New investor considering CNMI operations

BayShore Business Services LLC, headquartered in Orlando, Florida announced its intentions yesterday to seriously consider establishing a support operations center in the Commonwealth as part of its global expansion.

BayShore currently has business operations in the United States, Europe and Pakistan.

The company has plans to establish additional support centers in three additional locations over the next six months and has agreed that the CNMI is a finalist based on lengthy discussions with CNMI House Speaker Ben Fitial.

BayShore board chair Jeff Russell visited the CNMI last month and was hosted by Fitial, who recognized the potential in Bayshore’s business proposal.

“Mr. Russell is considered a pioneer in the international business outsourcing industry with a reputation for establishing successful businesses that create jobs and opportunities in developing countries,” said Fitial.

After more than a year of discussions on the feasibility of the investment, Fitial was able to convince Russell to seriously consider establishing a large support center for his outsourcing business here in the Commonwealth. Fitial, however, insisted that the business venture be made in association with local business partners, so that more members of the Commonwealth community can benefit from the proposed investment and business venture.

Fitial is confident of Bayshore’s successful investment in the CNMI.

Globally, the market for financial and accounting outsourcing services is estimated to grow to $114 billion by 2008, according to the Yankee Group.

According to the Journal of Applied Corporate Finance, 71 percent of U.S. and European executives responding to a survey said they are expecting outsourcing of finance and accounting to become more prevalent over the next three years.

“I am impressed that Mr. Russell has integrity, values local traditions, and agrees to create local jobs at globally competitive wages,“ said Fitial.

Fitial is optimistic that Bayshore’s business process outsourcing industry will help to diversify the CNMI’s economy and offset some of the losses suffered by the tourism and apparel industries in the wake of new textile trading rules and the withdrawal of Japan Airlines.

Bayshore’s Russell, for his part, is grateful for Fitial’s tireless encouragement in urging him to consider establishing a business presence in the Commonwealth.

“Our original research surfaced concerns about the CNMI government’s commitment to creating jobs and providing incentives for businesses such as ours,” said Russell, adding that “other countries are seemingly much more proactive with incentives that reward businesses for creating good paying jobs and stimulating the economy.”

Fitial, however, managed to convince Russell that the environment for fostering good business will improve and that there are other solid reasons to do business in the CNMI.

“I am sure that Speaker Fitial will be instrumental in finalizing negotiations with our company to create more than 500 positions for locals to manage our around the clock operations,” said Russell. “I can assure you we will strive to be the best possible employer that takes social responsibilities seriously.”

The global market for outsourced finance and accounting function is expected to grow at a 9.6 percent compounded annual growth rate and top $47.6 billion by 2008, according to a new report from Deloitte Research, a part of Deloitte Services, LP.

“All this means good news: more jobs and better pay,” said Fitial. (PR)