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Point of view
by ehsan on May 29, 2007

I also wrote a short piece stating this change in "Chile outpasses China and India as an offshoring option". Countries like Chile provide an attractive mix of economic stability, good infrastructure, competitive cost and potential market which makes them the ultimate choice for many firms and investors.
On the other hand, decision makers should be aware of the risks associated with the Latin America. While the source of offshoring risk for a country like India is typically infrastructure, the problem with Latin America goes back to issues such as fluctuations in foreign-exchange rates, regulatory issues and reliability of suppliers.
McKinsey and Co., management consulting firm, recently conducted a survey focused on the identifying supply chain risks in Latin America and their study revealed that changes in foreign-exchange rates topped the list of concerns for supply chain managers. This was specially the case in Brazil where 48% percent of the managers ranked this factor as their No. 1 risk.
Of course this doesn't mean that companies shouldn't go into this region and there are a number of remedies for the above mentioned challenges:
Using quantitative models which incorporate cash flow at risk and integrating them with decision-making process and contingency plans help to mitigate the potential negative outcomes.
Trackback: http://publish.creative-weblogging.com/publish/mt-tb.pl/72415
Mr Wong
Vote for Outsourcing to Latin America: Beware of the value chain threats:
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Rating: 2.80 out of 5 vote(s) cast.
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Response from:
Juliet
(07/21/09 3:09am)
I have recently moved to Buenos Aires and cannot belive how many US companies are working out of here. There are so many especially creative outsourcing.
Response from:
Juliet
(07/21/09 3:09am)
I have recently moved to Buenos Aires and cannot belive how many US companies are working out of here. There are so many, especially creative outsourcing.
Response from:
Sarah
(07/31/09 3:10am)
Buenos Aires definatley seems to be a new hub for outsourcing companies. You only have to be here to see why. Many expats, students etc from around the world are living here, and with cheaper costs, similar time zones and plently of multilingual people here it makes sense. Companies like http://www.5ca.com
are Dutch owned but run here in Buenos Aires.
are Dutch owned but run here in Buenos Aires.
Response from:
Jessica
(09/28/09 1:37am)
5CA offers multilingual call center services from Argentina. We specialize in outsourced technical support & customer care, providing these services in 20 languages. http://www.5ca.com
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