Global Sourcing

Eyeing the Nearshore

By Dan Berthiaume
Nearshore BPO, or the locating of offshore BPO services for North American companies in nearby Latin American or Caribbean destinations rather than traditional, more remote locations such as India or China, has been receiving increasing attention as of late. For example, Latin American nations make up about one-quarter of the 2012 list of Top 100 outsourcing locations compiled by global outsourcing research/advisory firm Tholons.

“We view Latin America as the next important outsourcing destination globally,” said Manuel Ravago, president for research at Tholons, in commenting on these findings. “The world will soon realize Latin America can do more than speak Spanish.” Time zone and general proximity, and native proficiency in languages such as Italian and German, as well as Spanish, are some of the benefits BPO buyers can obtain from nearshore BPO.

And Felix Massun, VP of Latin American Business Development for Capgemini, cites the growth of shared services offerings in the region as significant enough to represent a potential “next wave” of Latin American BPO. The growth of a wide variety of nearshore BPO services in less established locations such as Costa Rica, Trinidad, and the Dominican Republic, as well the continued strength of nearshore BPO in more traditional destinations such as Mexico and Brazil, speaks to the continuing potential of nearshoring.

Finding the Nexus of Nearshore
BPO buyers interested in discovering more about the potential held by nearshore BPO have an ideal opportunity to learn more at the upcoming Nearshore Nexus conference in New York City on April 19. Presented by Nearshore Americas, the conference offers a number of VIP speakers and panel discussions to illuminate different aspects of nearshore BPO. Speakers include Former President of the Republic of Colombia Mr. Alvaro Uribe, Leonardo Mattiazzi, VP, International Business, Ci&T, and David Shpilberg, vice-chairman and co-founder, CMPBraxis (part of Capgemini), and Ankhur Prakash, VP/COO, TCS Latin America. Other highlights include:

Trends, Dynamics and Opportunities in 2012
Stan Lepeak, Director, Global Research, Management Consulting at KPMG, will moderate a panel of experts including Adriaan Bouten, SVP & CIO; Information & Media, The McGraw Hill Companies, Jason Rodriguez, CTO, Noodle, and David Rutchik, Partner, Pace Harmon. Discussion topics will include an overview of the current state of Latin American outsourcing, changing organizational drivers that are creating new outsourcing engagements, the emergence of quality at a reasonable price as a key global service delivery driver, and preparing an organization for BPO transformation.

Costs, Contracts and Benchmarks
A panel including Mark Peacock, CIO of Pegasus Solutions and Frank Callaghan, Senior Director, Worldwide Procurement of Pfizer, will discuss how outsourcing clients are increasingly using benchmarking and other market intelligence tools to monitor price performance across regions where projects are deployed. Specific topics of discussion will include how buyers can and do use benchmarking to support strong IT outsourcing decision-making, as well as commoditization driven by increased competition from traditional delivery locations such as India and maturing of nearshore providers. Esteban Herrera, COO and Advisor, HfS Research, will moderate.

Getting Smart about Site Selection
Kirk Laughlin, CEO, Nearshore Americas, will moderate a panel including Ann Harts, Principal, Hickey & Associates, Kevin S. Parikh, Global CEO & Senior Partner, Avasant, Rodrigo Slelatt, Principal at A.T. Kearney, and Fabrizio Operti, Chief of the Trade and Investment Unit of the Integration and Trade Sector at the Inter-American Development Bank (IDB), about important aspects of selecting a BPO service delivery site. Panelists will discuss items such as asking the right questions and collecting the right data, and how to maximize the potential for incentives.


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