Spain could be a low-risk, high-valueIT services destination for UK
companies.
The AEC (Spanish association of consultancy firms), which
comprises25 companies, was in London this week to promote Spain as
a potential destination for near-shore IT services for UK
companies.
Spain is on
a par with India if the total cost of an outsourced IT service
is taken into account.
The countryhas a lot of IT graduates and is also a gateway to
low-cost services in South America.
Juan Jose Kuntz, CEO at Santander's technology arm Isban in the
UK, said the bank does not offshore IT but has services carried out
in its Spanish homeland.
"The number of IT professionals is high and the knowledge of
retail banking in Spain is one of the best in the world. The rates
are also very competitive," he said.
The AEC said that the services Spain can offer are complementary
to other destinations, such as India and Eastern European
countries.It said Spain can offer project management and business
insight skills.
Suppliers of outsourced services are building models that mix
near-shore and offshore services.
Spain, according to the AEC, could also be a way for firms to
access services from South America.
"Spanish companies have been offshoring to South America for
about 10 years," said an AEC spokesman.
He said Spanish suppliers will communicate with South American
offshore service providers to overcome language barriers.
Duncan Aitchison, president EMEA at sourcing company TPI, said
Spain has been a
near-shore option for a while, and has a good level of IT
education and people who speak many different European
languages.
He added that the historic relationship between Spain and Latin
America is an advantage. "Countries such as Brazil and Argentina
are establishing themselves as IT services destinations." He said
they already service North America.
Robert Morgan, director atHamilton Bailey, which advises
suppliers, said in his experience Spain's Catalonia region is a
good near-shore destination. He said they can balance work between
Spain and South America. "I have done deals where part of a service
is carried out in Barcelona while some is carried out in South
America. I rate it as a very good multi-lingual callcentre and
application development destination."
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