Latin America is rapidly developing as an attractive destination for international investment, thanks to its position as a relatively safe haven in a time of global trade disruption. This can take the form of company formation in Latin America or just outsourcing back office services to Latin America. The former will require direct local hires, wheras the latter could be done as part of PEO services. Whichever option is better for you, Biz Latin Hub can help you through the process.
Why are companies outsourcing back office services to Latin America?
In recent years, the development of technology, along with globalization and reduced trade barriers have led to changes in the service sector.
Lately, many companies are forming strategies which involve outsourcing parts of their internal services in order to reduce costs, increase productivity and improve service times, allowing for expansion of their business.
Back office services include the countless internal procedures that improve company efficiency and allow companies to focus on their core business activities.
Many companies operating in Latin America waste time, money and resources trying to perform back office services internally. This has give rise to the outsourcing of back office services.
This allows companies to focus their efforts on developing their business strategies without having to worry about tedious aspects of operating in Latin America such as financial reporting, legal obligations and customs issues.
Important Back Office Services in Latin America
Outsourcing back office is a strategy that allows companies to contract out certain aspects of their business, including:
- Company formation
- Company incorporation
- Visa processing
- Recruitment
- Accounting and financial services
- Legal services
- International trade
- Due diligence
Outsourcing certain aspects of your business can result in higher levels of productivity and cost reductions.
Back office service providers should work hand in hand with their clients; sharing the same vision of success. Both parties must be clear about the factors needed to maintain a positive long-term relationship. Clearly defined roles and responsibilities will ensure both parties are clear of their professional obligations as part of the business relationship.
Advantages of hiring via a PEO firm?
Hiring via a PEO firm in Latin America comes with the following benefits:
Limited commitment: When you hire staff through a PEO in Latin America, you limit your commitment to the market, allowing you the opportunity to get to know it better ahead of making a deeper investment, as well as to swiftly exit the market whenever needed.
Time-saving: Being able to secure local staff in just weeks or days, depending on their profiles, getting staff via a professional employer organization in Latin America can be a rapid and convenient process.
Established network: While the established recruitment network of your employer of record in Latin America will help you to find staff quickly, you will also be able to tap into the local business connections your provider has, which could be highly beneficial to your organization later down the road.
Building familiarity: By hiring via a PEO firm in Latin America, you have the opportunity to get to know the local market better, building familiarity with the regulatory regime, and understanding some of the foibles of doing business in the market, which will be useful should you decide to take your investment to the next level via company formation.
Reduced costs: The PEO fees you will incur are often considerably less than the costs associated with company formation, especially if you are launching in multiple markets.
Legal representation: Your employer of record in Latin America will have experts on hand to offer the advice and support you need, as well as represent your organization in front of authorities.
Biz Latin Hub can provide back office services in Latin America
At Biz Latin Hub, we offer a complete portfolio of back office solutions to guarantee the success of your company formation and ensure the good performance of your commercial operations.
Through our high-quality legal, accounting, and recruitment services, we are equipped to be your single point of contact to establish and manage your business in Panama, or any of the other 15 markets across Latin America and the Caribbean where we have a presence.
Contact us now for personalized assistance or a free quote.
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