Smart People: The Real Power Behind Nearshore Outsourcing. Nearshore Outsourcing: It s All About Your People
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1 Smart People: The Real Power Behind Nearshore Outsourcing Nearshore Outsourcing: It s All About Your People K I R K L A U G H L I N, M A N A G I N G D I R E C T O R W W W. N E A R S H O R E A M E R I C A S. C
2 Sources of Information 5,800 + news reports (aka editorial ), video, commentaries and research Over 2.7 million unique vistors during last nine years Created, organized and/ or participated in over 75 outsourcing conferences, trade missions, in-country briefings and new delivery center openings. SIGN UP FOR FREE NEWSLETTER: W W W. N E A R S H O R E A M E R I C A S. C O M
3 W W W. N E A R S H O R E A M E R I C A S. C O M
4 W W W. N E A R S H O R E A M E R I C A S. C O M
5 Global Customer Service Contact Center Offshoring/ Nearshoring IT help desk Tele-sales Customer Care Chat (text based) Social Media Support Multi-lingual capabilities (Cumulatively known as Omni-channel )
6 Latin America and Caribbean IT and BPO Export Services: Growing at 5.4% CAGR (down from 8.2% in 2016) $16-$18 billion USD Market LATAM countries with largest market share: Mexico Argentina Uruguay Brazil Colombia Chile Costa Rica Panama Caribbean Countries with largest market share: Jamaica Barbados Belize Dominican Republic Saint Lucia Guyana
7 GLOBAL IT/BPO CUSTOMERS SEEK TO VALIDATE THE NEARSHORE BUSINESS CASE IN ERA OF TRANSFORMATION Countries, partners, providers, influencers all play a role in offering information essential to building the case. W W W. N E A R S H O R E A M E R I C A S. C O M
8 A matter of demand: Why the US is a key market to target Labor supply: - Unemployment rate at historic lows in the United States - Minimum wages continue to rise in US and Canada - Attrition at all-time highs. Priced out: Silicon Valley, Seattle and other hot tech hubs are seeing increase of startups/ founders establish south of the border delivery centers to make the economics work! Political fallout: Travel bans, H1B Visa fights, and other restrictions make it more difficult to hire skilled knowledge workers. (Primarily engineering/ software positions)
9 REASONS WHY NEARSHORE DOESN T WIN THE BUSINESS: 1. Skills perceived (but often not tested) to be inadequate. 2. Geopolitics, personal safety. 3. Inconsistent or incomplete market data. 4. Language barriers: Both real, and imagined. 5. Compliance limitations. 6. Rule of law/ resolving contractual disputes 7. Labor friendly: 14 th month payments/ worker guarantees 8. Concerns around scability (less common than 5 years ago) 9. Lack of skills in transformative / next wave technologies. 10. Not cheap enough compared to India, China and other geos. W W W. N E A R S H O R E A M E R I C A S. C O M
10 OUTLOOK POINT 1: Client desires: Service provider, and deliverable to include more strategic benefit and value. Opportunity for Latin America and Caribbean: Transition from labor arbitrage-based model (cost cutting and moderate process efficiency gains) toward leveraging data and analytics and intelligent automation. W W W. N E A R S H O R E A M E R I C A S. C O M
11 OUTLOOK POINT 2: Client desires: Partners (and countries) that understand their srengths and actively promote those core assets (consistently!) E A S T W A Y U N I V E R S I T Y O F S O C I A L S C I E N C E S Opportunity W W W. E for U S S. Curacao: E D U - High standards of education - Refreshingly unique from other Nearshore destinations - Language capabilities (under-appreciated English) - Unknown entity/ starting with blank slate - Digitally savvy/ global sophistication among next generation - Growing awareness of need to diversify economy W W W. N E A R S H O R E A M E R I C A S. C O M
12 OUTLOOK POINT 3: Client desires: To vigorously protect the disclosure of Information about global partners and delivery countries E A S T W A Y U N I V E R S I T Y O F S O C I A L S C I E N C E Why this S is determintal: W W W. E U S S. E D U Supply chains are vital for growth, innovation and expansion of global businesses Lack of public understanding of global supply chain, fosters greater fears of threat globalization (This includes widespread lack of understanding among journalists/ pundits) Political leaders exploit these fears and tap on emotions W W W. N E A R S H O R E A M E R I C A S. C O M
13 By 'flat' I did not mean that the world is getting equal. I said that more people in more places can now compete, connect and collaborate with equal power and equal tools than ever before. - Thomas Friedman, New York Times columnist/ author Kirk Laughlin Managing Director, Nearshore Americas Guilford, Connecticut USA kirk@nextcoastmedia.com
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