Political backlash to outsourcing not an issue in Neoris' US business, CEO says

Thursday, January 20, 2011

Latin American IT consultancy firm Neoris is not seeing its US business challenged by political opposition to outsourcing, company CEO Claudio Muruzabal told BNamericas.

"It is not an issue," he said. "We haven't seen those things in the clients that we are working with."

Greater acceptance of outsourcing is here to stay among private sector players, particularly larger firms, according to the executive.

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"The market has been educated on the concept," he said. "Two or three years ago, we were spending a lot of cycles with clients trying to explain why [they should choose] Latin America compared with India or other places. Those discussions have pretty much gone away."

"There's very little reluctance on the side of the client to consider services from south of the border."

Muruzabal highlighted the US as one of Neoris' main growth drivers last year, as business in that country more than doubled.

"Our offering into the US is a combination of on-shore and near-shore consulting, typically focused on Fortune 500 companies. Some of them are SAP-centric, but we also have a non-SAP offering into that market," he said.

"The US is in an India-replacement mode. We've been asked by clients to take over chunks of IT business that they were doing with an Indian provider."

Sales also more than doubled last year in Brazil, which has consolidated its place among Neoris' main revenue pillars, according to the executive.

"In Brazil, we've had a focus around SAP for the last three years," he said. "There are a lot of new business establishing shop in Brazil, around oil and gas, infrastructure, and other industries." Neoris saw overall sales increase 26% during the same period.

Headquartered in Miami, Neoris has operations in the US, Europe, Latin America, Africa and the Middle East. It is the second-largest IT consulting and systems integration company in Latin America.