September 26, 2023

The small Central American nation of Costa Rica has reworked itself from merely a vacationer hotspot to a international funding vacation spot. It’s no surprise Nearshoring in Costa Rica is on the rise.

In 2022, Costa Rica topped the Funding Monitor´s Inward FDI Efficiency rating, forward of Croatia, Singapore, and the United Arab Emirates (UAE.)

This rising wave of FDI helped generate 22,000 new jobs in Costa Rica throughout the tourism, life sciences, and manufacturing sectors.

The federal government’s concentrate on studying and improvement has fueled this development with 7.4 % of the nation’s GDP spent on the schooling business. 

Costa Rica´s quickly rising expertise pool is now rated amongst Latin America’s most interesting within the tech business, making it a sexy location for nearshoring. 

This text will define the quite a few benefits of nearshoring in Costa Rica, significantly for the IT and tech industries. 

We can even take a look at what questions that you must take into account earlier than nearshoring in Costa Rica, for instance, what again workplace companies in Costa Rica it’s possible you’ll require. 

"advantages of nearshoring in costa rica" infographic by Biz Latin Hub for an article on "nearshoring costa rica".
When trying to begin your journey of nearshoring in Costa Rica, there are an array of advantages. The graphic above highlights the highest benefits of nearshoring in Costa Rica.

The advantages of nearshoring in Costa Rica

Exploring nearshoring in Costa Rica can provide quite a few benefits to your organization. Under are 5 distinctive advantages of nearshoring to contemplate.

  • Glorious return on funding
  • Expert IT workforce
  • Schooling
  • Time-zone alignment 
  • Low labor prices

Let’s take a look at every of those Costa Rican nearshoring advantages in additional element. 

1 – Glorious return on funding

Nearshoring to Costa Rica presents a worthwhile return on funding because of substantial labor price financial savings, the provision of an enormous pool of expert expertise professionals, and elevated effectivity arising from the timezone overlap.

Costa Rica additionally presents all kinds of commercial parks and workplace facilities with particular tax exemptions and advantages for international firms. 

2- Expert tech workforce

Costa Rica has a pool of over 22,000 highly skilled software developers. It’s the primary IT per capita exporter in Latin America, making it the perfect location for nearshoring. 

A number of international software program firms, comparable to Microsoft, Oracle, Dell, and Hewlett Packard Enterprise, have established their presence within the nation.

Costa Rica additionally not too long ago ranked fifth on the planet on the World Economic Forum’s Human Capital Score. 

3 – Schooling targeted

The nation has a literacy price of 98 % because of its free and necessary main and secondary schooling. Its universities are well-financed, and professors from numerous elements of the globe share their data there.

Every year, over 4000 individuals graduate from the nation’s totally different college’s engineering packages. 

4 – Time zone alignment

Staff in Costa Rica function in comparable or the identical timezone as their counterparts in america, Mexico, and Canada. 

From mid-March to October, it’s in the identical timezone as Mountain Normal Time (MST) in america. From November to mid-March, the native time is the equal of Central Normal Time (CST.)

This timezone alignment with North America permits for the opportunity of reaching as much as eight hours of simultaneous work. This facilitates clean crew collaboration and eradicates any undertaking completion delays.

5 – Low labor prices

Nearshoring in Costa Rica will help your companies decrease prices and save time, leading to improved revenue margins.

Growing and coaching an in-house crew might be expensive and time-intensive, significantly in international locations the place labor and operational bills are excessive.

For instance, an entry-level software program developer within the US can anticipate to obtain a wage of about USD 80,000 per yr, whereas a Costa Rican software program developer doing the identical job can anticipate to make round $20,400,000 Colon per year (roughly USD 39,000). That could be a saving in an annual wage of over 50 %. 

Nearshoring in Costa Rica additionally presents a decrease dwelling price in comparison with main cities in america, Canada, or Europe. 

Is Nearshoring in Costa Rica the proper match for your enterprise?

Earlier than you decide to nearshoring in Costa Rica, it’s essential to consider numerous components and ask your self these vital questions: 

Is it difficult to search out native expertise? 

If discovering workers in your present location is dear or difficult, nearshoring in Costa Rica could also be cost-effective. Working with an area associate can even save effort and time in recruitment.

Do you may have the flexibility to handle massive tasks remotely? 

Nearshoring closely depends on digital connectivity, which might necessitate a cultural change inside your organization in case you are accustomed to counting on face-to-face communication.

What’s your organization’s key nearshoring aim? 

Are you meaning to recruit everlasting employees in Costa Rica or require technical experience for particular tasks? Your alternative could have implications for complying with native employment laws. As an example, would you require the companies of native attorneys or accountants?  

Is Costa Rica the proper expertise marketplace for your enterprise? 

Whereas Costa Rica is turning into a preferred nearshoring vacation spot as a result of its massive pool of software program builders and engineers, different Latin American international locations additionally provide enticing choices with rising tech expertise swimming pools and potential price financial savings.

"employment law in Costa Rica" infographic by Biz Latin Hub for an article on "nearshoring costa rica".
It is very important perceive the native employment regulation when exploring nearshoring in Costa Rica alternatives. Staying up-to-date with present legal guidelines ensures that your enterprise stays compliant.

Biz Latin Hub can help you with nearshoring in Costa Rica

At Biz Latin Hub, we provide a complete vary of market entry and back-office options in Costa Rica, Latin America, and the Caribbean. 

Our experience encompasses nearshoring in Costa Rica, hiring and PEO, accounting and taxation, firm incorporation, and company authorized recommendation.

With places of work in main cities throughout the area and partnerships established in quite a few different markets, we possess an enormous community of assets, ideally positioned to help cross-border operations and market entry throughout a number of international locations.

Contact us at the moment to search out out extra about our companies and the way we will help you obtain your enterprise objectives in Latin America and the Caribbean.

A BLH infogrpahic showing key services offered by the company
Key companies supplied by Biz Latin Hub