BDO launch Global Expansion: A payroll guide for LATAM
25 March 2019
Original content provided by BDO Colombia
Fully understanding the regulations and working conditions in each country is a competitive advantage and also offers peace of mind and the opportunity to concentrate on the “core” of your business. Often, companies are hesitant to enter new markets because of economic risk, language, and cultural differences, among other concerns. Is it really worth going abroad? The answer is yes! International companies can be more competitive, have higher productivity indexes, access opportunities in markets with growth potential, tap into economies of scale, and ultimately, strengthen their brand.
GLOBAL OR LOCAL SOLUTION?
There is not a single correct answer when it comes to choosing a model for managing your payroll. The crucial factor is to identify the elements your solution requires and find a provider that can respond to your needs. The basic factors to consider when choosing between a global or local solution are:
1. Employee location: If your company operates in economically and politically challenging territories, choose a provider with solid experience operating payroll in these areas, preferably with local staff who provide permanent support.
2. Employees count: Make sure to choose a provider who is sufficiently capable and experienced wherever you operate.
3. Stakeholders: Your chosen provider should be able to offer a comprehensive solution in which local and global needs are met.
This guide includes helpful information for taking your business into new markets. Choose countries with the economic conditions that will support your company’s vision to ensure proper employment of your team. While this guide is a helpful tool, it does not replace having a comprehensive advisory service. Find details for key contacts in each country at the end of this guide.
Expanding your business across borders can pose risks; BDO can help you navigate the challenges and opportunities.