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-[Outsourcing in Latin America]-

-[Outsourcing in Latin America]-.  RICHARD BOU   MOLLAH YERIMA  WINTER 2010. Introduction. Outsourcing means obtaining goods or services from an outside supplier; to contract work out. Many companies outsource and hire consultants in order to maintain a flexible workforce.

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-[Outsourcing in Latin America]-

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  1. -[Outsourcing in Latin America]-  RICHARD BOU   MOLLAH YERIMA WINTER 2010

  2. Introduction • Outsourcing means obtaining goods or services from an outside supplier; to contract work out. • Many companies outsource and hire consultants in order to maintain a flexible workforce.

  3. Few more concepts • Offshoring- the practice of hiring an external organization to perform some business functions in a country other than the one where the products or services are actually developed or manufactured. • Nearshore- means sourcing service activities to a foreign, lower-wage country that is relatively close in distance • Rightshore-Include offshore and nearshore model which requires research, analysis, recommendation and implementation • Nearshoring is best for the US and Canada because it offers great resources for states that are improving their language skill along with resources

  4. Thanks to outsourcing • Latin America companies can now introduce and offer their products or services to other Latin American countries. • Cheap workforce to produce material • Improves business focus by letting them target a boarder firms and freeing up management to work on how to get the business to run better • World-class capabilities because it helps the world come together and provide resources to meet the needs of other world-class customers.

  5. Thanks to outsourcing • Reengineering benefits helps outsourcing countries realize that their product and resource are need and needs increase productively • Sharing risk helps countries and states become more flexible and are able to adapt to any big changes in the market • Help companies with their financial measurement and investment in the company.

  6. Top outsourcing Providers • Chile • Brazil • Mexico • Costa Rica • Argentina

  7. Emerging outsourcing Providers • Panama • Nicaragua • Columbia

  8. Why Latin America? • Proximity • Minimal Time difference • Cost saving in other locations is • Now eroding

  9. Brazil • Telecommunication systems are very up-to date • Domestic market for software is expanding • Eagerness to embrace new technologies • Banking sector is developped

  10. Chile • The population is relatively young • Growth from natural resources and commodity bubble • Independence from commodity based economic growth • Incentives to attract entrepreneurs and companies • AMEX • Equifax • Yahoo • Oracle

  11. Chile • Subsidies for studies in IT field • In 2008, the outsourcing industry generated $840 millions and employed more than 20000 people.

  12. Outsourcing in Argentina

  13. Outsourcing in Mexico

  14. Outsourcing in Costa Rica

  15. Problems • Language barrier • Size of their operations capabilities • Population size • Tax structure

  16. Conclusion • Outsourcing • reduces risks • Makes companies more efficient • Cuts capital and labor costs • Maximizes profit

  17. Thank you Questions

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