A.T. Kearney Report Finds Multinational Companies Turning to Chile for Global Services Business-Friendly Environment Differentiates Country as a Service Provider
SANTIAGO, Chile and NEW YORK, Feb. 2 /PRNewswire/ -- A recent report from the management consulting firm A.T. Kearney found that Latin America, and Chile in particular, is becoming an increasingly popular global services destination for multinational companies and third-party service providers. Chile's stable business environment, talented labor pool and outstanding physical and telecom infrastructure is positioning the country for continued growth in this area.
The report found Chile increasingly gaining interest from North American and European companies looking to serve both English and Spanish speaking clients. With strong economic and political fundamentals, cultural similarities to both the US and Europe and a highly educated workforce, Chile is better positioned than most of its Latin American counterparts to steal market share from other offshoring locations, the report concludes.
"Chile offers a unique value proposition for companies looking to diversify their global services footprints," said Chris Callieri, Principal of A.T. Kearney. "A very business-friendly environment and exceptionally strong government support make Chile an ideal choice for global services and we anticipate that this region will see continued growth as companies realign their global services delivery strategies, moving from a single to multi-location model."
The country is also uniquely positioned to assist service providers in expanding their global footprint and the report notes that several Indian service providers have opened facilities in Chile to meet demand and provide diversity to their operations. The expansion in Chile enables them to work around the clock and provide higher levels of service to their clients.
"As A.T. Kearney's report highlights, Chile is a great location not only for multinational companies but also for third-party service providers," said Carlos Alvarez, Executive Vice President, Chilean Economic Development Agency (CORFO). "As a country, we strive to provide the best incentives and environment for companies looking for a regional presence through our InvestChile program and our ongoing commitment to education. We are building a launch pad to the world."
In 2009, the A.T. Kearney Global Services Location Index ranked Chile 8th among the world's best outsourcing locations. It was the highest ranked Latin American country and the only one in the top ten. Each location was ranked based on more than 40 metrics to evaluate financial costs, people skills and availability, and business environment.
CORFO, the Chilean Economic Development Agency, was founded by the Chilean government in 1939 and aims to foster economic growth by encouraging investment, innovation, business and cluster development. To date, CORFO has aided more than 57,000 businesses and assisted in 74,000 projects with a goal of encouraging the development of numerous industries throughout Chile. CORFO contributes an annual average of more than $30 million to SMEs programs and more than $38 million to high technology programs alone. For more information, please visit www.corfo.cl.
InvestChile is an investment program created by CORFO (the Chilean Economic Development Agency) in 2000. The program promotes Chile as a business platform to access Latin America and the world and facilitates investment through a series of incentives, services and comprehensive information regarding business opportunities in various sectors of the Chilean economy. Among the services provided, InvestChile facilitates access to business networks and government institutions, helps investors find service providers and suppliers, and arranges meetings with industry leaders and visits to companies. For more information, please visit www.investchile.com.
Gerald Kimber White