Narayan AmmachchiCosta Rica’s global services industry is eagerly awaiting the inauguration of president-elect Laura Fernández, as her incoming administration signals a series of policy changes that could reshape the country’s global services’ sector.
Fernández won 48.3% of the vote as the candidate of Partido Pueblo Soberano, avoiding a runoff. Her victory maintains Costa Rica’s record of political stability in a region often marked by volatility. At 39, she is set to become the country’s second woman president after Laura Chinchilla. She currently serves under President Rodrigo Chaves as Minister of National Planning and Minister of the Presidency.
Her party controls 31 of 57 seats in the Legislative Assembly, giving the new administration a working majority to advance legislative proposals. However, she assumes office at a time when Costa Rica’s competitive position is under increasing pressure, with countries such as Colombia and the Dominican Republic gaining ground as more cost-effective destinations for global services and BPO investments.
“The expensive Colone and the shortage of skilled talent are our biggest challenges. I have spoken with the President elect Let us see what she will do,” said Adolfo Cruz, President of the Costa Rican Chamber of Information and Communication Technologies (CAMTIC), which represents the country’s ICT industry.
The country’s currency has strengthened nearly 30%, moving from around ₡700 per U.S. dollar in 2022 to approximately ₡500 today. For export-oriented service companies that earn revenue in dollars but pay wages and local expenses in colones, the appreciation has resulted in a comparable reduction in profit margins. Several firms report profit contractions of close to 30% directly linked to currency movements.
The colón’s strength has been driven largely by record tourism inflows, which bring significant volumes of foreign currency into the economy.
According to Cruz, Fernández could propose changes to taxation and labor regulations, allowing service exporters to pay tax obligations, social security contributions, and other statutory payments in U.S. dollars.
If adopted, such a mechanism could reduce exchange-rate exposure by aligning revenues and expenditures in the same currency, potentially limiting the need for wage freezes or workforce reductions.
Expansion Beyond San José
Costa Rica’s services industry has expanded under the Free Trade Zone Regime (RZF), with more than 500 companies operating within the framework. A large proportion of these firms are concentrated in the Greater Metropolitan Area (GAM), including Heredia, San José, and Alajuela.
However, capacity constraints are emerging. Office space is tightening, and competition for bilingual and technically skilled workers is intensifying, pushing recruitment costs higher.
The incoming administration has signaled interest in encouraging companies to expand into secondary regions such as Guanacaste and Limón. Possible measures include financial incentives tied to local hiring commitments, temporary tax exemptions, and access to lower electricity rates for firms operating outside the GAM.
For multinational corporations employing thousands of workers, these incentives could reduce operational expenses by up to 7%, depending on scale and location.
Talent Shortage
Beyond currency pressures, industry representatives emphasize that the shortage of qualified talent poses a structural risk. Cruz stated that companies are facing growing difficulty in recruiting bilingual professionals and specialists in advanced technology fields.
To address the skills gap, Fernández has outlined plans to modernize the National Learning Institute (INA). “It cannot operate from 8 a.m. to 4 p.m. with outdated curricula,” she told the IT chamber.
“We propose building 10 new science schools, strengthening robotics education from primary school onward, and reforming the Higher Education Council so that curriculum changes are not delayed for years by union or bureaucratic obstacles.”
Her proposals include restructuring INA’s governance, strengthening coordination with universities, and prioritizing bilingual education and STEM disciplines. The administration may also consider tax incentives for private companies that invest in workforce training. Firms collaborating with INA in areas such as bilingualism, cybersecurity, or artificial intelligence could qualify for payment facilities or additional deductions.
In addition, Fernández has indicated that her government may streamline procedures for foreign investors through the introduction of a fully digital one-stop shop for permits and regulatory approvals in the services sector.
Meanwhile, Costa Rica has been debating a “4×3 work schedule” proposal that would allow private-sector employees in certain industries to work four 12-hour days followed by three days off, instead of the traditional 48-hour week. The initiative has advanced through parts of the legislative process under the Exceptional Work Schedules bill, but it has not yet become law and remains subject to further legislative review and approval.
For shared services centers and BPO providers serving global clients across multiple time zones, the proposed 4×3 system could allow more flexible shift scheduling while reducing overtime costs under regulated conditions. Fernández has stated in media interactions that such labor flexibility would help Costa Rica remain competitive with established outsourcing hubs such as India and the Philippines, particularly in industries that require continuous 24/7 operations.
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