Latin America to drive growth in outsourcing — Amalga CEO
TEXAS, UNITED STATES — The nearshore outsourcing industry is poised for robust growth in the coming years, on the back of robust growth in Latin America, according to Jens Erik Gould, CEO of nearshore staffing firm Amalga Group.
In an interview with Explosion, Gould emphasized the accelerated growth of the nearshore outsourcing sector during the COVID-19 pandemic, driven by the necessity of remote work and the subsequent realization of its efficiency.
Though the industry was affected by the economic slowdown over the past year, Gould said major companies are setting up operations in countries like Mexico to leverage the abundant tech talent.
“In 2024 and 2025, we believe growth will pick up again in both ICT (information and communication technologies) and BPO (business process outsourcing) in Latin America.”
“You’re starting to see a phenomenon in Mexico, for example, where U.S. companies are not only looking for outsourced staff augmentation in Latin America, but they’re also going into Mexico and setting up their own business entities in order to hire dozens or hundreds of BPO and IT consultants,” Gould explained.
“Big-name tech companies are doing this, as well as consulting firms, large healthcare systems, and others.”
Gould attributes this trend to the ongoing shortage of skilled talent in the U.S. combined with the ease of engagement enabled by advances in remote collaboration technology. He described the outsourcing industry as something that is “always attractive” and “isn’t going away.”
“Nearshore talent is going to play an even bigger role in the IT and BPO industries going forward. It’s going to continue to grow.”
ResearchAndMarkets.com projected strong growth for the global call center market over the next decade, expanding from $314.5 billion in 2022 to $494.7 billion by 2030, representing a 5.8% compound annual growth rate (CAGR).
