Honduras Outsourcing

Industry
 HONDURAS 2020?

SOURCE: Team research.

4 2
Located at the heart of Central America is Honduras. A Country of
unlimited potential, ready for the World.

Capital: Tegucigalpa
Official Language: Spanish
Area (Km2): 112,492
Population (millions): 9.1
GDP(billion USD): 21.52
GDP per capita (USD): 2,361.16
Time Zone: UTC - 6
Exchange rate USD: L 23.58

SOURCE: Team research. 3

There are 4 main pillars that make us one of the most competitive Country
in the region

▪ 3 MM people between the ages of 15 – 35

▪ ~414 bilingual schools in TGU/SPS
A Talent ▪ YES WE CAN English program (~500 grads in 2016)
▪ 4768 grants for Call Center certifications (~600 grads 2016)

▪ Average monthly salary $4501 (bilingual tier1 agent)

B Cost ▪ Cost of electricity $0.16 KwH
▪ Average rent cost ~$18.00 Mt2

▪ Tax exemption (Decree 90-2012)

C Incentives ▪ Import exemption (Decree 90-2012)
▪ Hourly paid contract (Decree 354-2013)

▪ 1906 tech grads in Telco and Networking (2016)

▪ 575 tech grads in software development (2016)
D Pipeline
▪ 813 grads in computer engineering (2015)
▪ ~100,000 students enrolled in high school (2015)

1. Social charges not included. SOURCE: INE; Secretaría de Educación, Conatel, INFOP, Academias IT, Team Research 4
The main operating costs of the industry in Honduras are among the
lowest in the region

Monthly Annual Shift Schedule Daily Hours Weekly Hours

Position Avg Salary
Salary1 Salary1
Agent $450.00 $582.75 $6,993.00 Day 05:00 - 19:00 8 44
IT support Agent $750.00 $971.25 $11,655.00
Supervisor $700.00 $906.50 $10,878.00 Night 19:00 - 05:00 6 36
Floor Manager $1,075.00 $1,392.13 $16,705.50
Account Manager $2,500.00
Mixed < 3 night hours 7 42
$3,237.50 $38,850.00

Social Security Retirement Fund Training Fund Labor liability 13th and 14th
(IHSS) (RAP) (INFOP)
7.0% 1.5% 1.0% 4.0% 16%

SOURCE: Team research 1.Calculated with social charges contributions. SOURCE: Team research, Secretaría de
5
Trabajo y Seguridad Social
The main operating costs of the industry in Honduras are among the
lowest in the region

$850.00
$600.00 $650.00
$580.00 $500.00
Competitve wages

Honduras Nicaragua Guatemala

125% El Salvador Costa Rica
111%
100% 98% 100%

Internet cost @
$2796
$2,796

100MB

Honduras Nicaragua Guatemala El Salvador Costa Rica

$18 - $22
$16 -$19 $16 - $20 $15 - $19
$14 - $18

Average rent cost

Honduras Nicaragua Guatemala El Salvador Costa Rica

SOURCE: Team research. 6

The specific infrastructure for the industry in Honduras meets all the
necessary conditions for its growth

SOURCE: Team research. 7

The specific infrastructure for the industry in Honduras meets all the
necessary conditions for its growth

MAYA

TRUJILLO
PUERTO CORTEZ ARCOS

SAN PEDRO SULA

CATACAMAS PUERTO LEMPIRA

COPAN

DANLI
TEGUCIGALPA

GMT -6

OCOTEPEQUE TERRESTIAL FIBER

TO UNITED STATES
HONDURAS Flight time
Destination Flight Time Avg Price
MIA 2H 42M $400

LAX 4H 58M $510

JFK 4H 14M $ 670

International Airports
DFW 3H 9M $530

SOURCE: Team research. 8

The current talent availability for the industry in Honduras is among the
best in the region

San Pedro Sula

Metro area population: 754,071
City unemployment rate: 7.89%
Population growth: 2.18%
Native language/literacy rate: Spanish/95.2%
Labor force:
employed 306,780
unemployed 26,263

Tegucigalpa
Metro area population: 1,207,635
City unemployment rate: 11.7%
Population growth: 2.04%
Native language/literacy rate: Spanish/96.1%
Labor force:
employed 511,541
unemployed 67,661

SOURCE: Team research. 9

The current talent availability for the industry in Honduras is among the
best in the region

San Pedro Sula

# of higher education institutions: 215 bilingual institutions
# of bilingual grads per year ~3300
# of technical schools: 30 technical schools
Other languages supported English/Spanish

Tegucigalpa
# of higher education institutions:
# of bilingual grads per year
# of technical schools:
Other languages supported
199 bilingual institutions
~3,800 bilingual grads
29 technical schools
English/Spanish

SOURCE: Team research. 10

The industry saturation is low and new companies can benefit from the
best talent

Degree of concentration
▪ 95% of the BPOs are
serving USA markets
▪ 5% of the BPOs are
serving Canada and he
other markets

SPS
TGU
4

12
BPO activity is mainly concentrated in San Pedro Sula and Tegucigalpa.
Great scalability in both cities

SOURCE: Team research. 11

International companies already trust Honduras to host their operations
with great results

SOURCE: Team research. 12

The economic, political and social stability in Honduras is one of the main
factors of development

82% 79% 81%

75%
59%
Rate of Unlicensed
Software

Honduras Nicaragua Guatemala El Salvador Costa Rica

104 110
95 100
90
Overall
Infraestructure
Quality

Honduras Nicaragua Guatemala El Salvador Costa Rica

4.4
3.5
Inflation Rate % 2.7
2016
0.6 0.7

Honduras Nicaragua Guatemala El Salvador Costa Rica

SOURCE: BSA The Software Alliance, International Property Right Index, World Economic Forum. 13
The economic, political and social stability in Honduras is one of the main
factors of development

IN &

Change in WEF competitiveness ranking from

2014-2015 to 2015-2016
HONDURAS
COLOMBIA
MEXICO
GUATEMALA
COSTA RICA
PERU
NICARAGUA
WHAT EL SALVADOR
BRAZIL
Enhanced macroeconomic stability
Focused on efficiency, increasing labor
market1 flexibility and improving business
climate
Highly improved the country’s crime
indicators

1 National employment program per hour

SOURCE: Global Competitiveness Index (World Economic Forum). 14

The economic, political and social stability in Honduras is one of the main
factors of development

Annual exports
Millons of dollars

6% a.g. 8% a.g..
Export

138
128
120

2015 2016 2017

Jobs generated
Millons of dollars

38% a.g.
14% a.g.
Jobs

9000
5709 6489

2015 2016 2017

Source: BCH 15
Addressing crime rates has been a key pillar

Crime rate trend in Honduras

100 86.47 85.53
77.5 77.45
80 66.84 69.86
60.02 59.05
60
39.13
40

20

0
2009 2010 2011 2012 2013 2014 2015 2016 2017

Honduras vs Region
104.5
120 91.2

100

80
59.05

50.7
60

44.3
39.13

39

29.5
33

27.3
40
12.8
11.5

20
8.9

7.7

0
Honduras Costa Rica El Salvador Nicaragua Belize Jamaica Guatemala

2015 2016

Source: SEPORL , UNAH observatorio de la violencia, Instituto Igarapé 16

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