Nearshore Americas

How Do Nearshore Markets and Vendors Rate?

Executives from Humana, Riverwood Capital, Pace Harmon and AT Kearney debate the maturity of LATAM for BPO and shared services.

Kirk Laughlin

Kirk Laughlin is an award-winning editor and subject expert in information technology and offshore BPO/ contact center strategies.

1 comment

  • To add to the discussion concerning “why nearshore to Latin America (including the Caribbean)? rather than off-shoring to India or the Philippines”, I would like to add a few thoughts: While the proximity of Latin America to the US relative to that of Asian providers had been discussed to some degree, there are some add-on points: 1) Latin America is in the same timezone as much of the US throughout much of the year; communication is significantly enhanced, particularly when there is a service failure. 2) Travel time to Latin America is certainly significantly reduced, providing more convenient and less expensive opportunities to build strong business relationships and provide greater audit control for US clients. 3) The close proximity of Latin America with the US enables quick responses to campaign changes, especially when they are time-sensitive, to satisfy changing client needs. Although labor costs, in many cases, may be higher in Latin America than in India or the Philippines, the enhanced communications and reduced costs for campaign management somewhat offset this differential.

    A couple of other issues are worthy of note. Many areas of Latin America maintain a strong cultural affinity with the US. Moreover, often among English speakers in the region, their presentations are more accent-neutral than those originating from India or the Philippines. Also, Spanish is spoken throughout Latin America and outsourcers in the region do very well in promoting value growth of the expanding Latino market in the US.

    As was discussed in the brilliant forum, Latin American governments are becoming increasingly more stable, adopting sound fiscal policies and the governments of many of these nations are actively supporting the growth of call centers, BPOs, KPOs and other outsource business activities. The Latin American region will continue to grow in importance to US investors of these services for years to come as its knowledge base and scope continues to increase.