Latin America’s revenue from their BPO sector is expected to reach $13.3 billion by 2021 according to Frost & Sullivan.

Just last 2015, Latin America (LATAM) accumulated a revenue of $10.5 billion from their BPO sector. According to Frost & Sullivan, this was due to the re-evaluation of the US dollar compared to LATAM currencies.

LATAM’s BPO scene is experiencing high growth with clients most notably from the United States and Spain. New innovations, however, are slowly catching up to this growth. The industry must adapt to these or else they would be left behind in the outsourcing game.

In fact, customers of LATAM are demanding more of digital communication channels. According to in an article by infotechlead.com, LATAM use social media, and email, forcing service providers to implement multi-channel and omni-channel strategies to stay competitive in the marketplace.

“As fewer new deals with telecommunications companies appear, contact center service providers must build stronger vertical-specific strategies to sustain their growth in the medium and long term,” said Frost & Sullivan analyst Sebastian Menutti.

In the past couple of months, it’s not the major cities in Latin America that has experienced this growth. Even Tier II cities have also began expanding to cater to the growing BPO-IT industry.

“Although the big majority of the BPO/ITO service providers are locate in Santiago de Chile, there are some Tier II cities- Valparais, Concepcion, Valdivia- that have shown some growth over the past years,” said Sebastian Menutti, enterprise communications industry analyst at Frost & Sullivan.

LATAM also has an abundance of not only highly-educated and bi-lingual employees thanks to the presence of universities in the different countries, but also they have cheaper labor costs compared to their nearshore neighbors in the US.

Latin America is definitely is on the rise in the outsourcing sector.

Sources:

Check out infotechlead.com’s original article here.

Also, Nearshoreamericas.com has an article about the Tier II cities. Read it here.