While the global outsourcing market continues to look for new locations and expands in new services and revenue, Latin America cities have been showing mixed results for 2013. 10 cities were downgraded and 10 upgraded while a new city came into the list.
Most of the negatives come from major countries that are suffering increasing costs or political uncertainties. The positives are mostly from “secondary” cities, that is, the ones that investors may not think of immediately. This reaffirms the need to deeper analysis in Latin America in order to find the best service location.
The largest improvement came from Managua gaining 8 positions. On the other side, Brasilia is losing 6 positions. Cali made it for the first time into the 100. Congratulations!
2014 is opening with many uncertainties. Political cycles are starting and this usually affects investor´s timing. Dollar seems to be undervalued in many countries and that is also keeping investors defensive.
But for a region that provides around 9% of the total Offshoring revenue, having 23% of the top 100 cities demonstrates that there are plenty of good options around and that promotion agencies across the region are battling more than ever to lure new companies. We wish them all great success!
The list can be seen at http://www.tholons.com/nl_pdf/Whitepaper_December_2013.pdf