Latin America Raises Outsourcing Profile - Slide 6

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Labor costs top the list.

While India and China are still the top destinations for outsourcing, a survey by the IT services firm Capgemini finds that Latin America is gaining ground.

The survey of 300 Fortune 1,000 executives, conducted by Harris Interactive on behalf of Capgemini, found that 25 percent of the executives said they already outsource operations to Latin America, compared with 27 percent who cited China and a whopping 60 percent who cited India.

Of the 222 executives who said their company outsources operations, the top four attributes sought are skilled labor, labor cost, technology and infrastructure capabilities and economic stability. The least relevant are proximity to the U.S. and time zone alignment.

And of the executives who don’t currently do business in Latin America, 24 percent said they expect their companies to be doing business there in the next five years.

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