CIO Magazine recently (well, March 26th, about a month ago – I just found the article!) published an article on the the Outsourcing Outlook for Latin America, written by guest author Alejandro Camino of Mexican IT outsourcing firm Softtek.
Due to the obvious population size differences between the Latin American region and the country of India, the former will never replace the latter.
Latin America should be considered as playing a complementary—not replacement—role to mitigate what a leading analyst calls “India fatigue.”
This is especially so as it comes to certain advantages Latin America provides:
- Nearshore vs. offshore, especially México. Interestingly the author does not consider Argentina or Brazil as nearshore destinations, citing a 12-hour flight to Santiago taking longer than a flight to Poland. However, there are advantages in time-zone similarities, something not mentioned in the article.
- Talented IT workforces in Brazil, Mexico, Argentina and Chile, especially as regards knowledge of SAP, web 2.0 and Java. The author singles out Argentina especially for this kind of expertise, though what I have seen from executives at the above-mentioned companies, Costa Rica and Mexico are also producing talent in modern technologies such as Java, web 2.0, and mobile apps.
- The resiliency of the region during tough economic times. To those of us who are students of Latin American affairs, and I literally was a student in the department of Latin American Studies at the University of Texas at Austin, the following sentence made me chuckle due to it’s irony:
a colleague in Buenos Aires said their operation would survive the pending financial meltdown, because “facing crisis is like a modus vivendi for us, our status quo.”
Great to see confirmation of Latin America as having ”arrived” on the IT outsourcing scene from such a prestigious source as CIO magazine.