Industry Commentary

KM2 Solutions Colombian Expansion Reflects Steady Nearshore Strategy

By September 25, 2018July 25th, 2023No Comments

One of the most exciting things for any organization in BPO is to see a well thought out plan come together.  This can encompass strategies related to vertical market penetration, channel choices, back-office functions or technology elements.  In the case of US provider KM2 Solutions , the deliberate strategy to exclusively embrace the nearshore as its delivery hub has been one of the most unique in the industry.  But, it is one that has allowed the firm to grow both legacy and new clients across different sectors, and it has led to further expansion within the region.  It is also a validation for a business model that has truly caught fire over the past decade among both outsourcers and enterprises, one that continues to prove the value of investment.

Since its founding in 2004, KM2 has managed to carve out a platform that takes into account onshore US capacity. Also over the past fourteen years, it has developed a delivery mix that includes different countries, some of which are part of the mainstay of the American nearshore, others that can be considered emerging.  Among the more widely known locations where KM2 has chosen to deploy capacity is in the Altia Smart City facility located in San Pedro Sula. Honduras is considered a flagship for both English and Spanish language delivery, a dynamic that can also be found in the KM2 Santo Domingo facility in the Dominican Republic.

And, notwithstanding the nature of both these mainstay nearshore BPO hubs, KM2’s strategy as it relates to other spots the Caribbean is among the most original in the region.  With a presence in Grenada, Barbados and Saint Lucia, KM2 has established not only the ability to deliver English support in locations that are culturally-sensitive to North American end-users, and relatively accessible, but the firm has also managed to diversify its geographic risk across several points.  This is essential in the eyes of BPO buyers who are anxious to maintain as much redundancy as possible, especially in a region associated with active weather risks.

The latest KM2 site initiative, based on  its decision to enter Colombia with a site in Bogota, cannot be underestimated. With a population of almost 50 million, it is the largest American nearshore delivery point after Mexico. This affords KM2 with a number of immediate advantages.  Perhaps the most obvious is the ability to scale upwards.  Given Colombia’s plethora of secondary cities beyond the capital, finding both facilities and talent across the country can conceivably afford KM2 and its clients even more diversification opportunities.  Several global providers have already proven Colombia’s potential, and KM2 is the latest in this storied group to take up this mantle.

The fact is, nearshoring is a wise strategy for many outsourcers, and KM2 has been successful in using it to drive strong customer interactions for consumers in North America.  This trend does not appear to be slowing, nor should it. After all, the latest Ryan Strategic Advisory Front Office BPO Omnibus Survey identified having nearshore capacity as a major advantage for BPO among enterprise contact center decision-makers (significantly more so than offshore).  With a focus on value-driven interactions and accessibility to delivery points priorities for buyers of outsourced services, the nearshore will remain at the forefront of investment markets for third-party providers in the foreseeable future.