What Central America has to Offer

These days, services outsourced to Central America reach far beyond call center offerings.  Costa Rica blazed the trail in LAtin America for software development services and web design.  In fact, Costa Rican design and programming firm InterGraphic Designs signed popular nearshoring news source Nearshore Americas as a client.  
Beyond Costa Rica, other countries in Central America have well-established companies in local web development market.  In Nicaragua,  check out Guegue and Webbasica, web studios that offer web development, design, marketing, and hosting services.  El Salvadorian company Happy Punk Panda Studios creates digital campaigns for brands, and an array of web companies are popping up in Guatemala.

Read it here at The Next Web

Argentina Elects President Cristina Fernandez to a Second Term

Christina Fernandez de Kirchner is Latin America's first female to win a second presidential term.
The Argentinian president was elected yesterday with 54% of the votes.  According to political analyst Carlos Germano, economic issues played a pivotal role in deciding the election's outcome.  The runner up in this election was socialist governor Hermes Binner, who received 17% of the vote.  Argentina's economy has enjoyed 8% annual growth under Fernandez's policies, an impressive accomplishment in light of the global economic recession.  Argentinians want to see continued economic growth, and they look to Fernandez for leadership.

Read it at CNN.

Another Reason to Nearshore? Indian IT Attrition Reaches 55%

When Frank Casale, CEO of the Outsourcing Institute, asked an executive for an Indian service provider to name the biggest challenge his company faces, his answer was attrition, at an almost reflexive speed.  High turnover on a team reduces productivity and cost effectiveness at an alarming rate.  Companies don’t want to begin a project with a team knowing that 55% of that original team could be gone, and replacements will need to be trained, every year.  This is the reality for some providers in India, where the attrition rate is at 55% in the IT and BPO sectors, according to a study by the Associated Chambers of Commerce and Industry of India (ASSOCHAM).  The numbers below are the 2010 attrition rates for the U.S. IT industry, and outsourcing industries in Brazil, Chile, China, and India.

Sources: AT Kearney (Chile, Brazil), Indian Associated Chambers of Commerce and Industry (India), Pragmatic Outsourcing (China), and Compensation Force (U.S.)

Below are self-reported numbers from top Indian firms.  As expected, the reported numbers are significantly lower than those reported by a third party source (ASSOCHAM).  It’s likely that a combination of the smaller Indian firms play a role in bring the rate up, and misreporting on the part of Indian firms are contribute to the large discrepancy.  However, even taking these numbers at face value, they are in many cases higher than those found in Latin America.

Source: The Times of India

What factors contribute to lower attrition in Latin America?  In general, the family-oriented culture in Central and South America means less people are likely to relocate or leave their company for another.  Time zones are also a factor.  Business Process Outsourcing and customer service outsourcing professionals in India may have to adjust their working hours to accommodate the U.S. time zones.  With a well-developed market sourcing market where companies compete fiercely for skilled labor, employees in India will relocate for cents more per hour.  Even in Chile and Brazil, the comparatively low attrition rates can cause major problems.  Companies should ask their providers to name the measures being taken to reduce turnover among employees.  

U.S. Outsourcing Web Design to Central America?

Local companies in Central America operate exclusively for foreign clients.  The area started out as a popular call center destination and has evolved into a hub for web design and development.   According to Ricardo Arcee, an entrepreneur from Costa Rica, there are companies with 100+ employees who offer software development services to U.S. clients, such as Avantica, Isthmus, and Outcoding.  
In El Salvador, employers are working on the problem of migration, which leads to brain drain.  Nicaragua has companies offering web designing and software services, and the Latamapps initiative in Panama helps link clients with service providers.  These developments in the region help to generate revenue and make the industry more professional.
Read it at BPO India.

'Occupy Wall Street' Movement reaches Costa Rica

October 17, 2011
It looks like the United States has markedly more influence on Costa Rican culture than we thought.  On Saturday, 200+ people marched around the streets of San Jose, joining the worldwide protests against corporate greed and failed economic politics.  Like the US protests, the agenda was ambiguous.  
“This is a spontaneous event with no official organizers, leaders or representatives. There is no program or agenda. We are here because we share the idea of a better future for our country,” said Mayela Ruíz, who organized a number of social network events.  

Read it at the Tico Times

Brazil Admits to 'Race Against Time' for FIFA Infrastructure Improvements

President Dilam Rousseff admitted that several host cities are in a "race against time" to complete the infrastructure improvements needed to sustain the millions of World Cup tourists expected in 2014.  Consultancy Ernst & Young along with the Getulio Vargas Foundation reported that Brazil will need to pour $11 billion into road repairs, boosted hotel capacity, reinforcement security, and telecommunications network improvements.  Brazil has received several warnings from FIFA over delays in construction projects that must be ready by 2014. An estimated $3 billion will be spent increasing airport capacity at both Sao Paulo and Rio de Janiero International Airports.  Rousseff has signed off on the most costly infrastructure improvements, which entail the improvement of underground transit systems in all of Brazil's host cities (shown below).

Expect major upgrades in transit, accommodations, and mobile networks for these cities by 2014.


Read it here at Times of India.

Congress Approves Trade Agreements with Panama, Colombia, and South Korea

October 13, 2011 

 The U.S. Congress approved trade agreements with South Korea, Colombia, and Panama in what creates the largest opportunity for exporters in decades.  This ends any fears that actions of the US government leaned toward protectionism, and the bills passed in light of opposition that these agreements will lead to job losses. 

The Colombia bill faced the most Democratic opposition, on the grounds that Colombia did little to protect union leaders from assassination.  According to Senator Sherrod Brown of Ohio, Colombia is the most dangerous place in the world for trade unionists.  Indeed, the Nation Union School, a labor rights organization in Medellin, reported that 51 union members were killed last year, an increase from 47 in 2009.   Under the agreement, over 80 percent of U.S. exports will become duty free immediately, and remaining tariffs will be phased out over the next ten years.  Key U.S. exports will gain immediate duty-free access to Colombia, including information technology equipment.

Last year, the U.S. exported $6 billion worth of goods to Panama and imported minimally from the country, but the new trade agreement will make it easier for the U.S. to compete for contracts in Panama's $5.25 billion expansion of the canal.  The FTA guarantees access to Panama's $20.6 billion services market, including priority areas such as financial, telecommunications, computer, distribution, express delivery, energy, environmental, and professional services.  Phasing out tariffs on imports and exports will benefit farmers in numerous ways, but will also allow for the duty-free export of information technology equipment.

Read the facts of the FTAs:
Colombia
Panama

Costa Rica FDI on Pace to Break All-Time High

During the first 6 months of 2011, Costa Rica accumulated $1.06 billion in foreign direct investment, according to the Central Bank of Costa Rica.  Under President Chincillia, the Foreign Trade Ministry set an investment goal of $1.85 billion, and if FDI continues at its current pace, they'll surpass their record-breaking goal.    
IBM made the largest contribution to FDI in the first half of the year.  On June 30, the technology company accounced a $300 million increase in investment in Costa Rica which is expected to create 1,000 new jobs.  According to Carl Ingersoll, general manager of IBM Costa Rica, IBM wanted to invest in Latin America and chose Costa Rica based on "a number of competitve advantages".

source: The Tico Times

Cable & Wireless signs $10.8 million Contract with Panamanian Government

Cable & Wireless will support the Panamanian government's 'Panama without paper' project, aimed at digitising the country's civil administration. The 'Panama without paper' project is part of the government's Digital Government program to transfer its documents and communications to electronic platforms and thus reduce paper use. Cable & Wireless will install systems designed to enable government departments and institutions to share information electronically and reduce their paper-based procedures. Twenty departments and Government-run organisations will be involved in the initial roll-out, including the Ministry of Health, Ministry of Social Development, Ministry of Commerce and Industries, Ministry of Agricultural Development, Civil Aviation Authority, Maritime Authority, Authority of Transit and Land Transport, Social Security Fund, National Customs Authority, the Institute of Aqueducts and Sewers and the Institute for the Training and Utilisation of Human Resources. The project will also cover the creation of a 'citizens portal' to provide Panamanian citizens with access to basic Government services online, such as downloading PDFs of forms, or applying for a passport. The contract is worth around USD 10.8 million. Under the terms of the deal, Cable & Wireless Panama will supply, install and support the new systems over the next three years. CWP will create broadband connections between the departments, a front-end portal and will back-up data in one of its data centres. A customer service support line will also be set-up to provide ongoing support.

Source

Brazil Inflation Forecasts Increase for 5th Consecutive Week

SAO PAULO -(Dow Jones)- Brazilian financial analysts and economists raised their 2012 inflation forecasts for the fifth consecutive week, according to a survey published Monday by the Brazilian central bank.

The weekly survey showed that economists raised their 2012 year-end forecast for Brazil's inflation rate slightly to 5.53% from 5.52% in the prior week's survey.

Read it at Nasdaq.