South America has several profitable outsourcing locations. Argentina, Brazil, Chile and Bolivia are the major locations, differentiated by economic levels and academics. The cost of outsourcing also varies of course, but the decision of location depends on more than monetary figures. There are cultural aspects that must be considered as well, and it is apparent that some locations are simply a better match than others.
Despite their proximity to each other, South American outsourcers vary from country to country. For example, Argentina is the second largest IT market in Latin America. With prominent companies, such as HP, Motorola, Google and even Starbucks, investing in outsourcing, Argentina’s software market is worth more than $ 42 million. As one of the least expensive outsourcing markets for voice-based agents, it certainly has its perks.
Brazil is another desired outsourcing location. It may be small in comparison to others, but it is growing rapidly. It is quickly expanding as a leader in global outsourcing, with several opportunities for research and development in the advancing IT industry. HP is also a player in this field, as well as IBM, Accenture and Unisys.
Chile is also emerging as a leading outsourcing country. It is following Brazil closely as the second highest in research and development in the region, encouraging foreign investment to increase the nation’s revenue. With competitive salary rates, Chile is quickly rising as one of the top outsourcing locations.
Although Argentina, Brazil and Chile are good locations for outsourcing, Bolivia is the best option. The first difference to consider is the economic level. Argentina and Brazil are both countries with an expensive lifestyle. With a higher cost of living, wages struggle to keep pace. Outsourcing in such locations proves to be much more expensive than Bolivia, resulting in lower overall profits.
Another difference between the countries is in regards to academics, often involving software and engineering expertise. Larger countries are dominated by large companies, all competing for good engineers. In response to this competition, companies are forced to offer higher salaries to obtain those with the most skill. In Bolivia, there is more opportunity and less competition among companies for qualified engineers. Additionally, prospective engineers can receive extensive training in Bolivia that can be applied worldwide.
All things considered, Bolivia is one of the best places to outsource in South America. The consumer price index is much lower, with a rating of 47.6 compared to that of Argentina, which is at 71.6. The distribution of living costs is distributed much more evenly in Bolivia as well, with a local purchasing power equal to the more expensive Argentina. Argentina has also recently experienced a downturn in the economy, struggling with inflation. With Brazil and Chile not quite on their feet yet, Bolivia is the most profitable option.
It is important that an outsourcing location is cost effective beyond software developing. Any effort for less expensive manufacturing is wasted if the cost of living drains company resources. Bolivia is a fruitful environment, with a stable economy and incredible opportunities.