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Chile aims for the high-end of offshore outsourcing

John Ribeiro | Sept. 29, 2010
A small population limits the country to playing only in niche markets

"We will by this model be able to leverage our own resources, as well as those of our neighboring countries," Munoz added.

Chile-IT expects that other Latin American outsourcing companies will partner with Chile to address the U.S. market. Likewise, U.S. companies will look to Chile as a partner to get access to services not only from Chile but from the rest of Latin America, Munoz said.

Chilean IT services companies are already setting up operations in other countries in Latin America to benefit from the skilled staff available in these countries, and to offer services to customers, Bustos said. Chilean IT companies will set up operations in these other countries or contract the work to companies there, Munoz said. "We will deliver the high-end services from Chile, while some of the other volume work can be done from other countries that have larger populations and staff," he added.

The challenge for Chile is to build its business in the U.S. market where some of its companies are not well known. Local Chilean companies are adopting a variety of strategies. NovaRed for example has partnered with system integrators in the U.S. to market its services to customers there, Bustos said. "We complement the services offered by the system integrators," he added.

Although all its revenue comes currently from Latin America, NovaRed expects its one-year-old strategy to start getting it revenues from the U.S. market soon, Bustos said.

Chile-IT is helping local companies gain visibility in the U.S. market by helping them open offices and do business in the U.S., Munoz said.

Having multinational IT companies set up subsidiaries in Chile has also helped the country gain credibility as an IT location, Leatherbee said.

European IT services company Capgemini and India's Tata Consultancy Services have operations in Chile.

Chile is also likely to be attractive to U.S. customers who are looking to diversify the locations they currently source services from, Busto said.


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