Ultimately, it is becoming a prerequisite to be business-friendly and politically stable. Countries in Latin America and the Caribbean have advanced monumentally in both regards in recent years, so there are many options to choose from and it’s easy to discard the outliers from consideration. This has been reflected in the reticence companies have shown to enter Argentina and Venezuela during the last decade (not to mention the Philippines currently).
Talent, then, becomes the next differentiator. In some sense, size matters. Simply put, Brazil (with a population of almost 210 million) and Mexico (nearly 130 million) offer more people than everywhere else in the region. While Uruguay or Chile may have an advantage in terms of certain tech skills or overall education levels, when it comes to the ability to scale, there is no competing with the big two.
Salil Dani, a vice president in the global sourcing service line for the Dallas-based consulting and research company Everest Group, breaks it down into two elements: Potential for fast growth versus competition. Going to Mexico City or Buenos Aires means you can fill up seats fast. But you will also likely deal with high employee turnover rates since skilled workers are in high demand and have many options — not just from the services industry but in various other fields.
New locations (think Jamaica, Romania, Malaysia, and Singapore) are gaining traction as Global In-house Centers (GICs) and service providers seek to match talent to specific need, as well as to diversify their location portfolios
While the APAC region remains dominant, other regions are growing on the back of digitalization, risk diversification, increasing regulation
Although Asia Pac maintains the majority share of new center setups, its share has declined as other regions have grown
Asia Pacific continues to lead in global new delivery center set-ups
India and the Philippines hold the lion’s share of the global services market
Asia Pacific holds the dominant global services market share, but it is declining; Nearshore Europe and Latin America / Caribbean continue to grow