Looking Forward: Top Nearshoring Trends for 2012


When Patrick Haller from Nearshore Americas asked ThinkSolutions for insight into how the nearshoring space will evolve in the next year, here's what we had to say:
Nearshoring Trends for 2012
1. India’s total cost of outsourcing (TCO) continues to increase and the advantage gap over Nearshoring continues to close especially due to inflation and attrition differences. 
2. Remote sourcing from LatAm, such as remote monitoring, will increase as technology continues to support it and India TCO rises.
3. There will be an added impact of the recent Free Trade Agreements (FTA) that improve upon the WTO’s General Agreement for Trade in Services, especially in Colombia.
4. Brazil will struggle to increase export of services due to internal demand from domestic growth as well as attention in preparation for the Olympics and other events.
5. Colombia will have an increased profile, a growing economy, free trade, improving security and stability.
6. Crime in Mexico will stabilize due to increased government pressure and US attention but will remain problematic in localized areas.
7. Small and mid-size US companies will exploit the advantages of Nearshoring.
8. There will be a trend towards consolidation of smaller LatAm IT firms into medium and larger firms to meet the needs of US based clients.
9. More firms will seek out LatAm for shared service centers as an alternative to offshore locations.
10. Indian firms will continue to expand into the LatAm region as global IT delivery strategies more frequently include Latin America.

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