2016 Latin America Shared Services Survey Results

A Deeper Exploration of Shared Services in Latin America

     

Latin America has become a premier destination for shared services, with operations graduating from purely transactional models, into a broad range of highervalue-add services. Nearshoring is growing, and hybrid captive-outsourcing models are emerging as a response to both center maturity and regional complexity.

Despite all of this activity, information specific to the región is scarce. Most relevant studies cover the more generic global, landscape, lacking focus and depth as to what is truly going on in Latin America.

As we talk to our clients, these strategic and operational questions about shared service centers (“SSC”) in Latin America are current:

  • What is their typical size?
  • What geographies are they covering?
  • What functions are they supporting?
  • Are they satisfied?
  • How much are they oursourcing?
  • What technologies are they using?
  • What are their key challenges?
  • Are they planning to expand?

This study is our attempt to narrow this information gap by embarking on a deeper exploration of shared services in Latin America and providing some actionable insights.

We hope you find this information as valuable as we do.

Best Regards,

Raul Vega Signature Auxis
Raul Vega Auxis
2016 Shared Services Latin America Survey Report

Top highlights from Auxis' 2016 Latin America Shared Services Survey

  • Small centers represent the most common deployment method in the region - In contrast with the traditional offshore model, many organizations in Latin America have proven that a successful shared services center does not need to have a large headcount (average size is 150 employees). This average will increase as established centers continue expanding their existing operation.
  • Multi-function is the predominant approach – 90% of SSCs in Latin America are multi-function and are serving on average 3 different functions, with the top functions being Finance & Accounting, HR and IT. Other emerging functions include Supply Chain.
  • Functional scope goes beyond transactional processes – Centers are performing high-value, customer facing activities across all functions
  • The drivers for adopting a shared services model go beyond labor arbitrage - especially in Latin America where increased controls, productivity, and efficiency are the top areas of satisfaction.
  • Latin America is seen as a Pan-Regional solution for the region and increasingly for the Americas, but not as a global solution – Serving North America from Latin America will become more prevalent over the coming years. Latin America SSCs are delivering significant cost savings (30%-60%) and productivity improvements for North American organizations, with the added advantages of geographic proximity, cultural similarity, and a highly educated, stable workforce.
  • Technology adoption within the region has been low - SSCs have been able to deliver impressive gains in productivity efficiencies (+25%) without leveraging common technology enablers. Maintaining productivity and efficiency improvements will require increased adoption of new technologies and the associated investments.
  • English proficiency will be a critical component of the skill matrix for Latin American SSCs if they are to capture the benefits of the Americas model - Costa Rica is the current leader within the region in providing services in English. Other countries in the region will have to strengthen their English language capabilities in order to take advantage of these opportunities.
  • The Hybrid SSC operating model is becoming increasingly popular - Incorporating an outsourcing partner supports the growing trend of expanding functional scope beyond transactional processes, by giving organizations the option to contract out routine tasks while maintaining a closer hold on more high value-added and confidential activities. Outsourcing can also help reduce upfront capital investments and fixed cost operating structures.
  • U.S. middle market companies are also leveraging the nearshore advantages of Latin America in an outsourced versus captive model - This trend should increase over the coming years.
  • Centers in the region will be in expansion mode - 100% of respondents are planning to expand their SSC operation either by adding more processes (71%), business units served (58%), functions (48%) or geographies (39%).

Get in touch

2017-06-14.jpg
Raul Vega

Founder, CEO
Email: raul.vega@auxis.com
Phone: 954-931-8757
EricLiebrossheadshot.jpg
Eric Liebross

Head of Shared Services & BPO Practice
Email: eric.liebross@auxis.com
Phone: 954-648-5249
Fabianaheadshot.jpg

Fabiana Corredor

Strategy & Finance Ops Manager
Email: fabiana.corredor@auxis.com
Phone: 305-761-67-82