It’s taken several years, but Cap Gemini’s newly aquired center in Buenos Aires is a significant development for the country as a sourcing location. With GDP growth running at 4.7% this year (and expected to remain consistent in 2008 and 2009), inflation back under control, and IT and process skills on the rise, expect an increasing amount of work to shift to this location in the near term. EDS and Neoris have been reaping the benfits of centers in Argentina for some time now for IT services, but the greater significance of Cap’s investment should be ultimately for BPO services, such as procurement, finance/accounting and even HR. It’s going to be very tough for South American locations to attract significant IT work away from India in the medium-term, largely because of India’s talent base for IT, but expect to see significant interest in sourcing process work to the area, as a result of the language skills, timezone convenience for US firms, and ability to take on more judgement-based process which require critical thinking and analysis and employee-interaction.
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