HILLSBOROUGH, N.J., Sept. 27, 2011 /PRNewswire/ -- ThinkSolutions, a management consulting firm with thought leadership in outsourcing, offshoring, and nearshoring, released its 2011 third quarter report of "The Best Nearshoring Destinations." The firm ranked 19 Latin American countries based on their appeal as outsourcing destinations, scoring the countries on 19 objective criteria in three categories: Financial Incentives, Business Environment, and Labor Force.
Firms continue to leverage nearshoring as an effective strategy for both Information Technology (ITO) and Business Process Outsourcing (BPO). Nearshoring requires careful consideration of the business objectives and an effective governance approach to manage the relationships. Executives continue to look to nearshoring for benefits in cost reduction, ease of management, and portfolio diversification, so the model aimed to reflect these interests of potential buyers.
The criteria were strategically selected and weighted to emphasize the unique characteristics of Latin America such as cultural affinity, time zone alignment, and language capabilities. With strong cultural alignment with the United States as well as a large, capable labor force, ThinkSolutions named Mexico the top outsourcing destination in Latin America for this quarter, followed closely by Chile, Costa Rica, and Argentina.
This outsourcing index is unique in its objectivity and flexibility in response to changing environments. While other global sourcing indices are updated annually, the ThinkSolutions Nearshore Destinations Model will be updated quarterly or more often to reflect major events or changes in a country's economic landscape. "After the political turmoil in Egypt last spring, the country maintained its high status in other global sourcing indices. When such a crisis occurs, our model can quickly reflect the change in the country's score," said Tony Mataya, a managing partner at ThinkSolutions. The evaluation model is designed to be proactive as well as reactive, scoring countries based on the level of political stability and corruption in an effort to penalize countries with a higher risk of turmoil. Mataya added, "We also work with clients to tailor the model to reflect their risk profile and business objectives to help determine the optimal location for sourcing services or locating operations in Latin America."
ThinkSolutions is a management consulting firm with extensive experience in strategic cost reduction, internal services transformation, shared services, and all aspects of outsourcing, nearshoring, and offshoring. With a team of battle tested experts, ThinkSolutions delivers creative yet proven solutions to clients.