Download - NASSCOM ILF 2014: Latin America and Caribbean Opportunities for Growth: Anupam Govil, Avasant
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Anupam Govil
Latin America and Caribbean Opportunities for Growth
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Latin America & CaribbeanThe Big Picture
9%
% World GDP (PPP) % World Population
9%
* Pop > 1Million
World Bank Doing Business Rankings ’13- Top 10 in Latin America-Caribbean
40 4342 6655 79 94 102 10953 88
Literacy Rate (Average)
> 85%
LatAm Domestic IT-BPO Market
USD 44Bn
The Latin American-Caribbean (LAC) is fast developing into an attractive market in itself growingbeyond just being a nearshore delivery location.
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Latin American Outsourcing LandscapeGetting Bigger & Better
LATIN AMERICAN OUTSOURCING
˃ Largest agglomeration of outsourcing ready nations
˃ The ‘Offshore’ IT+BPO market is estimated to touch US$ 9.2bn by ‘14 (CAGR 12%)*
˃ Lead by Brazil, Chile and Mexico (IT+BPO)
˃ Significant presence in IT/CC (multi-lingual) space -Guatemala, Costa Rica, Colombia
˃ Strong macro economic performance esp. by established locations
˃ Proactive government support through incentives, tax breaks, SEZ’s etc.
˃ Improving/positive investment climate
˃ Ability to provide services across the value chain in IT/BPO/CC
˃ Multi lingual capability
˃ Shrinking difference in costs vs. offshore locations
Latin America is the fastest growing outsourcing agglomeration benefiting from its proximity tothe US, rise in bi-lingual service demand and fast growing domestic markets.
*Source-PwC
Country AT Kearney GSLI Rankings
‘11 (+/-‘09)
Gartner/ KPMGAnalysis
Argentina 30 (-5) Established
Brazil 12 (+5) Established
Chile 10 (-2) Established
Colombia 43 (-) Emerging Strong
Costa Rica 19 (+3) Established
Ecuador -- High Potential
Guatemala -- Emerging Strong
México 6 (+5) Established
Nicaragua -- High Potential
Panamá 34 (+9) Emerging Strong
Puerto Rico -- High Potential
Uruguay 41 (22) Established
El Salvador -- High Potential
Perú -- High Potential
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˃ Largest agglomeration of ‘Nearshore’ English speaking talent pool
˃ The Caribbean and Central America ‘Nearshore’ BPO market is estimated at US$ 3bn
˃ Suited for voice based CC , transaction processing services as well as high value F&A services
˃ Lead by Jamaica and Dominican Republic in the CC space . Belize and Puerto Rico registering consistent growth in the CC/BPO sector
˃ Locations like Trinidad better positioned to provide higher value , vertical specific BPO services
˃ Strong services sector background owing to the tourism industry
˃ High unemployment rate ensuring adequate talent availability
˃ Varying levels of government support through incentives, tax breaks, SEZ’s etc.
˃ About 80% of the CC operations in the Caribbean are funded by US companies
Caribbean is a small but increasingly significant part of the Nearshore market. The region is fastemerging as a credible location not only for voice based CC segment but also for higher valueBPO services. For service providers, Caribbean also provides access to a large untappeddomestic market.
Country AvasantAnalysis
( ITeS Destination)
Focus Area
Jamaica Emerging Strong English CC
Dominican Republic
Emerging Strong Multilingual CC
Puerto Rico Moderate Potential Multilingual CC
Trinidad High Potential F&A BPO
Barbados Moderate Potential English CC
Belize Moderate Potential English CC
Caribbean Outsourcing LandscapeUntapped Potential
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Latin America & Caribbean MarketA Game Changer for Indian Service Providers?
Global Delivery Center in Jamaica- Kingston
Global Delivery Center in Cost Rica-Alajuela
New Delivery Center in Brazil-São Paulo
Initiates BPO Operations in Puerto Rico-Aguadilla
F&A BPO from Trinidad and Tobago-Port of Spain
New Delivery Center in Costa Rica-San Jose
Over 25 Indian IT/BPO companies operate in 16 of the 22 key LAC countriesemploying over 29,000 local staff.
*Includes Jamaica, Trinidad and Tobago from the Caribbean
Indian Service Provider Activity - 2013
Indian service providers are ramping up nearshore presence through strategic acquisitions as well as setting up greenfield operations.
Shared Service Center in Colombia-Bogota
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India-LAC CooperationOpportunities Galore
Macro Level Factors Driving India-LAC Cooperation- Leveraging Close Trade Ties - Over USD 46.67 billion in total trade in ‘12-‘13 with
Indian exports grossing over USD 15.7 billion. This is expected to touch USD 25 billionby ‘15 through effective cooperation. IT-BPO expected to form a significant part
- Geo-Political Interests - Common interest of both regions in terms of business andstrategic reasons
- Cultural Ties - Deep cultural ties esp. with Caribbean countries make collaborationeasier
Industry Level Factors Driving India-LAC Cooperation- Nearshore Advantage - Easy access, similar time zones and greater cultural affinity
provides a good balance to offshore locations- Growing Domestic Market - LatAm companies bring in the local market knowledge
while Indian service providers bring industry/process experience- Easier Access to Prime Markets – Many LAC locations offer an easier access to key
North American markets through trade agreements (NAFTA) easing sensitiveoffshoring/visa restriction issues
- Unique Skill sets – Multi-lingual talent, Creative and Web services, Mobile and Agiledevelopment
