iaop lac summit conference

Nearshore and its Rightful placein Global Sourcing

Mauricio A. Velásquez, COP, Business Development Manager, Teleperformance Colombia

www.IAOP.org

The 2011 Latin American Outsourcing Summit®

Las Américas Global Resort and Convention Center ● Cartagena, Colombia ● May 26 - 27, 2011

Latin America,

A snapshot when speaking of outsourcing

The 2011 Latin American Outsourcing Summit® ● Cartagena, Colombia ● May 26-27, 2011

Copyright © 2011 IAOP. All Rights Reserved.

Tremendous Opportunities

to discover



2010 represented a regiongrowth of 6.1%

Many languages, many cultures



Fuente: CEPAL – Comisión Económica para América Latina

Unemployment rate reduced from 8.2% in 2009 to 7.6% in 2010





Literacy rate 2010• Men: 96.8% • Women: 97.4%





Latin America and The Caribbean, Foreign direct investment grow 40% in 2010 compared to 2009





Global business participation in the region grew from 5 to 10%





Conditions on major cities throughout the region improved

More educational centers+ concrete education policies

= young trained labor force



Better social conditions

Better Education

Latin America with high expectations and expected growth

on the outsourcing business



Thanks to

High Skilled workforce, optimum costs and culturalaffinity with target markets





What processes or functions should be outsourced?

What processes or functions

should be outsourced?

ITOInformationTechnology

Outsourcing

BPOBusinessProcess

Outsourcing

KPOKnowledge

ProcessOutsourcing





I T OInformation Technology Outsourcing

Software R&D

IT Consulting

Infrastructure Management

Application Management.

Multinationals and Multilatinas with solid proven experience

Servicing Domestic & Nearshore Markets



BPOBusinessProcess

Outsourcing

KPOKnowledge

ProcessOutsourcing





B P O Business Process Outsourcing

Customer Relationship Management (Sales, Marketing, Call Centers/Contact Centers)

Human Resource Management (Training, Talent Mgmt, Payroll, Recruiting)

Enterprise Resource Management (F&A, Procurement, Logistics, Supply Chain, Document/Content Mgmt)

Industry Specific Services (BFSI, Manufacturing, Telco, Energy, etc.)

Servicing Domestic Markets, Offshore & Nearshore

TELEPERFORMANCE, Worldwide leader on customer experiences

founded in 1978

Worldwide leader120,000+ employees

Revenue of US$ 2.78bi in 2010

268 contact centers

Presence in 50 countries

66 languages and dialects



B P O Business Process Outsurcing



KPOKnowledge

ProcessOutsourcing





K P OKnowledge Process Outsourcing

Servicing Domestic & Nearshore Markets

Investment / Business research servicesData Analytics & Market researchLegal process outsourcingBusiness operations support, analytics & management

We can say that work for the different Outsourcing disciplines

is being done

But, How competitive is being done?



Outsourcing in Latin America

Outsourcing Global Market presents a dynamic behavior

over the last years.FUENTE: DUKE CGGC (MARZO 2010) CON DATOS DEL OECD

Average anual growth per segments (%)2005 – 2010.

Revenue per segments (USD billones)2005 – 2010.



FUENTE: EVEREST RESEARH INSTITUTE, McKINSEY GLOBAL INSTITUTE, NASSCOM STRATEGIC REVIEW 2007

Global Market ITO & BPO (2007)Players



6% of the Global marketLatin America participation is only

¿What is a Foreign Company looking for in Latin America?





The correct PRICE

Favorable business ENVIRONMENT

QUALITY and Skills • Human Capital• Certifications

INDUSTRY maturity

¿What is a Foreign company looking for in Latin America?



Future in Latin América



• Privileged Location

• Talent availability

• Competitive and innovative spirit

The potential is:



A.T. Kearney Global Services Location Index

Country

2007 2009 2011 2007 2009 2011 2007 2009 2011 2007 2009 2011 2007 2009 2011

India 1 1 1 3.22 3.13 3.11 2.34 2.48 2.76 1.44 1.30 1.14 7.00 6.91 7.01

Brazil 5 12 12 2.64 2.18 2.02 1.78 1.83 2.07 1.47 1.37 1.38 5.89 5.39 5.48

Chile 7 8 10 2.65 2.41 2.44 1.18 1.20 1.27 1.93 1.37 1.82 5.76 5.50 5.52

Philippines 8 7 9 3.26 3.19 3.18 1.23 1.17 1.31 1.26 1.24 1.16 5.75 5.60 5.65

Mexico 10 11 6 2.63 2.48 2.68 1.49 1.50 1.60 1.61 1.45 1.44 5.73 5.43 5.72

Uruguay 22 36 41 2.95 2.46 2.42 0.98 1.00 0.91 1.54 1.43 1.42 5.47 4.89 4.75

Argentina 23 27 30 2.91 2.47 2.45 1.30 1.34 1.58 1.26 1.21 1.09 5.47 5.02 5.12

Jamaica 32 24 33 2.83 2.77 2.81 0.96 0.79 0.72 1.49 1.49 1.34 5.29 5.06 5.01

Costa Rica 34 23 19 3.00 2.67 2.84 0.86 0.89 0.94 1.36 1.50 1.56 5.22 5.07 5.34

Panama 41 43 34 2.88 2.48 2.77 0.75 0.70 0.72 1.40 1.40 1.49 5.02 4.58 4.98

Colombia n.s. n.s. 43 n.s. n.s. 2.34 n.s. n.s. 1.20 n.s. n.s. 1.18 n.s. n.s. 4.72

Source: A.T. Kearney Global Services Location Index, 2007, 2009, 2011.

RankFinancial

Attractiveness

People Skills and

availability

Business

environmentTalent Score

TalentIndex 2013

Colors on the map represent Talent Index ranking in 2013 for each one of the 10 Latin

Countries.



Hedrick & Struggles. Mapping talent in Latin

America. The Economist Intelligence Unit.



Source: IMD World Competitiveness, 2010. Ranking among 57 countries. World Economic Forum, Executive Opinion Survey 2008, 2009

High quality education in Science and Mathematics in Latin America, 2010



Source: IMD World Competitiveness, 2010. Ranking among 57 countries.

Avaliability of Qualified Labor, 2010



Source: IMD World Competitiveness, 2010. Ranking among 57 countries.

Comparison in Latin America

¿What shouldwe do from Latin

America?



Build REAL processesGovernment - Companies - Community



Social opportunities promotion



Market conditions improvement • Better Doing Business• Economic advantages



PERCEPTION strategy



Latin America, land of business opportunities




The 2011 Latin American Outsourcing Summit®

Las Américas Global Resort and Convention Center ● Cartagena, Colombia ● May 26-27, 2011

iaop lac summit conference

Documents

outsourcing kpo

outsourcing businesscopyright

teleperformance colombia

convention center cartagena

countries66 languages

business development

servicing domestic markets

worldwide leader120