Powering Growth

The primary objective was to make its operation as financially efficient as possible.
Powering Growth
 

With cost efficient talent

A fast-growing startup, offering an online marketplace that connects directly to sellers via mobile-friendly apps, our client experienced rapid growth quickly and was only a few years old when it recognized the need to partner with SERVIAP. The online marketplace had become tremendously popular, and it found that its customer services division was unable to keep up with the demands of its patrons.Response times from our client’s representatives beganto decline, and that had a serious impact on customer satisfaction. Put simply, its customer services’ arm was understaffed, and it didn’t have the resources it needed to properly hire additional hands to handle customer queries.In the end, the leadership team realized it neededto develop hiring practices that could scale with therapid growth of our client. One of its senior executivesis originally from Mexico, so our client was already predisposed to the benefits of outsourcing and hiring talent based in Latin America, where it knew it could hire the help it needed without engorging its annual costs. It also understood, however, that it needed to partner with a company that already had an established track record as a Professional Employer Organization (PEO).
With a desire to develop hiring practices that could scale with rapid growth, our client turned to SERVIAP for assistance in outsourcing and hiring talent based in Latin America.

Trusted, compliant solutions from expert partners

Our client was sold on the benefits of moving some ofits operations across the border to Mexico, but therewere numerous logistical challenges associated with undertaking such a move that it wasn’t equipped to handle. Outsourcing is an administrative headache with several different legal and regulatory hurdles. That’s especially true in many Latin American countries, where bureaucracies are overly complex and extremely inefficient.SERVIAP provided our client with the administrative knowhow to manage all these obstacles while at the same time ensuring their move was successful and compliant. To use one example of a problem SERVIAP helped solve, our client originally intended to procure its own equipmentfor new staff hires in Mexico. The computers it bought, however, got stuck at the border, prolonging the wait and forcing our client to pay an additional 30% in taxes on each laptop. A new MacBook Pro costs $1,499, so if our client initially bought 100 computers, they were paying almost $50,000 extra in taxes at the border.SERVIAP offered to procure all of our client’s MacBook Pros, allowing our client to bypass border taxes completely and make substantial savings.

Cutting costs and driving future growth

When partnering with SERVIAP, the primary objective was to make its operation as financially efficient as possible. Our client has hired an additional 13 employees since partnering with SERVIAP, and the impact has been enormous. Based on salary figuresin Seattle, Los Angeles and San Francisco, 13 employees would have cost our clientan average of $134,169, $142,210 and $161,427 per person, respectively. By hiring employees based in Mexico, however, our client pays those same employees just $55,765, for a savings of about $78,403, $86,445 or $105,662, depending on the location.For other companies in the San Francisco Bay Area that are interested in expanding to Latin America, here’s salary information for the ten most common positions SERVIAP helps staff in Mexico City and Buenos Aires compared to salaries for the same positions in San Francisco:
Job titleSan FranciscoMexico CityBuenos Aires
Bilingual customer service specialist$46,859$6,613$5,467
Technical support analyst$82,637$14,102$7,968
Sr. software development engineer$136,251$35,467$9,318
HR executive$50,303$27,539$15,604
Sales manager$86,100$36,738$27,369
Project manager$102,190$21,641$17,021
Compliance officer$87,160$32,462$12,548
Creative manager$96,021$23,444$16,648
Cost analyst$70,156$10,219$10,560
Operations manager$85,840$35,467$20,624
Salary savings are just one part of the story, however. Combined with other cost savings (like equipment savings mentioned in the example above), SERVIAP has helped our client save $1.4 million per year. This is capital our client can use to continue expanding its operations and assemble more attractive compensation packages for top-tier talent.
SERVIAP will continue to work with our client until it achieves its goal of having 100 people total on staff. After that, we will explore new opportunities to strengthen and deepen our relationship for years to come.

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