2011 Latin American Outsourcing Summit Guide

The 2011 Latin American Outsourcing Summit®
Las Américas Global Resort and Convention Center ● Cartagena, Colombia ● May 26 - 27, 2011

Nearshore and its Rightful place
in Global Sourcing
Mauricio A. Velásquez, COP, Business Development Manager,
Teleperformance Colombia

www.IAOP.org

The 2011 Latin American Outsourcing Summit® ● Cartagena, Colombia ● May 26-27, 2011

Latin America,
A snapshot when speaking of outsourcing

Copyright © 2011 IAOP. All Rights Reserved.


Tremendous Opportunities

to discover



 2010 represented a region
growth of 6.1%
Fuente: CEPAL – Comisión Económica para América Latina

Many languages, many cultures


 Unemployment rate reduced
from 8.2% in 2009 to 7.6% in 2010



 Literacy rate 2010
• Men: 96.8%
• Women: 97.4%



 Latin America and The Caribbean,
Foreign direct investment grow 40% in 2010
compared to 2009 Fuente: CEPAL – Comisión Económica para América Latina



 Global business participation
in the region grew from 5 to 10%



Conditions on major cities throughout the
region improved

More educational centers
+ concrete education policies
= young trained labor force

Better social conditions
Better Education


Latin America with high
expectations and expected growth
on the outsourcing business



High Skilled workforce,
optimum costs and cultural
affinity with target markets

Thanks to


What processes or functions
should be outsourced?



Information
Technology
Outsourcing
ITO
Business
Process
Outsourcing
BPO
What processes Knowledge
or functions
should be
Process
Outsourcing
KPO
outsourced?


Information Technology Outsourcing ITO
Software R&D
IT Consulting
Infrastructure Management
Application Management.

Multinationals and Multilatinas with solid proven
experience
Servicing Domestic & Nearshore Markets



Business
Process
Outsourcing
BPO
or functions
should be
Process
Outsourcing
KPO
outsourced?


BPO Business Process Outsourcing

Customer Relationship Management (Sales, Marketing, Call
Centers/Contact Centers)

Human Resource Management (Training, Talent Mgmt, Payroll,
Recruiting)

Enterprise Resource Management (F&A, Procurement, Logistics,
Supply Chain, Document/Content Mgmt)

Industry Specific Services (BFSI, Manufacturing, Telco, Energy,
etc.)

Servicing Domestic Markets, Offshore & Nearshore


BPO Business Process Outsurcing

TELEPERFORMANCE, Worldwide leader on customer experiences

founded in 1978
Worldwide leader
120,000+ employees
Revenue of US$ 2.78bi in 2010

268 contact centers
Presence in 50 countries

66 languages and dialects



or functions
should be
Process
Outsourcing
KPO
outsourced?


Knowledge Process Outsourcing KPO
Investment / Business research services
Data Analytics & Market research
Legal process outsourcing
Business operations support, analytics &
management

Servicing Domestic & Nearshore Markets



Outsourcing in Latin America

We can say that work for the
different Outsourcing disciplines
is being done

But, How competitive is being done?



Outsourcing Global Market
presents a dynamic behavior
over the last years.
FUENTE: DUKE CGGC (MARZO 2010) CON DATOS DEL OECD

Average anual growth per segments (%) Revenue per segments (USD billones)
2005 – 2010. 2005 – 2010.



Global Market ITO & BPO (2007)
Players

Latin America participation is only
6% of the Global market
FUENTE: EVEREST RESEARH INSTITUTE, McKINSEY GLOBAL INSTITUTE, NASSCOM STRATEGIC REVIEW 2007



¿What is a Foreign Company
looking for in Latin America?


¿What is a Foreign company looking for in Latin America?

 The correct PRICE

 Favorable business
ENVIRONMENT

QUALITY and Skills
• Human Capital
• Certifications

INDUSTRY maturity



Future in
Latin América


The potential is:
• Privileged Location
• Talent availability
• Competitive and
innovative spirit



A.T. Kearney Global Services Location Index

Financial People Skills and Business
Country Rank Talent Score
Attractiveness availability environment

2007 2009 2011 2007 2009 2011 2007 2009 2011 2007 2009 2011 2007 2009 2011
India 1 1 1 3.22 3.13 3.11 2.34 2.48 2.76 1.44 1.30 1.14 7.00 6.91 7.01
Brazil 5 12 12 2.64 2.18 2.02 1.78 1.83 2.07 1.47 1.37 1.38 5.89 5.39 5.48
Chile 7 8 10 2.65 2.41 2.44 1.18 1.20 1.27 1.93 1.37 1.82 5.76 5.50 5.52
Philippines 8 7 9 3.26 3.19 3.18 1.23 1.17 1.31 1.26 1.24 1.16 5.75 5.60 5.65
Mexico 10 11 6 2.63 2.48 2.68 1.49 1.50 1.60 1.61 1.45 1.44 5.73 5.43 5.72
Uruguay 22 36 41 2.95 2.46 2.42 0.98 1.00 0.91 1.54 1.43 1.42 5.47 4.89 4.75
Argentina 23 27 30 2.91 2.47 2.45 1.30 1.34 1.58 1.26 1.21 1.09 5.47 5.02 5.12
Jamaica 32 24 33 2.83 2.77 2.81 0.96 0.79 0.72 1.49 1.49 1.34 5.29 5.06 5.01
Costa Rica 34 23 19 3.00 2.67 2.84 0.86 0.89 0.94 1.36 1.50 1.56 5.22 5.07 5.34
Panama 41 43 34 2.88 2.48 2.77 0.75 0.70 0.72 1.40 1.40 1.49 5.02 4.58 4.98
Colombia n.s. n.s. 43 n.s. n.s. 2.34 n.s. n.s. 1.20 n.s. n.s. 1.18 n.s. n.s. 4.72

Source: A.T. Kearney Global Services Location Index, 2007, 2009, 2011.



Hedrick & Struggles.
Mapping talent in Latin
America. The Economist
Intelligence Unit.

Talent
Index 2013
Colors on the map represent
Talent Index ranking in 2013
for each one of the 10 Latin
Countries.



High quality education in Science and Mathematics in Latin America, 2010

Source: IMD World Competitiveness, 2010. Ranking among 57 countries. World Economic Forum, Executive Opinion Survey 2008, 2009



Avaliability of Qualified Labor, 2010

Source: IMD World Competitiveness, 2010. Ranking among 57 countries.



Comparison in Latin America

Source: IMD World Competitiveness, 2010. Ranking among 57 countries.



¿What should
we do from Latin
America?



 Build REAL processes
Government - Companies - Community



 Social opportunities promotion



 Market conditions improvement
• Better Doing Business
• Economic advantages



PERCEPTION strategy



Latin America, land of
business opportunities


The 2011 Latin American Outsourcing Summit®
Las Américas Global Resort and Convention Center ● Cartagena, Colombia ● May 26-27, 2011


2011 Latin American Outsourcing Summit Guide

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