-[Outsourcing in Latin -[Outsourcing in Latin America]-America]-

RICHARD BOU MOLLAH YERIMA

WINTER 2010

IntroductionIntroduction

Outsourcing means obtaining goods or services from an outside supplier; to contract work out.

Many companies outsource and hire consultants in order to maintain a flexible workforce.

Few more conceptsFew more conceptsOffshoring- the practice of hiring an external organization to perform some business functions in a country other than the one where the products or

services are actually developed or manufactured.

Nearshore- means sourcing service activities to a foreign, lower-wage country that is relatively close in distance

Rightshore-Include offshore and nearshore model which requires research, analysis, recommendation and implementation

Nearshoring is best for the US and Canada because it offers great resources for states that are improving their language skill along with resources

Thanks to Thanks to outsourcingoutsourcingLatin America companies can now introduce and offer

their products or services to other Latin American countries.

Cheap workforce to produce material

Improves business focus by letting them target a boarder firms and freeing up management to work on how to get the business to run better

World-class capabilities because it helps the world come together and provide resources to meet the needs of other world-class customers.

Thanks to Thanks to outsourcingoutsourcingReengineering benefits helps outsourcing countries

realize that their product and resource are need and needs increase productively

Sharing risk helps countries and states become more flexible and are able to adapt to any big changes in the market

Help companies with their financial measurement and investment in the company.

Top outsourcing Top outsourcing ProvidersProvidersChile

Brazil

Mexico

Costa Rica

Argentina

Emerging outsourcing Emerging outsourcing ProvidersProvidersPanama

Nicaragua

Columbia

Why Latin Why Latin America?America?

Proximity

Minimal Time difference

Cost saving in other locations is

Now eroding

BrazilBrazilTelecommunication systems are very up-to date

Domestic market for software is expanding

Eagerness to embrace new technologies

Banking sector is developped

ChileChileThe population is relatively young

Growth from natural resources and commodity bubble

Independence from commodity based economic growth

Incentives to attract entrepreneurs and companies

AMEX

Equifax

Yahoo

Oracle

ChileChileSubsidies for studies in IT field

In 2008, the outsourcing industry generated $840 millions and employed more than 20000 people.

Outsourcing in Outsourcing in ArgentinaArgentina

Outsourcing in MexicoOutsourcing in Mexico

Outsourcing in Costa Outsourcing in Costa RicaRica

Problems Problems

Language barrier

Size of their operations capabilities

Population size

Tax structure

ConclusionConclusionOutsourcing

reduces risks

Makes companies more efficient

Cuts capital and labor costs

Maximizes profit

Thank youThank you

Questions