Say Si For ITO
Latin America is not just a nearshore contact-center destination; it is also fast emerging as an IT outsourcing location
Imrana Khan

Oct. 06 ’07: Instead of grooving to Saturday night fever, Costa Rica was eagerly waiting for the results of the country’s first-ever referendum on Central America Free Trade Agreement (CAFTA) with the U.S.A. to be announced the next day. And by the end of the day on Sunday, President Oscar Arias declared the fate of the $21.5 billion Costa Rican economy. The result of the referendum showed that the majority is in the favor of CAFTA.

Of the Central American countries — El Salvador, Guatemala, Honduras, Nicaragua and the Dominican Republic — Costa Rica is the only one that had a long discussion on this agreement, with the others having agreed to the terms over the last two years. The agreement is expected to eliminate almost all trade barriers, such as tariffs and quotas, between the U.S.A. and the Central American countries over the next 10 years.

“This agreement will create a host of opportunities for [IT services] providers like us,” says John T. Rose, President and CEO, Fujitsu Consulting, an IT-consulting and integration arm of $43.2 billion worth Fujitsu, with 800 employees in its Costa Rica center. “Economies actually go into transformations when they accept free trade and such positive transformation is always good news for the business community,” adds Ron Mitchell, EVP, Marketing and Communications, Fujitsu Consulting.