-[Outsourcing in Latin America]-  RICHARD BOU   MOLLAH YERIMA  WINTER 2010

Introduction Outsourcing means obtaining goods or services from an outside supplier; to contract work out. Many companies outsource and hire consultants in order to maintain a flexible workforce.

Few more concepts  Offshoring - the practice of hiring an external organization to perform some business functions in a country other than the one where the products or services are actually developed or manufactured.  Nearshore - means sourcing service activities to a foreign, lower-wage country that is relatively close in distance  Rightshore -Include offshore and nearshore model which requires research, analysis, recommendation and implementation Nearshoring is best for the US and Canada because it offers great resources for states that are improving their language skill along with resources

Thanks to outsourcing Latin America companies can now introduce and offer their products or services to other Latin American countries. Cheap workforce to produce material Improves business focus by letting them target a boarder firms and freeing up management to work on how to get the business to run better World-class capabilities because it helps the world come together and provide resources to meet the needs of other world-class customers.

Thanks to outsourcing Reengineering benefits helps outsourcing countries realize that their product and resource are need and needs increase productively Sharing risk helps countries and states become more flexible and are able to adapt to any big changes in the market Help companies with their financial measurement and investment in the company.

Top outsourcing Providers Chile Brazil Mexico Costa Rica Argentina

Emerging outsourcing Providers Panama Nicaragua Columbia

Why Latin America? Proximity Minimal Time difference Cost saving in other locations is Now eroding

Brazil Telecommunication systems are very up-to date Domestic market for software is expanding Eagerness to embrace new technologies Banking sector is developped

Chile The population is relatively young Growth from natural resources and commodity bubble Independence from commodity based economic growth Incentives to attract entrepreneurs and companies  AMEX  Equifax  Yahoo  Oracle

Chile Subsidies for studies in IT field In 2008, the outsourcing industry generated $840 millions and employed more than people.

Outsourcing in Argentina

Outsourcing in Mexico

Outsourcing in Costa Rica

Problems Language barrier Size of their operations capabilities Population size Tax structure

Conclusion  Outsourcing reduces risks Makes companies more efficient Cuts capital and labor costs Maximizes profit

Thank you Questions