THE NEARSHORE NEXUS EXECUTIVE SUMMIT

Report
NEARSHORE OUTSOURCING &
ESTABLISHING PRESENCE IN THE U.S.
MARKET
Presenter: Luke Bujarski, Senior Research Analyst
Nearshore Americas
AGENDA
INTRODUCTIONS
GLOBAL SERVICES BASICS
NEARSHORING SWEETSPOTS
ESTABLISHING A PRESENCE IN THE U.S.
Gabriel Rozman
TCS
Blanca Trevino Marco Stefanini
Softtek
Stefanini
WHY DO COMPANIES OUTSOURCE & OFFSHORE?
Cost Savings
Access to
Talent
Focus on Core
Business
Expansion into
new markets
WHAT SERVICES ARE WE LOOKING FOR?
Cost Savings
IT services
Access to
Talent
Back office
BPO
Contact
Centers
(voice)
Knowledge
Process
Outsourcing
Expansion into
new markets
Focus on Core
Business
WHAT IS GLOBAL SERVICES OUTSOURCING?
Software development
Infrastructure
Helpdesk support
Web & Apps development
Applications Support
Gaming
Mobility
Cost Savings
IT services
Access to
Talent
Back office
BPO
Contact
Centers
(voice)
Knowledge
Process
Outsourcing
Expansion into
new markets
Focus on Core
Business
WHAT IS GLOBAL SERVICES OUTSOURCING?
Software development
Infrastructure
Helpdesk support
Web & Apps development
Applications Support
Gaming
Cost Savings
IT services
Access to
Talent
Back office
BPO
Contact
Centers
(voice)
Knowledge
Process
Outsourcing
Expansion into
new markets
Customer Support
Inbound/Outbound Sales
Social Media
Chat
Focus on Core
Business
WHAT IS GLOBAL SERVICES OUTSOURCING?
Software development
Infrastructure
Helpdesk support
Web & Apps development
Applications Support
Gaming
Cost Savings
IT services
Access to
Talent
Finance & Accounting
Human Resources
Travel Expenses
Back office
BPO
Contact
Centers
(voice)
Knowledge
Process
Outsourcing
Expansion into
new markets
Customer Support
Inbound/Outbound Sales
Social Media
Chat
Focus on Core
Business
WHAT IS GLOBAL SERVICES OUTSOURCING?
Software development
Infrastructure
Helpdesk support
Web & Apps development
Applications Support
Gaming
Cost Savings
IT services
Access to
Talent
Finance & Accounting
Human Resources
Travel Expenses
Back office
BPO
Contact
Centers
(voice)
Knowledge
Process
Outsourcing
Expansion into
new markets
Customer Support
Inbound/Outbound Sales
Social Media
Chat
Focus on Core
Business
Data Analytics
Market Research Services
Legal Process outsourcing
R&D
GLOBAL SERVICES INDUSTRY
- Total Global BPO/ITO Spend – USD 389 Billion 2012
- U.S. market accounts for 45 percent of market
- Global market growth: 5.3% CAGR ; U.S. 4.2% source: IDC
USD 70 Billion
USD 837 Billion USD 920 Billion
Source: Global
Industry Analysts
Inc.
2015 forecast
Source: IMS Health
2009
USD389 Billion
Source: Data Monitor Source: Gartner 2012
2009
GEOGRAPHY OF OUTSOURCING
ONSHORE/DOMESTIC
OFFSHORE
OUTSOURCING
OUTSOURCING
Better ICT
Economies of Scale
Tax incentives
Property costs
Cost Arbitrage
Access to skills
 Access to experience
NEARSHORE
OUTSOURCING
GLOBAL DELIVERY
Proximity
Time Zone Alignment
 Cultural Affinity
24 hr delivery
 Multinationals
 Results not Geography
OUTSOURCERS IN LATIN AMERICA
WESTERN MULTINATIONALS
INDIAN MULTINATIONALS
LATIN AMERICAN MULTINATIONALS
LATIN AMERICA SMEs
NEARSHORING SWEET SPOTS
Latin America Outsourcing – Drivers:
AGILE SOFTWARE DEVELOPMENT
SPANISH CONSUMER MARKET IN THE U.S.
DOMESTIC MARKET DEMAND
GROWTH IN BUY-SIDE SME MARKET
AGILE DEVELOPMENT FOR SOFTWARE




“38 percent of businesses
small and large now use Agile
methods in software and
application development”Forrester Research
Testing
Lower costs
 Better quality
Mobile
 Faster speed to market
UX design
Custom work
“We tried Agile with India, but
employee turnover got to the
point of ridiculousness.” - Chris
Snyder CIO Hulcher
Engineering
U.S. SPANISH SPEAKING MARKET
Population Distribution by Ethnicity
Total Population: 311 million
Total Latino: 52 million
Foreign Born: 21 million
Percentage Spanish Only: 77 %
Data Sources: U.S. Census Bureau; Pew Research Center
DOMESTIC / PAN AMERICAN DEMAND
SMALL TO MEDIUM MARKET
SMALL TO MEDIUM MARKET
WHY IS NEARSHORE IDEALLY SUITED FOR THE SME MARKET?
 More pressure to reduce costs – lack of market diversity
 Less competition from multinationals (global delivery)
 Decision to outsource is easier
 Work with multiple vendors for specific functions – i.e. web
development, contact center, IT infrastructure
 Need for customized more flexible services
 Hesitant to work with offshore (India)
 Requires localized sales and support, but not delivery
WHERE DO I FIND SMEs?
WHO IS COLOMBIA’s COMPETITION?
EVALUATING OUTSOURCING MARKETS
I AM A BUYER/VENDOR INTERESTED IN LATIN AMERICA, WHERE DO I GO?
SHARE OF EXPORTS VS. DOMESTIC MARKET SERVICES
COLOMBIA
TOTAL REVENUE 2011: IT/BPO – 2.2 BILLION
Annual Growth 15-20 %
MEXICO
TOTAL REVENUE 2011: IT/BPO – 12.25 BILLION
Annual Growth 12-15 %
QUESTION: Can I open a sales office in the
united states without actually being there?
ANSWER: YES!
US citizenship and residency is NOT required.
Where should I set up an office?
Five Steps To Starting a Business in the U.S.
1. Choose a city that fits your needs
2. Find a Registered Agent service
3. Incorporate as LLC or Corporation
4. Find a start-up incubator, establish a
reputable street address
TOTAL MONTHLY COST TO MAINTAIN AN OFFICE IN THE US - $200 - $500
BREAKING INTO THE US MARKET
THINGS TO THINK ABOUT:
 TARGET CLIENTELE?
 TARGET SERVICE OFFERING?
 ESTABLISH A DIRECT PRESENCE IN THE US?
 HOW DO I PORTRAY AN EFFECTIVE MESSAGE?
QUESTIONS

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