(The Financial) April 14, 2010 – IFC, a member of the World Bank Group, and HSBC Latin America Partners led an investment of up to $20 million to support the regional and global expansion of Grupo ASSA, one of the leading Latin American information technology and outsourcing services companies.
“IFC will provide up to $10 million in equity and mezzanine investments to Grupo ASSA. HSBC Latin America Partners, a private equity fund sponsored by HSBC Capital, along with a consortium of other private investors will provide up to another $10 million. The financing will help Grupo ASSA improve the business process transformation of its clients with a multisourcing delivery platform in Latin America. It also will contribute to the growth of the region’s information technology sector, which is about 3 percent of the worldwide IT market,” IFC reported.
“We welcome this equity round which will support Grupo ASSA’s goal to triple in size over the next four years,” said Roberto Wagmaister, Chairman and CEO of Grupo ASSA. “It will also help consolidate our position as one of the leaders in Latin America’s high-value IT services and outsourcing industry.”
The investment will support Grupo ASSA’s plans to augment talent in Latin America and build new delivery centers there. The company has developed an innovative business model that helps customers streamline their operations by integrating business processes, applications, people, and technology. This was a key differentiating factor in the consortium’s decision to make the investment.
Mohsen Khalil, Director for Information and Communication Technologies of IFC and the World Bank , said, “Our investment in Grupo ASSA will provide long-term growth capital to help the company meet its goals and strengthen the IT services market in Latin America.”
Headquartered in Buenos Aires, Grupo ASSA has operations in Brazil, Chile, and Mexico, as well as in Europe and the United States. It employs more than 1,000 consultants in the region and expects this figure to top 2,500 under its expansion plan.
Though the vast majority of IT offshoring has gone to India, Latin America’s outsourcing and IT services are becoming increasingly attractive to the United States and European companies seeking to gain a competitive advantage from geographic proximity, the efficiency of operating in the same time zone, and the benefits of an educated labor force.
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