BPO Market Shows Powerful Rebound in Brazil and Mexico
February 23rd, 2011Expect the growing U.S. recovery to drive a rebound in business process outsourcing, says a new report on the BPO market.
The economic crisis forced many major U.S. outsourcing projects into a holding pattern as companies canceled or delayed decisions. With global growth back, the BPO market is set to exceed $930 billion by 2015, according to Global Industry Analysts in San Jose, Calif.
The fastest growth will be in emerging markets, including Brazil, Russia, India. and China. Latin America, particularly BPO providers in Mexico, will be well positioned thanks to culture and language skills, the report said.
In addition, new emphasis will be placed on “non-voice,” higher value services, such as finance and accounting, business intelligence, and customer relationship management. Utilities and healthcare are likely to lead the rebound, outpacing government and financial services, according to the report.
Management consultancy A.T. Kearney recently raised Mexico on its Global Services Location Index five slots …
Client Restructuring Rather than Buying Caused Recent BPO Decline
February 8th, 2011
"Brazil has the lion's share of contract numbers in Latin America" - Mayo
By Tarun George
According to the 2010 fourth quarter TPI Index released recently, the global sourcing industry is sending us some pretty mixed signals. A sluggish economy, smaller contract values, and firms trying to optimize technologies like cloud all make the services marketplace quite unpredictable.
But there are some key trends that emerged, and we asked Mark Mayo, Partner and President at TPI, to help us decipher the numbers. He explains why buyers are renegotiating contracts rather than signing new ones, why BPO activity is down across the board, and what this all means for Latin America.
View from the IDB: Latin America Must Cater to What US Clients Want
November 18th, 2010By Tarun George
How is Latin America doing as a sourcing destination compared to the rest of the world? We sat down with Fabrizio Opertti, Lead Specialist for Integration and Trade at the Inter-American Development Bank (IDB) to get an objective opinion. He tells us how to increase Latin America’s share of the outsourcing market, what buy-side companies are desperately looking for, and the growing prospects for regional cooperation. Investment promo agencies, listen up.
Capgemini Ramps Up Nearshore BPO Delivery: Focus on Chile, Brazil and Guatemala
November 10th, 2010Capgemini, one of the world’s foremost providers of consulting, technology and outsourcing services, today announced that it is growing its BPO footprint in Latin America with the expansion of its delivery centers in Chile, Brazil and Guatemala. The centers currently employ 1,500 Business Process Offering (BPO) specialists, with capacity for more than 2,000 employees and additional room for expansion. In addition, Capgemini is increasing the scope of its BPO services in the region to include a range of finance and accounting, procurement services and customer operations management solutions. The centers currently service 5 prominent North American and global clients, including Unilever, Coca Cola Enterprises and International Paper.
Capgemini’s Latin America delivery network is comprised of new centers in the Campinas region of Sao Paulo, Gaspar City in the state of Santa Catarina, Brazil, and in Guatemala City, Guatemala, as well …
Six Questions for Sitel’s Global Site Selection Chief
April 15th, 2010By Kirk Laughlin
Ever wonder how the globe’s top tier BPO players – organizations like Sitel, Teleperformance, Convergys, Genpact and others – go about deciding when a country is ripe for investment?
The CALA region (Caribbean and Latin America) is chock full of interesting options – ranging from the well established hubs like Guatemala, Dominican Republic, Jamaica, Colombia and Costa Rica to a new set of tigers that are determined to make their mark – such as Nicaragua, El Salvador and Honduras.
We caught up recently with Kim Facer – the top guy at Sitel who scouts the world looking for the next right home for the Sitel shingle. Hear what Kim has to say about saturation (“a real threat”), his bullishness on Central America and why “the sun sets on every market” in our interview, by clicking here.
India, once the preferred location for foreign companies to set up business process outsourcing centres (BPOs), is literally losing its voice. Experts point to the shortage of quality workforce in the voice-based BPO industry, which has driven many IT companies, including TCS and Wipro, overseas.
Companies are attracted to the ready availability of superior voice talent in Latin American countries like Brazil, Mexico, Argentina and Peru, making them new BPO hotspots. IBM, TCS, Accenture and Unisys have already set up centres in the region.
Recently, Wipro Technologies opened its new global delivery centre at Curitiba in Brazil to serve global and domestic clients. The Curitiba centre will extend Wipro’s IT and BPO portfolio, serving about 20 clients. Says Raman Roy, chairman and managing director, Quatrro BPO Solutions, widely regarded as the father of the Indian BPO industry: “We have not finetuned our skill sets. Appetite for this industry is …
Call Center Competition “Fierce” in Guatemala and Peru a New Report Finds
February 25th, 2010SOURCE: CAllCenterInternational
The varying levels of competition and market maturity among countries have livened up the diverse Latin American market for contact center outsourcing. According to a Frost & Sullivan study, while major markets such as Brazil, Mexico, Colombia, and Argentina are reaching maturity in terms of quality of service and infrastructure, the competition is fierce in developing markets such as Peru and Guatemala.
Market revenues to grow
This intense competition is keeping market participants on their toes, causing them to reposition themselves from being mere providers of contact center customer care services to offering more complex business process outsourcing (BPO) services such as logistics and channels. The analysis finds that the market earned revenues of 6.8 billion dollars in 2008 and estimates this to reach 13.7 billion dollars in 2014.
“Outsourcers’ improving ability to provide a fully integrated suite of end-to-end services covering the main business processes are standing …
Exclusive: Can it Get Any Hotter in Colombia? Convergys Commits to Bogota
February 1st, 2010
Nearshore Americas has learned that global contact center giant Convergys, which serves half of the Fortune 50, is setting up a BPO service center in Bogota after receiving clearance to operate in a new free trade zone in the northern part of Bogota.
As many as 2,500 seats will occupied at the center within three years, according to two reliable sources. The center, which should be operational in June, will also offer financial back-office support services.
Colombia is without question one of the hottest outsourcing destinations in Latin America, and its transformation has been one of the biggest stories to hit the headlines in the Nearshore community in the last several months.
Convergys spokesperson John Pratt declined to comment late today on our report.
“This does not come as a surprise, really,” says lead BPO and call center analyst Peter Ryan, of DataMonitor, commenting on the development. “There is a lot of capacity in Colombia and the country has the potential to become the next big thing in South America,” said Ryan, comparing its rise to Chile and Argentina, which have become globally recognized outsourcing centers.
Your Voice Counts, Your Story Matters: A Personal Note
May 8th, 2009In the two months since launching CaribbeanCRMCentral, one truth has become boldly clear to me: The nearshore sourcing community has important stories to tell. These stories get to the heart of successful business partnerships:
Send notes to Kirk at: kirk@nextcoastmedia.com
Outsourcing providers scoring powerful results in customer service support and contact center performance
Groundswells of interest in building KPO and ITO capabilities
The establishment of attractive tax relief and real estate usage incentives, championed by economic development agencies
Captive organizations building robust nearshore sites to better service their customers – and fulfilling the core fiduciary responsibility to their shareholders of building more profitable operations. (Stay tuned for more coverage – both Telus from Canada and VistaPrint are doing interviews with us to tell about high performing nearshore operations.)
If you’re reading this far – there is a good chance you …
IAOP: As India Wanes, Does Central America Become a New BPO Hub?
April 26th, 2009I kept hearing it throughout the IAOP Central America chapter meeting this week in Guatemala City:
India is reaching a BPO and KPO saturation point. Companies want more options but they want the same kind of process discipline that originally put India on the map. Is Central America ready to fill those big shoes?
Lori Blackman, president of DNL Global and a key behind the scenes organizer of the event, made a great point when she insisted the greater Latin America region has to take a close look at itself and decide what it can do better than anyone else. As a result, I kept asking my new provider friends: What makes you different? Beyond building call center operations, what’s the long term value play for your operation? Lori says it’s the natural ability to sell and smoothly engage with …
