Table of Contents
Peru sometimes flies under the radar when it comes to tech talent, but it’s actually a growing hotbed for new tech companies. In fact, the country ranks within the top 10 in the world for percentage of new companies being formed.
If you’re considering doing business in Peru, it’s important to understand human capital trends in the country. Here’s everything you need to know.
SERVIAP can help with your global expansion needs. Contact us today to learn how you can expand your business with PEO in Peru.
Tech Graduates & Workforce
Peru historically has not invested as much in its technology workforce compared to other countries in the region, but that has been changing in recent years. In fact, Peru is becoming a great hub for entrepreneurship, and the government is helping to push that forward.
- Investing in innovation. StartUp Peru has invested the equivalent of roughly $10 million in more than 400 innovations.
- Startup funding. The country is also funding local accelerators to help tech startups.
- Private schools. Private schools are also helping to educate the next generation of coders. Laboratoria, for example, is a school that focuses on coding for women. It has graduated more than 1,000 female developers, 80% of which work in the tech industry. Another great school that focuses on development and technology education is Crack the Code.
- MIT Acceleration Program. The country has partnered with the MIT Regional Entrepreneurship Acceleration Program (or REAP). It’s located in Lima and focuses on building innovation in a variety of fields.
- Leading University. The University of Engineering and Technology is one of the most modern tech universities in Latin America.
Local Activity of employees in Peru
Peru has a diverse economy that’s growing every year. In fact, it’s projected that the GDP in the country will grow 5% by 2023.
Here’s an overview of the country’s main business sectors:
- Mining: Peru has a vast mining industry that’s based around some of the country’s top natural resources. These include iron, manganese, gas, petroleum and phosphates.
- Agriculture and livestock: The country is a leader in agriculture and raising livestock.
- Fishing and transportation: With roughly 1,500 miles of coastline, Peru is a major fishing country. It’s also in an opportune location for shipping and transportation, not too far from the Pacific entrance to the Panama Canal.
Key Sectors for Outsourcing
The tech sector is a major industry for outsourcing to Peru. The fact that they have lower wages for highly-educated workers is a main reason for this.
Many U.S.-based companies outsource their call centers in higher volumes to Peru as well. Again, the main draw here is the country’s educated workforce and their overall IT infrastructure.
Employees natives in Peru
English is the second-most spoken language in Peru, behind the native Spanish. While the proficiency of English isn’t high for the country overall, it’s much higher among educated workers, including those in the tech sectors.
One of the biggest advantages of outsourcing work to Peru is the relatively low salaries their employees earn. In the IT field, a typical Peruvian worker will earn 90,00 PEN per year, or the equivalent of roughly $23,439 USD per year.
On the low end, new IT workers will earn roughly 47,100 PEN ($12,145 USD) per year. On the high end, experienced IT workers will earn roughly 148,000 PEN ($38,164 USD) per year.
Prominent Cities for Business
The main city for business in Peru is its capital, Lima. Lima is a metropolitan city and is actually the second-largest city in all of South America. Only Brazil’s Sao Paulo is larger.
Some top cities for business in Peru include:
- Arequipa: Arequipa is the second-largest city in Peru, located in the south. It is a popular tourist city and has a thriving cultural and art scene, along with a low cost of living.
- Trujillo: Trujillo is a Spanish Colonial city that has many historic archaeological sites. It’s also close to the beach, giving it a coastal feel and economy.
- Chiclayo: Located only miles from the beach, Chiclayo is a major fishing city. It offers a hot, dry climate that attracts a lot of tourist activity as well.
- Iquitos: Located along the Amazon, Iquitos is a large metropolis that is very convenient for transportation from around the world. Oil and lumber are some of the main industries here.
Turnover rates among workers in Peru are fairly high. In total, they sit around 30%, which is nearly double what it is in some other Latin American countries. Still, turnover rate is lower among educated workers, which means the attrition rate in the IT sector isn’t quite as high.
Is Peru Right for Your Business?
SERVIAP is a leading Professional Employer Organization (PEO) ready to help your business expand operations throughout the Western Hemisphere. PEO is a model of co-employment, where we assume total responsibility for your talent, allowing you to focus on the strategic activities of your organization. Contact us today to learn more about how you can expand your business in Peru.