Nearshore Value Index 2023
Where BPO and IT Investments Generate the Best Returns
Why a Value Lens is So Important for Location Evaluation
Deciding where to invest in Latin America and the Caribbean is not an easy exercise, and in many ways, it shouldn’t be easy. Those who do their homework, who really dig to validate data points and separate fact from unproven claims, appropriately are in the best position to gain long-lasting rewards.
Selecting a new geo of course is only one part of a much larger strategic undertaking. Having the right management, building a savvy HR and talent strategy, understanding what things should really cost, and dealing with a wide range of issues, from labor codes to transportation, are all essential pieces to succeeding in new markets.
At Nearshore Americas, we have witnessed the great, the bad and the awful when it comes to opening new geos. Too often, leaders assume too much and ask too little. In the worst cases, we have found that expectations are wildly out of alignment with the realities on the ground.
Our newly developed “Nearshore Value Index” aims to plug the gaps in terms of spotlighting locations that deliver the best value at the best price. We invite you to look carefully at our index, and also review the methodology we used to arrive at final list of winning locations – broken down by top ten IT/ digital destinations and top ten CX/call center locations.
Top Ten IT/ Software Value Destinations for 2023
1. Aguascalientes
Strengths: Wages, investment environment, ease of doing business
Weaknesses: Population size, tech universities
A hidden gem for Mexican IT, located in the heartland of the country. While not as famous as other high profile tech hotspots like Guadalajara, Mexico City and Monterrey, Aguascalientes finds itself within a “Goldilocks zone” in terms of its size, pace of growth, tech capabilities and the attention it receives from international business.
The city also manages to strike a unique balance between low costs for talent and a great environment for foreign investment and the development of a tech ecosystem.
Aguascalientes might be small in terms of population, but it is growing rapidly. Today, it finds itself among the cities with the largest immigration flows in Mexico, precisely because of its status as one of the country’s fastest developing business destinations.
1. Aguascalientes
Strengths: Wages, investment environment, ease of doing business
Weaknesses: Population size, tech universities
A hidden gem for Mexican IT, located in the heartland of the country. While not as famous as other high profile tech hotspots like Guadalajara, Mexico City and Monterrey, Aguascalientes finds itself within a “Goldilocks zone” in terms of its size, pace of growth, tech capabilities and the attention it receives from international business.
The city also manages to strike a unique balance between low costs for talent and a great environment for foreign investment and the development of a tech ecosystem.
Aguascalientes might be small in terms of population, but it is growing rapidly. Today, it finds itself among the cities with the largest immigration flows in Mexico, precisely because of its status as one of the country’s fastest developing business destinations.
1. Aguascalientes
Strengths: Wages, investment environment, ease of doing business
Weaknesses: Population size, tech universities
A hidden gem for Mexican IT, located in the heartland of the country. While not as famous as other high profile tech hotspots like Guadalajara, Mexico City and Monterrey, Aguascalientes finds itself within a “Goldilocks zone” in terms of its size, pace of growth, tech capabilities and the attention it receives from international business.
The city also manages to strike a unique balance between low costs for talent and a great environment for foreign investment and the development of a tech ecosystem.
Aguascalientes might be small in terms of population, but it is growing rapidly. Today, it finds itself among the cities with the largest immigration flows in Mexico, precisely because of its status as one of the country’s fastest developing business destinations.
2. Guatemala
Strengths: Wages, flight distance to US, ease of business
Weaknesses: Tech universities, English proficiency
Central America is often overlooked as a source for great Nearshore IT. Flanked by Mexico’s and Costa Rica’s fame, Guatemala has been quietly building an attractive tech ecosystem that stands out for its low costs, business friendliness and proximity to the US market.
In 2021, TCS launched operations in the country, a fact that underscores the quality that exists in the Guatemalan tech ecosystem and the potential of its people to grow their capabilities even further.
Given the increasing relevance of digital services for CX –an industry where the county also offers a lot of value–, we believe that Guatemala is uniquely positioned to take full advantage of the increasingly busy intersection between BPO and ITO.
2. Guatemala
Strengths: Wages, flight distance to US, ease of business
Weaknesses: Tech universities, English proficiency
Central America is often overlooked as a source for great Nearshore IT. Flanked by Mexico’s and Costa Rica’s fame, Guatemala has been quietly building an attractive tech ecosystem that stands out for its low costs, business friendliness and proximity to the US market.
In 2021, TCS launched operations in the country, a fact that underscores the quality that exists in the Guatemalan tech ecosystem and the potential of its people to grow their capabilities even further.
Given the increasing relevance of digital services for CX –an industry where the county also offers a lot of value–, we believe that Guatemala is uniquely positioned to take full advantage of the increasingly busy intersection between BPO and ITO.
2. Guatemala
Strengths: Wages, flight distance to US, ease of business
Weaknesses: Tech universities, English proficiency
Central America is often overlooked as a source for great Nearshore IT. Flanked by Mexico’s and Costa Rica’s fame, Guatemala has been quietly building an attractive tech ecosystem that stands out for its low costs, business friendliness and proximity to the US market.
In 2021, TCS launched operations in the country, a fact that underscores the quality that exists in the Guatemalan tech ecosystem and the potential of its people to grow their capabilities even further.
Given the increasing relevance of digital services for CX –an industry where the county also offers a lot of value–, we believe that Guatemala is uniquely positioned to take full advantage of the increasingly busy intersection between BPO and ITO.
3. Querétaro
Strengths: Investment environment, wages, flight distance to US
Weaknesses: Population size
Querétaro has already built a reputation as one of Mexico’s top destinations for foreign investment. The state is among the major players in the Mexican airspace and automotive industries. That fact has propelled Querétaro’s ambitions to become a major tech hub in the country.
Querétaro takes full advantage of its geographical position, which allows for prompt access not only to major US markets, but also to Mexico’s three biggest cities (Mexico City, Guadalajara and Monterrey). This means that Querétaro can take full advantage of a college ecosystem which includes its local universities, plus the country’s top performing educational institutions (ITESM, UNAM, IPN, ITAM, among others).
3. Querétaro
Strengths: Investment environment, wages, flight distance to US
Weaknesses: Population size
Querétaro has already built a reputation as one of Mexico’s top destinations for foreign investment. The state is among the major players in the Mexican airspace and automotive industries. That fact has propelled Querétaro’s ambitions to become a major tech hub in the country.
Querétaro takes full advantage of its geographical position, which allows for prompt access not only to major US markets, but also to Mexico’s three biggest cities (Mexico City, Guadalajara and Monterrey). This means that Querétaro can take full advantage of a college ecosystem which includes its local universities, plus the country’s top performing educational institutions (ITESM, UNAM, IPN, ITAM, among others).
3. Querétaro
Strengths: Investment environment, wages, flight distance to US
Weaknesses: Population size
Querétaro has already built a reputation as one of Mexico’s top destinations for foreign investment. The state is among the major players in the Mexican airspace and automotive industries. That fact has propelled Querétaro’s ambitions to become a major tech hub in the country.
Querétaro takes full advantage of its geographical position, which allows for prompt access not only to major US markets, but also to Mexico’s three biggest cities (Mexico City, Guadalajara and Monterrey). This means that Querétaro can take full advantage of a college ecosystem which includes its local universities, plus the country’s top performing educational institutions (ITESM, UNAM, IPN, ITAM, among others).
4. Monterrey
Strengths: Investment environment, ease of doing business, flights to US
Weaknesses: Wages, population
Mexico’s premier manufacturing town is accelerating towards a digital future. Tech industrials have found a cozy landing place in Monterrey, a city that’s already famous for its entrepreneurial spirit, business environment and closeness (geographically and culturally speaking) to the US.
Several relevant players in tech (Infosys, Accenture, Softtek) have been working in the city for years, contributing to a decades-long journey towards the digitalization of the local economy. Globant and TCS joined the ecosystem recently, and smaller but strong contenders (like Simpat Tech and Onephase) are making waves locally and across the border, which is but a couple of hours away by land.
Though its fame has made it less affordable, more and more people are buying into the value offered by Monterrey.
4. Monterrey
Strengths: Investment environment, ease of doing business, flights to US
Weaknesses: Wages, population
Mexico’s premier manufacturing town is accelerating towards a digital future. Tech industrials have found a cozy landing place in Monterrey, a city that’s already famous for its entrepreneurial spirit, business environment and closeness (geographically and culturally speaking) to the US.
Several relevant players in tech (Infosys, Accenture, Softtek) have been working in the city for years, contributing to a decades-long journey towards the digitalization of the local economy. Globant and TCS joined the ecosystem recently, and smaller but strong contenders (like Simpat Tech and Onephase) are making waves locally and across the border, which is but a couple of hours away by land.
Though its fame has made it less affordable, more and more people are buying into the value offered by Monterrey.
4. Monterrey
Strengths: Investment environment, ease of doing business, flights to US
Weaknesses: Wages, population
Mexico’s premier manufacturing town is accelerating towards a digital future. Tech industrials have found a cozy landing place in Monterrey, a city that’s already famous for its entrepreneurial spirit, business environment and closeness (geographically and culturally speaking) to the US.
Several relevant players in tech (Infosys, Accenture, Softtek) have been working in the city for years, contributing to a decades-long journey towards the digitalization of the local economy. Globant and TCS joined the ecosystem recently, and smaller but strong contenders (like Simpat Tech and Onephase) are making waves locally and across the border, which is but a couple of hours away by land.
Though its fame has made it less affordable, more and more people are buying into the value offered by Monterrey.
5. Buenos Aires
Strengths: Investment environment, population size
Weaknesses: Flights to the US, ease of doing business, tech universities
Argentina’s capital remains a top contender for the right to be known as the Southern Cone’s tech champion. Buenos Aires has a healthy population size and a business environment which already has IT in its DNA.
The city’s tech credentials are undisputed. It is the birthplace of some of Latin America’s biggest names in tech (Mercado Libre, Globant, Ualá), as well as a growing pack of tech education and upskilling platforms (Henry, Digital House, CoderHouse, Microverse, among others).
Buenos Aires remains affordable in the face of Argentina’s long-running economic woes. International tech keeps moving in, and local tech keeps emerging, with the most successful moving outward into a the global market.
5. Buenos Aires
Strengths: Investment environment, population size
Weaknesses: Flights to the US, ease of doing business, tech universities
Argentina’s capital remains a top contender for the right to be known as the Southern Cone’s tech champion. Buenos Aires has a healthy population size and a business environment which already has IT in its DNA.
The city’s tech credentials are undisputed. It is the birthplace of some of Latin America’s biggest names in tech (Mercado Libre, Globant, Ualá), as well as a growing pack of tech education and upskilling platforms (Henry, Digital House, CoderHouse, Microverse, among others).
Buenos Aires remains affordable in the face of Argentina’s long-running economic woes. International tech keeps moving in, and local tech keeps emerging, with the most successful moving outward into a the global market.
5. Buenos Aires
Strengths: Investment environment, population size
Weaknesses: Flights to the US, ease of doing business, tech universities
Argentina’s capital remains a top contender for the right to be known as the Southern Cone’s tech champion. Buenos Aires has a healthy population size and a business environment which already has IT in its DNA.
The city’s tech credentials are undisputed. It is the birthplace of some of Latin America’s biggest names in tech (Mercado Libre, Globant, Ualá), as well as a growing pack of tech education and upskilling platforms (Henry, Digital House, CoderHouse, Microverse, among others).
Buenos Aires remains affordable in the face of Argentina’s long-running economic woes. International tech keeps moving in, and local tech keeps emerging, with the most successful moving outward into a the global market.
6. Perú
Strengths: Wages, population size, ease of doing business
Weaknesses: Tech universities, flights
An apparent underdog in South America’s tech landscape, which remains dominated by giants such as Brazil, Colombia and Argentina. Perú is the best example of a second tier location; that is to say, the country strikes a strong balance between a skilfull IT talent pool and affordability of service.
Even when surrounded by the best in the region, Perú remains a great option for any investor seeking to avoid the more crowded markets available and who have a preference for destinations where there’s still plenty of room to grow.
6. Perú
Strengths: Wages, population size, ease of doing business
Weaknesses: Tech universities, flights
An apparent underdog in South America’s tech landscape, which remains dominated by giants such as Brazil, Colombia and Argentina. Perú is the best example of a second tier location; that is to say, the country strikes a strong balance between a skilfull IT talent pool and affordability of service.
Even when surrounded by the best in the region, Perú remains a great option for any investor seeking to avoid the more crowded markets available and who have a preference for destinations where there’s still plenty of room to grow.
6. Perú
Strengths: Wages, population size, ease of doing business
Weaknesses: Tech universities, flights
An apparent underdog in South America’s tech landscape, which remains dominated by giants such as Brazil, Colombia and Argentina. Perú is the best example of a second tier location; that is to say, the country strikes a strong balance between a skilfull IT talent pool and affordability of service.
Even when surrounded by the best in the region, Perú remains a great option for any investor seeking to avoid the more crowded markets available and who have a preference for destinations where there’s still plenty of room to grow.
7. Dominican Republic
Strengths: Wages, flights to the US
Weaknesses: Universities, ease of business
The Dominican Republic –like most of the Caribbean– is seldom mentioned or even thought of in conversations about Nearshore IT. Yet, those capabilities exist. Firms like Blue Coding have been working in DR for over a decade. Newer companies, like Nearsure, have begun to move into the country, convinced of the potential that exists there.
Being overlooked for so long makes the services of Dominican techies quite affordable. The potential exist; it only requires a chance to develop and thrive.
7. Dominican Republic
Strengths: Wages, flights to the US
Weaknesses: Universities, ease of business
The Dominican Republic –like most of the Caribbean– is seldom mentioned or even thought of in conversations about Nearshore IT. Yet, those capabilities exist. Firms like Blue Coding have been working in DR for over a decade. Newer companies, like Nearsure, have begun to move into the country, convinced of the potential that exists there.
Being overlooked for so long makes the services of Dominican techies quite affordable. The potential exist; it only requires a chance to develop and thrive.
7. Dominican Republic
Strengths: Wages, flights to the US
Weaknesses: Universities, ease of business
The Dominican Republic –like most of the Caribbean– is seldom mentioned or even thought of in conversations about Nearshore IT. Yet, those capabilities exist. Firms like Blue Coding have been working in DR for over a decade. Newer companies, like Nearsure, have begun to move into the country, convinced of the potential that exists there.
Being overlooked for so long makes the services of Dominican techies quite affordable. The potential exist; it only requires a chance to develop and thrive.
8. São Paulo
Strengths: Population size, investment environment, tech universities
Weaknesses: Wages, flights to the US
One of Latin America’s crown jewels in tech. São Paulo is a paradise for tech investors and a “poster child” for IT development in the region.
While it is very expensive, and its tax system can be quite intmidating, getting past those hurdles will grant access to the city’s tech-oriented investment environment, the gargantuan size of its talent pool of over 500,000 software engineers and a plethora of top-ranked tech universities feeding the pipeline, which include São Paulo University, São Paulo State University and UNIFESP.
São Paulo is one of the Nearshore’s best options for scalability and the prompt acquisition of talent with niche skills.
8. São Paulo
Strengths: Population size, investment environment, tech universities
Weaknesses: Wages, flights to the US
One of Latin America’s crown jewels in tech. São Paulo is a paradise for tech investors and a “poster child” for IT development in the region.
While it is very expensive, and its tax system can be quite intmidating, getting past those hurdles will grant access to the city’s tech-oriented investment environment, the gargantuan size of its talent pool of over 500,000 software engineers and a plethora of top-ranked tech universities feeding the pipeline, which include São Paulo University, São Paulo State University and UNIFESP.
São Paulo is one of the Nearshore’s best options for scalability and the prompt acquisition of talent with niche skills.
8. São Paulo
Strengths: Population size, investment environment, tech universities
Weaknesses: Wages, flights to the US
One of Latin America’s crown jewels in tech. São Paulo is a paradise for tech investors and a “poster child” for IT development in the region.
While it is very expensive, and its tax system can be quite intmidating, getting past those hurdles will grant access to the city’s tech-oriented investment environment, the gargantuan size of its talent pool of over 500,000 software engineers and a plethora of top-ranked tech universities feeding the pipeline, which include São Paulo University, São Paulo State University and UNIFESP.
São Paulo is one of the Nearshore’s best options for scalability and the prompt acquisition of talent with niche skills.
9. Bogotá
Strengths: Investment environment, wages
Weaknesses: English proficiency, flights to the US
Colombia’s capital stands out as one of Latin America’s premier locations for tech development. Bogotá is home to a buoyant tech startup ecosystem, a fact that has allowed it to cultivate a pool of programmers, developers and IT engineers ready to be plugged into any project.
Due to its healthy talent pipeline, Bogotá is one of the favorite sourcing locations for Nearshore IT staffing agencies. Firms and platforms like Deel, CodersLink and Tecla are well aware of the richness that can be found in the Colombian capital.
9. Bogotá
Strengths: Investment environment, wages
Weaknesses: English proficiency, flights to the US
Colombia’s capital stands out as one of Latin America’s premier locations for tech development. Bogotá is home to a buoyant tech startup ecosystem, a fact that has allowed it to cultivate a pool of programmers, developers and IT engineers ready to be plugged into any project.
Due to its healthy talent pipeline, Bogotá is one of the favorite sourcing locations for Nearshore IT staffing agencies. Firms and platforms like Deel, CodersLink and Tecla are well aware of the richness that can be found in the Colombian capital.
9. Bogotá
Strengths: Investment environment, wages
Weaknesses: English proficiency, flights to the US
Colombia’s capital stands out as one of Latin America’s premier locations for tech development. Bogotá is home to a buoyant tech startup ecosystem, a fact that has allowed it to cultivate a pool of programmers, developers and IT engineers ready to be plugged into any project.
Due to its healthy talent pipeline, Bogotá is one of the favorite sourcing locations for Nearshore IT staffing agencies. Firms and platforms like Deel, CodersLink and Tecla are well aware of the richness that can be found in the Colombian capital.
10. Chile
Strengths: Investment environment, tech universities
Weaknesses: Wages, flights to the US
Chile is Latin America’s straight-A student. The country is on top of the class in categories like rule of law, IP rights, R&D investment, ease of doing business and public spending on tech education, among other indicators relevant to foreign investors.
Those efforts have resulted in a highly specialized tech workforce which knows its worth; that is to say, Chilean developers and engineers come at a high price point. Nevertheless, this is a case in which it can be truly said that investors get what they pay for.
To boot, the Chilean government keeps pushing hard to turn the country into a major exporter of IT services. Such effors seem to be working, with Chilean startups making inroads into several regional markets.
10. Chile
Strengths: Investment environment, tech universities
Weaknesses: Wages, flights to the US
Chile is Latin America’s straight-A student. The country is on top of the class in categories like rule of law, IP rights, R&D investment, ease of doing business and public spending on tech education, among other indicators relevant to foreign investors.
Those efforts have resulted in a highly specialized tech workforce which knows its worth; that is to say, Chilean developers and engineers come at a high price point. Nevertheless, this is a case in which it can be truly said that investors get what they pay for.
To boot, the Chilean government keeps pushing hard to turn the country into a major exporter of IT services. Such effors seem to be working, with Chilean startups making inroads into several regional markets.
10. Chile
Strengths: Investment environment, tech universities
Weaknesses: Wages, flights to the US
Chile is Latin America’s straight-A student. The country is on top of the class in categories like rule of law, IP rights, R&D investment, ease of doing business and public spending on tech education, among other indicators relevant to foreign investors.
Those efforts have resulted in a highly specialized tech workforce which knows its worth; that is to say, Chilean developers and engineers come at a high price point. Nevertheless, this is a case in which it can be truly said that investors get what they pay for.
To boot, the Chilean government keeps pushing hard to turn the country into a major exporter of IT services. Such effors seem to be working, with Chilean startups making inroads into several regional markets.
Top Ten BPO Value Destinations for 2023
1. Belize
Strengths: English proficiency, real estate, investment environment, flights to US
Weaknesses: Ease of business; population size
Belize is a relatively new player in the BPO space, but it is slowly building a reputation as one of the Nearshore’s best options for high quality service at a lower cost.
The country remains more affordable than popular destinations like Colombia and Costa Rica, while offering a workforce of native English speakers, a healthy investment environment and geographical proximity to the US market. All of that in spite of (and, in part, due to) being overlooked in favor of better known destinations.
Though it still has challenges to solve –like any other Nearshore location–, Belize is the best example of value in the region.
1. Belize
Strengths: English proficiency, real estate, investment environment, flights to US
Weaknesses: Ease of business; population size
Belize is a relatively new player in the BPO space, but it is slowly building a reputation as one of the Nearshore’s best options for high quality service at a lower cost.
The country remains more affordable than popular destinations like Colombia and Costa Rica, while offering a workforce of native English speakers, a healthy investment environment and geographical proximity to the US market. All of that in spite of (and, in part, due to) being overlooked in favor of better known destinations.
Though it still has challenges to solve –like any other Nearshore location–, Belize is the best example of value in the region.
1. Belize
Strengths: English proficiency, real estate, investment environment, flights to US
Weaknesses: Ease of business; population size
Belize is a relatively new player in the BPO space, but it is slowly building a reputation as one of the Nearshore’s best options for high quality service at a lower cost.
The country remains more affordable than popular destinations like Colombia and Costa Rica, while offering a workforce of native English speakers, a healthy investment environment and geographical proximity to the US market. All of that in spite of (and, in part, due to) being overlooked in favor of better known destinations.
Though it still has challenges to solve –like any other Nearshore location–, Belize is the best example of value in the region.
2. Jamaica
Strengths: English proficiency, real estate, flights to US, investment environment
Weaknesses: Population size
Jamaica is the Caribbean’s crown jewel for BPO.
More and more vendors recognize the island’s perks as a spot for investment. The country flaunts a BPO workforce of over 60,000 native English speakers and has strong cultural ties to both the US and the UK, which is a tremendous plus.
Accessed by a short flight from major US market hubs like Miami and New York City, Jamaica’s appeal turns more evident thanks to the syncrhonized efforts of the country’s investment promotion agency (JAMPRO), international NGOs like the Inter-American Development Bank (IDB) and private companies like itel, ibex and Teleperformance, which made Jamaica an important asset in their growth strategies.
2. Jamaica
Strengths: English proficiency, real estate, flights to US, investment environment
Weaknesses: Population size
Jamaica is the Caribbean’s crown jewel for BPO.
More and more vendors recognize the island’s perks as a spot for investment. The country flaunts a BPO workforce of over 60,000 native English speakers and has strong cultural ties to both the US and the UK, which is a tremendous plus.
Accessed by a short flight from major US market hubs like Miami and New York City, Jamaica’s appeal turns more evident thanks to the syncrhonized efforts of the country’s investment promotion agency (JAMPRO), international NGOs like the Inter-American Development Bank (IDB) and private companies like itel, ibex and Teleperformance, which made Jamaica an important asset in their growth strategies.
2. Jamaica
Strengths: English proficiency, real estate, flights to US, investment environment
Weaknesses: Population size
Jamaica is the Caribbean’s crown jewel for BPO.
More and more vendors recognize the island’s perks as a spot for investment. The country flaunts a BPO workforce of over 60,000 native English speakers and has strong cultural ties to both the US and the UK, which is a tremendous plus.
Accessed by a short flight from major US market hubs like Miami and New York City, Jamaica’s appeal turns more evident thanks to the syncrhonized efforts of the country’s investment promotion agency (JAMPRO), international NGOs like the Inter-American Development Bank (IDB) and private companies like itel, ibex and Teleperformance, which made Jamaica an important asset in their growth strategies.
3. Guatemala
Strengths: Wages, real estate, flights to US
Weaknesses: English proficiency, ease of doing business
A textbook case of being passed over by the “popular kids” in the zone.
Aside from its affordability and proximity to the US market, Guatemala has been quietly developing its tech repertoire. Its ambition for IT might pay dividends soon, given the increasingly busy intersection between CX and digital services. Process automation, cloud computing, data analytics, AI and other tech capabilities are becoming important tools for BPO, and Guatemala has the skills to work them properly.
Guatemala is the only Nearshore location to rank (and highly) in both of the NVI’s top tens. That’s for a reason.
3. Guatemala
Strengths: Wages, real estate, flights to US
Weaknesses: English proficiency, ease of doing business
A textbook case of being passed over by the “popular kids” in the zone.
Aside from its affordability and proximity to the US market, Guatemala has been quietly developing its tech repertoire. Its ambition for IT might pay dividends soon, given the increasingly busy intersection between CX and digital services. Process automation, cloud computing, data analytics, AI and other tech capabilities are becoming important tools for BPO, and Guatemala has the skills to work them properly.
Guatemala is the only Nearshore location to rank (and highly) in both of the NVI’s top tens. That’s for a reason.
3. Guatemala
Strengths: Wages, real estate, flights to US
Weaknesses: English proficiency, ease of doing business
A textbook case of being passed over by the “popular kids” in the zone.
Aside from its affordability and proximity to the US market, Guatemala has been quietly developing its tech repertoire. Its ambition for IT might pay dividends soon, given the increasingly busy intersection between CX and digital services. Process automation, cloud computing, data analytics, AI and other tech capabilities are becoming important tools for BPO, and Guatemala has the skills to work them properly.
Guatemala is the only Nearshore location to rank (and highly) in both of the NVI’s top tens. That’s for a reason.
4. Quintana Roo
Strengths: Flights to US, ease of doing business, wages
Weaknesses: Population size, real estate
Known mostly for the beaches and party vibes of Cancún and Playa del Carmen, Quintana Roo stands out among Mexico’s second-tier locations thanks to its proximity to the US, its business-friendly environment and relatively low costs of labor.
Quintana Roo has leveraged the attention of American and European tourists to build a growing reputation as the perfect spot for both business and pleasure.
It also takes full advantage of the perks that come with BPO investment in Mexico; namely a plentifull and skilfull workforce and a powerful trade relationship between Mexico and the US.
4. Quintana Roo
Strengths: Flights to US, ease of doing business, wages
Weaknesses: Population size, real estate
Known mostly for the beaches and party vibes of Cancún and Playa del Carmen, Quintana Roo stands out among Mexico’s second-tier locations thanks to its proximity to the US, its business-friendly environment and relatively low costs of labor.
Quintana Roo has leveraged the attention of American and European tourists to build a growing reputation as the perfect spot for both business and pleasure.
It also takes full advantage of the perks that come with BPO investment in Mexico; namely a plentifull and skilfull workforce and a powerful trade relationship between Mexico and the US.
4. Quintana Roo
Strengths: Flights to US, ease of doing business, wages
Weaknesses: Population size, real estate
Known mostly for the beaches and party vibes of Cancún and Playa del Carmen, Quintana Roo stands out among Mexico’s second-tier locations thanks to its proximity to the US, its business-friendly environment and relatively low costs of labor.
Quintana Roo has leveraged the attention of American and European tourists to build a growing reputation as the perfect spot for both business and pleasure.
It also takes full advantage of the perks that come with BPO investment in Mexico; namely a plentifull and skilfull workforce and a powerful trade relationship between Mexico and the US.
5. Guyana
Strengths: English proficiency, wages, real estate
Weaknesses: Population size, ease of doing business
Guyana finds itself in a most interesting position. The country’s oil fortunes catapulted its profile among the international business community, and expectations are now very high for its short and mid-term future.
Even without its story of dark gold, Guyana’s value proposition is strong enough to warrant the attention of any BPO investor. Its workforce might be considerably small, but they’re all native English speakers and quite affordable. Office space is still quite affordable too.
Its business environment is welcoming enough to foreign investors already. Yet, NSAM expects the environment to grow even friendlier given all the attention that the country is receiving.
5. Guyana
Strengths: English proficiency, wages, real estate
Weaknesses: Population size, ease of doing business
Guyana finds itself in a most interesting position. The country’s oil fortunes catapulted its profile among the international business community, and expectations are now very high for its short and mid-term future.
Even without its story of dark gold, Guyana’s value proposition is strong enough to warrant the attention of any BPO investor. Its workforce might be considerably small, but they’re all native English speakers and quite affordable. Office space is still quite affordable too.
Its business environment is welcoming enough to foreign investors already. Yet, NSAM expects the environment to grow even friendlier given all the attention that the country is receiving.
5. Guyana
Strengths: English proficiency, wages, real estate
Weaknesses: Population size, ease of doing business
Guyana finds itself in a most interesting position. The country’s oil fortunes catapulted its profile among the international business community, and expectations are now very high for its short and mid-term future.
Even without its story of dark gold, Guyana’s value proposition is strong enough to warrant the attention of any BPO investor. Its workforce might be considerably small, but they’re all native English speakers and quite affordable. Office space is still quite affordable too.
Its business environment is welcoming enough to foreign investors already. Yet, NSAM expects the environment to grow even friendlier given all the attention that the country is receiving.
6. Trinidad & Tobago
Strengths: English proficiency, real estate, investment environment
Weaknesses: Ease of doing business, flights to US
Another Caribbean success story. Trinidad and Tobago posseses many of the qualities that make Caribbean nations almost naturally attractive to foreign BPO investors.
Nevertheless, what makes T&T stand out is being one of the most welcoming countries in the region, with an IPA that works extra hard to bring investors to the door. That’s its biggest perk, but not the only one. T&T also brandishes a well-prepared workforce of native English speakers and relatively low costs for office space.
6. Trinidad & Tobago
Strengths: English proficiency, real estate, investment environment
Weaknesses: Ease of doing business, flights to US
Another Caribbean success story. Trinidad and Tobago posseses many of the qualities that make Caribbean nations almost naturally attractive to foreign BPO investors.
Nevertheless, what makes T&T stand out is being one of the most welcoming countries in the region, with an IPA that works extra hard to bring investors to the door. That’s its biggest perk, but not the only one. T&T also brandishes a well-prepared workforce of native English speakers and relatively low costs for office space.
6. Trinidad & Tobago
Strengths: English proficiency, real estate, investment environment
Weaknesses: Ease of doing business, flights to US
Another Caribbean success story. Trinidad and Tobago posseses many of the qualities that make Caribbean nations almost naturally attractive to foreign BPO investors.
Nevertheless, what makes T&T stand out is being one of the most welcoming countries in the region, with an IPA that works extra hard to bring investors to the door. That’s its biggest perk, but not the only one. T&T also brandishes a well-prepared workforce of native English speakers and relatively low costs for office space.
7. El Salvador
Strengths: Real estate, flights to US, wages
Weaknesses: English proficiency, investment environment
A very strong contender for the traditional, cost-centered definition of value. El Salvador is one of the most affordable destinations for BPO investment, particularly in the category of labor.
To that, one can add very FDI-friendly tax exemptions and a free trade zone ecosystem which also benefits foreign BPO companies.
El Salvador also uses the US dollar as a legal tender, a tremendous plus in a region where local currencies can fall into periods of unstability.
7. El Salvador
Strengths: Real estate, flights to US, wages
Weaknesses: English proficiency, investment environment
A very strong contender for the traditional, cost-centered definition of value. El Salvador is one of the most affordable destinations for BPO investment, particularly in the category of labor.
To that, one can add very FDI-friendly tax exemptions and a free trade zone ecosystem which also benefits foreign BPO companies.
El Salvador also uses the US dollar as a legal tender, a tremendous plus in a region where local currencies can fall into periods of unstability.
7. El Salvador
Strengths: Real estate, flights to US, wages
Weaknesses: English proficiency, investment environment
A very strong contender for the traditional, cost-centered definition of value. El Salvador is one of the most affordable destinations for BPO investment, particularly in the category of labor.
To that, one can add very FDI-friendly tax exemptions and a free trade zone ecosystem which also benefits foreign BPO companies.
El Salvador also uses the US dollar as a legal tender, a tremendous plus in a region where local currencies can fall into periods of unstability.
8. Bucaramanga
Strengths: Real estate, investment environment
Weaknesses: population size, English proficiency
Bucaramanga is a prime option for anyone hunting for a fresh location in Colombia outside of more popular ones like Bogotá and Medellín.
The city has all the advantages of Colombia’s BPO-affectionate IPA ecosystem, without the climbing costs of labor and office space of tier-1 destinations. It might not be as affordable as other options in Central America and the Caribbean, but Bucaramanga manages to strike a comfortable middle ground.
8. Bucaramanga
Strengths: Real estate, investment environment
Weaknesses: population size, English proficiency
Bucaramanga is a prime option for anyone hunting for a fresh location in Colombia outside of more popular ones like Bogotá and Medellín.
The city has all the advantages of Colombia’s BPO-affectionate IPA ecosystem, without the climbing costs of labor and office space of tier-1 destinations. It might not be as affordable as other options in Central America and the Caribbean, but Bucaramanga manages to strike a comfortable middle ground.
8. Bucaramanga
Strengths: Real estate, investment environment
Weaknesses: population size, English proficiency
Bucaramanga is a prime option for anyone hunting for a fresh location in Colombia outside of more popular ones like Bogotá and Medellín.
The city has all the advantages of Colombia’s BPO-affectionate IPA ecosystem, without the climbing costs of labor and office space of tier-1 destinations. It might not be as affordable as other options in Central America and the Caribbean, but Bucaramanga manages to strike a comfortable middle ground.
9. Honduras
Strengths: Wages, flights to US
Weaknesses: Investment environment, ease of business
A strong player in the making. Mid-sized BPO vendors keep raising their bets in favor of Honduras, where they’ve found a very cost-effective option with a lot of potential to build on top of.
NSAM expects to see the arrival of more mid-sized providers to the country, which could lead to the emergence of an industry ecosystem that’s both nimble, innovative and adaptable.
The launch of initiatives such as Altia Smart City also signals a bright future for Honduran BPO.
9. Honduras
Strengths: Wages, flights to US
Weaknesses: Investment environment, ease of business
A strong player in the making. Mid-sized BPO vendors keep raising their bets in favor of Honduras, where they’ve found a very cost-effective option with a lot of potential to build on top of.
NSAM expects to see the arrival of more mid-sized providers to the country, which could lead to the emergence of an industry ecosystem that’s both nimble, innovative and adaptable.
The launch of initiatives such as Altia Smart City also signals a bright future for Honduran BPO.
9. Honduras
Strengths: Wages, flights to US
Weaknesses: Investment environment, ease of business
A strong player in the making. Mid-sized BPO vendors keep raising their bets in favor of Honduras, where they’ve found a very cost-effective option with a lot of potential to build on top of.
NSAM expects to see the arrival of more mid-sized providers to the country, which could lead to the emergence of an industry ecosystem that’s both nimble, innovative and adaptable.
Altia Smart City, having been operating now for over 14 years in Honduras, ranks as one of the best business park settings in the Nearshore. The success of Altia has contributed to the overall ranking of Honduras.
10. Barranquilla
Strengths: Wages, investment environment
Weaknesses: Flights to US, population size
Barranquilla is often overlooked in BPO circles due to the fame of its bigger, more popular sister cities in Colombia. Nevertheless, the city leverages the effective investment infrastructure that the country has built at a national and local level.
It also flaunts competitive wages within Colombia and higher levels of English proficiency when compared to other Colombian destinations, thanks in part to the local government’s language-teaching programs.
10. Barranquilla
Strengths: Wages, investment environment
Weaknesses: Flights to US, population size
Barranquilla is often overlooked in BPO circles due to the fame of its bigger, more popular sister cities in Colombia. Nevertheless, the city leverages the effective investment infrastructure that the country has built at a national and local level.
It also flaunts competitive wages within Colombia and higher levels of English proficiency when compared to other Colombian destinations, thanks in part to the local government’s language-teaching programs.
10. Barranquilla
Strengths: Wages, investment environment
Weaknesses: Flights to US, population size
Barranquilla is often overlooked in BPO circles due to the fame of its bigger, more popular sister cities in Colombia. Nevertheless, the city leverages the effective investment infrastructure that the country has built at a national and local level.
It also flaunts competitive wages within Colombia and higher levels of English proficiency when compared to other Colombian destinations, thanks in part to the local government’s language-teaching programs.
Methodology
The destinations showcased in the NVI were chosen from a larger pool of 41 candidates, which included cities, states and whole countries.
The value proposition of each destination was evaluated using criteria that go beyond cost. These criteria were divided into seven categories. Six of these categories (costs of labor, population size, proximity to the US, ease of doing business, English proficiency and investment environment) were the same across both top tens. The seventh differed, with the BPO list taking real estate prices into consideration, while the ITO list evaluated the availability and quality of tech universities.
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