Outsourcing to LatAm, Nordic countries Latin America offers one of the best options for nearshore outsourcing for the USA and Canada. It also offers great resources for Spanish localization projects getting increasing important in the states. Latin America offers a large spectrum of options roughly corresponding to the countries in the region covering almost entire alphabet from Argentina to Venezuela. Each country has its own specifics and its own set of Pros and Cons; the differences between countries could be dramatic, compare for example political climate in Mexico and Venezuela. MEXICO Mexico has evolved as an IT services outsourcing provider largely due to proximity, cultural affinity and time-zone alignment for U.S. companies, as well …show more content…
proximity, a specific advantage of Mexico is its combination of Spanish and English language skills, which is especially prominent in the IT sector. As the industry develops further, Mexico must endeavour to keep written and spoken English language skills strong, according to Gartner's recent report, "Gartner's 30 Leading Locations for Offshore Services." Government support: The Mexican government has created many subsidies and grants for which outsourcers and clients can apply in order to jumpstart initiatives, as well as tax incentives and investment funding. Few visa restrictions: Due to Mexico's involvement in the North American Free Trade Agreement (NAFTA), there are few if any visa restrictions for U.S. companies outsourcing IT work in Mexico, which often hampers arrangements in other countries. Cons: Price: Compared to IT outsourcing locations such as India and China, the cost to outsource in Mexico is higher. However, it's up to U.S. clients to assess potential synergies and savings that can be achieved by outsourcing to Mexico's nearshore …show more content…
economy: The Mexican economy and its service industry depend strongly on the state of the U.S. economy, so it is important to closely monitor the effect the economic recession might be having on particular Mexican IT outsourcing providers. BRAZIL The largest country in South America, Brazil has established itself as a key global delivery center based upon its nearshore location and mass of sizable IT service providers. The company needs to align its educational system and governmental priorities to provide a more hospitable IT outsourcing environment, but that hasn't stopped a great deal of outsourcing activity from moving to this international hub. Pros: Business know-how: Brazil's dynamic, global economy means that much of the IT service industry is accustomed to working with global partners, establishing best business practices and following through on tough requirements from these clients, according to Gartner. Vendor selection: As such, there is a "huge" domestic market with 20 to 25 vendors boasting 1000-plus full time employees (FTEs). Expanding labor pool: Brazil has more than 250,000 IT professionals, with approximately 23,000 new IT graduates entering the industry each year, Gartner says. As such, the larger IT service providers can select their staff from the country's best.