Portuguese markets in southern Europe. Providing local language services also improves the quality of services offered to end users, thus increasing customer retention.

While in the past IT services vendors tended to pick one offshore location, usually India, and deliver a range of services from this location, an increasing number of companies are adopting a multi-shoring strategy, whereby they set up centers in a number of countries in different geographic regions.