Bangalore-based outsourcing firm iGATE is going to shut down its operations in Latin America and focus on expanding its presence in North America and Europe, the Times of India reports.
iGATE will exit regions where it lacks the resources to build scale, such as Latin America, South Africa and Dubai, in order to focus on expansion in the US, Canada and Western Europe, where it has already announced plans to set up delivery centers or expand its existing facilities, the Times reported on November 20, following a technology summit in Bangalore.
“Either investments have been misdirected or are not relevant – we have to get a little more sharper and focused and take essentially a VC-type attitude and kill those that are not working,” iGATE’s newly appointed CEO Ashok Vemuri said at the meeting.
iGATE first moved into Latin America in October 2008, when it opened a US$2 million delivery center in Guadalajara, Mexico. Following the acquisition of Patni Computer Systems in 2011, iGATE also took on Patni’s delivery center in Queretaro, Mexico and another of its facilities in Sao Paulo, Brazil.
iGATE’s Global Delivery Center in Guadalajara told Nearshore Americas that it could not comment upon any speculation over its Latin American operations at this time.