Solving The Value Equation

Beyond Payroll HRO Services M&A Acquisition 2013 Recap and 2014 Growth Capital Strategies

As a payroll service provider, if you are only doing payroll, tax, and time; then you are NOT satisifying the market demand. Beyond payroll HRO services is key to creating enterprise value.

The importance of connecting payroll and other human capital data to all HRO and BPO services is a significant revenue opportunity.

In 2013, Payroll Services grew less than five percent due to anemic job market & slow GDP growth; while WFM grew by greater than 25% driven by increased reporting, compliance & employment lifecycle requirements.

Related posts:

2013 Payroll and HRO Product Announcements

Beyond Payroll HCM Services Forecast 2013

HRTech 2013 Conference Recap & Links

#SHRM2013 Recap

2012 Payroll Services M&A Transactions Recap

Payroll Services Valuations

BPO Site Selection Findings for LATAM 2014

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.

BPO Nearshore outsourcing opportunities 2013, 2014, and 2015

An Ephor Group review of the Latin American opportunity for Business Process Outsourcing.

As with any BPO site selection process, an evaluation of labor supply,labor cost, and labor utilization is critical. This is done at the country and local metro region level.

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 create a long-term competitive advantage.

Ephor Group BPO Site Selection Expertise:

· 13 Site Selection Projects

· 5,500 LATAM Jobs Created

· BPO Operating Experience in 23 countries

 

Countries of Study:

• Belize
• Colombia
• Costa Rica
• Dominican Republic
• Ecuador
• El Salvador
• Guatemala
• Honduras
• Jamaica
• Mexico
• Panama
• Peru

Download the summary BPO LATAM Findings report from Ephor Group.