Chile has attracted considerable attention from foreign companies as an offshoring location, given its first-rate regulatory and living environments, attractive risk profile, low infrastructure costs, and openness to trade (see "What executives are asking about Latin America"). Analysis by the MGI, however, finds that Chile's limited potential as a domestic market lowers its appeal to multinational companies interested in establishing captive centers, while its small base of IT vendors lowers its appeal to companies seeking to outsource services.
MGI examined Chile’s position relative to ten other low-wage countries along six dimensions that companies consider when choosing an offshore location: costs (including labor costs), market potential, the vendor landscape, risk profiles, the overall environment, and the quality of infrastructure.