In recent years, customers have preferred this region as a coastal destination, even at a higher price than in some remote locations.
Emerging destinations in the region are now competing with more mature Asian offshore destinations. South America has the highest number of developing outsourcing cities, helped by the growing demand from the United States for coastal services and regional economies entering underutilized service markets.
THE BEST CITIES IN THE REGION
Buenos Aires, Argentina, has been improving lately.
Santiago, Chile, is one of the most promising places for CPO and ITO, and employs highly qualified professionals.
But Chile, with a population of 60 million, cannot afford the same scale as Argentina. The question for Santiago is whether they will be able to train and provide enough qualified professionals to compete with Chile to perform scalable work for THE BPO?
Brazil has the largest scale in the region, and Sao Paulo is a popular destination for customers in the domestic market. Preferably just outside Buenos Aires.
San Jose, Costa Rica, is one of the main destinations of ITO.
Lima, Peru – a favorite place near the coast
The problem is that Colombia’s perception of high-risk places has changed dramatically, although customers remain concerned
REGIONAL PERFORMANCE DYNAMICS
Latin America has not caught up with inflation in terms of overall costs and therefore remains profitable. But cost is not the only factor. Countries are trying to reduce the total cost of ownership:
Mexico promises cost reductions and offers incentives
Uruguay has free trade zones offering a 0% tax.
Colombia provides tax breaks
Most governments have very aggressive advertising agencies.
The total cost of providing services in Latin America will decrease. The dollar was a problem in Latin America. The dollar here is losing ground, as in many other parts of the world. In this respect, the past year has been particularly difficult. This year is a little more stable.
MARKETS THAT CAN TURN
Latin America, with well-developed regional markets, has a very strong value proposition because it is capable of serving several markets.
Close to the U.S., English and Spanish markets – 20% of U.S. consumers are Hispanic.
European markets in Spain (Spanish) and Portugal (Portuguese)
The time zone problem is that Latin America is in a very good position, roughly the same time zone as the United States and Europe.
Analysts say that now that the world is talking about “flexible development,” it’s very difficult to develop flexibility when you’re away.
Latin America can be part of a dual business strategy: everything you need to do in the customer interface, do with your Latin American team and connect with your Asian team for the rest of the process.
Analysts advise going beyond traditional Latin American jobs and thinking in terms of innovation. Latin America has leadership and partnership
Buyers find sellers willing to answer questions and available compared to other countries.
The area not only offers profitability, but is also ideally located for testing innovation and installing research centers in it.
Task. Entering the global market is a challenge for outsourcing players in Latin America, especially for small and medium-sized enterprises. The main customer remains the regional market. The full potential of the region to serve external markets still needs to be optimized.
The unique value proposition for each country is often weak, so the positions of many countries revolve around belonging to the “multilingual coastal direction”.
The region needs to make efforts to determine the value proposition it holds, i.e. the competitive advantage in the ito, BPO and KPO industries. It also allows individual countries to differ from the peloton.
Colombia – 33% of graduates study engineering here. Colombia is a country of engineers. However, it does not export technical services.
Uruguay – The medical industry can flourish here. The office of a very famous French medical institute has opened here. There are more doctors per capita than in any country in the region.
Chile is building its competitive advantage at the expense of natural resources. There are services around natural resources. He’s got copper, he’s got copper engineers as well. According to A U.S. Technology Market Study for the Export of Engineering Services from Chile, this is a very large untapped market.
Brazil is a world leader in certain agricultural business processes.
How to sell the region as a whole?
Where there are natural resources, a service is attached to them. But this potential was largely not used.
Central America must move from manufacturing to maintenance