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.
By James Bargent
In the world of IT services, Bolivia is off the Nearshore map. If it is thought of at all, it is generally dismissed as a technological backwater, a landlocked nation of inhospitable terrain, poverty and civil strife. However, one man and his team have spent the last decade battling that perception by establishing the company they founded, Truextend, as an example of the potential waiting to be unlocked in this Andean nation.
Cesar DOnofrio of MakingSense talks about his own experiences managing IT services relationships.
Generally speaking, the desire to perform operations at a lower cost than you incur performing them in-house is a primary driver of information technology outsourcing (ITO). But how much costs are reduced, and even how cost reductions are tallied, can vary greatly depending on a number of variables.
Marc Tanowitz, principal at outsourcing advisory firm Pace Harmon, agreed to review some of the most crucial ITO pricing variable with Nearshore Americas.
Chile’s Synapsis has acquired a controlling stakes in Brazilian information technology firm Cyberlynxx, further expanding its footprint in Latin America.
Financial details of the deal have not yet been revealed.
Synapsis stated that the acquisition will help it realize the goal of generating USD #35 million revenue in Brazil and $140 million in Latin America by the end of 2012. According to reports, Synapsis is focused on increasing its revenue to $250 million by 2015.
With over eleven years of experience in the IT industry and over 50 active customers in Brazil and the United States, Cyberlynxx offers a wide range of IT management solutions. Cyberlynxx has several large Brazilian clients like Petrobras, Blue, Basf and Magazine Luiza.
The acquisition helps Synapsis double its size in the Brazilian market, both in terms of staff and capacity, increasing its number of employees to 1400 in Latin America. Synapsis has unveiled a plan to invest …
CGI Group’s acquisition of Logica for $2.6 billion suddenly thrusts the company to a more prominent role among multinational consultants doing business in Latin America. The one edge CGI appears to bring to the table are solutions focused on improving the efficiency of tax collection – a notorious problem that widely afflicts governments in the region.
Aided by the emergence of increasingly advanced software engineering practices and tools, a “factory” approach to software development has become pervasive in the past 20 years. The concept that process and methodology were more important than people to software development efforts helped build a booming IT services outsourcing industry in India. However, as detailed in a new report from Nearshore Americas, Collaborate, Innovate, Accelerate, outsourcing software development based on a traditional model of cost arbitrage and heavy specification and process has produced a generation of de-motivated IT professionals who have lost the spirit needed to solve problems and come up with innovative ideas.
The encounter of two giants: one of them is IBM, a global IT provider, and the other is Eike Batista, the richest man in Brazil and the commander of a corporate empire in the country. Together, they closed a deal that includes the construction of an industrial tech center and the supply of outsourcing services of around US$ 1 billion in a ten year interval.
Source: Smart Planet
U.S. companies looking to outsource IT services and business processes are increasingly eyeing Latin America, and Mexico in particular.
It’s “near shore” versus offshore in action.
Closer to home than India or China, often with a deeper cultural affinity (especially among Southwestern states), Mexico has become an increasingly competitive option in the past five years.
“Mexico has made important advances,” said Javier Allard, president of the Mexican IT industry trade group AMITI. “We don’t want to compete with India, China or the Philippines. There are many niches.”
Neoris, a Mexico-based company that provides IT and business process outsourcing (BPO) services in Mexico, Argentina and elsewhere around the globe, is one of the companies seeing gains, as demand for near shore outsourcing from U.S. companies grows.
Neoris handles the e-commerce portal for a major home improvement retail chain; manages “enterprise resource planning,” or ERP, for an auto parts manufacturer and oversees …
Shared services operations (SSOs) have transitioned from a simple means to gain quick cost savings to a critical component of corporate strategy. Historically, transactional services offered such as accounts payable processing, payroll, and IT help desks have been no-brainers for domestic SSO inclusion. The new norm for SSO has expanded to smaller, higher-value services such as accounting, budgeting, financial reporting, HR recruiting, and application development. This expansion has companies asking, “Why service only one country with SSO? What can be leveraged to service a region, or even all global locations?”