Leveraging Honduras as an outsourcing delivery option

Honduras is one of many locations in Latin America that are emerging as potential delivery locations for BPO and IT services. With a small existing services sector and excellent English language skills among the population, front-office outsourcers could use Honduras as part of a regional diversification strategy.
Table of Contents:
SUMMARY
Impact
Ovum view
Key messages
HONDURAS HOLDS POTENTIAL FOR OUTSOURCERS
Pro-business government
Telephony infrastructure and pricing
Geographic proximity to the US
Emphasis on bilingual education
Cultural alignment with the US
Multiple-city environment
A LACK OF BPO CULTURE, AMONG SEVERAL CHALLENGES
Lack of established BPO/contact center culture
Recent political instability
Limited addressable labor pool
Failing government-funded education system
Corruption
GOOD OPPORTUNITIES FOR EARLY ENTRANTS
Cost advantage
Alternative for US bilingual/Spanish delivery
European Spanish delivery
VENDORS NEED TO CONSIDER POSSIBLE THREATS
Costly labor laws
Political instability
Overheated outsourcing market
Inability to grow the labor pool
RECOMMENDATIONS
Recommendations for outsourcing vendors
Start with low-value, contact center BPO delivery and migrate higher
Start with smaller deployments
Court bilingual school graduates
Invest in pilot education programs to develop professional skills
Engage with the Honduras government
Establish delivery centers in major cities
APPENDIX
Further reading
Methodology

List of Tables
Table 1: Inflation rates by location, 2007–2014
Table 2: Transparency International’s Global Corruption Perceptions Index

List of Figures
Figure 1: Monthly price comparison by location


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