June 28, 2009, 11:32 AM — On his recent getaway to Buenos Aires to meet his lover, South Carolina Governor Mark Sanford was taking a trip more and more U.S. businesses now make.
But not for some sort of romantic interlude. South America, especially Brazil, is gaining ground in IT offshoring.
South American countries are focusing on what they say are critical advantages over India. With Buenos Aires only one hour ahead of the South Carolina's state capitol, Columbia, e-mails -- romantic or otherwise -- can get more immediate reaction.
And South America is a relatively short flight, compared with Bangalore, meaning visiting managers will be less tired at dinner meetings.
The nonstop flight Sanford likely took from Atlanta to meet his Argentine mistress was about 10 hours. The flight from Atlanta to Bangalore can take anywhere from 20 to 30 hours, depending on connections.
Gartner Inc. put Argentina and Brazil on its list of 30 top offshore locations for this year, alongside such countries as India, China and nearshore locations of Canada and Mexico.
The major focus for IT outsourcing in South America is Brazil, partly because of its sheer size, with its population of nearly 200 million people, versus about 41 million in Argentina.
While Sanford was back in South Carolina this week trying to explain his disappearance, Antonio Gil, president of the Brazilian Association of Information and Communication Companies, was in New York selling Brazil as an offshore location.
"Companies are looking for alternatives to India," partly to reduce the risk of having operations focused in any one country, Gil said. "People are trying to diversify."
Also, Gil said, from the U.S., there are 150 direct flights a week to Brazilian cities.
He said the overall outsourcing market in Brazil is about $2 billion and growing about 20%. By comparison, India's offshore market is about $40 billion.
Brazil, with the world's 10th largest economy, has more than 250,000 IT professionals and produces about 23,000 new IT graduates each year.
Salaries in Brazil are higher than in India, and the average IT programmer's pay can range from $20,000 to $40,000 a year, depending on location, according to a Gartner report.
