Studie - 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.

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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