TBR believes the challenging economic environment of the last few years caused many companies to seek out the cost efficiencies of outsourcing non-core business functions to outside vendors. Consequently, professional services vendors have been eager to establish nearshore/offshore service delivery capabilities in lower-cost regions such as Asia Pacific, Latin America and Eastern Europe. According to Eugene Zakharov, director of TBR’s IT Services practice area, “Client demand for outsourcing services to nearshore/offshore locations will continue to escalate, and while Guatemala – or LATAM for that matter – is not as low-cost for front-office work as India or Poland, it is an attractive alternative for clients looking for nearshore operations that offer time-zone compatibility, excellent language skills and a high level of education. Vendors will further invest in the development of nearshore/offshore service delivery capabilities, both organically and through acquisition.”

For its part, Capgemini has begun responding to the demand by investing in the development of nearshore outsourcing service delivery capabilities in LATAM (and Guatemala in particular), “a region the company regards as a significant opportunity and as one of the fastest-growing in the world,” according to Elitsa Bakalova, Professional Services analyst at TBR. “While Capgemini follows in the footsteps of Genpact and ACS, which is now part of Xerox, the company is still very well positioned to provide value to its clients,” states Bakalova.

TBR’s Vendor Spotlight indicates that Capgemini already has a network of nearshore delivery locations in LATAM focusing primarily on BPO; regional headcount for the company was more than 1,000 in 1Q10, and Capgemini has stated an intention to expand to 2,500 by 2013. The company has taken significant steps to sharpen its focus on the hiring and retention of Guatemalan talent, building programs based on attracting new employees through existing workers, on retaining talent through innovative programs that provide employee perks, and on supporting continued educational development.

The compete publication TBR Vendor Spotlight – Capgemini in LATAM is available on TBR’s website at http://www.tbri.com. Companies covered in the report include: Capgemini, Coca-Cola Enterprises, Genpact, Xerox Services/ACS, IBM Global Services, Digitex, Transactel, Atento, Sitel, Teleperformance and 24/7.

Technology Business Research, Inc., headquartered in Hampton, N.H., is recognized as one of the leading high-tech market research and consulting firms specializing in the analyses of computer, software, networking equipment, wireless, portal and professional services companies, as well as customer satisfaction studies. Serving a domestic and international clientele of high tech manufacturers, IT professionals, end users and financial executives, TBR provides timely and accurate market research and business intelligence in a format that is uniquely responsive and tailored to clients’ needs. TBR analysts are available to further address client specific issues or information needs on an inquiry or proprietary consulting basis.