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Dominican Republic residents are very accustomed to the service culture, since their country is the most visited in the Caribbean. Residents speak English well, and they are advancing in technology-based skills. If you’re considering doing business in Dominican Republic, it’s important to understand human capital trends in the country. Here’s everything you need to know.
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Workforce and employees
The economy in the Dominican Republic is the ninth-largest in all of Latin America, and it is also one of the fastest-growing. A major reason for this is the growth of the technology and IT sector, which is being pushed from the country’s government:
- Fintech is growing rapidly in the country thanks to a group called ADOFINTECH. It brings together organizations and individuals in the sector to find new solutions and conduct research they hope will result in greater inclusion in finances.
- The government has launched a tech initiative called Republica Digital to bring more technology to all aspects of Dominican life. It focuses on digital transformation, job growth, IT access and education.
- The three largest telecommunication companies based in the Dominican Republic recently invested $355 million into the country’s IT infrastructure.
- There are major tech institutions in the country that help train advanced IT learners. Some of the best are the Instituto Tecnologico de las Americas and the Instituto Tecnologico de Santo Domingo.
Key Sectors for Local Activity
The Dominican Republic has a diverse economy that isn’t built on just one sector. Here’s an overview of the country’s main business sectors:
- Tourism: The island nation welcomes tourists from around the world to explore its architecture and coastal world-class resorts. It’s an especially popular destination for English-speaking visitors.
- Agriculture: Nearly 80% of the land in the country is suitable for farming, which makes it a major industry. The sector accounts for roughly 11% of the total GDP.
- Mining: Nickel is a major mineral that’s found in the Dominican Republic. The country used to produce gold and silver, but the production of both was halted back in 1999.
Key Sectors for Outsourcing
In addition to IT and software development, the Dominican Republic is a popular place for companies to outsource their call centers. The country has great IT infrastructure—the best in the Caribbean, in fact.
The Dominican Republic is home to both Altice and Claro, large telecommunications companies that provide the infrastructure for internet and telephone service.
Many residents of the Dominican Republic speak English. It is taught in elementary and secondary schools, and many people learn it to get their first jobs in the country. With so many people visiting the island nation from across the world, English speaking is proficient among residents.
In addition, Dominicans are also aware of U.S. customs and culture. A lot of life in the Dominican Republic is tied to America. So, this helps a lot when you’re outsourcing services to the country.
U.S. companies can realize enormous savings through wages in the Dominican Republic. In the country, the average salary for a worker in the IT field is 239,000 DOP per year, or the equivalent of only $4,187 per year.
On the low end, workers earn 124,000 DOP per year ($2,172). On the high end, workers earn 390,000 DOP per year ($6,832). This is one of the most attractive reasons why U.S. companies outsource IT work to the Dominican Republic.
Prominent Cities for Business
The most popular city in the Dominican Republic for business is the country’s capital, Santo Domingo. It is home to almost 2 million residents. While it is an old city, it’s also quite sophisticated. There is a diversity of culture and offerings, and that leads to a highly-educated workforce.
Some top cities for business in Dominican Republic include:
- Las Terrenas: Las Terrenas is an international city that people from all over the world call home. This is a huge advantage for the IT sector, as there are ideas from around the world being brought into one place. There’s even a new airport located here, which provides easy access to other locations.
- Puerto Plata: There are roughly 200,000 people living in this city, but it’s a global culture as well. Tourism is big here, especially for residents of England, the U.S. and Canada. English is widely spoken here as a result, which makes it a great city for U.S. business.
The attrition rate in the Dominican Republic is relatively low compared to other countries in the region. Part of the reason for this is the high value of the family unit in the country. This leads to people taking jobs and staying in them, because they believe in stability.
Is Dominican Republic Right for Your Business?
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