Global Services Industry

Opportunities and Challenges

Mohit Srivastava
Country Manager

August 2010

SEMINARIO SOFOFA - BID

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Chile is well positioned… the Evalueserve experience

9Evalueserve
9Evalueserve hashas grown
grown toto 180
180
professionals
professionals in
in Chile
Chile since
since 2007
2007

9Our
Our clients
clients like
like
–– Innovation
Innovation and
and
9 Chile
Chile office
office is
is aa global
global center
center of
of collaboration
collaboration
excellence
excellence for
for financial
financial analytics
analytics –– Communication
Communication style
style
–– Retail
Retail banking
banking (e.g.
(e.g. wealth,
wealth,
brokerage) –– Infrastructure
Infrastructure
brokerage)
–– Investment
Investment banking
banking (e.g.
(e.g. indices,
indices, –– Quality
Quality of
of life
life
derivatives,
derivatives, fixed
fixed income)
income)

Slide 2
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… but there is a long road ahead

Revenue 2009
Country Headcount 2009 % of GDP
(Million US$)

Chile 20,000 844 0.5%

Costa Rica 25,000 300 1.0%

Philippines 419,000 6,000 3.7%

India 1,569,000 40,000 3.2%

Source: Tholons Report on Chile outsourcing, IMF data

At US$ 5 billion, global services industry would contribute to 1.8%

of projected GDP of Chile in 2015

Slide 3
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Need for 96,000 trained professionals in the next five years

Global Services Industry in Chile

Constraints
Constraints faced
faced by
by 120,000
service
service providers
providers

The
The 500-employee
500-employee potential
potential
of
of Oracle
Oracle is
is only
only filled
filled by
by 260260
Chilean
Chilean employees,
employees, and and this
this
underperformance
underperformance is is
attributed
attributed in
in part
part to
to the
the lack
lack ofof
5,000
English
English speakers.
speakers. Capgemini
Capgemini
has
has also
also explicitly
explicitly mentioned
mentioned
aa shortage
shortage ofof English
English 24,000
speakers
speakers as as aa concern…
concern… 20,000
840 1,000
-Tholon’s
-Tholon’s Report
Report on
on Chile
Chile
outsourcing
outsourcing
2009 2010E 2015E

Revenues (USD Million) Professionals

Slide 4
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Need to enhance promotion activities

Current
Current Players
Players

9Grow from US$ 1 billion to US$ 2 billion by 2015

at 15% compounded annual growth per year

New
New Investment
Investment Required
Required

9Need to have 150 new companies with 500

employees each in the next five years
92-3 new companies every month

Slide 5
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Recommendations

Talent Pool
9Significant investment required in training the local workforce – not only English,
but also technical skills and project management skills
9Ease immigration for qualified foreign professionals (short term)

Promotion
9Fortune 1000 companies in United States and Canada
9ITO, BPO and KPO service providers in the US and Asia, esp. India

Capital
9Encourage local businesses (non-global services companies) and investment
firms to enter the global services industry (e.g. by making acquisitions)
9Offer special benefits to local and foreign investors to spread growth outside
metropolitan region

Slide 6
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 Thank you

© 2010 Evalueserve, Ltd. All Rights Reserved - Privileged and Confidential