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More US businesses are looking to outsource functions to other countries than ever before. In response to this, many countries have put significant resources into their business sectors.
Latin America has emerged as an outsourcing supercenter, and Ecuador is a perfect example of this. Below you’ll find a quick overview of the outsourcing potential within Ecuador.
SERVIAP can help with your global expansion needs. Contact us today to learn how you can expand your business with PEO in Ecuador.
Tech Graduates & Workforce
In 2012, Ecuador began paying for its college-age citizens to attend 50 of the top colleges within the world, such as Oxford and NYU. The government paid for citizens to go to college with the understanding that they would return to Ecuador and be a part of the Ecuadorian workforce for at least two years.
The result of this program is a highly educated and diverse workforce in Ecuador that can meet a variety of business challenges.
Key Sectors for Local Activity
The four biggest industries in Ecuador are agriculture business, tourism, real estate, and fishing:
- Agribusiness: Ecuador is the world’s biggest exporter of bananas, but the import markets for cotton, yellow corn, and soybean meal are also substantial in their own right.
- Tourism: Ecuador’s tourism industry is one of the largest industries in the country. Ecuador is known for natural beauty, with the most popular tourist attractions being diving, surfing, birdwatching, and hiking.
- Real Estate: As Ecuador’s economy has grown, real estate prices have also increased. Demand for real estate agents within the area is higher than it has been in recent years.
- Fishing: Fishing and aquaculture are important aspects of Ecuadorian culture and a large draw for tourism.
Other business sectors include machinery manufacturing, water resources equipment, and telecommunication equipment.
Key Sectors for Outsourcing
Ecuador is a leading exporter of agricultural goods and services. Businesses looking to outsource their agricultural exports would find success in Ecuador. Any manufacturing, logistics, or distribution services related to the production of agricultural goods will flourish if outsourced to Ecuador.
Additionally, Ecuador would be a solid choice for any hospitality providers looking to expand their operations internationally. The tourism industry is one of the largest within Ecuador, second only to agriculture. There is a skilled and experienced labor force in Ecuador to work in any hospitality setting.
English Speakers in Ecuador
Spanish is the official language of Ecuador, but English is the most spoken language among business professionals and hospitality service providers.
Average Wages in Ecuador
Wages are variable by business, but the average wages in Ecuador were $467 US per month in 2020. Ecuador uses the US dollar, so there is no need to exchange currency for paying employees.
Prominent Cities for Business
Here are a few cities that would be a good host for your outsourced business needs:
- Quito: This is the capital city of Ecuador and the highest capital city in the world, though it’s the second-most populous city in the region. A large portion of the population is below 30 years old, which means there is a large pool of young, well-trained business professionals. The southernmost region of Quito is home to industrial and residential areas.
- Guayaquil: Despite not being the capital of Ecuador, Guayaquil is the largest city in Ecuador by population. It is a major commercial town, as it handles most of the import and export trade. Most of the city’s population works in agriculture and fishing.
- Cuenca: This city has the third-largest population within Ecuador. This area is considered more rural, but it serves as the hub for education and administrative functions for the country. It’s also home to El Cajas, a beautiful national park that is popular with tourists.
The majority of the Ecuadorian labor force is located within these three populous cities. Many smaller municipalities have a largely agricultural production model, but the younger workforce is mainly found in the primary urban areas.
Ecuador has a moderate turnover rate for employees. However, some companies have offset this issue by offering training and research and bolstering opportunities for career growth. Employees tend to stay longer with businesses that can provide long-term career solutions and options.
Is Ecuador 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 Ecuador.