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Outsourcing: Latin America vs. India

It is true that for any company opting to chose outsourcing as an option to decide for an associate who is both competent and competitive, while choosing an outsourcing agency, option before any outsourcer in USA is to chose from some company or associate from among Latin America and India. We give below excerpts from an article of Business Week which states why India should be preferred to other countries.


As per Business Week the proximity to the U.S. and free trade agreements in place, many countries of Latin America are building up their outsourcing infrastructure.The article reveals the future forces guiding the dynamics of the offshoring-market.


"Why go to Mexico, where labor costs are higher than in India? Because the efficiency gains from working close to the U.S. and in the same time zone mean nearshoring in Mexico costs about the same as offshoring in India..."and


"GE still outsources 90% of its IT work to India, sending just 6% to Mexico, says Steve Morrison, GE's London-based head of Global IT outsourcing. But, he notes, as India's costs rise, Mexico will look better and better. 'If things continue as they are, India eventually will be charging the same unit cost as Mexico,' he says."


Mexico, Brazil and Chile are the main countries to give competition to India in offshoring services -- the first two because they have the critical mass, big company clients, and enough students graduating, and Chile because it's savvy as far as globalization goes and has been working hard on bilingual education.


Indian government is devising various strategies and creating needed infrastructure to promote business in fetching more and more business.It is giving adequate attention to its vendors to create a better infrastructure- both physical and political.But, the need is to do much more to ensure that the advantage Indian companies have over the competitors does not get eroded.


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