The $100-billion worth IT and BPO industry of India is fast expanding into the Latin American arena with a lot of companies establishing themselves in this region so as to cater to their clients in North America better. The region’s proximity as well as close affinity to United States makes it ideal to set up business in.
From Argentina to Mexico, IT companies in India, such as Infosys, TCS (Tata Consultancy Services), Mahindra Satyam, Wipro, Hexaware Technologies etc. have increased their influence in the markets by setting up their presence in Latin America.
India serves as the primary destination for global IT and BPO industry while Latin America adds to the comfort of US companies as the large talent pool in the region can efficiently cater to their technology requirements. The IT spend in the region currently is estimated to be $70 billion.
Latin America as an IT destination
According to Pradeep Mukherji, who is the managing partner and president of outsourcing advisory firm, Avasant, the US clients of India IT companies are increasing their demand for establishing the centers of the service providers in Latin America. This is due to the convenience that the region offers in terms of time zone as well as in the provision of certain niche requirements in IT and BPO.
The governments in this region are also quite enthusiastic about attracting foreign investments and have provided several incentives to IT companies setting up in the region.
In addition, since Spanish is the predominant language in the region, this can help the Indian BPO industry cater to the United States’ Hispanic population.
Indian presence in Latin America
Leading IT services exporter, Infosys had recently announced that the company will be opening a BPO center having 100 employees initially at San Jose in Costa Rica. The center will aim at providing services in procurement and strategic sourcing for the leading FMCG company Procter & Gamble.
Other BPO offerings of Infosys in areas like human resources management, legal processes, analytics, etc. catering to global clients are also going to be expanded in Costa Rica. The company already has a significant presence in Brazil and Mexico.
Hexaware is also one among the fray and has recently opened up a global delivery center, the company’s third one, at Saltillo in Mexico. At present, the company has over 30 clients in more than 100 active projects.
Mahindra Satyam made an acquisition of Complex IT, SAP consulting provider, last month.
Beginning their operations in Latin America ten years ago, TCS is perhaps the pioneer in setting up business in the region having over 8000 employees in Mexico, Columbia, Ecuador, Chile, Argentina, Peru, Uruguay and Brazil. Wipro has its presence in the region for six years now.
Even though the main reason behind the setting up of centers in Latin American region is to cater to the US clients, there are other plausible long term plans for the India IT companies within the domestic markets in Latin America.
Brazil is a major contributor of SAP, which can be leveraged by the India IT companies.