Brazil IT Remains in a Class By Itself: Is That a Good Thing?
November 7th, 2011
Brasscom Global IT Forum Super Panel, last week in Sao Paulo: Corbett, Dreyfuss, Tapper, Vashistha and Laughlin.
By Filipe Pacheco
Brazil’s ascendancy as a major center for global IT services will be engineered in a uniquely Brazilian way, and should in no way aim to reproduce the model crafted by India over the last twenty years, concluded a ‘super panel’ of global outsourcing experts at last week’s Brasscom Global IT Forum in Sao Paulo.
Brazil is in a class by itself, the panelists recognized, in confronting and leveraging an entirely different set of unique circumstances compared with its “BRIC” nation counterpart, India. For instances, Brazil is experiencing a colossal economic boom – taking giant strides forward to become one of the top six economic powers on earth. (India has yet to officially crack the top ten group of leading economies).
Gartner’s Dreyfuss says Brazil Made ‘Fatal Mistake’ Trying to Compete with India
September 19th, 2011
By Patrick Haller
During the Gartner Outsourcing Conference in Orlando last week, Cassio Dreyfuss, Gartner Vice President, questioned Brazil’s long-term viability as a sourcing destination, and observed that some Brazilian providers, like Ci&T, are looking to branch out of the local market, by developing a delivery model, such as exporting to the US from Argentina. “Latin America,” he declared, “is not on a rollercoaster as we were 20 years ago, but we are not as stable as we should be.”
Nearshore Outsourcing Customers Tell Peers: “Look Beyond the Surface”
September 19th, 2011
By Patrick Haller
Jumping into a large project with an unproven Nearshore sourcing provider could prove to be fatal for buyers. That’s according to two senior sourcing executives, from
AMD and Welch Allyn, who talked about their successful engagement with Neoris, during last week’s Gartner Outsourcing Summit. Both executive made something crystal clear: Nearshore is quite capable of out-performing farshore in higher-value outsourcing programs.
Karamouzis: Deliver value or perish.
Exploring why Nearshoring has become “survival of the fittest”
By Patrick Haller
The offshore services sector has come a long way since the nascent years of coding and platform development, moving to infrastructure, remote management and knowledge processing, among other things. The next growth cycle, however has a distinctly Darwinian flavor, says Research Vice President at Gartner, Frances Karamouzis.
CIOs and Sourcing Bosses: Never Let Go Of Vendor Management
April 12th, 2011
By Tarun George
Outsourcing buyers, how important is being fully in control of your sourcing operation? If you answered “Very”, then you’re on the right track. Nearshore Americas has continually focused on vendor management and governance as a key factor in the success of any outsourced project. On the other hand, the value proposition of procurement sourcing is that the procurement organization knows more about vendor selection, management and offshore spend than you do. Therefore, relinquishing control of those aspects frees your team to focus on the core competencies of your own business. While small amounts of procurement for tactical functions may be a good idea, we think buyers should be extremely cautious with strategic end-to-end procurement.
Cassio Dreyfuss, Vice President at Gartner Research, feels the same way. In this special Q&A, he speaks directly to buy-side CIOs and sourcing leaders on how to adapt to the global ITO landscape, and why vendor management must be performed in-house.
Just How Serious is Brazil’s IT Labor Shortage?
April 5th, 2011
Too much of a good thing? Gartner’s Dreyfuss on the impact of the Brazil boom on labor
By Tarun George
Whenever Brazil markets itself to US buyers, the argument is that with such a large labor pool, there is greater potential for scalability than in other LatAm countries.
However, the largest Brazilian cities are beginning to see shortages of technically skilled workers for the ITO industry. With both the sourcing industry and the overall economy growing at unprecedented rates, is Brazil becoming a bubble ready to burst?
Colombia and Peru Show Up on Gartner’s Top Location List for the First Time
December 20th, 2010By Kirk Laughlin
Colombia and Peru – once considered second-class destinations on the Latin American offshore outsourcing landscape –have both landed on one of the more respected rankings of global services locations which effectively seals their ascent to worldwide BPO respectability.
We know it can get a bit dizzying keeping up with the assorted ‘best of’ lists in global offshore services, but the Gartner ranking is backed up by sound methodology that relies on a host of data sources as well as qualitative input from the firm’s domain-expert analysts. Colombia and Peru join perennial favorites on the 2011-2012 list, announced today: Argentina, Brazil, Chile, Costa Rica and Mexico. The eighth Nearshore country is Panama, which re-enters from previous years.
Read on to hear what lead Gartner analyst Ian Marriott from told us about why Colombia and Peru made the final cut.
Gartner’s Top Ten Forces Reshaping Global IT Services and Outsourcing
September 8th, 2010Analyst firm Gartner has identified 10 major forces that are actively reshaping the future of IT services and the outsourcing market.
“Buyers, providers and investors in the IT services market confront the same confluence of market and technological forces, even though their approaches and core concerns may differ,” said Benjamin Pring, research vice president at Gartner.
“These forces are radically reshaping the fundamentals of how providers deliver and sell IT services and how buyers consume them.”
The 10 key forces that will have a material impact on organizations’ outsourcing-related strategies and tactics include (in no particular order):
Hyperdigitization
Hyperdigitization is the accelerating manifestation of the impact of IT. Digitization describes the parts of the economy in which the “product” or “service” is content that is entirely, or almost entirely, digital. This proportion of the economy is growing significantly faster than the “physical” …
The Biggest Mistakes You Can Make in Your Outsourcing Deals
February 24th, 2010During the past year, 50% of 1,073 organizations worldwide saw a sharp uptick in outsourcing contract renegotiations, according to recent research from Gartner Inc. in Stamford, Conn. Many of those contracts were renegotiated in a bid to cut costs, due to the recession.
The recession causes bad behavior on both sides of the coin, the client and the supplier,” said analyst Allie Young, research vice president and distinguished analyst in Gartner’s technology and service provider group.
This seemed like a good time to look for the warning signs of an outsourcing deal gone bad. We spoke with three experts on the misconceptions, missteps and mistakes that spell trouble. In this first article of a two-part series, TPI’s Thomas Young, explains how lack of innovation and productivity gains, as well as culture clashes, can break down an outsourcing contract. Be prepared for self-examination. Many of the telltale signs have more to do with …
More ITO Consolidation is Coming, Causing Disruption for Customers
October 22nd, 2009IT services industry watchers say the question is not if, but when the next big merger between outsourcing vendors will happen.
“There will be more consolidation in the ITO industry, and it will occur at every level,” says Mark Robinson, chief operating officer for outsourcing consultancy EquaTerra. That’s good news for some providers and for the industry, but the outlook for customers is cloudy.
“Overall, consolidation tends to concentrate quality and spark innovation,” Robinson says. “However, these benefits to the industry come at a price, and that price includes a reduction in competition and an increased—albeit transient—risk of service quality disruption. The next 24 months will be a period of relative instability in the industry, and you should expect to see other big names make their moves.”
Consequently, customers with large infrastructure outsourcing deals may be nervous, says Charles Arnold, managing director of EquaTerra’s information technology practice. “Most companies employed …
