{"id":2127,"date":"2015-04-16T19:37:35","date_gmt":"2015-04-16T19:37:35","guid":{"rendered":"https:\/\/www.peeriosity.com\/shared-services\/articles\/?p=2127"},"modified":"2022-08-09T13:15:25","modified_gmt":"2022-08-09T13:15:25","slug":"location-selection-for-shared-services-operations-in-latin-america","status":"publish","type":"post","link":"https:\/\/www.peeriosity.com\/shared-services\/articles\/2015\/04\/location-selection-for-shared-services-operations-in-latin-america\/","title":{"rendered":"Location Selection for Shared Services Operations in Latin America"},"content":{"rendered":"

For companies that have moved beyond a country-by-country model to leverage scale across geographies, while a few might consider a location that delivers services globally, the most common model is to have a physical location that supports one or more geographic regions.\u00a0 With only two primary languages (Spanish and Portuguese), making the location decision for the Latin America region doesn\u2019t have the same language issues that can complicate a similar decision for Europe or Asia. However, political, legal, and infrastructure issues for the region are potentially greater concerns needing careful consideration.<\/span><\/p>\n

A manager at a global company wanted feedback from other member companies on how to best make the location decision for the Latin America region. \u00a0\u00a0Within a few hours, using iPollingTM<\/sup>, he had answers from peers with helpful experience and knowledge, allowing him to make a more informed location selection.\u00a0\u00a0<\/span><\/p>\n

Here is the background statement on the reason for the poll:\u00a0 \u201cOur company is interested in opening a Shared Services Accounting location in Latin America<\/a>. We were originally considering Mexico or Costa Rica and are very interested in knowing which Latin American countries other multi-national corporations have selected. Any insights regarding the strengths and weaknesses of your Latin American location would be of great help.<\/em>\u201d<\/span><\/p>\n

The first iPollingTM<\/sup> question asked about the primary location for a Shared Services operation<\/a> in Latin America.\u00a0 The three top countries for location were Mexico (42%), Brazil (25%), and Costa Rica (17%).\u00a0 Here are the details:<\/span><\/p>\n

\"if<\/p>\n

The second iPollingTM<\/sup> question considered the primary reason for choosing a specific location.\u00a0 Interestingly, the reason for \u201cfavorable labor quality and cost\u201d was the top reason for only 33% of the respondents.\u00a0 The factor most often cited as the primary reason was similar to one often mentioned for other regions \u2013 proximity to an \u201cexisting company location\u201d.<\/span><\/p>\n

\"primary<\/p>\n

As suggested by the discussion generated between members on this topic, making the location decision is a complicated exercise, with factors that change over time, and with subtle differences that are based on the specific circumstances that exist for each company.\u00a0 In other words, while it is helpful to know the details regarding how other companies approached this issue, the right answer for your company is likely to be unique, based on your specific circumstances.<\/span><\/p>\n

Here are several of the comments added by iPollingTM<\/sup> participants:<\/span><\/p>\n