September 29, 2023

Latin America has quick change into a gorgeous vacation spot for nearshoring, on account of its proximity to North America, time zone crossover, and rising but reasonably priced expertise pool. Nearshoring in Guatemala could possibly be what your corporation is searching for.

One of many nations in LATAM main the way in which in nearshoring is Guatemala. It has the biggest financial system in Central America that continues to develop regardless of unsure international circumstances. 

Guatemala has a dependable electrical energy system, a robust manufacturing trade, and an rising expertise pool of younger bilingual employees. 

These components make nearshoring in Guatemala an interesting possibility for firms in 2023. This text will spotlight the numerous advantages of nearshoring, particularly for the IT, customer support, and tech industries. 

We may even have a look at what questions it is advisable to think about earlier than nearshoring in Guatemala, for instance, what components are concerned in firm formation in Guatemala. 

Infographic by Biz Latin Hub on Foreign investment in Guatemala on an article about Nearshoring in Guatemala
If you happen to’re considering of Nearshoring in Guatemala, it’s necessary to know the FDI within the nation

What are the advantages of nearshoring in Guatemala? 

There are a lot of benefits to your firm to discover nearshoring in Guatemala. Under are 5 main advantages of nearshoring. 

  • Low labor prices
  • Time-zone alignment 
  • Educated expertise pool
  • Ease of doing enterprise
  • US Govt coverage

1 – Low labor prices

Outsourcing may also help companies scale back prices and save time, finally resulting in elevated revenue margins. 

Growing and coaching an inner employees might be each costly and time-consuming, notably in nations with excessive labor and working prices. 

For instance, an entry-level software program engineer within the US can count on to obtain a wage of about USD 99,000 per 12 months, whereas a Guatemalan software program engineer doing the identical position can count on to make round USD 37,500 per year. That equals an unimaginable value saving of nicely over 50 %! 

Nearshoring in Guatemala additionally affords a decrease value of residing compared to main cities in the US, Canada, or Europe. 

2 – Time-zone alignment 

Guatemalan employees have comparable work hours to their colleagues in the US, Mexico, and Canada. 

Since Guatemala is on Central Customary Time (CST), there’s a potential for as much as eight hours of synchronous work. This permits seamless staff collaboration and eliminates any delays in challenge completion.

It makes Guatemala the right place to arrange a regional hub in an effort to facilitate enterprise operations throughout Latin America.

3 –  Educated expertise pool

Guatemala boasts a rising pool of tech expertise, with 16 universities in Guatemala Metropolis alone. 

Amongst them, prestigious establishments similar to Universidad del Valle and Universidad Francisco Marroquin provide excellent enterprise schooling. Moreover, Universidad Galileo has gained worldwide recognition as one of many high know-how faculties globally. 

Guatemalan builders are each extremely expert and well-educated. As an example, Guatemalan expertise helped produce Duolingo and Accommodations.com. 

4 – Ease of doing enterprise

Within the World Bank’s Doing Business 2020 report, a rating system evaluates nations primarily based on the convenience of conducting enterprise, Guatemala ranked forward of Brazil, Argentina, Ecuador, and Uruguay. 

Guatemala welcomes international funding and there are only a few limitations to foreigners beginning a enterprise there. For instance, there are additionally no restrictions regarding the most proportion of international shareholders in a enterprise.

Infographic by Biz Latin Hub on Latin American and Caribbean Countries with an Emerging Fintech industry on an article about Nearshoring in Guatemala
Nearshoring in Guatemala is helped by the nation’s rising Fintech trade

5 –  US Govt coverage

The US Congress has launched two measures aimed at encouraging industry, manufacturing, and intraregional commerce. 

These initiatives reveal an rising recognition of Latin America’s significance, notably Central America, for US geopolitical and strategic pursuits. Guatemala, particularly, is well-positioned to revenue from each payments.

In brief, the payments suggest preferential therapy on commerce, taxes, credit score, and a number of different privileges to incentivize the motion of vital provide chains nearer to residence. 

Guatemala’s proximity to the US makes it primed to profit from these new legal guidelines. 

Is Nearshoring in Guatemala proper for your corporation?

Earlier than continuing with nearshoring, you have to think about a number of components and ask your self some necessary questions:

Is it tough to search out native expertise? 

If discovering workers in your present location is pricey or difficult, nearshoring in Guatemala could also be cost-effective. Working with a neighborhood associate also can save effort and time in recruitment and native compliance. 

Are you snug with digital distant challenge administration? 

Nearshoring depends closely on digital connectivity, which can require a cultural shift in your group if your corporation sometimes depends on in-person communication.

What’s your general aim? 

Do you propose to rent full-time workers in Guatemala, or do you want tech expertise on a per-project foundation? This determination will impression the native employment laws it is advisable to work with. For instance, do you want an employer of document? 

Is Guatemala the suitable location for your corporation? 

Whereas Guatemala is changing into a well-liked nearshoring vacation spot on account of its ease of doing enterprise, different Latin American nations additionally provide engaging choices with rising tech expertise swimming pools and potential value financial savings.

Biz Latin Hub can help you with nearshoring in Guatemala

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

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

With workplaces in main cities throughout the area and partnerships established in quite a few different markets, we possess an unlimited community of assets, ideally positioned to assist cross-border operations and market entry throughout a number of nations.

Contact us right this moment to search out out extra about our providers and the way we may also help you obtain your corporation targets in Latin America and the Caribbean.

If you happen to discovered this text fascinating, remember to discover the remainder of our protection of the area. Moreover, you may be taught extra about our staff and knowledgeable authors right here. 

A Biz Latin Hub infographic showing key services offered by the company
Key providers supplied by Biz Latin Hub