Watch our webinar recap to learn what are the key considerations to navigate the Latin America region successfully and grasp the full value of nearshoring for your IT organization in 2023 and beyond.

1. Wednesday, March 29th @12:00pm ET
The Talent and Cost Benefits of Nearshoring
for your IT Organization: Keys to Success
WEBINAR
Trade Representative
For Texas
Procolombia
Co-Founder & Sr.
Managing Director, Tech
Services
Auxis
Managing Director
Infrastructure Technology
Auxis
Services Sector
Manager
CINDE
Alejandro Londoño
Ana Romero
Jose Alvarez
Alvaro Prieto

2. Today’s discussion will focus on:
• What’s driving the interest in nearshore
• Key LATAM countries to consider for supporting North America
• An Overview of the IT Services Sector in Costa Rica and Colombia
• The Business Case for Nearshoring
• Build vs Buy – how to pick the right model for your organization
• Success stories from companies currently nearshoring
• Lessons learned for a successful implementation
• Q&A – we want to hear from you!

3. 3
80% of companies expect their investments in IT outsourcing
services to stay the same or increase in 2023
-Everest Group
Multiple market conditions are driving the growth of IT
outsourcing and nearshoring…
The #1 priority for CIOs in 2023 is to adjust IT operations to
manage for inflation
- Info-Tech Research Group’s CIO Priorities 2023 Report
IDC predicts the global shortage of developers to increase from 1.4
million in 2021 to 4.0 million in 2025
- IDC
4 in 5 hiring managers think they will not meet their annual
tech hiring goals. More than 25% of companies spend nine or
more weeks filling in-demand software engineering, data
analytics, data science, and UX design positions.
Companies are spending an average of just under $30,000 to fill
in-demand tech positions, the report found.
-The State of Talent Acquisition 2023
Four out of five CEOs are increasing digital technology investments
to counter current economic pressures, including inflation, scarce
talent and supply constraints.
-Gartner CIO Agenda 2023
Nearshore countries like Costa Rica experienced the highest
historical FDI investment in 2022, with the knowledge-intensive
services sector representing $7B of exports.
-CINDE
A recent McKinsey study found a direct correlation between
productivity and location model/closer time zones.
-McKinsey – The True Drivers of Digital Delivery Performance

4. Total
Population
of 670M+
8.4% of total world
population
33 countries and
15 dependencies
Median age is
31 Years
Latin America represents 17% of
the Top 60 Global Services
Locations according to Kearney’s
latest index.
And 16% of the Top 50
Digital Nations according to
Tholon’s latest index.
Top Countries by Population
# Country
Population in
millions
2 Brazil 214.3
2 Mexico 126.7
3 Colombia 51.5
4 Argentina 45.8
5 Peru 33.7
6 Venezuela 28.2
7 Chile 19.5
8 Guatemala 17.1
9 Ecuador 17.8
10 Bolivia 12.1
# Country
Population in
millions
11 Haiti 11.5
12 Cuba 11.3
13 Dominican Republic 11.1
14 Honduras 10.3
15 Paraguay 6.7
16 Nicaragua 6.8
17 El Salvador 6.3
18 Costa Rica 5.2
19 Panama 4.3
20 Uruguay 3.4
Brazil, Mexico, Colombia,
Chile, Argentina, Costa Rica,
Uruguay, Panama, Trinidad &
Tobago, Peru
Brazil, Mexico, Colombia,
Chile, Argentina, Costa
Rica, Uruguay, Chile,
Nicaragua
Most countries in MT & CT time
zone for most of the year.
The Nearshore Market in Perspective…

5. The True Nearshore Destinations for North America
• Greater Collaboration
• Geographic Proximity
• Time Zone
• Large & Strong Workforce
• Cultural Affinity
• Language Skills
• Lower Cost
• Lower Turnover than Asia
• Strong Infrastructure
The advantages of Nearshore
have never been clearer...
Based on geographic proximity to the US and maturity of the services
sector, the main nearshore destinations for IT services are Mexico,
Colombia, Costa Rica, and Guatemala.
Other countries such as Honduras, El Salvador, Panama, Trinidad &
Tobago and Dominican Republic may also be close to the US but are
typically Tier 2/3 countries for reasons such as Safety, Political Stability,
Services Maturity or Lack of Scale.
Mexico Colombia Guatemala
IT &
Engineering
Professionals
Speak English
English %
860K 510K 100K 56K
240K 94K 37K 10K
28% 18% 37% 18%
Costa Rica

6. Average Flight Times from US to Key LATAM Countries
Miami New York Boston Philadelphia Los Angeles San Diego San Jose San Francisco Houston Dallas Phoenix Chicago Columbus Denver
Mexico City Yes Yes 1 stop 1 stop Yes 1 stop Yes Yes Yes Yes Yes Yes 1 stop Yes
San Jose, Costa Rica Yes Yes Yes Yes Yes Yes 1 stop 1 stop Yes Yes 1 stop 1 stop 1 stop Yes
Guatemala City Yes Yes 1 stop 1 stop Yes 1 stop 1 stop 1 stop 1 stop Yes 1 stop 1 stop 1 stop 1 stop
Panama Yes Yes Yes 1 stop Yes 1 stop Yes Yes Yes 1 stop 1 stop Yes 1 stop Yes
Bogota, Colombia Yes Yes Yes 1 stop Yes 1 stop 1 stop 1 stop Yes Yes 1 stop 1 stop 1 stop 1 stop
Lima, Peru Yes Yes 1 stop 1 stop Yes 1 stop 1 stop 1 stop Yes 1 stop 1 stop 1 stop 1 stop 1 stop
Santiago, Chile Yes Yes 1 stop 1 stop Yes 1 stop 1 stop 1 stop Yes Yes 1 stop 1 stop 1 stop 1 stop
Buenos Aires Yes Yes 1 stop 1 stop 1 stop 1 stop 1 stop 1 stop 1 stop 1 stop 1 stop 1 stop 1 stop 1 stop
Montevideo, Ur. 1 stop 1 stop 1 stop 2 stop 1 stop 2 stop 2 stop 2 stop 1 stop 1 stop 2 stop 1 stop 2 stop 1 stop
Miami New York Boston Philadelphia Los Angeles San Diego San Jose San Francisco Houston Dallas Phoenix Chicago Columbus Denver Average
Mexico City 3:16 5:30 7:25 6:40 3:53 6:10 4:20 4:20 2:18 2:44 3:19 4:05 6:37 3:40 4:35
San Jose, Costa Rica 2:56 5:22 6:46 7:08 5:40 1:32 7:55 7:55 3:30 4:09 7:39 6:53 7:36 5:15 5:44
Guatemala City 2:43 5:10 6:59 6:43 4:50 7:17 7:30 7:30 5:25 3:19 6:59 6:36 6:26 6:25 5:59
Panama 2:59 5:15 5:47 7:10 6:24 8:37 7:04 7:04 4:13 6:29 7:46 5:35 7:16 5:48 6:14
Bogota, Colombia 3:31 5:28 6:25 7:38 7:00 9:55 9:35 9:35 4:55 5:19 10:27 8:05 7:11 8:11 7:22
Lima, Peru 5:40 7:55 10:15 9:32 8:20 10:27 11:09 11:09 6:30 8:38 10:26 9:26 10:26 10:08 9:17
Santiago, Chile 8:09 10:25 13:55 12:48 10:40 13:35 14:24 13:55 9:15 9:27 15:09 12:00 12:34 12:35 12:03
Buenos Aires 8:51 11:00 14:00 13:25 14:46 14:10 14:59 14:45 12:27 12:08 15:21 12:50 13:17 13:15 13:13
Montevideo, Ur. 11:31 13:15 13:57 19:40 19:21 18:32 19:07 18:42 12:34 14:50 18:10 13:10 18:30 18:28 16:24
Direct Flights?
Flight Duration

7. Drivers for
Nearshoring

8. Polling Question #1
What would be your main driver(s) for doing
nearshoring or expanding your nearshore footprint?
Select all that apply
Increase internal bandwidth for other activities
Improve service quality or expand current capabilities
Other
Expand access to qualified talent
Cost reduction
78%
78%
44%
56%
0%

9. Talent Availability & IT
Skills Being Nearshored

10. Costa Rica: The Most Matured Services Destination in the
Region
84%
66%
36%
32%
23%
16% 16%
North
America
LATAM Local EUR APAC Middle
East
Africa
Strong Focus Supporting North America
22%
2%
11%
12%
15%
25%
28%
34%
53%
56%
62%
Other
Architecture services
Engineering services
Marketing and content…
QA and compliance
BI and other business…
Procurement
HR services
Contact center
IT support and development
Finance and accounting
9%
9%
11%
12%
12%
13%
16%
17%
20%
28%
33%
36%
49%
68%
Animation
Information Security
Web Developement
Design
User Experience
Project Management
IT Architecture & Engineering
Quality Assurance
Cloud
Data & Analytics
Marketing
IT Consulting
IT Support Services
Software Development
CORPORATE SERVICES COMPANIES DIGITAL TECHNOLOGIES COMPANIES
5.2M Population
2.3M Labor Force
% of Centers Delivering a Given
Function

11. Costa Rica: “From Back Office To Back Bone”
Over 209 companies
providing services from
Costa Rica
88 in Digital Technologies
86 in Shared Services & Back
Office
33 in BPO & Contact Center
Employing
100K+
Professionals

12. Costa Rica: A Digital Tech Hub that Keeps Expanding
IT Support Hub Software Development Hub Cloud Computing Cybersecurity Data, Apps & PMO
A PROVEN BUSINESS PARTNER FOR 350+ MULTINATIONAL CORPORATIONS
Multilingual skills English | Spanish | Portuguese |
French | German | More

13. 13
Colombia: The 3rd Largest Software Market in
LATAM
- Full Stack Software Development
- Mobile App Development
- Enterprise Web Applications
- Backend & API Development
- UX/UI Design & Development
- Quality Assurance
- Data Analytics
- Service Desk & IT Technical
Support
- Cybersecurity
- Cloud & Infrastructure
Management
- Intelligent Automation/RPA
- SaaS (Fintech, Healthtech,
Retailtech)
Graduates in Engineering, Computer
Science and Related Areas (in
thousands)
13
15
17 16 18 19
22 22 22
24
21
26
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
The number of graduates in software
& IT areas has doubled since 2010
Software market sales in
Colombia in million USD
$ 672.11
$ 740.50
$ 934.61 $ 967.42
$ 1,021.92
$ 1,138.07
$ 1,288.00
2017 2018 2019 2020 2021 2022 2023
Colombia is the third largest
software market in the region. 33%
of IT services are exported to the
US.
IT Talent & Initiatives
Across Multiple Areas:
15 cities with over
500K habitants,
including Bogota,
Medellin,
Barranquilla, Cali,
Bucaramanga, and
others.
51.5M Population
32.3M Labor Force
The Colombian government is
committed to the sector’s
development and initiatives.
13 of the top 100 Latin
American universities are
in Colombia
#8 #9 #13

14. Success Stories in Colombia
Companies are taking advantage of the talent in the country by
establishing their own operation as well as partnering with local
outsourcing providers.
600+ IT Services Providers
Leading Companies with
Operations in Colombia

15. Polling Question #2
Mexico
Others
Still Unsure / Did not have much background
Colombia
75%
50%
50%
0%
0%
What countries have you mainly
considered for nearshoring? Select all
that apply
Costa Rica

16. The Business
Case of
Nearshoring

17. The Business Case of Nearshoring
One to one comparison of
the total labor cost of
a current resource in
the US vs the cost in
the nearshore
destination
25%-50%
ONE TO ONE
LABOR SAVINGS
Most times the org
structure can be
redesigned and releveled
to achieve better span of
control
10%-20%
ORGANIZATIONAL
RELEVELING &
RESTRUCTURING
Efficiencies gained from
centralization, process
improvement, and automation (e.g.
Self Service, Chatbots,
Intelligent Automation,
Operational Insights, etc.)
PRODUCTIVITY
EFFICIENCIES
10%-30%
RE-INVEST SAVINGS TO SELF-FUND OPTIMIZATION EFFORTS

18. Often overlooked items when building your business
case:
Estimating market salaries and fully loaded costs
Each market has its own labor laws, taxes and benefits that make a big difference in the total cost of a position.
Hiring, Recruiting & Retention Costs
Absorbed by outsourcer
Training and Retraining Avoidance Costs
Typically embedded as part of your outsourcer responsibility. Also consider the quality implications of not having
strong training internally.
Office Space, Technology & Security Support Cost Savings
Freeing up space for others at your locations. Outsourcer providing equipment, day to day technology support, and
adopting more secure ways to operate.
Performance Accountability, Increasing Your Internal Team’s Bandwidth
Outsourcing partners typically have clear SLAs, performance metrics and process documentation/knowledge bases. These
all helps free up your team’s time for higher value activities and it’s a key benefit to consider.
One-Time Costs – Migration Fees, Severance, Overlap Payroll during Transition,
etc.
Many companies do not consider these one-time costs when building the business case. The migration and process
documentation and training will have to be performed either internally or through your outsourcing partner charging
a fee. In addition to these costs, if you are planning to open your own operation, consider the CAPEX or OPEX costs
of opening an office. This makes a big difference in the business case, payback, and implementation timeline.

19. How Do To It
Right:
Execution!

20. Questions you need to ask yourself:
Build vs. Buy
One Size Does Not Fit All
1. What is the scale and size of what I am trying to build?
2. Do I have any footprint in the countries in Latam where I want to
be in? (Offices, management, knowledge of labor laws, etc.)
3. How involved do I want to be with the day-to-day management and
continuous improvement of the operation?
4. How fast do I need to stand up a solution?
5. What payback am I looking to get from the program?
6. How aligned is my culture and organization with the concept and
value of outsourcing?

21. Key Considerations for a Successful Implementation
• START RIGHT - Do not rush into implementation without a clear plan!
• Strong executive sponsorship and vision - the WHY goes beyond cost savings
• Avoid starting too small
• Invest the time on designing the right model and solution
• Assign the right resources and attention to the program
• Identify process improvement and automation opportunities early on
• Build a clear business case
• STRONG MIGRATION PLAN – Do not underestimate the process documentation,
training and hypercare phases. Focus on communication and change management.
• MEASURE, MEASURE, MEASURE - Capture your baseline performance and have a clear
definition of what “success” of the program will look like (SLAs and
performance metrics expectations)
• DON’T DISCARD THE MULTI-LOCATION DELIVERY MODEL
• TRUST IS KEY!

22. Q&A

23. Some resources you may find useful:
• CINDE Costa Rica Overview Presentation
• Procolombia Colombia Overview Presentation
• Rethinking Your Corporate IT Guide
• 10 Step Guide to Successfully Outsourcing Your Help Desk
• Achieving Hyperautomation with UiPath
• Step-by-Step Guide to a Successful Cloud Journey
• Nearshore Success Stories
• Auxis Blog
• Auxis Services

24. Thank you for
attending!
Trade Representative
For Texas
Procolombia
Alejandro Londoño
Services Sector
Manager
CINDE
Ana Romero
Managing Director
Infrastructure Technology
Jose.Alvarez@auxis.com
Jose Alvarez
Co-Founder & Sr.
Managing Director, Tech
Services
Alvaro.Prieto@auxis.com
Alvaro Prieto
Managing Director
Infrastructure Technology
Fabiana.corredor@auxis.com
Fabiana Corredor