IT Outsourcing in Latin America: Hot Hot Hot!
HP scores $100 million deal with Coca-Cola in Mexico as the region’s outsourcing market grows up and up.
I’ve written about the IT outsourcing market in Latin America several times in blogs. You can read some of them here and here and here.
Just today, the outsourcing news media was ablaze with stories on HP’s hefty IT outsourcing win with Coca-Cola in Mexico. The five-year deal with Coca-Cola FEMSA, S.A.B. de C.V. which according to a press release is the largest public bottler of Coca Cola products in the world in terms of sales volume, is a technology outsourcing services contract valued at $100 million.
HP’s division in Mexico has been working with Coca-Cola FEMSA as an outsourcing provider since 2000.Under terms of the new deal, HP and Coca-Cola FEMSA will consolidate 348 locations to a single data center in Mexico and migrate business-critical SAP applications and server monitoring and management to HP locations in Brazil and Argentina. Security services will be provided from HP delivery centers in Costa Rica. HP says it will continue to manage Coca-Cola FEMSA’s technology infrastructure supporting its Latin American operations in Argentina, Brazil, Colombia, Costa Rica, Guatemala, Mexico, Nicaragua, Panama and Venezuela.
In a prepared statement, Coca-Cola FEMSA CIO Hector Calva said HP already knows the bottler’s business and industry well, and is able to provide the technology foundation necessary for growth. “After experiencing sustained growth across Latin America, these additional efforts to centralize and standardize will give us the support we need to find new opportunities to put beverages in the hands of the Latin American people,” he said in the statement.
Additional details of the outsourcing gig include HP’s continued provision of data center and storage services. HP will also host more than 650 midrange servers and backup and restore Services for disaster recovery, as well as hosting services for Coca-Cola FEMSA’s SAP platform. The agreement also includes international and regional telecommunications carrier management services and network management services for the company’s LAN and WAN environment. HP also provides Enterprise Application Hosting Services for Coca-Cola FEMSA’s SAP platform and will move to dedicated support. HP will also continue to service and support Coca-Cola FEMSA’s 14,500 desktop and notebook PCs, handheld devices, printers and servers.
As expected, the gig includes HP hardware and software. According to the press release, Coca-Cola FEMSA will consolidate its data center on an HP Converged Infrastructure using HP Superdome 2 servers and Integrity BL860c i2 server blades running HP-UX v3, HP StorageWorks Enterprise Virtual Arrays, HP StorageWorks XP24000 and P9500 disk array enterprise class storage systems, and HP Data Protector software for backup and recovery.
Need more proof that Latin America is a hotbed for IT outsourcing? IT outsourcing research firm Horses for Sources recently completed a comprehensive research study on the Latin American market. On its web site, the firm posted several key findings from their research, including a projection that the sourcing market in Latin America will grow from $21.6 billion in 2009 to about $35.6 billion in 2014.
The report notes that while most projects stick to application development work, there are opportunities for new remote infrastructure management offerings and service offerings that focus on niche areas of application expertise. HorsesforSources also says the Latin American region is a valid choice for any nearshore move, thanks to a thriving technology economy, competitive software development rates, demonstrable industry innovation, and vast human capital.
Previous Post: Will Offshore IT Prices Rise? Yep!Next Post: Wisconsin Proposal Says No to Cost and Benefits Analysis of IT Outsourcing
What is Tech Briefcase?
TechBriefcase is a new, free service where IT Professionals can Search, Store and Share IT white papers and content like this. Learn more
Bookmark content
Speed up your research efforts with content across the web.
Search and Store
Find the white papers you need. Create folders for any topic.
View Anywhere
Open your briefcase on your iPhone, tablet or desktop. Share with colleagues.
Most Discussed Posts
Cloud computing has emerged as one of the most significant game changers to hit the technology landscape in the past 20 years. With this massive expansion of the cloud, the perception of the IT organization is shifting from a utility player to a change agent. This eBook breaks down five ways progressive organizations are using cloud-based IT Management solutions to help drive innovation and become more strategic, including: adding visibility and analytics, speeding up time-to-value, lowering costs, improving prioritization, and providing a blueprint for future cloud deployments.
Read the white paper to see how IBM helped Citigroup deliver new services and enhancements to their 200 million customers faster.
There are 3 ways to modernize legacy applications: rewrite completely, acquire packaged solutions or migrate existing code. This paper explains why it's best to migrate and how IBM® Rational® software can help.
Accommodating specific lines of business can result in a hybrid ecosystem of applications and servers. The resulting complexity of this architecture makes for an environment that is costly to maintain and difficult to change when addressing new challenges.
This whitepaper will help you to define a mobile device passcode policy. Security managers must attempt to reconcile two opposing goals. They must: 1) create a passcode policy that is strong enough to protect the device if it is lost or stolen, while: 2) not annoying users with needless length or complexity.
This whitepaper, authored by The Radicati Group, looks at the key reasons organizations should consider moving to a cloud-based archiving solution. Email archiving solutions enable organizations to store, monitor, and collect electronic data exchanged by their users to comply with internal policies and regulations.
ATERNITY will showcase a 30-minute demo on how Fortune 500 companies are leveraging its award-winning FPI Platform to deliver a user-centric approach to Proactive IT Management.
For businesses to move forward and tap into the ever-expanding universe of Internet users and network-enabled devices, it's critical to learn how to make the transition to IPv6. Learn the critical steps your organization must take to make a seamless transition-and keep your business world connected.
Learn how IT teams can protect against spear phishing tactics. Harry Sverdlove, chief technology officer of Bit9 offers a frank discussion about spear phishing - the most common technique used in today's advanced attacks.
Learn how to build a solid business case for your migration to Red Hat Enterprise Linux so you can run leaner, innovate faster, be more flexible and own the New Now.
Social media isn't about you; it's about everything around you. As you consider how your customers want to communicate with you, social media is something that can't be ignored. But what should your strategy be? Is social media "just another channel?" What kind of a plan makes sense for your contact center and for your customers? Join our experts as they share their insight and research results.
Hardware tokens were a popular method of strong authentication in past years but the cumbersome provisioning and distribution tasks, high support requirements and replacement costs have limited their growth. The additional log-in steps that hardware tokens require and the resulting user frustrations have limited adoption and make them impractical for larger scale partner and customer applications.
Sponsored Links
