Esteban Herrera
Esteban Herrera
MESSAGE FROM THE CHAIR
Since my last column, a global recession has been confirmed, the United States had an historic election, and one of the nerve centers of global outsourcing was savagely attacked by terrorists. I think it will be months before we can accurately state the impact of all of this on our industry, but early signs appear to show that demand for outsourcing has neither increased nor fallen, and is likely to rise somewhere in the middle of 2009. Of course, this means that savvy providers and buyers will be making their investments now, getting ready for the kind of opportunity that only arises from critical challenges.
What kind of opportunity is this? Most successful companies became so because of the way they handled a crisis—it is a defining moment in their history that builds corporate character, allegiance, community, and recognition. Truly successful companies in any field have beaten tough economic times by changing the game. After almost 30 years of an unchanged outsourcing model, it has become stale. It is time to change the game, and wouldn’t it be great if the game changer came from Latin America?
I am writing on the last day of a visit to Sao Paulo, Brazil, in which nearly every conversation with friends, colleagues and clients has begun with “So, how bad is the crisis up there?” to which my response was simple “REALLY bad”. As challenging as the global economic crisis may appear, I believe that it will force all of us to think differently about the outsourcing marketplace, and if the whole industry needs a shake-up, why shouldn’t it start with you? I already see encouraging signs, including bold Latin American outsourcing entrepreneurs that have decided that this is the time to address the US market. I have heard credible conversation about a sales and marketing consortium to pool the resources of smaller vendors. I have also become familiar with a company that has innovated the model already—promoting its “hybrid captive” solutions. And I am seeing VC money flow into the region’s promising services sector—so at least we know that people who make a living out of identifying opportunities see it too.
The shake-up is coming, and I hope to be a part of it. Right now, conversations are more likely than ever to start with cash, not cost. I suspect that if a provider approaches a buyer with a credible solution to conserve working capital, there will be considerable interest. And if they sit down as partners to combine their core capabilities to create something valuable… they just might be the ones that change the game!
Esteban welcomes your suggestions and requests. He can be reached at eherrera@novaspheregroup.com and you can read his popular blog at http://novasphereblog.com
Regards,
Esteban Herrera
President and CEO, NovaSphere Group LLC
© 2008 The Outsourcing Institute
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Articles
Destination Latin America:
A Near-Shore Alternative
Latin America has arrived front and center as a desirable off-shore destination, a niche that India is most commonly thought to occupy. As a "near-shore" destination, Latin America offers significant value and resources when compared to Asia, especially for U.S.-based companies attracted to the region's cost advantages, cultural affinity and abundant resources.
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Five Questions you should ask before near-shoring in Latin America
Congratulations! You have decided on near-shoring to Latin America, a low-risk, high reward destination for companies seeking talent of all kinds. The region is experiencing real growth in economic and social terms, and there are hundreds of thousands of well-trained, eager, culturally adept people to service your business needs.
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Interview with Frank J. Casale and Dalton Luz
While Brazil gained favor as a preferred market for U.S. companies as far back as 1926, when General Motors of Brazil first opened, Latin America's largest country continues to find a place among multinational corporations looking for alternative markets for a variety of solution services and providers. For companies seeking sourcing solutions, Brazil is a rising star – being a recognized equal among equals in the global outsourcing arena. Hear what Frank J. Casale, Founder & CEO of The Outsourcing Institute, discovered during this conversation with Dalton Luz, VP of Corporate Affairs.
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Colombia's IT, the best kept secret
The IT sector of the Colombian economy has experienced a huge surge. Today is one of the most
dynamic segments with ample competitive advantages for any business that wants to profit from
the tremendous values offered by the Colombian IT companies in the software and BPO markets.
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Frank J. Casale interviews Mauricio Minas
There's a new player on the sourcing landscape. Only this one's been around for two decades. It's Brazil. And companies from Latin America, the U.S. and beyond are discovering that its strong economy, robust IT infrastructure, proximity to hemispheric markets, and universities that graduate over 100,000 IT professionals each year are making Brazil a viable sourcing destination.
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New muscles in the marketplace
Brazil, Russia, India and China, the so-called Brics, are predicted to emerge as major world players by 2050. In this, the third of a four-part World Service series called Brics: The Changing Face of Global Power, the BBC's Peter Day examines what a world dominated by Brazil, Russia, India and China would be like to live in.
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U.S. investors put faith in Mexico
A solid legal framework is essential if foreign investors are to continue lending their support to the development of technology in Mexico.
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Interview with Jose A. Gonzalez and Frank J. Casale
Short of "home-shoring" outsourcing by providers beyond U.S. borders doesn't get any closer than Mexico. This near-shoring market has gained favor among numerous buyers keen to keep their solutions closer at hand.
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Specialized Outsourcing – Impact of Best Practices on Project Efficiency
PSL's case proves, in hard numbers, how best-practices in software engineering tangibly diminish IT outsourcing costs.
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