Latin American IT consultancy firm Neoris is eyeing a nearshore pipeline consisting of 25 US companies capable of hiring services worth US$60mn-70mn, the president of the company’s Mexico division, Carlos Castilla, told BNamericas.
According to the Gartner report “Market Share Analysis: Regional Players Gain Increasing IT Services Market Share, Latin America, 2009,” Neoris rose last year from the sixth to fifth largest IT service provider in Mexico, as local players benefitted from the country’s “increased focus on enhancing its position as a ‘nearshore’ provider for US firms during the economic recession.”
Castilla said nearshore contracts in the company’s pipeline would translate into revenues both this year and next, and pointed out that Neoris sees no slow down in interest, even as the US economy begins to recover.
“As the US economy stabilizes, our growth will continue to be as fast as it is today as long as we maintain our strategic focus as a niche player,” he said. “In the US, specialization plays a more important role than in Latin America. Our growth has come through SAP outsourcing services.”
Neoris’ nearshore services, which are also provided from Argentina, have been growing at roughly 40%, the executive added.
According to Gartner statistics, Neoris is currently the fifteenth largest IT service provider on the Latin American level, and has a market share of roughly 1%. Meanwhile, IBM (NYSE: IBM) and HP (NYSE: HPQ) are ranked first and second, and control 8.7% and 8.2% of the regional industry, respectively.
Neoris is recording growth in other Latin American countries where the company operates, such as Chile and Argentina, but Castilla underscored advances being made in Brazil. Demand for services related to SAP (NYSE: SAP) solutions has spiked in the local market, where Neoris expects revenues to increase 50% this year.
“In Brazil, which represents one of Neoris’ biggest bets, we are expecting growth above all during the second half,” he said. “We have already closed a lot of contracts.”
Meanwhile, business has been slower to pick up within Mexico, but Neoris expects a stronger second semester, particularly in the public sector. Other important vertical markets include the financial and telecommunications sectors.
Castilla said Neoris expects to be one of the three largest IT service providers in Mexico and Argentina by the end of this year, as well as one of the five largest providers in Brazil by mid-2011.
The company expects global revenues to increase 20-30% this year, he added.
CENTER OF EXCELLENCE
In February, Neoris unveiled a center aimed at providing services to the education and healthcare sectors.
The facility – which is located in Monterrey, Mexico, and will be jointly operated by Neoris Chile – provides services to about 75,000 end-users for clients in countries such as Mexico, Spain and the US, in comparison to 10,000 at start-up time.