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Mar 14, 2009


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The number of FTEs in the Guatemala outsourcing industry is growing at a fast pace - evidence that an increasing number of foreign companies are taking advantage of the ripe conditions. For more insights go to my recent post at Caribbean CRM Central:

I don't agree with the nearshore argument - I think thats just a cop out. Process should go to where its done best irrespective of specious arguments like time zones, distance etc. Guatemala should, and will, score because it can do something better; not because its 3 hours from the US.

Guatemala will be a good sourcing location as soon as they get their labor issues under control. They have a good skilled labor pool that produces a good quality product. But Guatemala has been mired by complaints of union busting and threats to its labor leaders. However, since they joined Dr-CAFTA they have been making strides in fixing that particular problem.

I think that in addition to Costa Rica, Guatemala is most likely the most stable place for outsourcing in Central America. I do suggest that you fully investigate the factory for financial stability, including making sure that they are paying their social security contributions. It is important to check with a labor expert that can contact the various labor unions to see the types of grievances that may be filed against the plant.

Another thing to look at is whether or not the plant that you choose has the capacity to fill the orders with out having to subcontract the work. Labor violations to DR-CAFTA are often committed by hidden out side plants that have been contracted produce the overflow.

Jorge de Tuya

Have you checked on places like the Dominican Republic or Trinidad an Tobago. Someone from Trinidad and Tobago once mentioned to me that they were looking for company's interested in building their offshore centers there and that the govt. was more than willing to oblige with subsidies and any assistance.

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