Why Gartner Got it Wrong on Peru
By Tarun George
Why does Google think Peru is one of the most attractive markets for tech companies in the world?
Look at the facts: Peru’s economy has been growing at a rate of 7-9% every year, which is astounding in a region where most nations haven’t fully recovered from the recession. But while there are many advantages to this stellar growth, one negative is becoming clear – Peru’s services sector is being left behind. Usually accompanying a strong economy is a move into higher value, knowledge-based services. But in Peru, the tech services ecosystem is not keeping pace.
There’s no question that Peru has been in the sourcing spotlight lately. In January Google announced plans to locate to the country, in July we heard about Tata Consultancy Services (TCS) setting up in Lima, and then in September Allus Global completed its new BPO center there with an investment of $5 million.
Not bad for one year, and those are just a few examples. But while Peru is not dogged by the usual workforce scalability issues, analysts are worried that inherent problems with the political system, investment and intellectual property protection, and English proficiency in the workforce could be major roadblocks to the country’s expansion in services. Here we summarize Peru’s strengths, weaknesses, and prospects for the future.