Growth of BPO in Latin America across F&A, HR, and Procurement

26 Feb 2014



The Latin American General and Administrative Outsourcing (GAO) market is currently in the adolescent stage, growing at nearly 1.5 times the global GAO market. Given the relatively fledgling nature of the market, the adoption trends, solution characteristics, and the service provider landscape of LATAM GAO are also different from the global GAO market rendering traditional approaches ineffective. The value proposition in Latin America is not driven by cost arbitrage, but by creating strong business and strategic impact. However, Latin America presents significant opportunity for value creation due to its rapid growth and potential. Buyers as well as service providers need to address inherent complexities to capture this value.

In this research, we analyze the LATAM GAO market across the following dimensions:

  • Market overview and buyer adoption trends
  • Value proposition and solution characteristics
  • Service provider landscape

GAO Market Size


  • Proprietary databases of 4,000+ multi-process FAO, PO, and HRO contracts including 400+ contracts with Latin America in scope
  • Multi-process BPO contracts across FAO, HRO, and PO (general and administrative outsourcing). Multi-process BPO contracts are defined as contracts with more than US$1 million in Annualized Contract Value (ACV), a term of over three years, and multiple processes in scope
  • GAO services delivered to organizations (domestic and multinationals) with significant presence in Latin America. This report does not focus on service delivery from Latin America


This report examines the Latin American BPO market across F&A, HR, and procurement. It focuses on the growth, contractual activity, and adoption trends in the market. The report also provides insights into the value proposition for Latin American outsourcing and the solution characteristics of Latin America-focused contracts. Service providers in Latin America are also analyzed by domain, functions, and buyer focus.

Some of the findings of this report are:

  • The GAO market in LATAM is US$0.7-0.8 billion in size (<5% of the global GAO market) and growing at 15% CAGR
  • While Brazil dominates the LATAM market from a geographical standpoint, FAO forms ~50% of the entire LATAM GAO from a functional perspective
  • Manufacturing & Consumer Packaged Goods (CPG) are the largest industries in terms of adoption
  • Given its high language dependency, LATAM has limited arbitrage potential compared to the mature geographies such as United States and United Kingdom. Moreover, offshoring work from LATAM poses several unique risks
  • The two key drivers for GAO in LATAM are speed-to-market and access to latest technology/global best practices
  • Technology plays a more invasive role in LATAM GAO contracts than more mature client geographies across F&A, HR, and procurement
  • There are two sets of service providers in the LATAM GAO market – IT+BPO players and pure-play BPO providers. IT+BPO service providers dominate the market with over 75% market share

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