New Opportunities for IT Companies in Chile
When we analyse the IT market in Latin America it is very interesting to observe how each country behaves and presents different opportunities from one another. Recently, Frost & Sullivan had the chance to talk with Carlos Fernandez, Chile-IT CEO, about the industry in the country.
Chile-IT is a government-backed association whose members are some of the most established technology companies in Chile. The organization’s main purpose is to promote local firms so they can provide IT services to North American companies (U.S. and Canada).
This action is particularly important in Chile. Among the different characteristics between the countries in Latin America with regard to the technology industry, Chile has a very open market when it comes to adoption of new technologies, specially due to the low cultural resistance to outsourcing in comparison to other countries in the region. Nevertheless, Chile has a small addressable market, resulting in rapid saturation site.
The result observed is the expansion of several Chilean companies to other countries in Latin America. A clear example of this growth strategy is implemented by Sonda that has acquired several companies in the region as a means of entry and expansion in markets in different countries.
Along with this movement, Chile-IT wants to attract international business to local firms, thus leveraging its internal capacity. The organization has been making a strong leverage on the advantages in partnering with IT chilean companies mainly highlighting its strenghts in comparison to other countries in Latin America, such as Argentina and Mexico, which have already positioned themselves to many U.S. companies as poles for offshore services. Although Chile does not position itself on price / cost, the country has advantages over these other two countries, as it presents a more stable political and economic situation, besides the security and safety aspects of the country.
To learn more about the organization, visit: www.chile-it.cl