Managua makes top 100 outsourcing destinations

Jan. 25, 2013 - PRLog -- Managua, Nicaragua’s capital city, was recently added to Tholons’ list of Top 100 Outsourcing Destinations, thanks to its improved infrastructure, competitive costs, a skilled bilingual workforce and an attractive geographical location. According to the referential list, Managua ranks one position above Guatemala City, which also makes its first appearance on Tholons’ 2013 index.

Nicaragua is now on the map and getting its due as an up-and-comer in the industry with major players such as Sitel, 24/7 Customer and Stream Global Services, Managua.

Javier Chamorro, Executive Director of PRONicaragua, the official investment promotion agency, says Nicaragua is satisfied with its recognition as an emerging industry player. Nicaragua’s initial call-center growth with 25 companies that have altogether employed nearly 5,000 Nicaraguans over the past seven year, has been impressive and augurs well for the future of the business process outsourcing industry here.

“Being listed in the Top 100 Outsourcing Destinations implies that international experts in the industry recognize the country as a world-renowned destination for outsourcing, still above other countries in the region such as El Salvador and Guatemala, which started developing the sector years before Nicaragua,” Chamorro told The Nicaragua Dispatch.

He also added, “this means that the country is attracting the right attention and stands out as an emerging destination due to the excellent investment opportunities it offers to companies looking to expand their operations and increase their global competitiveness.”

And when it comes to global competitiveness, Nicaragua has several advantages of its own, Chamorro says.

“Among the country’s main competitive advantages for the sector is its strategic location, close to the largest outsourcing market in the world, the U.S.,” Chamorro says. Plus, he adds, Nicaragua has a young and vibrant workforce that “not only speaks good quality English, but has a cultural affinity with the market due to the ‘reverse brain drain’ phenomenon, which refers to people who left the country in the past and have returned to Nicaragua with English skills and market knowledge.”

The country’s “greatest advantages,” however, are its cheap labor costs and generous tax incentives for outsourcing. “It is because of this that Nicaragua is able to compete with the global players in the industry, as it offers lower costs with a near shore location, allowing it to provide timely services to the United States without losing valuable working hours,” Chamorro says.

This article first appeared in the Nicaragua Dispatch.