Nearshoring in Costa Rica: What are the Advantages?

The small Central American nation of Costa Rica has remodeled itself from merely a vacationer hotspot to a overseas funding vacation spot. It’s no marvel Nearshoring in Costa Rica is on the rise.

In 2022, Costa Rica topped the Funding Monitor´s Inward FDI Efficiency rating, forward of Croatia, Singapore, and the United Arab Emirates (UAE.)

This rising wave of FDI helped generate 22,000 new jobs in Costa Rica throughout the tourism, life sciences, and manufacturing sectors.

The federal government’s deal with studying and growth has fueled this development with 7.4 % of the nation’s GDP spent on the schooling trade. 

Costa Rica´s quickly rising expertise pool is now rated amongst Latin America’s most interesting within the tech trade, making it a pretty location for nearshoring. 

This text will define the quite a few benefits of nearshoring in Costa Rica, significantly for the IT and tech industries. 

We can even take a look at what questions it’s essential to take into account earlier than nearshoring in Costa Rica, for instance, what again workplace providers in Costa Rica chances are you’ll require. 

The advantages of nearshoring in Costa Rica

Exploring nearshoring in Costa Rica can supply quite a few benefits to your organization. Beneath are 5 distinctive advantages of nearshoring to think about.

• Glorious return on funding
• Expert IT workforce
• Training
• Time-zone alignment 
• Low labor prices

Let’s take a look at every of those Costa Rican nearshoring advantages in additional element. 

1 – Glorious return on funding

Nearshoring to Costa Rica presents a worthwhile return on funding due to substantial labor price financial savings, the supply of an enormous pool of expert know-how professionals, and elevated effectivity arising from the timezone overlap.

Costa Rica additionally presents all kinds of commercial parks and workplace facilities with particular tax exemptions and advantages for overseas firms. 

2- Expert tech workforce

Costa Rica has a pool of over 22,000 highly skilled software developers. It’s the primary IT per capita exporter in Latin America, making it the perfect location for nearshoring. 

A number of world software program firms, equivalent to Microsoft, Oracle, Dell, and Hewlett Packard Enterprise, have established their presence within the nation.

Costa Rica additionally lately ranked fifth on the planet on the World Economic Forum’s Human Capital Score. 

3 – Training targeted

The nation has a literacy charge of 98 % due to its free and obligatory main and secondary schooling. Its universities are well-financed, and professors from varied components of the globe share their information there.

Annually, over 4000 folks graduate from the nation’s completely different college’s engineering packages. 

4 – Time zone alignment

Employees in Costa Rica function in comparable or the identical timezone as their counterparts in the US, Mexico, and Canada. 

From mid-March to October, it’s in the identical timezone as Mountain Commonplace Time (MST) in the US. From November to mid-March, the native time is the equal of Central Commonplace Time (CST.)

This timezone alignment with North America permits for the opportunity of attaining as much as eight hours of simultaneous work. This facilitates clean staff collaboration and eradicates any venture completion delays.

5 – Low labor prices

Nearshoring in Costa Rica might help your companies decrease prices and save time, leading to improved revenue margins.

Growing and coaching an in-house staff will be expensive and time-intensive, significantly in international locations the place labor and operational bills are excessive.

For instance, an entry-level software program developer within the US can count on to obtain a wage of about USD 80,000 per 12 months, whereas a Costa Rican software program developer doing the identical job can count on to make round $20,400,000 Colon per year (roughly USD 39,000). That could be a saving in an annual wage of over 50 %. 

Nearshoring in Costa Rica additionally presents a decrease dwelling price in comparison with main cities in the US, Canada, or Europe. 

Is Nearshoring in Costa Rica the proper match for your online business?

Earlier than you decide to nearshoring in Costa Rica, it’s essential to take into consideration varied components and ask your self these vital questions: 

Is it difficult to seek out native expertise? 

If discovering workers in your present location is pricey or difficult, nearshoring in Costa Rica could also be cost-effective. Working with an area associate also can save effort and time in recruitment.

Do you’ve gotten the power to handle giant tasks remotely? 

Nearshoring closely depends on digital connectivity, which might necessitate a cultural change inside your organization if you’re accustomed to counting on face-to-face communication.

What’s your organization’s key nearshoring purpose? 

Are you aspiring to recruit everlasting employees in Costa Rica or require technical experience for particular tasks? Your alternative could have implications for complying with native employment laws. For example, would you require the providers of native attorneys or accountants?  

Is Costa Rica the proper expertise marketplace for your online business? 

Whereas Costa Rica is changing into a preferred nearshoring vacation spot as a result of its giant pool of software program builders and engineers, different Latin American international locations additionally supply engaging choices with rising tech expertise swimming pools and potential price financial savings.

Biz Latin Hub can help you with nearshoring in Costa Rica

At Biz Latin Hub, we provide a complete vary of market entry and back-office options in Costa Rica, Latin America, and the Caribbean. 

Our experience encompasses nearshoring in Costa Rica, hiring and PEO, accounting and taxation, firm incorporation, and company authorized recommendation.

With places of work in main cities throughout the area and partnerships established in quite a few different markets, we possess an enormous community of sources, ideally positioned to help cross-border operations and market entry throughout a number of international locations.

Contact us at this time to seek out out extra about our providers and the way we might help you obtain your online business targets in Latin America and the Caribbean.