{"id":1528,"date":"2011-04-06T16:13:00","date_gmt":"2011-04-06T16:13:00","guid":{"rendered":"http:\/\/localhost\/projects\/horsesforsources\/truth-latam-040611\/"},"modified":"2011-04-06T16:13:00","modified_gmt":"2011-04-06T16:13:00","slug":"truth-latam-040611","status":"publish","type":"post","link":"https:\/\/www.horsesforsources.com\/truth-latam-040611\/","title":{"rendered":"The truth about Latin American outsourcing…"},"content":{"rendered":"

Our recent research<\/a> on Latin America’s emerging sourcing presence has generated a lot of \u00a0buzz – not to mention a huge number of downloads. Today’s piece in CIO – “IT Outsourcing in Latin America: 9 Things Your Vendor Won’t Tell You<\/a>” –\u00a0sparked some further thinking from \u00a0HfS analyst Esteban Herrera, who has lived and breathed the LatAm experience. \u00a0Over to you, Esteban…<\/em><\/p>\n

\n
\"\"<\/a><\/p>\n

Esteban Herrera, Chief Operating Officer, HfS Research (click for bio)<\/p>\n<\/div>\n

The truth about Latin American outsourcing<\/h1>\n

Market activity and our recent research have created quite a bit of buzz around Latin America. In my view, it\u2019s about time we have the debate and expose the pros and cons of nearshore destinations. Today\u2019s CIO.com piece<\/a>, for which I was interviewed, is a good example and accurately portrays some of the challenges of outsourcing in Latin America. However, I find myself, for the first time ever, empathizing with politicians and celebrities who claim to be \u201cquoted out of context.\u201d<\/p>\n

The article does reflect some of my statements, but not all of them, and I find myself in disagreement with some of the headlines and conclusions. So allow me to clarify a couple of thoughts, lest people think I woke up yesterday and changed my mind about the vast services potential of the Latin American region.<\/p>\n

    \n
  1. While more follow-up is often required (by American standards) I\u2019ve always found the total time-to-deliverable in LatAm to actually be shorter than with India<\/strong>, because the wheels of productivity are greased by cultural understanding and proximity, and the fact that when people talk neither party is half asleep.<\/li>\n
  2. I don\u2019t know that prices have risen fast. <\/strong>If anything, our research indicates they rose far slower than in India. But small populations of desirable talent invariably lead to wage pressure. The good news is that in those places (like Chile and Costa Rica) we\u2019ve seen pretty much the top of the market.<\/li>\n
  3. Saying no is a good thing!<\/strong> For my 10 years as an advisor, my catch phrase to clients was \u201cpick the provider that says no.\u201d Saying \u201cno, we can\u2019t do that,\u201d is an indication of honesty, transparency, and true partnership.<\/li>\n
  4. I don\u2019t buy the physical security argument.<\/strong> Baltimore is a more dangerous city than Sao Paulo. Detroit has more murders per capita than any Central American capital. I don\u2019t see anyone refusing to visit GM\u2019s headquarters based on security concerns.<\/li>\n<\/ol>\n

    Like any destination, Latin America has its challenges. But at HfS, we\u2019ve come to see the region as a highly desirable component of a global services portfolio, whether you are a buyer or seller.<\/p>\n

    Stephanie Overby and CIO.com did us all a favor by increasing awareness and highlighting the challenges of the region, which are real. I am seizing the opportunity to highlight that the advantages<\/em> are real too!<\/p>\n","protected":false},"excerpt":{"rendered":"

    Our recent research on Latin America’s emerging sourcing presence has generated a lot of \u00a0buzz – not to mention a…<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[832,95],"tags":[495],"organization":[],"ppma_author":[19],"class_list":["post-1528","post","type-post","status-publish","format-standard","hentry","category-sourcing-best-practises","category-sourcing-locations","tag-latin-america"],"yoast_head":"\nThe truth about Latin American outsourcing... - Horses for Sources | No Boundaries<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.horsesforsources.com\/truth-latam-040611\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The truth about Latin American outsourcing... - 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