Paychex, Inc., a leading provider of payroll, human resource, insurance, and benefits outsourcing
solutions for small and medium-sized businesses
(SMBs), and São Paulo-based Semco Partners today announced a joint venture agreement to expand Paychex’s services into Brazil.
Semco Partners is a portfolio management and investment company with a proven track record of helping market-leading businesses successfully enter the Brazilian market.
Paychex president and CEO Martin Mucci says Paychex’s decision to expand its payroll and human resource services business into Brazil represents a key component of Paychex’s growth strategy: product expansion through new markets.
“Brazil is the right place for Paychex’s first Latin American expansion for a number of reasons. It has a vibrant market of approximately five million small businesses that account for about 40 percent of the wages paid in Brazil. Also, recent and upcoming regulatory changes there increase the opportunity for outsourcing payroll and other HR services,” Mucci says. “The availability of an experienced partner in Semco that has helped other U.S.-based businesses enter the Brazilian market means we begin with valuable knowledge of the country.”
“Brazil’s small- to mid-sized business market is underserved in many ways, despite a lot of outsourcing activity at larger companies,” Semco Partners managing partner and CEO Alexandre Bonfim de Azevedo says. “We identified the SMB sector as having considerable potential. In fact, a wave of regulatory changes is building positive momentum for outsourced payroll services to make real headway in the market.
“With industry-leading expertise, Paychex is the perfect company to capitalize on this opportunity,” Azevedo adds. “Our research disclosed their interest in international expansion, which dovetailed wonderfully with our strategy: to identify business opportunities in Brazil and match those opportunities with the top players in each field worldwide. Paychex’s expertise, commitment, and dedication to our joint venture make them an ideal partner.”