Garry E. Meier, founder of Ephor Group, shares insights from his tour of operational and business process outsourcing facilities in 13 countries in North, Central, and Latin America. He found that while Latin America has seen significant foreign investment in new BPO facilities, overall capacity utilization remains low. Particular opportunities exist in healthcare BPOs expanding in Latin America. Workforce management saw over 25% growth while payroll services grew less than 5% due to slow job growth. Successful service organizations focus on efficiency and productivity over resumes when hiring.

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2014 Beyond BPO Services eNewsletter
The old saying “Services are either growing or shrinking” has finally gone by the
wayside and its associated legacy thinking that has inhibited us in the past.” said
Meier. “This slow growth economy, the associated anemic labor markets and the
increasing government burdens, coupled with the increasing workforce
management complexities will continue to challenge us for quite some time.”
The question is what can we do?
Ephor Group Founder Garry E. Meier shares some of his findings,
thoughts and conclusions to solving the many challenges facing us as
service side executives, including growth & growth capital strategies,
based on an eight month tour of operational, business process
outsourcing (BPO) and support facilities in 13 countries in across
North, Central & Latin America.
Here’s the recap.
Fast Stats:
 The LATAM region has become a receptacle of some 120 new BPO facilities
comprising approximately $350M in foreign investment in the past 2 years
alone. Even with these impressive growth statistics in that region, Ephor
Group has determined the total capacity utilization of BPOs in LATAM
is in the lower 25% quartile, while the English speaking capacity
utilization is even less. Of particular note, there exist a particular
opportunity for the Healthcare Business Services BPO’s to expand and prosper
in LATAM.
 Payroll Services experienced less than 5% growth in sector demand in
2013 driven by an anemic job market & slow GDP growth; while Workforce
Management (WFM) experienced greater than 25% Growth in sector
demand driven by increased reporting, compliance & employment lifecycle
requirements. This trend will continue for the near-term.
Key Metric: COGS and Gross Profit Margin as a Percentage of Labor Costs, needs to be a
real focus area. Don’t hire resumes first… create a more efficient and productive process…
then the resumes.
Key Performance Indicators: Ephor and its management teams measure the
company’s business metrics at times daily, often weekly, and consistently on a monthly and
quarterly bases. Our businesses are “Perform Businesses”. Meier said. “Find the top 8 to
12 key metrics that drive your business then focus the entire company on them.
Get down to a unit-based economic systems — such as gross profit per person per hour."

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The Future: Meier said he expects margin pressure to get increasing more difficult
especially in the North America labor markets due to “the administration’s” increase
in compliance, reporting and cost burdens. Therefore consolidation of especially
“sub-scale” assets to formulate scaled assets will be mandatory for survival and
wealth creation. Ephor suggest that specialized and focused BPO’s, SaaS, and cloud
computing services will be areas of opportunity in the near-term.
Meier concludes: “In my 38 year career I have never seen an economic
cycle or time where well managed and resourced service organizations
have not been successful”
Additionally Meier said “Ephor clients typically acquire one, and many times two,
companies per year. It’s not a roll-up strategy… it’s simply the execution of well
thought out growth strategy.”
Read more from Ephor Group online at www.ephorgroup.com/eresources.asp:
BPO LATAM Nearshore Findings
Beyond Payroll HRO Services
BPO FrontOffice Contact Center CRM Services
For more information contact:
Ephor Group Founder Garry E. Meier
ephor[at]ephorgroup.com
Speaking Topics: The Technology Oriented Business Services Environment: Growth Strategies, Growth Capital Strategies, Corporate
Development Updates, M&A Activity and Sector Insights

3. Solving the Value Equation
What Do I Need
To Know To
Expand & Why?
When considering expansion, this is what you need to know:
Growth Capital Options
Strategic Alternatives
State Government Initiatives, Programs
Local Tax Rules & Implications
Corporate Development Options
M&A Forecast & Valuations Forecast
Financing Unit Economics
Business Economic Cost Factors
Industry Macroeconomic Factors
Workforce Competencies
Workforce Labor Supply
Human Capital Supply Chain
Labor Costs Market Analysis
Job & Local Community Contacts
For a detailed overview of your growth options, contact Ephor
Solving the Value Equation
ephor@ephorgroup.com
214.702.6427
24 E. Greenway Plaza, Ste. 400
Houston, TX 77046
www.ephorgroup.com
www.ephorgroup.com
©Copyright 2014 Ephor Group, LLC. All Rights Reserved.
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4. Solving the Value Equation
What Are My Best
Growth Strategy
Options?
For a no obligation overview of the options in your sector, contact Ephor
Solving the Value Equation
ephor@ephorgroup.com
214.702.6427
24 E. Greenway Plaza, Ste. 400
Houston, TX 77046
www.ephorgroup.com
www.ephorgroup.com
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©Copyright 2014 Ephor Group, LLC. All Rights Reserved.

5. Solving the Value Equation
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©Copyright 2014 Ephor Group, LLC. All Rights Reserved.
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