GAO Market in Latin America - Market Research 2015-2019

Market outlook of outsourcing market

The availability of cost-effective and advanced technologies and favorable business conditions place Latin America as one of the most preferred locations for the outsourcing market. As a result, Technavio’s market research analysts expect the administrative outsourcing market in Latin America to gain traction at a rate of around 12% by the end of 2019.

The shortage of skilled labor to manage the human capital is posing a challenge to this market. The report predicts that by the end of 2015, Latin America would have a shortage of around 300,000 networking professionals. Outsourcing companies like Capgemini are filling this gap by bringing in workers from other regions.

Competitive landscape and key vendors
The outsourcing market in Latin America is dominated by global companies such as Accenture and IBM. However, growing attrition levels are posing challenges in managing process stability and continuity of operations for the vendors in the market.

The top four vendors in the market are –
•    Accenture
•    Capgemini
•    IBM
•    TCS

Other vendors in the market include ADP, Aon Hewitt, Cognizant, CGI, EXL, Genesys, Genpact, GEP, Infosys, KellyOCG, Kenexa, Manpower Group, NIIT, Noble System, Northgate Arinso, Raytheon, SafeGuard World, Softtek, Sutherland, Tech Mahindra, WNS, Wipro, Xerox, and Xchanging.

Segmentation of the outsourcing market in Latin America by service

•     Finance and accounting outsourcing (FAO) 
•     Recruitment process outsourcing (RPO )
•     Procurement 
•     Payroll outsourcing 
•     Training outsourcing  

Latin America presents an attractive opportunity for companies looking to support nearshore and offshore FAO services, especially to the US due to the time-zone proximity and low-cost operations.

Segmentation of the administrative outsourcing market by end user

•     Manufacturing
•     Telecom and IT
•     BFSI
•     Utilities

The manufacturing sector accounts for the largest share of the market. The manufacturing firms are investing more in human resource and recruitment process outsourcing services as the language intricacies help them provide better services to global companies. These investments are expected to drive the growth of this sector during the forecast period.

Segmentation of the outsourcing market by geography 

•     Brazil
•     Mexico
•     Argentina

Brazil is the leading region in the in terms of contribution and consumption of GAO services and is one of the prominent delivery centers in Latin America. However, high labor cost, high import and service tax, and language barriers are posing challenges for the establishment of service center within the country.

Key questions answered in the report include

• What will the market size and the growth rate be in 2019?
• What are the key factors driving the outsourcing market in Latin America? 
• What are the key market trends impacting the growth of the administrative outsourcing market in Latin America? 
• What are the challenges to market growth?
• Who are the key vendors in the Latin American market space?
• What are the market opportunities and threats faced by the vendors in the outsourcing market?
• Trending factors influencing the market shares of Brazil, Mexico, and Argentina?
• What are the key outcomes of the five forces analysis of the general and administrative outsourcing market in Latin America? 

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