Outsourcing the path to success: How do brokerage firms take advantage of external support to expand into Latin America?

The current complexity of the market and the organizations themselves, demand new ways of dealing with business processes, where external support is no longer considered an option, but a necessity. Next, we will learn about the importance of brokerage companies having such support to successfully expand in Latin America.

What does external support mean?

From the point of view of organizational management, external support consists of the work performed by another company, by way of outsourcing. The term support is used to imply that the task performed by it is necessary to achieve the ends. However, the central core of the productive work developed is always carried out by the organization itself.

That is, if it is a vehicle assembler, the company cannot delegate the assembly to others; but it can subcontract for the logistics of delivery of the units, for personnel selection or fox settlement. In this order of ideas, according to the results of a survey, the services in which companies seek more external support are as follows:

  • Recruitment of personnel;
  • Design and execution of training plans or training;
  • Digital transformation, which includes computerization of processes and web development;
  • Installation of networks, and security systems, among others;
  • Services of advertising and marketing.

Although the literature on the subject does not specify exactly what the difference is between outsourcing and external support, it can be said that in some cases the relationship between organizations is more circumscribed to a moment or a certain need.  

For example, if operations are opened in a new position, and it is required to recruit key personnel, it is something different from what happens with maintenance work, which is a permanent need for the company; although in both cases there is the possibility of hiring a third party, that is, seeking external support.

Different types of external support

So, one company may require the services of another in various circumstances or for different needs. Then, the levels of support vary according to the type of function and its frequency. Among the possible options in this regard are:

  • Administrative level: performing routine tasks such as payroll handling, tax filing, budgeting, and collection.
  • Logistical level: tasks related to deliveries and transportation, storage, customs, supplier management, and real estate (leasing, adaptation).
  • Strategic level: communication and marketing plan, marketing studies or benchmarking, research and documentation of processes, management of technological tools.
  • Tactical level: preparation, support, implementation and evaluation of development plans.
  • Formative level: to design and develop training programs, to tutor trainings.
  • Other external support: call centers, business communication management, event management, legal advice.

Why brokerage firms need external support?

Organizations can turn to external support for two fundamental reasons: because they do not have the right staff for some tasks and because the other company is an expert in the area.

In this way, they can focus all their energies on achieving their goals, with less effort, saving time and resources and in a more efficient way to consolidate their position in an increasingly complex market, such as trading. In other words, it helps to focus on attracting investors and providing the services they require.

Additionally, it can be pointed out that when brokerage companies want to expand to other territories, such as Latin America, it is important to have external support from another organization that has greater knowledge of that market, as for the characteristics of investors, what are the competing companies, the legal framework, among other factors.

Advantages of external support for brokerage companies

As mentioned, external support is a strong tool for business transformation and growth, which can pave the way to the success for brokerage firms looking to expand into Latin America. Among the advantages derived from this process it is worth mentioning:

  • Knowledge and expertise: there is no doubt that brokerage companies can benefit from the experience of the organization that provides them with external support, especially if it is a company already established in a territory and with good information about the local market. It’s like having an experienced guide who knows the terrain and can take us on the right path.

  • Investment networks: in the area of investments, external support usually brings a network of very useful contacts that they have been establishing, and ones that can be taken advantage of, in a good way, by brokerage firms.

  • Better communication with the investor: for brokerage companies, another advantage of having external support in Latam is that they know how to speak on your terms to local investors, to attract their interest towards the services offered. And it’s not just about the management of the language, the twists, uses, idioms and styles, but about the references of each culture.

  • Optimization of resources and effectiveness: these advantages listed above can be translated into greater efficiency and effectiveness in the process of attracting potential local investors, and a higher probability of success for the brokerage company, in its goals of expanding to Latin America.

  • Profitability: by knowing what has worked, based on the experience of external support, the brokerage company will be able to use the most appropriate means, get better results, save time and resources, and higher profitability.

Support on the way to success in LATAM

Today, Latin America is presented as a highly attractive market and growth for brokers, where there are many business opportunities, with investors interested in learning about trading and finding the best way to earn profitability.

On their way to success, brokerage firms can take advantage of the external support of Latam Forex Solutions. This organization offers various services for those who want to expand in Latin America, related to logistics, human resources, the opening of new headquarters, legal advice, and even holding events.

Latam Forex Solutions is a company specialized in providing this type of support B2B since it has a solid knowledge of the local market, handling of the laws in force in the region and the language, among other qualities.

We know that growing, multiplying, and expanding, is something innate in companies, as much as in the human species. But, to achieve everything he has done throughout his history, man has never been alone. He has always supported himself and supported others.Similarly, at Latam Forex Solutions, we believe that our growth depends on us helping each other, within the framework of a relationship winwin. That is why we consider it important to have external support and we want to help brokerage companies interested in expanding in Latin America in this regard.

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