Grupo Assa sees inflation risks running high during next 3-4 months

Wednesday, March 9, 2011

Latin American consultancy and systems integrator Grupo Assa believes inflation will remain a prime business risk through the short term but with varying degrees of impact among countries, director general Carlos Castilla told BNamericas.

"There will be inflationary pressures across countries that must be considered during the next 3-4 months," he said. "On the surface, Mexico appears to be more stable in these regards, while Argentina is the least [stable]."

Castilla ranked inflation, together with the arrival of new competitors, as the most significant business challenges currently facing Grupo Assa.

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While the arrival of other consultancy and IT service firms may challenge Grupo Assa on new contracts, Castilla emphasized human resources pressures.

"As more competitors enter the market, as those competitors become bigger, as the overall offering becomes more sophisticated or as clients become more mature, that area [human resources] becomes more crucial," he said. "The companies that end up doing better in that area will stand out in project execution."

Grupo Assa's long-term expansion strategy entails growing to 2,500 employees by 2014, up from the current figure of 1,200.

On the other hand, the gradual strengthening of the US economy is not seen affecting nearshore business from clients in that market, the executive added.

Within Latin America, the company currently has 1,200 consultants and operations in Mexico, Argentina, Brazil and Chile. It provides services to roughly 200 companies with 40,000 end users.