Political Risk Latin America Blog @PolRiskLatam

The Debate’s Not About Latin America Sourcing… But About Where, When, Why

Posted in News and Articles, Political Risk by politicalrisklatam on July 1, 2011

by Dennis Barker for Softek, June 30th, 2011.

India is too hot. Not hot as in a summer’s day in Bhopal, or hot as in an Adrian Gonzalez hitting streak, but hot as in an overheated market for IT outsourcing.

“Today a lot of customers are struggling with India because it is such a hot place, the labor market is hot, attrition is as high as it’s ever been… and because of the demand, global multinational providers out of India have a hard time deploying senior, highly qualified IT experts there because there isn’t enough of them.”

That was Stephanie Moore, principal analyst with Forrester Research, speaking during a panel discussion earlier this week on the Latin American IT services market. “Overheating in India makes people look twice, three times, four times more at Latin America,” she said.

One of those that looked at and said yes to Latin America is EMC, the giant storage company. EMC has about a thousand employees and 17 offices in the region, including Brazil and Argentina, said Joel Schwartz, senior VP. “Big data” is one of the major trends in LatAm, “and one example of big data implications is in oil exploration,” he said. “This is important for Brazil, Mexico, and Venezuela. The ability to get oil out of the ground more effectively is worth huge amounts of money to these companies,” like Petrobras in Brazil, which has found vast deposits off its coast. Anyone that can help an industry sort through all that “big data” is going to find lots of opportunity in Latin America.People are also outsourcing infrastructure and application development more often, Moore said. “When I talk to the buy side, service buyers, they are looking to use Latin America more than ever before for a number of reasons. Anybody that has a global strategy knows there is not just one location for outsourcing. India has the bulk [of outsourcing work] today, but as we’ve learned, there are many reasons to have other locations,” she said. (continue reading… )

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