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Latin America has quick turn into a gorgeous vacation spot for nearshoring, attributable to its proximity to North America, time zone crossover, and rising but reasonably priced expertise pool. Nearshoring in Guatemala may very well be what your corporation is searching for.
One of many international locations in LATAM main the best way in nearshoring is Guatemala. It has the biggest financial system in Central America that continues to develop regardless of unsure international situations.
Guatemala has a dependable electrical energy system, a powerful manufacturing trade, and an rising expertise pool of younger bilingual staff.
These components make nearshoring in Guatemala an interesting possibility for corporations in 2023. This text will spotlight the various advantages of nearshoring, particularly for the IT, customer support, and tech industries.
We will even take a look at what questions you might want to contemplate earlier than nearshoring in Guatemala, for instance, what components are concerned in company formation in Guatemala.

What are the advantages of nearshoring in Guatemala?
There are lots of benefits on your firm to discover nearshoring in Guatemala. Beneath are 5 main advantages of nearshoring.
- Low labor prices
- Time-zone alignment
- Educated expertise pool
- Ease of doing enterprise
- US Govt coverage
1 – Low labor prices
Outsourcing might help companies cut back prices and save time, finally resulting in elevated revenue margins.
Creating and coaching an inner employees may be each costly and time-consuming, notably in nations with excessive labor and working prices.
For instance, an entry-level software program engineer within the US can count on to obtain a wage of about USD 99,000 per 12 months, whereas a Guatemalan software program engineer doing the identical function can count on to make round USD 37,500 per year. That equals an unimaginable value saving of effectively over 50 %!
Nearshoring in Guatemala additionally gives a decrease value of residing compared to main cities in america, Canada, or Europe.
2 – Time-zone alignment
Guatemalan staff have comparable work hours to their colleagues in america, Mexico, and Canada.
Since Guatemala is on Central Commonplace Time (CST), there’s a potential for as much as eight hours of synchronous work. This allows seamless workforce collaboration and eliminates any delays in undertaking completion.
It makes Guatemala the proper place to arrange a regional hub to be able to facilitate enterprise operations throughout Latin America.
3 – Educated expertise pool
Guatemala boasts a rising pool of tech expertise, with 16 universities in Guatemala Metropolis alone.
Amongst them, prestigious establishments corresponding to Universidad del Valle and Universidad Francisco Marroquin provide excellent enterprise schooling. Moreover, Universidad Galileo has gained worldwide recognition as one of many prime know-how faculties globally.
Guatemalan builders are each extremely expert and well-educated. As an illustration, Guatemalan expertise helped produce Duolingo and Lodges.com.
4 – Ease of doing enterprise
Within the World Bank’s Doing Business 2020 report, a rating system evaluates international locations primarily based on the convenience of conducting enterprise, Guatemala ranked forward of Brazil, Argentina, Ecuador, and Uruguay.
Guatemala welcomes international funding and there are only a few boundaries to foreigners beginning a enterprise there. For instance, there are additionally no restrictions in regards to the most proportion of international shareholders in a enterprise.

5 – US Govt coverage
The US Congress has launched two measures aimed at encouraging industry, manufacturing, and intraregional commerce.
These initiatives show an rising recognition of Latin America’s significance, notably Central America, for US geopolitical and strategic pursuits. Guatemala, particularly, is well-positioned to revenue from each payments.
In brief, the payments suggest preferential remedy on commerce, taxes, credit score, and a bunch of different privileges to incentivize the motion of essential provide chains nearer to residence.
Guatemala’s proximity to the US makes it primed to learn from these new legal guidelines.
Is Nearshoring in Guatemala proper for your corporation?
Earlier than continuing with nearshoring, it’s essential to contemplate a number of components and ask your self some necessary questions:
Is it troublesome to seek out native expertise?
If discovering workers in your present location is pricey or difficult, nearshoring in Guatemala could also be cost-effective. Working with a neighborhood accomplice may also save effort and time in recruitment and native compliance.
Are you snug with digital distant undertaking administration?
Nearshoring depends closely on digital connectivity, which can require a cultural shift in your group if your corporation sometimes depends on in-person communication.
What’s your general purpose?
Do you intend to rent full-time workers in Guatemala, or do you want tech expertise on a per-project foundation? This choice will influence the native employment laws you might want to work with. For instance, do you want an employer of document?
Is Guatemala the proper location for your corporation?
Whereas Guatemala is changing into a well-liked nearshoring vacation spot attributable to its ease of doing enterprise, different Latin American international locations additionally provide enticing choices with rising tech expertise swimming pools and potential value financial savings.
Biz Latin Hub can help you with nearshoring in Guatemala
At Biz Latin Hub, we provide a complete vary of market entry and back-office options in Guatemala, Latin America, and the Caribbean.
Our experience encompasses nearshoring in Guatemala, hiring and PEO, accounting and taxation, firm incorporation, and corporate legal advice.
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 assist cross-border operations and market entry throughout a number of international locations.
Contact us today to seek out out extra about our companies and the way we might help you obtain your corporation targets in Latin America and the Caribbean.
For those who discovered this text attention-grabbing, you’ll want to discover the rest of our coverage of the area. Moreover, you possibly can be taught extra about our workforce and skilled authors here.

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