This research report analyzes LATAM as a destination for nearshore/offshore FAO services in English language and the region’s unique value proposition. The report would help buyers and service providers, who are evaluating entering or expanding their existing footprint in LATAM, to develop a holistic perspective of global services in FAO

1. Locations InsiderTM
Market Report: December 2013 – Preview Deck
Topic: Finance & Accounting in Latin America (LATAM)
Copyright © 2013, Everest Global, Inc.
EGR-2013-2-PD-1009

2. 2
Copyright © 2013, Everest Global, Inc.
EGR-2013-2-PD-1009
Our research offerings for global services
Subscription information
 The full report is included in the
following subscription(s)
– Locations InsiderTM
 In addition to published
research, a subscription may
include analyst inquiry, data
cuts, and other services
 If you want to learn whether
your organization has a
subscription agreement or
request information on pricing
and subscription options, please
contact us:
Corporate Headquarters
Office: +1-214-451-3000
info@everestgrp.com
European Headquarters
Office: +44-207-129-1318
unitedkingdom@everestgrp.com
1 Banking, financial services, and insurance
Custom research capabilities
 Benchmarking | Pricing, delivery model, skill portfolio
 Peer analysis | Scope, sourcing models, locations
 Locations | Cost, skills, sustainability, portfolio – plus a tracking tool
 Tracking services | Service providers, locations, risk
 Other | Market intelligence, service provider capabilities, technologies, contract
assessment
Finance & accounting
Procurement
Human resources
Recruitment process
PricePointTM
Global sourcing
Locations InsiderTM
Contact center
Transaction Intelligence
Healthcare information technology
Information technology
Cloud VistaTM
BFSI1 business process
BFSI1 information technology
Market VistaTM
Global services tracking across functions, sourcing models, locations, and service
providers – industry tracking reports also available

3. 3
Copyright © 2013, Everest Global, Inc.
EGR-2013-2-PD-1009
Background and scope of the research
Background of the research
Latin America (LATAM) is witnessing growing interest as a delivery destination for BPO global services, especially
Finance and Accounting Outsourcing (FAO). With its sizable graduate pool, low cost of operations, language
advantage, and time-zone proximity with the United States, LATAM offers an attractive value proposition for
organizations looking for destinations for nearshore/offshore FAO services, especially to the U.S.. Latin America
accounted for about 9% share of the BPO global services industry in 2012. Within BPO services, almost half of the
market is dominated by FAO and the market continues to grow.
In this research, we analyze Latin America as a destination for delivery of nearshore/offshore FAO services for
global service providers and buyers, across various dimensions:
 Market characteristics
 Labor pool across entry and employed talent
 Operating cost
 Risk assessment
 Implications for stakeholders
The scope of the analysis includes:
 Nearshore/offshore Finance and Accounting (F&A) services in English language
 Includes services sectors across Global In-house Centers (GICs) and third-party service providers
 Analysis on key cities in Latin America: Bogota, Buenos Aires, Guadalajara, Montevideo, Panama City, San Jose,
Santiago, and Sao Paulo

4. 4
Copyright © 2013, Everest Global, Inc.
EGR-2013-2-PD-1009
Table of contents (page 1 of 2)
Background and methodology 5
Executive summary 7
 Summary of key messages 7
 Implications for key stakeholders 9
Section I: Market overview 11
 Key messages 12
 Market size and growth 13
 Players landscape 15
 Key delivery locations 17
Section II: Assessment of talent pool 18
 Key messages 19
 Talent pool 20
 Attrition rates and competitive intensity 22
 Availability of niche skills 23
Section III: Assessment of operating costs 25
 Key messages 26
 Operating costs 29
 Wage inflation 30
 Forward-looking view on costs and sustainability of arbitrage 33
Topic Page no.

5. 5
Copyright © 2013, Everest Global, Inc.
EGR-2013-2-PD-1009
Table of contents (page 2 of 2)
Section IV: Assessment of risk 34
 Key messages 35
 Labor pool risk 38
 Operating environment risk 39
 Relative attractiveness of cities and associated trade-offs 42
Appendix 43
 Glossary of key terms 44
 GS research calendar 45
 References 46
Topic Page no.

6. 6
Copyright © 2013, Everest Global, Inc.
EGR-2013-2-PD-1009
This report examines the English-delivery market for FAO services from the LATAM region. It focuses on market
characteristics, labor pool analysis across entry and employed talent, operating cost, and risk assessment across eight
LATAM locations including Bogota, Buenos Aires, Guadalajara, Montevideo, Panama City, San Jose, Santiago, and
Sao Paulo.
Overview and abbreviated summary of key messages
Talent
assessment
 Leading locations, such as Bogota, Buenos Aires, Guadalajara, and Sao Paulo, offer sizable
entry-level graduate pool with English language skills
 Some locations in LATAM offer bi-lingual (Spanish + English) pool across entry and
experienced level
Some of the findings in this report, among others, are:
Market
overview
 LATAM BPO market is large accounts for ~9% of the BPO global services market
 FAO accounts for almost half of the LATAM offshore/nearshore BPO market
 The FAO market in LATAM is driven by GICs and global service providers with local/regional
players having limited presence (except in Brazil and Argentina)
Cost
assessment
 Annual operating cost for F&A varies significantly among locations in LATAM, with Sao Paulo
being the costliest
 Most low-cost LATAM locations offer significant cost arbitrage (45-70%) over the United States,
and that is likely to continue over the next five years
Risk
assessment
 Bogota, Guadalajara, and San Jose are relatively low-risk locations in LATAM
 Some concerns on scalability due to small talent pool, especially in Montevideo and
Panama City

7. 7
Copyright © 2013, Everest Global, Inc.
EGR-2013-2-PD-1009
This report assesses key aspects of FAO global services in
Latin America
Overview of global services in FAO in Latin America Assessment of cities
Assessment of operating environment Relative attractiveness of cities and associated trade-offs
Cost-risk trade-offs
Low
High
High LowRisk
Cost
City 1
City 4
City 7
City 2
City 5
City 6
City 8
City 3
Guadalajara
Santiago
San Jose
Buenos Aires
Montevideo
Panama City
Bogota
Sao Pauolo
Maturity level Locations
Established  Bogota
 Buenos Aires
 Guadalajara
 Montevideo
 Panama City
 San Jose
 Santiago
 Sao Paulo
Emerging  Caracas
 Georgetown
 Lima
 Monterrey
 Medellin
Nascent  Belize City
 Cordoba
 Rosario
 Tegucigalpa
 Willemstad
Labor pool risk
Risk
Entry-level pool
Experienced pool
Operating
environment risk
Competitive intensity
Infrastructure availability
Safety and security
Business
environment risk
Macro-economic
Regulations and ease of
doing business
Geo-political
Government support
 Employable entry-level labor pool for F&A
 Experienced pool employed in F&A across leading
service providers and GICs
 Evidence of scale achieved for F&A
 Number and nature of competition
 Attrition rates for F&A services
 Network readiness, power supply infrastructure,
transportation infrastructure, and international air
connectivity
A
B
C
 Security, crime and violence, and threat of natural disasters
 GDP growth, currency trends, inflation, and credit rating
 IP protection, ease of doing business, legal and regulatory
policy, tax policy, and corruption perception
 Political stability
 Business incentives provided by the government
India
Philippines
Canada
LATAM
CEE
Ireland
China
Others
Finance &
accounting
outsourcing
Others
Distribution by global service
offerings in LATAM
2012; US$ billion
Country-wise distribution of BPO
global services market
2012; US$ billion
100% = 100% =

8. 8
Copyright © 2013, Everest Global, Inc.
EGR-2013-2-PD-1009
LI research calendar
Topic Release date
Published Current
November-2013Next-wave Location Profile – Guatemala
November-2013Next-wave Location Profile – Cebu, Philippines
Q1-2014"Next-wave" location profiles 3: Bulgaria
Q1-2014Global Locations Annual Report
Q1-2014Emerging Locations Trends report 1: Delivery of IT services from the U.S.
Q1-2014"Next-wave" location profiles – Latvia
Q1-2014"Next-wave" location profiles – Peru
Q2-2014Function Focus 1: Tier-2/3 locations in India for IT ADM delivery
Q2-2014Emerging Locations Trends report 2: Emerging opportunities in tier-2/3 cities in the Philippines
Q2-2014"Next-wave" location profiles – Kenya
Q2-2014"Next-wave" location profiles – Sri Lanka
December-2013Finance & Accounting in Latin America (LATAM)

9. 9
Copyright © 2013, Everest Global, Inc.
EGR-2013-2-PD-1009
Additional research references
The following documents are recommended for additional insight on the topic covered in this report. The recommended
documents either provide additional details on the topic, or complementary content, that may be of interest:
1. Next-wave Location Profile – Cebu, Philippines (EGR-2013-2-LP-0999); 2013. Everest Group’s Next Wave Location Profiles provide
crisp, yet insightful assessment of emerging / “next-wave” countries or cities for services delivery. This report on Cebu offers
perspectives on global sourcing profile of Cebu, key opportunities, drivers, and challenges, along with an overview of talent availability,
operating costs, and environment risks.
2. Next-wave Location Profile – Guatemala (EGR-2013-2-LP-0998); 2013. Everest Group’s Next Wave Location Profiles provide crisp,
yet insightful assessment of emerging / “next-wave” countries or cities for services delivery. This report on Guatemala offers perspectives
on global sourcing profile of Guatemala, key opportunities, drivers, and challenges, along with an overview of talent availability, operating
costs, and environment risks.
3. Global Location Insights: November 2013 – Baltic States – Scandinavian “Backyard” or Emerging Opportunities to Service
Western Europe (EGR-2013-8-R-0996); 2013. This report evaluates the current global service delivery landscape and suitability of
Baltic States for supporting Western Europe and other regions for IT and BP services. Additionally, it offers perspectives on the drivers
and challenges for the global services industry in the Baltic States and their future outlook as global delivery locations.
For more information on this and other researches published by Everest Group, please contact us:
Aditya Verma, Senior Analyst – Global Sourcing
Manu Mehndiratta, Analyst – Global Sourcing:
aditya.verma@everestgrp.com
manu.mehndiratta@everestgrp.com
Everest Group
Two Galleria Tower
13455 Noel Road, Suite 2100
Dallas, TX 75240
Phone: +1-214-451-3110
E-mail: info@everestgrp.com

10. Blogs
www.sherpasinblueshirts.com
www.gainingaltitudeinthecloud.com
Twitter
@EverestGroup
@Everest_Cloud
Stay connected
Websites
www.everestgrp.com
research.everestgrp.com
Dallas (Headquarters)
info@everestgrp.com
+1-214-451-3000
New York
info@everestgrp.com
+1-646-805-4000
Toronto
canada@everestgrp.com
+1-647-557-3475
London
unitedkingdom@everestgrp.com
+44-207-129-1318
Delhi
india@everestgrp.com
+91-124-284-1000
At a glance
 With a fact-based approach driving outcomes, Everest Group counsels
organizations with complex challenges related to the use and delivery of the
next generation of global services
 Through its practical consulting, original research, and industry resource
services, Everest Group helps clients maximize value from delivery strategies,
talent and sourcing models, technologies, and management approaches
 Established in 1991, Everest Group serves users of global services, providers
of services, country organizations, and private equity firms in six continents
across all industry categories