Near Shore Destination Costa Rica Attractive Location For Multi-Functional Centers - PowerPoint PPT Presentation

1 / 15
About This Presentation

Near Shore Destination Costa Rica Attractive Location For Multi-Functional Centers


Near Shore DestinationCosta RicaAttractive Location For Multi-Functional Centers. MAY 2010. Atul Vashistha. Chairman. Neo Advisory. Neo Group. BestOutsourcingJobs – PowerPoint PPT presentation

Number of Views:110
Avg rating:3.0/5.0
Slides: 16
Provided by: neogroupC


Transcript and Presenter's Notes

Title: Near Shore Destination Costa Rica Attractive Location For Multi-Functional Centers

Near Shore DestinationCosta RicaAttractive
Location For Multi-Functional Centers
  • MAY 2010

Atul Vashistha Chairman Neo Advisory Neo
Group BestOutsourcingJobs
  • Destination Costa Rica
  • The Align Experience
  • Poll
  • QA
  • Presentation available later on

Irving Soto CINDE
Ted Callaghan Align
Atul Vashistha
Outsourcing Location Trends
  • Leveraging Unique Capabilities
  • Competitive Advantage of Nations
  • Geographic Risk Diversification
  • Global Delivery Model
  • Captive Centers (BPO)
  • Multi-functional centers

Nearshore Trends
  • The Americas Opportunity
  • Skill-sets
  • Affinity
  • Proximity
  • Time Zone

Country Assessment Framework
Country Assessment
Why Costa Rica?
  • Ranked 3rd in the world on Environmental
    Performance Index

Workforce quality
Water Supply
Power Supply
Costa Rica
Macro Economic Attractiveness
Parameters Attractiveness
Macro economic indicator
Currency risk
Source Neo Advisory
  • Stable democratic country since 1948
  • A strong non fluctuating currency.
  • No army since 1948, instead a big investment in
    education and environment
  • The GDP contribution from the services remains
    very high for Costa Rica pegged at 68 for 2009.
  • Costa Rica has a low trade deficit of 2

Geopolitical Attractiveness
Source EIU
Parameters Attractiveness
Political risk
Crime rate
Terrorism/Ethnic flare-up
Natural disaster risk
  • The last World Bank Survey for Global Governance
    Indicators ranks Costa Rica in the first place
    within Latin America for political stability.
  • The country has had no terror attacks, social
    unrests/strikes and is the greenest country in
    the world.
  • Costa Rica has low trade deficit and low payment
    risk which is the best among the Latin American

Even more stable than the U.S.A.
Infrastructure Attractiveness
Parameters Attractiveness
Government support
FDI attractiveness
Power supply
Software parks/SEZs
  • Very good government support, good power supply,
    good transportation and with a good support from
    the Foreign Direct Investments (FDIs).
  • Internet services are the most readily available
    and sophisticated in Central America.
  • Extensive highway system, two major international
    airports and two seaports. All major U.S.,
    European, and Latin American passenger and cargo
  • The government fosters growth with incentives,
    which finds favor with the FDIs and increases
    the private participation.
  • The power supply situation is one of the best in
    the world with renewable sources of energy being
    used wherever possible and Costa Rica has a
    surplus of Power which it exports to the other
    Latin American power deprived countries.
  • Abundant water supply, reliable hydroelectric
    power and an advanced telecommunications system.

Human Resources Attractiveness
Parameters Attractiveness
Attrition Overall
of offshore/outsourcing Services Sector employees 28,000
Scalability Attractiveness
  • Attrition in the offshore/outsourcing Services
    Sector is lower than Asian locations
  • Costa Rica offers a good human resource pool in
    the Latin American region, especially with the
    bilingual skills (English, Portuguese, Spanish,
    etc.) and good educational background (6 of GDP
    is allocated for education).
  • According to the fdimagazine, Costa Rica has the
    best in the category of availability and quality
    of human resources, with scores higher than major
    competitors like the Dominican Republic, Panama
    and Puerto Rico.
  • Costa Rica has one of the highest literacy rates
    (95.9) of the American Continent. Education is
    mandatory until the 9th grade.
  • Around 35.6 of the total population are between
    15 35 years (annual growth rate of 2.1).

An Attractive Location San José
  • Ranked 3rd in the world on Environmental
    Performance Index.
  • The city has well-educated, creative, innovative,
    English-speaking and highly productive human
    resource. San Jose has technical and superior
    education institutions that generate qualified
    human resource, such as Technical high-schools,
    Private and public universities, National
    Learning Institute, CEFOF, CENFOTEC.
  • 50 of the elementary schools and all
    high-schools have computer labs and receive
    English lessons. This allows children and
    teenagers to learn the language and computer
    skills at a very early age.
  • Great location for expatriates. Ranks first in
    the Happy Planet Index.
  • 62 of the employable workforce lives in the
    greater metropolitan area where San Jose is

Costa Rica SWOT Analysis
  • Excellent human resources
  • Quality education
  • Good business and support amenities
  • Conducive environment for doing business
  • No limitations on capital funds transfers
    associated with an investment, regardless of the
  • CINDE Great support resources
  • Cultural compatibility for expats
  • Stable/pleasant climatic conditions
  • Access to good health care
  • Salary levels for the ITO and BPO employees are
    higher than other developing locations.
  • Costa Rica has a local software supportive
    business park formed mainly by highly productive
    PYMES (SMEs - small and medium sized
    enterprises). But not enough software firms or
    human resources.
  • Smaller local ITO companies

  • Multi-functional capabilities for BPO, such as
    the case of Align Technologies
  • Deep call center experience, ie Sykes, and KPO
    such as Amba Research and PG
  • Leverage same time zone coverage for USA and
    Costa Rica, which has a long daytime working
    shift (5 am to 7 pm)
  • Leverage bi-lingual, with one of the highest
    gross participation of population in labor pool
  • Leverage neutral accent
  • Close proximity to other larger centers such as
    Sao Paolo
  • Smaller labor pool
  • Rising cost of labor (average less 3/yr in US)
  • Not enough resources in a specific area of
    expertise or too high recruiting parameters
  • Payroll fringes (social security, pension plan,
    etc.) account for a fixed percentage of the
    employees salary 34.5

  • The population of the country is about 4.5
    million people and the Services Sector employment
    is around 28,000, which is 1.5 of the labor
    pool. This makes it an ideal location for smaller
    centers (lt1000), though it can support larger
    call centers.
  • English and Spanish language based processing of
    work can happen real time in Costa Rica, whose
    time lines exactly match with U.S MDT timings.
  • Government support can be leveraged to acquire
    tax benefits/concessions as the Costa Rican
    government is promoting the offshore/outsourcing
    industry with CINDE and Procomer serving as
    strong support organizations.
  • Strong focus on education and good universities
    makes it an ideal center for higher end
    multi-functional operations.
  • Ideal place for companies with a large carbon
    foot print to start operations as Costa Rica is
    the greenest country in the world and carbon foot
    prints can be acquired with ease.

Contact Information
Atul Vashistha Chairman atul
Neo Advisory Global Headquarters 4000 Pimlico
Drive, 114-108 Pleasanton, CA 94588.
Asia-Pacific Headquarters No. 16 16/1 5th
Floor Phoenix Towers, Museum Road Bangalore
560025, India.
Amsterdam, Netherlands Sao Paolo,
Brazil Monterrey, Mexico Kuala Lumpur,
Write a Comment
User Comments (0)