When it comes to business outsourcing, the term has not always been looked upon as a favorable or business-friendly option. From sub-par quality services and products to the removal of jobs and consumer business from local markets, outsourcing has long been seen as a negative notion. To combat this, companies that are looking to expand globally are choosing to use “nearshore” destinations for several reasons. Not only do these countries have a similar infrastructure, time zones, and workday overlaps but because of their close geographic proximity, companies are more willing to take risks.

What is a PEO and Why Should My Company Use One?

A professional employer organization works with your business to help manage employer-related administrative functions. This can be the management of payroll and related taxes, any type of human resource needs, employee health benefits, and retirement plans, workers’ compensation insurance, compliance issues, and employee training.  When you choose to use a PEO to outsource, all you have to do is focus on the growth of your business, while the PEO does the rest.

Here is what a PEO actually does:

Using a professional employer organization allows your company to contractually allocate and share employer responsibilities. This gives a professional employer organization the ability to hand employer responsibilities like tax filing, payroll, and HR support while your company retains the responsibility of day-to-day operations and employee management. In using a PEO, companies are able to scale quickly and leverage the global economy.

How Your Company Can Benefit from Employment Outsourcing

So Why Should You Expand Into Latin America?

In addition to having a similar timezone to the United States and Canada, Latin American countries have not been impacted by wage inflation, have had massive global companies invest in them, and have some of the highest quality IT talent in the world. According to Everest Group in an interview with Flatworld Solutions, there are four main factors that put Latin America above other developed outsourcing sectors like the Philippines.

First, Latin America offers cost-effective pricing structures, Spanish and Portuguese language skills, and domestic opportunities. Here is how these four factors are laid out.

Beyond these four main factors, there are several other employee-related reasons as to why your company should expand into Latin America. One of the most prominent reasons is the fact that there is a massively talented technical workforce of highly qualified and experienced developers, programmers, and engineers. Second, is that the region is comprised mainly of English speaking nations which ensures that your workforce and your consumers can understand one another fluently. Finally, there are cultural similarities as Latin American countries have been heavily influenced by European work styles and tend to view business relationships more like business partnerships than worker/client relationships.

One of these nearshore destinations in Latin America, whose redefinition of outsourcing has caused many global companies like General Motors, American Express, and Citi Bank, to establish partnerships with Argentina, Brazil, Colombia, Chile, and Brazil for their best-in-class resources and quality-focused solutions.  With this said, let’s take a look at what benefits your company could gain from employment outsourcing in Latin America and how a PEO like Biz Latin Hub can help you achieve this type of business expansion.

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