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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Source: Merco Press

Inflation in Uruguay was not only far above target domestically but also figures among the ten highest in the world, and in Latam only behind Argentina and Venezuela

Uruguay ended 2011 with 6.8% inflation, above the target range of 4% to 6%, which nevertheless completes a seven year period below two digits, the longest since stats started back in 1939.

However Uruguayan economists are divided as to the future approach: some believe it’s not so important the actual percentage increase but the fact that the acceleration of prices is under control. They argue that in a global volatile environment it’s not necessarily advantageous to strictly implement “monetary policy”.

Although monetary policy helps contain prices it also slows the economy and job creation, and helps an increase in imported goods and services because a stronger currency (and cheaper dollar) means Uruguayan goods (particularly with a high component of local …

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Source: Merco Press

Latin America trade with India could go up to 50 billion dollars by 2014 on the back of projected high economic growth in both the regions, said R. Viswanathan, India’s ambassador to Argentina, Uruguay and Paraguay.

”The region (Latin America) is going to be a regular source of imports of crude oil, edible oil, minerals, timber and other products which India needs to sustain its high growth. Agribusiness, food processing, energy and mining are the growth areas of Latin America and the Indian companies should target them for trade and investment“ said the top Indian official.

At present, the Latin American region accounts for 4% of India’s trade. Two-way trade between India and Latin America was recorded at 23 billion dollars in 2010. It included 9 billion of India’s exports to Latin America and imports of 14 billion.

India targets to increase its exports to Latin America to …

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By Patrick Haller

Argentina‘s students didn’t take to the streets recently like students in Chile and Colombia did, but that doesn’t mean they wouldn’t like to see some changes to the country’s education system. While literacy rates and primary school completion are high for the region, access to university to study IT or other advanced subjects essential for a thriving technology sourcing environment is often limited. Low income, and the system for granting higher-level degrees, are usually the culprits.

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Source: Hispanic Business

President Obama said the U.S. will strengthen relations with Argentina, after Cristina Fernandez began her second term as Argentine president last week.

In an interview with Argentine newspaper La Nacion published Monday, Obama said closer bilateral ties will help the two countries “to achieve even more.”

The U.S. and Argentina will openly discuss new challenges of the bilateral relations in a responsible way to be sure that any disagreement can be effectively resolved, the report cited Obama as saying.

Obama also said he hopes Argentina will deepen cooperation with the international community in countering terrorism, curbing drug smuggling and tackling the Iranian nuclear issue.

Obama and Fernandez met at a G20 summit in Cannes, France, in November when they discussed cooperation in science, technology and energy.

During the meeting, the two leaders promised to expand cooperation in the peaceful use of the space and joint research on global climate change, …

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Source: I Love Chile

On Dec. 10, President Sebastián Piñera attended the inauguration ceremony for Cristina Fernández de Kirchner, the President of Argentina, for her second term in office, pledging to strengthen the relationship between Argentina and Chile.

He stated that Chile’s main objective was “to have the best relationship with every country in the world, but particularly with our neighbors.”

Those present at the ceremony included presidents Dilma Rousseff of Brazil, Evo Morales of Bolivia, José Mujica of Uruguay and Fernando Lugo of Paraguay, among other dignitaries.

Although relations between the two countries have been a little bumpy, there has been no major direct conflict since the 1970s, which was a territorial conflict. Since the transitions to democracy in Chile in 1989 and Argentina in 1983, there has been greater economic integration, though Chile has had more of stable growth while Argentina has had ups and downs. Now, the …

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