Payroll outsourcing: A growing global trend with big prospects in Latin America
Put simply, payroll outsourcing involves companies from anywhere in the world transferring their payroll management responsibilities to another company elsewhere in the world for a fee. This process alleviates their personal workload, making payroll outsourcing appear an attractive prospect for small to medium sized businesses looking to cut costs and avoid having to retrain members of staff whenever regulations change. Latin America is growing its global presence as economies continue to develop and regulations on certain industries are adapted to promote foreign investment, making payroll outsourcing to the region an ever-increasing opportunity as businesses seek the best options with the highest value for money.
Top five nations in the region for outsourcing are:
Chile ranks as the best nation in the region for outsourcing. It can be attributed to the fact that it is a country with a relatively strong economy and high level of education across the general workforce, making outsourcing is a good option as the quality of work done is likely to be of a high standard. It is apparent that Chile is already on the trend and with many options already out there, it seems like a good choice for foreign businesses.
Additionally, Brazil ranks highly as it has the largest economy in the region, presenting itself as a hub for business, and specifically outsourcing, making it comparable with Chile in terms of the abundance of options that already exist.
Alternatively, Mexico is projected into the spotlight due to the geographical proximity with the United States and companies there that wish to expand their operations abroad. As more companies in the US venture towards outsourcing to maximise profits, Mexico appears to be a convenient and worthwhile option.
Argentina is well known for having a high level of English speakers, making the potential for outsourcing from Europe and the US ever greater and similarly to Peru, is experiencing sustained GDP growth, making both nations potential in terms of outsourcing opportunity very high.