Outsourcing in South America

January 2018

Sectorwatch

Latin America outsourcing is an emerging trend and the region has surfaced as one with great promise for the global services industry, primarily due to the increased US demand for nearshore services. According to Juan Diaz, Consulting Manager at Wipro Consulting Services, the Latin America sector is more stable and therefore, companies will see the same cost for talent for some years to come.


Industry Trends:

  • Current revenue growth rate is less than the average of the last 3 years, indicating that the market may be flattening or declining
  • Current gross profit margin is less than the average of the last 3 years gross profit margins, indicating customer pricing power
  • Current EBITDA margin exceeds the average of the last 3 years EBITDA margin, a condition that may attract new entrants