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Latin America: IT Outsourcing Hotspot?

By Dennis McCafferty on 2010-10-07


Latin America is emerging as a top growth region for U.S. companies looking to outsource jobs, including positions that require considerable technology skills, according to a new survey from Capgemini. The region is No. 3 overall for jobs outsourced from the U.S., the survey reveals, and several factors are creating a rapidly expanding level of interest. including Latin America's proximity to the U.S., the relative lack of language barriers and the overall education and skill levels of the population. Clearly, executives are looking far beyond the far-flung “usual suspects” for job destinations, and are finding appealing options closer to home. “As the economy rebounds, companies are looking to use outsourcing more strategically as a tool to increase efficiency, yield significant cost savings and drive growth,” says David Poole, vice president and head of Americas business process outsourcing for Capgemini. “This includes considering locations beyond India.” Harris Interactive conducted the survey on behalf of Capgemini, interviewing 300 U.S. senior executives at Fortune 1000 companies.

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25 percent

25 percent of respondents say their companies outsource to Latin America—making it the third most-popular region for exporting jobs.

Top 2 Destinations?

1. India (60 percent of respondents) 2. China (27 percent of respondents)

45 percent

45 percent of executives whose companies do not outsource to Latin America say outsourcing there would be of interest in the future.

56 percent

56 percent of executives believe that doing business in Latin America is becoming easier than doing business in other parts of the world.

89 percent

89 percent of executives say that Latin America is becoming increasingly important to U.S.-based businesses.

Cost of Labor

69 percent of executives surveyed say cost of labor is a top reason to outsource to Latin America.

Technology/Infrastructure

49 percent of respondents say technology/infrastructure capability is a top reason to outsource to Latin America

Skilled Labor

48 percent of respondents list skilled labor as a key consideration when it comes to exporting jobs to Latin America

Economic Stability

44 percent of respondents say economic stability is a top factor in outsourcing to Latin America.

Language

41 percent of respondents cite language proficiency as a top reason to outsource to Latin America

Education

40 percent of respondents say the average education level of Latin American workers is a key factor in their decision to outsource there.

Tax Benefits

37 percent of respondents say that tax benefits are a top reason to outsource to Latin America.

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