The Information &Technology market in Latin America that includes hardware, software and services, is expected to grow 7% per year until 2014. From an economic perspective, with most countries in the region growing less than 3%, IT investments are becoming a key factor to drive up GDP.
Ovum analysts were recently afforded a first-hand view of one of Colombia’s emerging secondary locations for contact center outsourcing, the city of Barranquilla. With investments by both local and global vendors in the city continuing at a strong pace, it is clear that the Colombian CRM sector has room to grow beyond Bogota. However, it is also clear that Barranquilla’s existing vendor base needs to work closely with local authorities to ensure a manageable level of expansion to prevent short-term industry saturation.
We live in a globalized world with increasing technological transformations. Among outstanding developments that reach the global population, it is the practice of entrepreneurship that stands out as a way to conduct business with an innovative approach. Enterprising initiatives are essential for the socioeconomic development of a country, which is fundamental for the concept of job opportunities and is also a driver of economy. Enterprising activities not only drive the economic system but also promote important transformations and social development.
In the past few years there’s been a great deal written about governance. Yet, it’s still a misunderstood subject. In most cases, it’s an afterthought only considered once the “transaction” is complete and the provider is selected. Unfortunately, this practice relegates governance to no more than a box to be checked off on the path to program implementation. In order for governance to have a chance to realize the business case for which it was created, it must be more than this.
Alorica’s recent inauguration of is contact center in Santo Domingo was an eye-opener for Ovum analysts who traveled to participate in the event. Getting a perspective on what had become a somewhat overlooked delivery location in recent times being refreshed with one of the Caribbean’s most advanced contact centers provided a valuable insight into the potential future of the country’s industry. In Ovum’s view, the Dominican Republic carries opportunity for vendors (and their clients), providing more opportunities for site diversification and added-value multilingual service delivery from the very competitive Caribbean and Latin America (CALA) region.
By William B. Bierce
Pending changes in U.S. immigration law could change the business models for offshore outsourcing. Immigration reform is not only a weighty political issue. It is something that is likely to influence business strategies that could result in diminishing the adverse impact on global business service models.
By Timothy Wilson
The North America Free Trade Agreement (NAFTA) between Mexico, the United States and Canada, just entered its 20th year. In that time investments in information and computing technology (ICT) have certainly increased in Mexico – as they have everywhere in the world. Tracking specific investments to NAFTA is more art than science, though it is true that the shift from being a distribution economy, in which global ICT firms simply set up franchise shops, to one where real investment and development takes place, can likely be attributed to the trade deal.
By Lindy Hanson & Geoff Woollacott
Investments in IP-based delivery and platforms will enable traditional services firms to break the link between revenue and headcount growth and result in a net improvement in positioning of “India-centric’ outsourcing providers, according to new findings from Technology Business Research. The break in this linear equation will result from monetizing IP and represents an opportunity for professional services firms to increase margins that can drive bottom-line improvement and free up budget dollars for investments in cost of services, R&D and SG&A functions.
What are the biggest red flags that should scream out to you that your BPO partnership is headed toward a brick wall? Even though it is an overused cliché, it is a very fitting one: Strategic outsourcing is like a marriage, and it pays to know what you are getting into. It’s not even enough to rely on an outsourcing partner’s good reputation if they are not a good fit for your company’s culture or your specific needs.
Is your company ready to establish an offshore operation? This move might be the right step at precisely the right time, or it could mean acting beyond your current capabilities. There are five stages of maturity, and knowing your company’s current stage is crucial to successfully engaging with an offshore software development company.