There are many key considerations for BPO center site selection in Latin America. First, LATAM is within close proximity to the USA, and falls within the same time zones. Even for European firms, the LATAM market is closer than India, Malaysia and other traditional locations for outsourcing. As with any BPO site selection process, an evaluation of labor supply, cost, and utilization is critical.
Ephor Group has determined the total capacity utilization of the BPOs in LATAM is in the lower 25% quartile, while the English speaking capacity utilization is in the single digits.
Each country and city identified in the report illustrates a designated BPO initiative as an economic development venue and job creator. Research suggests that in the near future the environment for incentives will only become more prevalent for foreign investors.
Of most critical importance, the report provides an example of the many relevant financial considerations surrounding a near shore BPO implementation, which are combined and compared (through a comparison analytical model over a five year timeframe) to domestic USA costs to determine the overall financial synergies and ROI on the start-up and implementation investments.
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