Page 96 - STRATEGY Magazine (G)

GUATEMALA: BPO
Leaps and Bounds: A Growth Industry Takes Hold
Business process outsourcing (BPO) has become a focal point for both the government of Guatemala and the education sector, making it a prime industry for those looking to invest in the region.
Business process outsourcing (BPO),
or the outsourcing to overseas work-
ers of certain business operations like call centers and technical assistance,
has experienced a steady expansion in Guatemala over the last 10 years and is primed for explosive growth in the near future. With a rapidly growing popula- tion, Guatemala has become not only the largest economically active labor force
in Central America, but also the young- est. This large labor pool has helped
the industry to reach US $162 million in industrial exports, a number that represents 500 percent growth in the last decade. In the BPO industry, larger countries such as Mexico, Argentina, and Brazil have provided more than 70 percent of the market for the region, yet the potential for the region as a whole
is far from being realized. Guatemala is one nation that is specifically looking at the BPO industry as a potential career path for its young people who are enter-
ing the workforce. With growth expected to continue in both the offshore and nearshore components, their focus will only increase.
Private and governmental sectors have begun working closely with the academic sector to focus specifically on the growth and sustainability of the BPO industry. More than 300,000 Guatemalan stu- dents are currently preparing for college degrees, while another 180,000 each year are concluding secondary education with the aim of entering the industry.
The combination of enthusiastic youth, a governmental focus on BPO expansion, and a discernible measure of success within the industry have made the BPO industry a viable career choice and an attainable goal for this demographic. As a result, BPO revenue tripled from 2009 to 2014.
This influx of youth into the work force has created many advantages for those looking to invest in the BPO industry within Guatemala. Guatemalans possess a neutral accent that allows for clear pronunciation of the English language. And U.S. culture is popular and influen- tial in the nation, creating a familiarity with language and business culture that produces a positive relationship between workers and clients.
TWICE THE POTENTIAL
Many of these potential employees are bilingual. As public universities and technical institutions expand and devel- op their language departments, they are focusing on English. This allows BPO companies to create call centers geared toward both English and Spanish mar- kets while still exploiting the attractive labor costs that the region has to offer. The monthly minimum wage was set in 2014 to Q2,530.34, or approximately US $325, a wise economic choice for those looking to set up shop here, yet a very
Sixty percent of Guatemala’s population is under the age of 30, giving the BPO industry a ready and eager labor supply.
94 STRATEGY SPECIAL REPORT