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INTERVIEW: EGS
MIRO BATISTA
President, Latin America, Expert Global Solutions (EGS)
Guatemala, the most populated of the Central Amer- ican countries, presents many favorable business advantages to companies in the BPO industry. With a median age of just 21, Guatemala has a workforce
that is eager for employment, according to Miro Batista, the President of EGS for Latin America. The country offers low startup costs, thanks to a stable economy and currency. An- other benefit is that nearshore operations in Central Amer- ica provide companies with the favorable labor arbitrage they have previously sought in the Philippines and similar locations, but much closer to the United States, allowing for scaled-back, more manageable travel time and costs.
CHALLENGES CAN SPUR GROWTH . . .
Guatemala presents several challenges to the foreign in- vestor, including infrastructure and education, but meeting these challenges can help strengthen both the company and the country. Although Guatemala does not enjoy the off-the- shelf work space options that are available in the United States, this situation accords firms the opportunity to cre- ate their own customized office facilities. As Batista puts it, “That gives us a lot of flexibility and, at the end of the day, that is what clients are looking for.”
Guatemala’s economy may not be as developed or diverse as that of, say, Panama or the Philippines. Batista sees this as an advantage, however, because the government is much more receptive and accommodating to companies. The big- gest challenge is education, since the return on investment in schools, universities, and training programs is not as vis- ible or easy to accomplish as, say, infrastructure solutions like bridges and hospitals. Nevertheless, Batista asserts, “If we could convince all of our governments to invest in educa- tion the way they should, in five years, I predict we would see a huge impact in growth in the region.”
. . . AND TRAIN THE WORKFORCE
Just as office space in Guatemala can be customized to meet clients’ needs, a flexible, young labor force can be shaped to meet the demands of international customers. BPO com- panies are not new to the nation; the result is an available core of employees with experience in the industry and some training in customer relationship management (CRM) and other back-office functions. As the industry has evolved, however, companies benefiting from a young workforce have realized the necessity to invest in training and development before employees can hit the ground running.
Batista estimates that the BPO industry in Guatemala has nearly doubled over the past five years, to about 40,000 peo- ple, and that number is projected to double again in the next five years. This existing and anticipated foreign investment provides a significant impetus to ongoing education initia- tives, since the availability of a well-educated workforce gives foreign investors greater incentive to locate their oper- ations in Guatemala. Competing companies operating in the same area often have similar requirements, reinforcing the government’s commitment to bilingual education. Contin- ued growth in the industry demonstrates that the country’s investment in education is paying off by delivering well-pay- ing jobs to its people.
PLANTING THE SEEDS OF LEADERSHIP
Although not a new industry to Guatemala, BPO is still rel- atively young when compared to other offshore/nearshore locations. As a result, a talent gap remains regarding mana- gerial positions. Companies tend to import ex-pats to oversee operations in their outsourced operations. These executives, however, are by nature highly mobile and are always ready to move on, which presents a risk to the company. Firms that choose to develop local talent see favorable benefits: employ- ees with roots in the community, a cultural affinity with the workforce, and a greater likelihood to develop a strong sense of loyalty to the company.
COMMITMENT TO THE WORKPLACE
Guatemala is a developing economy, with a government and a private sector anxious to generate and grow employment. Thus, foreign investors bringing their CRM or other opera- tions to Guatemala can count on national and local leaders who are aligned with their needs. They can also rely on a Guatemalan workforce that is eager to work and apprecia- tive of new job opportunities. Batista says, “If I had to high- light one among many positive things to say about Guatema- la, it’s the commitment of the people.”
“Guatemala is the best kept
secret. The commitment to the workplace is the key differentiator. If you get the right
leadership, things are going to get done. You might have to think outside the box, but things will get done.”
Stability and Security for the Service Industry
Business process outsourcing (BPO) companies are betting heavily on Guatemala because of its steady growth, stable currency, education system, and the people’s commitment to the workplace, according to Miro Batista of industry giant EGS.
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