Nearshoring in Central America: A Successful Trend in BPO

Central America

As the outsourcing sector continues to grow in strength with each passing day, new strategies are being explored that will stimulate further development in this domain. Nearshoring is an emerging trend among BPO companies with several success stories being reported in this area. This process involves an outsourcing arrangement that is implemented in approximately the same time zone. The outsourced work will be carried out at a location that can be reached within a day of travel. For instance, with respect to the United States, nearshoring in Central America include destinations like Latin America, South America and Mexico.

Markets in Central America have witnessed an upswing in nearshoring. This is expected to bring down costs in the supply chain. In addition, nearshoring does not cover only the manufacture of goods. In the last few years, there has been a significant increase in nearshoring in Central America with regard to data centers and information technology.

Furthermore, back-office operations such as telesales, claims processing, help desks, customer service, and shared services have also been areas that have been marked for nearshoring by BPO companies. The Central American countries include Costa Rica, Guatemala, Belize, Honduras, Panama, El Salvador, and Nicaragua.

Nearshoring in Central America renews prospects

Nearshoring in Central America benefits businesses across the Canada and the United States. This increases the revenue of trucking logistics companies. In addition, brands are likely to benefit from the positive impact that this will generate, thereby raising product standards and maintaining customer attention. Hence many US and Canadian enterprises would prefer outsourcing their work to BPO companies that have built up a nearshoring base.

The trend of nearshoring in Central America has brought in fresh prospects for BPO companies. For example, the Indian IT company Genpact is an active investor in nearshoring. It runs a center in Guatemala in addition to several other centers in the Americas. According to a joint study carried out by NASSCOM, the representative of the Indian IT-BPM industry, and McKinsey, the global consultancy specialist, India can increase IT service export if it can successfully tap emerging markets. This report Perspective 2020 states that by this process, export of IT services can increase to $225 billion by the year 2020 from the $50 billion at present.

For BPO companies, nearshoring in Central America has brought in new opportunities. This trend is likely to grow in the near future as an increasing number of BPO companies will be inspired by the success stories emerging in this direction.


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