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competitive wage within the country. Even with these additional financial
responsibilities, Guatemala’s BPO industry is still more cost effective
than competing regions. Tax incentives attract potential investors through such legislation as the Free Trade Zones Law, Promotion and Development of Exports and Drawback Activity Law, and the Free Trade Zone for Industry and Com- merce Law, which absolve rent tax for up to 10 years, value added taxes (VAT) for up to five years, and import taxes
on foreign investment. These laws also exempt companies from customs duties and VAT for furniture and other office equipment specifically for the creation of its corporate infrastructure.
Guatemala has partnered with con-
sultants to revamp the driving forces of the BPO industry. This effort, known as Project Titan, has identified the major drivers of this industry and has used them to strategize further development. Major factors driving the industry in-
clude a growing economy, strong admin- istration of foreign direct investment, and a stable inflation rate. Telecommu- nications infrastructure, already modern and efficient, is being improved through an emphasis on public-private partner-
GUSTAVO TASNER
Vice President, Head of BPO Delivery Operations Capgemini
The Guatemalan op- erations of business process outsourcing (BPO) firms are suc- cessful for several reasons, according to Gustavo Tasner, Vice President and Head of BPO De- livery Operations for industry leader Capgemini. Prima- ry among them is the strong cultural
ing an aggressive English-language training program that will not only meet the firms’ immediate needs, but also contribute to the country’s growth.
REALISTIC ABOUT SECURITY
Any discussion of BPO operations in Guatemala invariably comes around to the country’s civil war, which ended in 1996. The war colored the popular perception of the country, but the peace that followed has been successful. Tasner says, “If you look at the security map in the business districts of Guatemala City, it’s probably safer than some areas in São Paulo or Bue- nos Aires. And probably much more than Mexico City. But we don’t have to answer questions about economic instability,” he continues, “because the numbers are very good. They are super-stable.”
Success in Guatemala “is all about shar- ing a vision, believing in what you can do, communicating, being open and honest, and motivating people to grow. That has been our approach and it’s working.”
alignment the people feel with North America. Some Latin American cultures are more locally aligned and might strug- gle to adapt to North American business culture. Not so in Guatemala.
ASPIRATIONS ENHANCE TRAINING
The Guatemalan workforce is also easy to train. Tasner attri- butes this to their aspirations and points out that “they want to move up the ladder.” And some training is necessary. Sever- al of the BPO companies operating in Guatemala are launch-
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