By Rodrigo Blanco
Information Technologies are like orchestra conductors, they set the pace of the economy, markets, businesses, and even the way we live. The IT sector has become a fundamental element for the economic development of most countries, and governments play an important role in taking advantage of this change, generating innovation opportunities in the Country, and taking advantage of trends that can benefit the economy, as is the case with the relocation of services, better known as nearshoring operations.
The industry has experienced exponential growth in recent years, with India being one of the top destinations for service relocation. However, Latin America can position itself as a more attractive nearshoring alternative due to the geographical advantages that the Region offers, achieving an even more effective experience. By adapting India’s successful model to Latin American needs and characteristics, much greater synergy could be generated in the sector, tropicalizing the IT nearshoring experience in India to the Region.
The government is a fundamental element for the development of these operations. Through the creation and monitoring of adequate policies, investment in technological projects and the construction of necessary infrastructures, like India has done,the Region can build the ideal environment to foster economic growth in the IT sector. Likewise, it is essential that governments work hand in hand with the private sector to promote education and training that guarantees a trained labor force to respond to market demands.
Through clear policies related to the sector, the Region can promote private investment and economic growth. For example, the governments should offer tax incentives, which can encourage North American companies to invest more in the sector and take advantage of Latin America´s strategic geographic location, which translates into reduced costs and time, and better benefits for NA companies.
Investment in technological projects, in addition to economically benefiting countries, also attracts technological innovation. These projects may include the creation of infrastructure, research and development in the sector. North American companies could reduce costs and improve their efficiency, while Latin America would benefit from job creation, knowledge, and growth. The infrastructure factor is key for the operation of technologies, so the governments must invest in the creation of infrastructure such as telecommunications networks, data centers and other resources necessary for the sector.
Finally, just like India has done, a trained workforce must be guaranteed to respond to market demands, as well as IT education and training must be promoted to provide people with the necessary skills to work in the sector. Well-trained and specialized talent guarantees that the sector is in good hands and, with the right attention, allows it to continue growing as an industry.
Latin America and India have a strong cultural convergence; although both have different affinities, they share certain social traits that could facilitate the adaptation of companies in the sector. For this reason, establishing collaboration and exchanges between universities and research centers with India is essential to obtain new experiences in the training of highly trained professionals in areas such as programming, web development and data analysis, and thus achieve that the Region has the necessary talent to meet the demands of North American companies that require nearshoring services.
Without a doubt, if the governments bet on the information technology sector, we could take the Region’s innovation to another level. Companies are turning to Latin America, and it has been shown that it has the conditions, all that is needed is that extra push from our governments.
Author is Head – Corporate Affairs, Tata Consultancy Services Mexico.
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