Peru: The Rising Star of Outsourcing in the Americas
Jan. 15, 2015 by Russell Ormes
With Latin America becoming more and more often the choice for companies looking to outsource some or all of their technical staffing requirements a few forward thinking companies are looking to move into the greenfield territory of Peru.
The home of the iconic mountain top fortress, Peru has one of the fastest growing economy in the region, a fact that has led to an increase in investment in technology and science, both in education and industry, with government funds in addition being made available for tech startups and growing interest from foreign technology companies.
This means it is an increasingly attractive destination for nearshore outsourcing, with companies like Excel Softsources, firmly established in Costa Rica, the Latin country with the most successful outsourcing city in the Americas, looking to expand into Lima, Peru, allowing them to provide their partners access to an every increasing pool of talent and to bring high quality projects and great career opportunities to an otherwise inwardly looking jobs market.
Peru’s rising economy
Peru is one of the region’s fastest growing economies and is expected to remain as such in the medium term. Despite a slowdown in growth for 2014, Peruvian finance minister, Alonso Segura has predicted a growth rate of as much as 5% for 2015.
This has meant previously unseen levels of support for the technology industry in Peru, with government funding more than doubling in the last ten years. In 2012 it was reported that the government would be investing $400 million in science and technology in 2013, and it has also invested heavily in order to invigorate tech startups in the country. More recently there have been reports of increased co-operation between Canada and Peru in Technology development demonstrating the current president’s commitment to continued growth in the industry.
There is continued Government support of IT through the National Fund for Innovation and Technology (FOMITEC) and the National Council on Science, Innovation and Technology (CONCYTEC) and in addition private organisations such as The Peruvian Association Of Software Producers (APESOFT) seek to further improve standards in the technology industry of Peru.
Praise for Peru
All this has lead to Gartner, one of the world's leading information technology research and advisory company to talk about Peru as being a “steady component of the IT value chain, catering to both internal and the export markets.” According to a report in Nearshore Americas: “The country was tagged with ‘good’ labels in four categories including: infrastructure, political and economic environment , cultural compatibility and legal maturity. In terms of cost the country received a ‘very good” rating.”
|2010: Rank 66||2012: Rank 64|
|2013: Rank 63|
|2014: Rank 57|
|2015: Rank 58|
Lima has also been making great strides in the Tholons Top 100 listing with a steady rise in ranking year on year, and although this year there has been a slow down in the economic growth and their ranking on the Tholon list, the future is bright:
"We continue to expect the Peruvian IT industry to perform strongly over the next five years, even though the rest of the economy will expand at lower average rates." source: store.businessmonitor.com