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Nicaragua Makes the List of Best Outsourcing Destinations Worldwide

By Mae Kowalke, TMCnet Contributor

Bangalore may still be the top destination for call center outsourcing, and Filipino English isn’t going away any time soon. But there also are appealing outsourcing destinations closer to the U.S. market, at least according to Tholons, a global outsourcing consultancy.

Tholons maintains a list of the top 100 global outsourcing destinations, and this year Managua, the capital of Nicaragua, made the list at number 95.

“With major players such as Sitel, 24/7 Customer and Stream Global Services, Managua has nearly 4,000 FTEs (call center employees) delivering bilingual contact support services,” noted Tholons, according to the Nicaragua Dispatch.

Nicaragua’s call center growth has been building for the past few years, according to Javier Chamorro, executive director of Nicaragua’s investment-promotion agency, ProNicaragua; roughly 25 companies have set up shop in Managua over the past seven years, and nearly 5,000 Nicaraguans are now employed.

“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,” he noted.

Managua’s proximity to the U.S. market makes it a good outsourcing destination, as does its young, English-speaking population that has a cultural affinity for the U.S. market.

It also has cheap labor and generous tax incentives, key requirements for an outsourcing destination.

“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 said.

The country is continuing to build its skilled workforce. The government, in conjunction with the National Free Zone Commission (CNZF) and the Inter-American Development Bank, has established a special capacity-building program aimed at identifying and training a young bilingual workforce to staff the call center industry, according to the Nicaragua Dispatch. In the next few months it will enroll its first class of 600 young professionals.

But Managua has some public relations problems to overcome.

“Nicaragua faces negative perceptions on its political stability,” noted Tholons. The company said that Nicaragua needs to be careful about maintaining a facilitative business environment and making sure companies know it has the right environment.

Only two other Central American countries made the Tholons list. Costa Rica’s capital city was ranked 15th in the world as an outsourcing destination, and Guatemala City made the list as the 96th best place to outsource. Along with Managua, this was Guatemala City’s first time on the Tholons list.

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