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A long-time destination for companies looking to outsource, Nicaragua offers tremendous value for businesses. Not only is Nicaragua in the Central Time Zone, making it easy to coordinate everyday business, but it’s also only a short flight from the United States and has a high level of English fluency. Learn more about the state of Nicaragua’s human capital here. SERVIAP can help with your global expansion needs. Contact us today to learn how you can expand your business with PEO in Nicaragua.
Tech Graduates & WorkforceWhile Nicaragua has been attracting outsourced work for nearly two decades, it continues to strive to integrate technical training into its workforce. Here is what you should know about their workforce:
- Young Population: More than three-quarters of the Nicaraguan population is under 40, which means that companies have access to a young, vibrant workforce looking for opportunities to succeed.
- Education Pipelines: Nicaragua is partnering with private businesses to help focus technical training to support the outsourcing industry by ensuring the workforce has the right skills for the future.
- Shared Culture: There is a strong cultural affinity between Nicaragua and the United States due to the physical proximity and many Nicaraguans who have spent time in the U.S.
- Surplus of Talent: Many Nicaraguans obtained technical training in the U.S before returning home, and they are hungry for the opportunity to make use of their skills.
Key Sectors for Local ActivityAgriculture has long been a staple of the Nicaraguan economy, and that continues to be the case. However, other sectors have continued to grow, including the tech sector. Here is an overview of the most important sectors of the economy in Nicaragua:
- Agriculture: Nicaragua’s most important agricultural product is coffee, followed closely by cotton. Beef, beans, and groundnuts make up a significant portion of the remaining agricultural products.
- Tourism: Like many other Central American countries, tourism is a vital part of Nicaragua’s economy, serving as a major source for foreign exchange.
- Services: The service sector accounts for nearly 60% of the Nicaraguan economy, making it by far the largest sector. This market includes various activities, from transportation and warehousing to education, banking, and financial services.
Key Sectors for OutsourcingSince the early 2000s, companies have been investing in business process outsourcing (BPO) in Nicaragua. These organizations have allowed companies to execute vital services while saving significant money on wages and infrastructure. The most common outsourcing projects in Nicaragua are contact centers, which leverage the widespread bilingual abilities of the educated population. Nicaraguan contact center agents are well-positioned to provide service to a wider range of customers with an ever-increasing Spanish-speaking American population. The continuing emphasis on improving technical training also means that Nicaragua can provide companies with expanded services in software development and engineering. While the impact of these efforts may be a few years away, smart companies should be investing now.
Workers speak englishWhile Spanish is the official language of Nicaragua, a large percentage of the population speaks either fluent English or a creole version. Rates of English-speaking Nicaraguans are much higher among the more educated members of the population. In many cases, this is because of the number of Nicaraguans who have been educated in the United States and then returned home.
Average WagesThe median monthly salary in Nicaragua is 18,900 Nicaraguan córdobas (NIO), which translates to approximately $540 USD. This rate is significantly lower than the average wage in the United States and runs below the regional average. According to Glassdoor, a software engineer in Nicaragua should expect to receive a monthly salary of about 22,500 NIO, or about $640 USD per month. However, that rate can vary considerably depending on location, so be aware when deciding where to establish your outsourcing center.
Prominent Cities for BusinessWhile Managua is the largest city in Nicaragua, you can consider several other locations when looking to outsource. Here are some of the cities that should be on your radar:
- Managua: The capital of Nicaragua, Managua, is by far the largest city in the country, with a population of over 1 million people. It is home to many international companies, as well as being an important center for manufacturing.
- León: Located near the Pacific coast, León is the political and intellectual center of the country. It is an important center for agriculture and manufacturing, producing sugar cane, beef, and other agricultural products.
- Masaya: Like León, Masaya produces many agricultural products. However, it also has several notable manufacturing centers, producing clothing, footwear, and other products like cigars, soaps, and leather goods.