SSON Report Webinar Recap - Auxis Webinar

SSON Report Webinar Recap.pdf

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WEBINAR RECAP
Latin America’s Shared Services
& Outsourcing Industry Revealed:
March 5, 2025 12:00 pm ET
Insights from the SSON/Auxis Market Report
Eric Liebross
Sr. Managing Director of
Business Transformation
Auxis
Fabiana Corredor
Vice President of
Marketing & Growth
Auxis
Keith Sayewitz
Commercial
Managing Director
Auxis

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•The growth of LATAM to support North America
•Functions & processes being performed
•Key value and differentiators that companies are seeing in
nearshore compared to Asia
•Levels of satisfaction with LATAM vs other regions
•Top countries in LATAM for Shared Services & Outsourcing
•Real-world nearshore success stories
•Cost savings & productivity efficiencies Achieved
•Automation & technology adoption
•Captive vs Hybrid/Outsourcing Considerations
•Main market concerns and challenges
•What's Next?
Key topics for today:

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HQ In South Florida and two main Global
Delivery Centers in Costa Rica & Colombia
About Auxis: Shared Services & Nearshore Pioneers in the Americas
•Main delivery hubs in
Costa Rica (2010) and
Colombia (2021)
•Opened our legal entity
in Mexico in 2024 and
working on expansion.
•Supporting hubs in
Guatemala and
Argentina.
25+ Years Helping Organizations Build Customized GBS Models
both Captive & Hybrid from Inception to Ongoing Optimization
Transition | Transform | Operate
Founded by PepsiCo executives in 1997 after successfully standing up the first international
Shared Services for PepsiCo Latin America in the early 1990s.
Shared Services
Consulting
& Digital
Transformation
Business
Process
Outsourcing
Information
Technology
Outsourcing

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Let’s get into it….

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Who participated in the survey?
Conducted
by SSON in
Q2 2024
150+ GBS Executives
across all industries
and sizes
Where are you located?
What best approximates your
organization's revenue?
27%
16%
11%
15%
10%
21%

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69% alreadyleverage
LATAM
Forthosenotyetin theregion, do youhaveplansto
incorporateLATAM as partof yourprogram?
GBS sourcing
model
•Hybrid – 58%
•Captive – 38%
•Fully outsourced – 4%
What is your current GBS location model?
62% activelyevaluating
orconsideringLATAM
90% of surveyed organizations already operate in LATAM or
plan to open operations in the region

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Today’s webinar registrants answered the following:
6%
6%
27%
27%
34%
In process of opening operations in LATAM
Already in LATAM, not planning to grow
Evaluating nearshoring
Already in LATAM and expanding
Just researching at this point
What best describes the stage of your
nearshoring journey in LATAM?
Which functions are you most
interested in?
24%
39%
50%
53%
68%
Other
Customer Service
Information Technology
Human Resources
Finance

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8“Lack of knowledge & awareness” is the main reason why
some US companies have still not done any nearshore
DespitethegrowthoftheNearshore
market, manycompaniesin theUS
are stillnotfamiliar ofthebenefits
and maturityofLATAM, and tendto
havemore experienceand
awarenessaboutIndia & Phillipines
.
Why do you think your organization has not yet
established operations in LATAM?
Lack of knowledge
about the region
and its capabilities
for supporting
North America
Higher cost
compared to
Asia or Europe
Political &
economic
environment
We’ve been busy
focused on
growing offshore
markets
It took us some
time but
currently
evaluating

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When were your LATAM Shared Services/GBS or
Outsourcing Operations established?
What is the size of your GBS/Outsourcing
operations team in LATAM?
GBS in LATAM are being built across all team sizes and 51%
have more than 5 years operating

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LATAM Performs Shared Services on a Greater Scale
What processes are you performing from LATAM?
Record-to-report is
performed by 91% of
LATAM shared services, but
only 63% of SSOs globally.

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What best describes your level of satisfaction with your current
SSOs/GBS Operations in your region?
87% of organizations are
satisfied with their SSOs in
Latin America, compared to
68% in North America, 64%
in Europe, and 53% in Asia.
LATAM SSOsRank Highest for Satisfaction vs. Other Regions

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Polling Question #1: The Value of Nearshore
What do you see as the biggest value available from a nearshore model?
(Select all that apply)
Cultural Affinity
30%
Same time zone
70%
Ability to Support More Complex Activities
40%
Quality of Talent
53%
Easier Travel
33%

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The value of LATAM over Asia goes beyond "time zone".
It's about the quality of our talent and our innovation mindset
23%
30%
31%
32%
33%
37%
40%
42%
44%
59%
60%
37%
39%
51%
39%
43%
42%
45%
39%
37%
28%
26%
0% 20% 40% 60% 80% 100%
English Accent
Cultural Affinity
Staff Turnover
Ease of Travel
Access to Spanish Language
Political & Economic Stability
Infarastructure Reliability
Ability to Support Complex Processes…
Continous Improvement & Innovation…
Quality of Talent
Same Time Zone
Very Important Important
86%
87%
81%
81%
85%
79%
76%
71%
82%
69%
60%
Infrastructure Reliability
How do you perceive the
added value of LATAM
over Asia/Europe to
support the Americas?

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The value of LATAM over Asia goes beyond "time zone".
It's about the quality of our talent and our innovation mindset
23%
30%
31%
32%
33%
37%
40%
42%
44%
59%
60%
37%
39%
51%
39%
43%
42%
45%
39%
37%
28%
26%
0% 20% 40% 60% 80% 100%
English Accent
Cultural Affinity
Staff Turnover
Ease of Travel
Access to Spanish Language
Political & Economic Stability
Infarastructure Reliability
Ability to Support Complex Processes…
Continous Improvement & Innovation…
Quality of Talent
Same Time Zone
Very Important Important
86%
87%
81%
81%
85%
79%
76%
71%
82%
69%
60%
Infrastructure Reliability
How do you perceive the
added value of LATAM
over Asia/Europe to
support the Americas?

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•After struggling with attracting and retaining talent in their US-based based operations,
the company established a large, Asia-based outsourcing operation for areas of
Revenue Cycle Management (RCM).
•The company quickly recognized the challenges the Asia-based model represented for
some aspects of RCM that required extensive communication and collaboration, and
more complex, judgement -based work to execute. They specifically sought out a
nearshore partner to this type of work.
•Initially established an outsourced service center supporting a small range of RCM-related
activities, and discovered that the nearshore operation demonstrated increased
productivity and performance compared to the Asia -based operations
•With the success of the program, the client has chosen to expand its nearshore footprint
to include a total of 24 distinct RCM functions and more than 500 FTEs and has expanded
the scope to include Human Resources and Customer Service-related functions
•Additionally, the company has leveraged Auxis’ Digital Transformation team to support its
Intelligent Automation department , to design, develop and test multiple process
automation initiatives
Ability to Support More Complex Processes:
One of the Leading Healthcare Organizations in the United States
“The nearshore team’s productivity was the
equivalent of 1.4 FTEs in the Asia operation.”

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What markets are your Shared Services/GBS/Outsourcing Operations in LATAM supporting?
84% of GBS in LATAM Support North America, but other
Global Markets are also Being Supported from the Region

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Restaurant Operations & Compliance
•Operator had a legacy global model to support store Ops, Quality & Food Safety
standards.
•In concert with Auxis we built and launched the first of its kind remote virtual video
operations review process. Program runs domestically & internationality
•Utilize custom built software to dynamically coordinate & schedule thousands of audits
based on customer business rules.
•Execute detailed walkthrough of onsite operations across all areas. Program drove 7.5% -
12.5% revenue lift in international locations. Auxis resources became “Coaches &
Advisors” across the globe.
Information Technology
•Company was struggling with the execution of an Asian-based outsourced model for IT
Help Desk, POS Support and POS Administration.
•Switched services to Auxis LATAM based model. Neutral cost model and even small
benefit once factor in increased service-levels.
•Detailed support across all stores as well as 4 different POS platforms for support and
administration.
Service lines have expanded to include NSO Support as well as customer care.
Global Complex Support Model
One of the Leading Restaurant Companies – 7 Brands.
Restaurant holding company with many brands was facing challenges
across IT, Operations & Customer Care

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What best describes the scenario in which you
are leveraging or plan to leverage LATAM?
Latin America is being leveraged by both first-time
outsourcers and established GBS looking to complement Asia

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•The company has more than 150,000 employees and 1,000 retail outlets across
the US
•The company had established a large captive center in India to support many of
its shared services functions, including IT, Finance & Accounting, Retail
Operations and HR
•The India operation was working well and was providing strong performance and
cost benefits, but the company recognized additional opportunities to evaluate
onshore work where time zone proximity and bi-lingual capability were
considerations for transforming Human Resources service delivery
•After evaluating the nearshore (LatAm) market, the company launched an initial
HR pilot focused on HR Operations, Talent Acquisition and Total Rewards,
including activities such as HR Help Desk, support in-store hiring needs and
compensation operations
–Expanded the scope to include components of Compliance, Leaves and
Accommodations and Associate Relations having found that employees
with US-related experience were available for these activities
•In the end, Latin America has become the preferred location for this time zone
proximity, communication-centric and bi-lingual preferred activities,
complementing the large operation it had already established in India
LatAm Complement to an Asia-
Based Operation:
Large US-Based Retail Organization

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In which LATAM/Caribbean countries do you have/are you currently evaluating
Shared Services/ GBS/Outsourcing Operations?
Colombia, Mexico, and Costa Rica Lead LATAM Countries
for Shared Services & Outsourcing

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In how many countries do you currently have
SSOs/GBS Operations in LATAM?
Are you planning to have operations in only one
country in Latin America or in multiple countries?
50% of organizations evaluating Latin America plan
to set up operations in two or more countries.
Many SSOs Plan to Operate in Multiple LATAM Countries
Simultaneously

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Multi-Location Model:
Leading Consumer Audio Device Brand
•The company had global operations in North America, Europe and Asia and
wanted to establish a global business services (GBS) center for its Finance &
Accounting function to consolidate operations and improve its operating cost
and productivity
•Starting with a phased implementation approach to ensure a stable operation,
the company initially transitioned select activities across P2P, O2C and R2R to the
Auxis service center in Costa Rica
•After starting with a limited AP scope (invoice audit, master data and T&E) within 2
months transitioned the full Global AP function, and established a Procurement
Help Desk to help managed the PO process and improve the upstream activities
that were impacting AP productivity and performance
•Transitioned selected AR activities, including Cash Application, Alternative
Payment Refund, Credit Memos, Order Release and Bank Reconciliations
•With a migration to SAP and its team struggling to adapt to the new system, the
company recognized Auxis’ extensive SAP experience and expanded the
program to include global operations for AP and AR, and additional R2R scope
•Once the operation stabilized, Auxis and company agreed to transition some of
the more transactional activities (invoice processing, help desk, cash
application, etc.) to Auxis’ Colombia service center due to the lower cost available
in that market, creating a hybrid operation that worked across multiple markets
based on the role, experience needed and cost advantages

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Polling Question #2: Potential Cost Savings
What are your cost savings expectations from operating in a nearshore
market compared to US labor costs?
25% - 40%
46%
Greater than 50%
8%
40% - 50%
38%
Less than 25%
8%

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42% of organizations reported 20+%
productivity gains from
automation initiatives at their
LATAM SSOs.
25%-50%+
48% of organizations
reported labor savings of
more than 30%
CAPTURE LABOR
ARBITRAGE SAVINGS
RE-INVEST SAVINGS TO FUND
OPTIMIZATION EFFORTS
Re-Invest a portion of Labor
Savings to fund the
investments in technology
and innovation
Self Fund
DIGITAL
TRANSFORMATION
15% - 40%
The Business Case of Nearshoring to LATAM is significant…

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LATAM SSOs cite 9% higher levels of adoption across all technologies
listed in the survey, when considering the “implementing” plus “piloting” phases.
Latin America’s Tech Adoption Keeps Pace with Global
Trends – and Often Surpasses Them
2%
7%
18%
13%
24%
22%
24%
24%
13%
18%
16%
20%
30%
29%
25%
33%
20%
20%
16%
24%
7%
11%
20%
13%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Generate AI
Chatbots/NLP
Process Point Solutions
Process Mining/Discovery
OCR/IDP
RPA
Analytics
Workflow
Implementing at scale Implementing Piloting
70%
How would you describe
the maturity level of
technology adoption in
your SSO/GBS operation
in LATAM?
69%
62%
61%
57%
50%
45%
35%

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Ticket Opened
•Automated Resolution
•RPA/AI
•Etc.
•Multi-channel support
•Resolves issues
•Refers users to self-service at
end of calls
•Captures data for future
automations
•Escalates to Level 2
Level 0
Self-Service /
Knowledge Base
Automations
Level 1
Employee
Or Customer
•Employee Opens Chat
•AI Assistance
•Options for “Human Care”
•Analytics Layer – Future
Knowledgebase + Automation
Future of Care – AI + Automation + Shared Services
Level 2
SSC
Escalated Support

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Polling Question #3: Does Size Matter?
What is the Estimated One-Time Cost to Set Up a 100 FTE Shared Services
Center in Latin America?
$500,000 – $1,000,000
52%
$1,000,000 - $1,500,000
17%
Less than $500,000
26%
Greater than $1,500,000
4%

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28Preliminary Cost to Stand Up a 100+ FTE Service Center
Directional Breakdown of Start Up Costs*
Item Number Metric Comment
Seats 100 FTE Includes functional team, admin, IT and mgmt
Density 8 Square Meter Number of FTEs per Square Meter
Space Needed 1,000 Square Meter Minimum space needed to accommodate FTEs
Rent $20-$25 Square Meter Class A Space
Build Out Cost $1,500 Square Meter Construction, Wiring, Infrastructure. Furniture, etc.
* Based on Auxis experience and knowledge of LatAm markets
Projected Cost
Facilities Build-Out $1,500,000 One-Time Capitalized Cost
IT and Other Equipment $200,000 One-Time Capitalized Cost
Advisory and Project Management $50,000 One-Time Capitalized Cost
Total One-Time Cost $1,750,000

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29Preliminary Cost to Stand Up a 100+ FTE Service Center
* Based on Auxis experience and knowledge of CO and CR markets
Item Annual Amount Comment
Facilities Build etc. $350,000 Straightline capitalized cost amortized over 5 years
Rent $270,000 1,000 square meters @ $22.50 per sm
Utilities $50,000 Power, telecom, Internet, etc.
IT Support $80,000 Two dedicated FTE to support operation
HR Support $120,000 HR Manager, one Admin + one Recruiter
Payroll Administration $24,000 100 Employees x $20/Month per FTE
Admin Support $36,000 Two Administrative Assistants
Facilities Support $30,000 Cleaning, repairs, maintenance, etc.
Other $25,000 Supplies, snacks, employee relations, etc.
Professional Services $50,000 Legal, tax, project management, other
Total $1,037,000 Annual operating cost
You would need 40% in Labor Arbitrage to get a Net 30% Cost Savings (100 FTEs)
Directional Annualized Cost to Operate (Not Including Payroll)*

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Are you planning to increase,
decrease or maintain your current
use of outsourcing?
What are key drivers for increasing your use of outsourcing?
52% of GBS plan to increase its use of outsourcing
Access to countries
in which we don’t
currently have
operations
Reduced HR burden
recruiting, retention,
training, etc.
Access to
technology
and best
practices
Lower cost Access to
talent
Absorb future
growth
Increased internal
focus on core and
higher value
activities

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What best describes your organization’s view of outsourcing?
Never done it, never will
0%
Have done it and plant to continue expanding
53%
Still figuring it out
16%
Have never done it but considering
26%
Have done it but with limited success
5%
Polling Question #4: Perspective on Outsourcing

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32Currency Fluctuation & Wage Inflation Lead SSO Concerns
18%
9%
15%
13%
15%
15%
22%
25%
26%
14%
32%
31%
11%
20%
15%
24%
22%
24%
22%
20%
20%
32%
23%
29%
0% 10% 20% 30% 40% 50% 60% 70%
Data Security
Automation & Analytics Skills
Ability to Support Other Languages
Availability of English
Turnover
Investment Needed in Tech & Automation
Public Safety
Talent Availability
Political Environment
Maintaining & Improving Service Levels
Wage Inflation
Currency Fluctuation
Very concerned Concerned
How concerned are you
regarding the following
factors in your
GBS/Outsourcing
operations in LATAM?
60%
55%
46%
46%
45%
44%
39%
37%
37%
30%
29%
29%
For GBS outside LATAM, the top two concerns are talent availability (71%)
and automation/analytics skills (60%)

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For companies already in LATAM, how do you see your GBS location
growth strategy evolving in LATAM and otherregions?
The way in which companies
plan to grow in LATAM is very
diverse, including:
-Plans to add more processes
for functions already
established (70%)
-New functions (55%)
-New geographies (39%)
-More business units (39%)
LATAM’s GBS & Outsourcing Industry is Projected to Grow
Faster than Other Regions

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Q&A

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Would you be interested in scheduling a
complimentary benchmarking assessment
or nearshore opportunity assessment?
Interested in both
67%
Interested in the benckmarking assessment
33%

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Download our Nearshore vs. Offshore Report
vs OFFSHORE
NEARSHORE
Navigating the Hidden
Hassles of Outsourcing to Asia

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Thank you for attending!
Eric Liebross
Sr. Managing Director of
Business Transformation
Auxis
Fabiana Corredor
Vice President of
Marketing & Growth
Auxis
Keith Sayewitz
Commercial
Managing Director
Auxis