Outsourcing Services

Overview

Nicaragua is the ideal Nearshore location for Outsourcing services. Located in the heart of the Americas. The country enjoys high levels of personal safety, a solid democracy, availability of young and numerous labor force, as well as a great number of benefits provided by fiscal incentives and Foreign Investment Law.

 The Nicaraguan Government considers that the outsourcing sector is a priority for the economic development of the country and because of that; it’s working with initiatives along with the private sector to guarantee the availability of human resource and the sector sustainability.

This industry currently employs over 6,000 people, with an average annual growth rate of 23 percent.  To date, investment in the industry has reached over U$74 million between 2007 and 2014, on the other hand, exports reached over U$84 million in 2014.  

 Source: PRONicaragua, Outsourcing Survey 2015.

Investment Opportunities

An example of the services that can be offered from Nicaragua are the following:

Business Process Outsourcing (BPO)

• Shared Services Center
• Medical Billing
• Contact Centers
• Others

Knowledge Process Outsourcing (KPO)

• Patent Design & Development
• Architectural Services
• Recruitment & Payroll Management
• Others

Information Technology Outsourcing (ITO)

• Custom Software Development
• Mobile & Web Applications Development
• Animation 2D/3D
• Others 

Competitive Advantages

Nicaragua offers a unique set of competitive advantages for companies in the BPO, KPO and ITO sectors, such as:

Strategic Location
Nicaragua enjoys a privileged geographic location in the heart of Central America, just a 2.5 hour flight away from the southern cities of the United States. Its location not only allows ease of travel for executives, having the U.S. Central Standard Time Zone also facilitates business between the countries and allows companies to provide time and cost effective services.

Young and Talented Human Resource
Nicaragua has a young and dynamic population, 76 percent being less than 39 years. The country's labor force is 3.2 million and is known to be flexible and highly productive, with good work habits and the ability to learn fast.

Availability of English-speaking personnel
Although Nicaragua's official language is Spanish, English has become very popular. The country has one U.S. certified English Language University, five bilingual university programs, and ten bilingual high-schools, along with a wide number of English institutes that provide a pool of educated candidates for English-speaking outsourcing companies.

For historical reasons, there is strong cultural affinity with the United States and Nicaragua has experienced what has been called the "reverse brain drain" phenomenon: people who left the country in the past have returned with English skills and international business expertise.

The following graph shows the increase of bilingual talent in the outsourcing industry in Nicaragua:

Bilingual Employees

This industry provides a great professional growth opportunity for young bilingual adults, whom aside from studying a career, are looking to learn and improve their English skills in order to meet the current demands companies have.

Modern Telecommunications Infrastructure

Since the late 90's, Nicaragua began a technological transformation that implemented the latest technologies to reinforce its telecommunications infrastructure. The telecommunication sector is fully privatized and is considered to be one of the most modern in Central America. Nicaragua provides high quality, redundant fiber telecommunications connections via three international submarine fiber optic cable systems (ARCOS-1, MAYA-1 and Emergia).

Some of the major players in the telecommunications industry in Nicaragua are: Tigo, BT, Claro, IBW, Ideay, Navega, Telefónica, Yota, among others.

The following services are available in Nicaragua:

• Internet: Fractional to full DS3 service provided.
• Voice Network: Analogue and digital land line voice services are provided.
• 4G: WiMAX technology through fiber optics and wireless (microwaves) for Internet and mobile phones.
• Technology Providers: All mayor technology brands (e.g. Dell, HP, IBM, Cisco, Microsoft, Oracle, Avaya, Nortel) are available through local authorized distributors.

Competitive Cost Structure

Nicaragua's average salary in this sector is the most competitive in the region, providing a great opportunity for operation cost reduction. Also, the private telecommunications market assures high quality services at very competitive prices that vary according to bandwidth requirements.

Generous Tax Incentives

Tax Concertation Law (Law 822)
This law grants fiscal exemptions to the export of goods and of services provided abroad and also establishes several fiscal benefits to certain productive sectors of the economy with the purpose of fostering their growth and development. Read more.

Free Zones Law (Decree 46-91)
Nicaragua offers significant tax incentives under free zones regime for those companies interested in establishing export-oriented operations, in compliance with World Trade Organization regulations. Read more.

Testimonials

Concentrix

Javier Hugentobler, Managing Director of Concentrix in the country, explained that the company initially came to Nicaragua on a joint-venture about three years ago, and then realized that the country provided everything that the company needed, both from a human resource perspective to an investment advantage perspective.

The company found in Nicaragua a very attractive legal framework and incentives within the free zones sector, one of the obvious factors they took into consideration when deciding to start their operations in the country. “We are definitely happy and looking at Nicaragua as a long-term location. We plan to double our capacity to about 400-500 seats in the near future”, commented the Managing Director.

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