According to published reports, Latin America was not as badly hit by the economic downturn as countries in Europe and North America. Chile deserves special mention in the wake of its recent earthquake due to its transformational success and its top ranking among Latin American countries in terms of governance, performance, and service globalization.
It appears that Canada is the only country in North America, that has come out of the recession with minimal damage.
Perhaps the one country that deserves the most mention for its nearshoring capacity is Brazil. Clearly, analysts say that Brazil is a force to be reckoned with in the future. It is particularly significant since it has a dominant role in South America, which has displaced the U.S. on many political and business issues. Apart from China, India and Russia, Brazil could be the next developing power and outsourcing certainly is going to play a huge part, reports the nearshorejournal.com.
Brazil’s presence in global economic affairs is on the rise. Suffice it to say, Brazil is attracting much attention for its nearshoring capabilities, and most of it is on a positive note. As costs are rising and with geopolitical turmoil on the rise, offshore is steadily becoming a high-risk proposition for many outsourcing buyers. For the U.S., Brazil is a destination that is closer to home and offers sustainable risk mitigation.
Nearshore locales like Brazil are more attractive to most companies although labor costs are comparable among both offshore and nearshore locations. However, inflation and increasing costs linked to sourcing to faraway destinations makes nearshoring to Latin America a strong alternative. It is also a good way to stay close to providers and corporate executives are hoping similar cultures will result in better outcomes.
In Brazil, cheap labor offers cost savings of up to 30 – 50% in comparison to other markets. The country is also technologically advanced, providing an excellent private sector environment conducive to business.
Perhaps the most impressive evidence of Brazil’s potential is its IT industry, which is mostly dependent on the domestic market. Brazil caps $11 billion in comparison with outsourcing giants like India that reel in $13 billion.
Jacob Cherian writes for SourcingLine, a leading provider of directories on top game development companies and seo firms.