The document reviews opportunities for business process outsourcing (BPO) in Latin America, highlighting economic growth and political stability in the region. It notes that BPO capacity utilization is under 25%, indicating significant potential for investment, with over $350 million in foreign investment attracted in recent years. The study is based on extensive research conducted in 2012 and 2013, analyzing macroeconomic factors, labor supply, and local conditions critical for BPO operations.

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
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©Copyright 2013 Ephor Group, LLC. All Rights Reserved.

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.
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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.
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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.
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