BPO nearshore latam marketplace2014


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BPO nearshore Latin America site selection evaluation, selection, capabilities, and opportunity areas. BPO research findings study by Ephor Group's Garry E. Meier.

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BPO nearshore latam marketplace2014

  1. 1. Solving the Value Equation An Ephor Group review of the Latin American opportunity for Business Process Outsourcing. Q1 2014 Near Shore LATAM BPO Findings: The opportunities for business process outsourcing (BPO) in Latin America. Ephor Group www.ephorgroup.com 1 ©Copyright 2013 Ephor Group, LLC. All Rights Reserved.
  2. 2. Solving the Value Equation ABOUT THE AUTHOR The Ephor Group, founded in 2002, is a strategic advisory firm exclusively missioned to provide strategic advisory services including executive management and financial resources to emerging high growth oriented Business Process Outsourcing organizations (BPO). Since its inception, the firm has provided growth development services, economic analysis studies including labor supply, demand and costs studies for site selection & implementation services, and growth capital acquisition and growth capital fund raising coupled with merger & acquisition corporate development services in Latin America. This set of capabilities and expertise has resulted in approximately 5,500 new job opportunities to the region, in the past 10 years. Ephor Groups principals illustrate 75+ years of experience in the region including: managing and operating eight call center and customer service activities for the largest bank in the region; owning and operating a 400 seat customer service center servicing the English speaking North America market, and conducting thirteen successful site selection processes. The Ephor Group LATAM office for the past decade has been located in Panama City, Ephor Group  Founded in 2002  13 Site Selection Projects  5,500 LATAM Jobs Created  Operational Expertise  Site Selection Expertise Republic of Panama. Managing Partner, Garry Meier, is a thought leader, and speaker for the outsourcing sector having been Chairman and CEO of  BPO Operating Experience in 23 countries Outsource International (OSIX) a public traded $850m revenue provider of global BPO services, with locations in 23 countries. Currently Mr. Meier is the Chairman of Latin American Card Services (LACS) a high growth provider of outsourced financial services, with locations in 10 Latin American countries. Additional early career strategic management assignments for Mr. Meier, include President, Medaphis Physician Services, (MEDA) a public traded outsourcing provider of healthcare business services that grew to nearly $650m in revenue, and COO, Technology Services Solutions (TSS) a provider of outsourced IT services to global technology manufacturers. Currently Mr. Meier’s focuses his time on advising Board of Directors and CEO’s on their global growth initiatives. www.ephorgroup.com ©Copyright 2014 Ephor Group, LLC. All Rights Reserved. 2
  3. 3. Solving the Value Equation METHODOLOGY Central and South America have been making global news headlines due to the economic growth and opportunity that continues to present itself in this area of the global economy. Most of the nations in LATAM have finally and very recently left their checkered pasts and reputations as narcotics and gun trade routes behind and have done a very effective and efficient job of creating political stability and economic growth. North American and European companies alike have taken notice of this accelerating Countries of Study  Belize  Colombia  Costa Rica these impressive growth statistics, Ephor Group estimates that the  Dominican Republic total capacity of BPOs in the region is less than 25 percent utilized,  Ecuador while the  El Salvador English  Guatemala speaking  Honduras capacity  Jamaica  Mexico  Panama  Peru opportunity, as illustrated by the region becoming a receptacle of some 120 new BPO facilities comprising approximately $350M in foreign investment just in the past few years alone. Even with is only at a minimum utilizatio n rate of less than a few percent. Ephor Group, headquartered in Houston, TX with locations in North America and Central America, has for the past decade been a business strategic advisor and capital provider to other investors and international and local BPO organizations in their evaluation and site selection to satisfy their operational growth requirements and capacity. Throughout 2012 and 2013 the Ephor Group conducted significant primary research and on-site evaluations of both the country locales and the major metropolitan areas within the region. For quality comprehensiveness this data and the findings are cross referenced from secondary and tertiary sources, coupled with onsite evaluation and interviews with business, political and development professionals. Each data point is amalgamated from a minimum of three sources. In some cases, data is confirmed from as many as seven sources. www.ephorgroup.com ©Copyright 2014 Ephor Group, LLC. All Rights Reserved. 3
  4. 4. Solving the Value Equation The information and findings presented in this briefing document is a summation of a larger study of the Business Process Outsourcing (BPO) Latin American market, its capabilities and opportunities for the region. The information was compiled in concert with a network of operational executives and thought leaders from the region, then combined with the specific data accumulated throughout 2012 and 2013. LATAM Advantage Specifically, the research study encompasses macroeconomic factors such as economic drivers and includes, in part, information  Proximity to US cities. This economic health was evaluated via an analysis of such  Same Time Zones to US factors as GDP sizing and GDP growth rates inclusive of a ranking  Greater “Hands-On” among countries, trade surpluses including Balance of Payments  Logistics Savings analysis, foreign direct investment dollars and rules, corruption  Culture fit to US indexes, currency influx, flight and exchange risk. Further elements  Capable Infrastructure of the report contain political attributes of each candidate country  Increasing Stability  Tax Incentives  Free Zones  English Speaking Ability  Academic Support  Labor Cost Advantages surrounding the economic health of the considered countries and and a “general findings” in terms of relations and foreign direct investment views of incumbent government administrations. As with any BPO site selection process, an evaluation of labor supply, labor cost, and labor utilization is critical. Therefore, the data library and summary report includes all salient labor data and information, including specific BPO job positions and descriptions (i.e. English speaking customer service LATAM BPO professionals), supply and demand, minimum wage requirements, detailed job level salary information coupled with Through careful site selection information surrounding employer burdens, payroll-related and deployment of a taxes, incentive pay, number of national and local holidays, “proprietary human capital standard vacation and maternity leave benchmarks. This is supply chain”, BPO done at the country and local level. implementations in Latin America can create exponential value for innovative, outside of the box businesses. www.ephorgroup.com The study also includes an analysis of “How does a BPO operator and investor develop its Human Capital Supply Chain?”, such that recruiting, staffing and training infrastructure elements are understood within each locale, including job boards, country level and local level government ©Copyright 2014 Ephor Group, LLC. All Rights Reserved. 4