Kirk Laughlin, CEO of Nearshore Americas, kicked off today’s Nearshore Nexus Conference at the Crowne Plaza in New York City by stating nearshore outsourcing has gone from “novel to mainstream.” Laughlin promised that conference speakers would illustrate how outsourcing destinations in Latin America and the Caribbean are “no longer in the shadow of India or China,” but have instead become vibrant providers of sophisticated IT and business outsourcing services in their own right. The first speaker, former President of the Republic of Colombia Mr. Alvaro Uribe, delivered on that promise.

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By Clayton Browne

There is a growing consensus among international economists that Argentina’s decade-long economic boom is rapidly becoming an out-of-control inflationary spiral. Real inflation has grown at 20+% annually for over three years, and the Argentine government is clearly in denial or even cover-up mode regarding the situation.

Many businesses in Argentina are already struggling from the double-digit inflation, especially industries like outsourcing that rely largely on income from outside of Argentina, and things are only going to get worse as most sources expect Argentina’s inflation rate to approach 25% in 2012.

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Source: MercoPress

Argentina must solve the controversy over the measurement of inflation which has significant economic and political costs, said Eugenio Diaz-Bonilla the Inter American Development Bank, IADB, director for Argentina and Haiti.

“We need to solve the conflict surrounding inflation stats”, said Diaz-Bonilla during discussions at the Inter American Dialogue in Washington. “The controversy has many political, economic and institutional costs” added the economist who revealed he has addressed the issue with Argentine officials.

According to Argentina’s discredited National Stats and Census Institute, Indec, inflation in 2011 was 9.5%, but private consultants put the figure at 22%, and this is the percentage on which for example the unions negotiate salaries. Likewise some provinces ruled by the opposition also have similar two-digit measurements.

Last week The Economist said it would no longer take into account Indec stats and clearly called on the government to ‘stop manipulating percentages” because they are not to …

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Source: MercoPress

Argentina limited the use of cash in the country’s financial markets as President Cristina Fernandez tightens oversight of currency transactions to help contain capital flight and prepare for what is anticipated a ‘difficult’ year for the Treasury and the Argentine economy.

The government will restrict daily cash transactions to 1.000 Pesos (231 US dollars) per person, down from 10.000 Pesos, according to a statement in the Official Gazette. The measure affects activity in the stock and bond markets, investment funds and in the futures markets. Operations above the limit will have to be done through Argentine bank accounts that are authorized by the central bank.

“They are forcing a higher level of formality in the economy, as cash transactions allow more irregularities,” said Felipe Hernandez, an analyst at RBS Securities Inc. in Stamford, Connecticut. “This is in line with other measures to prevent money laundering, for which the government …

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By Dan Berthiaume

Latin American nations make up about one-quarter of the 2012 list of Top 100 outsourcing locations compiled by global outsourcing research/advisory firm Tholons, and that is no accident. As Manuel Ravago, president for research at Tholons, explains, Latin America is an up-and-comer in the world of BPO. And more agile smaller countries might make the most of that.

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By Bill Huber, Partner, ISG, and Kristen Elvinger, Research Associate

Concerns exist over the capacity of Latin American service providers to absorb rapid growth. Several global providers currently have a presence in Latin America, and tax and other trade incentives will help attract more outsourcers to the region. And, many Latin American countries are positioned to further develop emerging areas of specialization. Indeed, lessons learned from India, China, and some Eastern European countries suggest that specialization and quality-focused differentiation will be the keys to success, especially for countries with small populations.

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Source: MercoPress

President Cristina Fernandez has more power than Juan Domingo Peron “ever had” and Peronism in Argentina is guarantee of governance, according to Carlos Corach a former Interior minister from the former President Carlos Menem administration and a respected solicitor and political analyst.

“Cristina Fernandez is probably the president which has enjoyed more power in the history of Argentina. I’d say even more, she has more power than what Peron had. Peron had to deal and negotiate with very strong corporations, and economic and political sectors”, said the former minister.

Corach added that Peron (the Army Colonel who was president from 1946/1952, re-elected in 1952 but ousted by a military coup in 1955, to return triumphantly in 1973) had to learn to live with the Armed Forces, a very powerful Catholic Church and an opposition that also had strong and charismatic leaders”.

 

“Currently the majority of those players don’t hold such …

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Source: The Next Web

Telefonica‘s startup accelerator Wayra and the Massachusetts Institute of Technology (MIT) signed a global partnership, the two entities announced. The agreement was signed during the launch of Mexico’s Wayra Academy.

As we reported, Wayra is an initiative promoted by Telefonica Digital to foster entrepreneurship and innovation in the ICT sector. Wayra works as a startup accelerator, selecting ten projects in each country in which it operates, which then receive mentoring and other resources at one of the newly opened Wayra spaces.

Initially launched in seven Latin American countries (Argentina, Brazil, Chile, Colombia, Mexico, Peru and Venezuela), Wayra is now expanding to Europe, starting with the imminent launch of a Wayra Academy in Madrid.

Following Wayra’s agreement with MIT, the two entities will collaborate on a series of initiatives in Latin America. Wayra academies in Mexico, Colombia, Peru, Venezuela and Argentina are the first to join the …

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By Reshaad Durgahee

In the period 2003 through 2010, Europe and Asia were the largest recipient regions of foreign investment projects in shared services and BPO activities, accounting for 46% and 29% respectively. Meanwhile, interest in Latin America has clearly been growing. The number of shared services and BPO foreign investment projects in Latin America rose year on year until 2010, when the total number of projects entering the region decreased by 15%.

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Source: Merco Press

Brazil’s government is ready to respond to Argentine trade restrictions introduced this week but will evaluate the impact of the measures before making any retaliatory moves, trade officials said Friday.

Argentina this week said that beginning in February it will require all importers to file an online affidavit with its tax agency, Afip, before importing goods, providing the Argentine government an instrument to delay imports or determine what goods enter the country.

In response to the measure, Brazil’s Trade ministry issued a statement expressing worry over the effects of the move on trade with its largest regional partner.

“The trade ministry received notice of the measure with concern and established contact with the Argentine government to better evaluate the possible impact on Brazilian exporters,” the ministry said in a statement.

According to a trade ministry official, discussion of the new Argentine measure has already been introduced into the agenda …

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