Mexico is preferred IT outsourcing option for US customers

- Wednesday, October 12, 2011

Mexico is preferred IT outsourcing option for US customers

Mexico is the preferred choice in Latin America for US customers of IT outsourcing, news source Computer World reported, citing a ranking by consulting firm ThinkSolutions.

"It was no surprise to see Mexico at the top of the list," ThinkSolutions analyst Tony Mataya was quoted as saying. "Nafta makes trade with Mexico very financially viable, and the cultural influence that comes from sharing a border with a country simplifies business relations."

However, Chile, Costa Rica and Argentina surprised observers in the second, third and fourth places, respectively, for the size of their workforces and the attention these countries receive as sources of IT services and business processes.

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"We were somewhat surprised to see Brazil so low" in fifth place, said Kate Shearer, a ThinkSolutions consultant who conducted the research. But "at present, Brazil doesn't offer what Chile or Costa Rica does in terms of cost, language skills or workforce availability. Chile and Costa Rica offer stability - both political and economic."

On the other hand, the main problem for Chile is the distance from the US, while for Costa Rica the main issue is its relatively small workforce.

According to ThinkSolutions' ranking, the most sought after markets in Latin America for IT outsourcing are Mexico, Chile, Costa Rica, Argentina, Brazil, Colombia, Panama, Peru, Puerto Rico and Guatemala.