El Salvador is an attractive option for contact centers, technology services, and software development in the region. Many foreign and local companies are starting their operations in El Salvador, and key actors in the BPO sector are adding ITO activities to their local business.
El Salvador is appealing because of its competitive advantages as a platform for exporting BPO (Business Process Outsourcing) and ITO (Information Technology Outsourcing) services.
The Financial Times fDi Intelligence, in its publication: Cities of the Future 2019/20, positioned San Salvador among the most cost-effective cities on the continent.
The dynamism of the technology services industry has translated into a growing number of new jobs:
Salvadoran talent is a crucial factor
The availability of a qualified, motivated, and productive human resource is a critical factor for the investor when evaluating their options.
The SVDIgital study highlights that the availability of skilled labor is the most important factor for locating projects in the IT services, software development, and customer contact center segments.
Salvadoran workforce stands out for its productivity and commitment
The same SVDigital study highlights that Salvadoran workers are considered valuable in their dedication to work, responsibility,, and ethics, which translates into good productivity and low turnover.
The companies established in the country certify that the Salvadoran workforce distinguishes for its perseverance, efficiency, and work ethics. 54.3% of the labor force is under 40, making it a predominantly young and highly productive country.
Some investors list the workforce as one of the most outstanding globally.
Sagar Rajgopal, Co-founder and COO – of BPO Ubiquity Global Services says:
“ A rigorous study, convinced us that El Salvador was the right place for economic reasons and because of the people, who have unparalleled energy and work ethics.”
Operators of the IT industry indicate that companies from Costa Rica, Colombia, or Canada come to El Salvador to recruit those trained technicians due to their high productivity and level of commitment and responsibility.
Technical and technological education of El Salvador
To meet the growing demand for specialized human resources, the education system is graduating a ever increasing number of specialists in information and technology.
Additionally, vocational-technical training options have increased through programs sponsored by the private sector and NGOs that seek to provide students with the tools required by the labor market.
The country has educational institutes that offer careers in computer engineering, video game development, database management, systems, and telecommunications, as well as technical studies in these areas.
Currently, El Salvador has more than 15,000 students enrolled in careers related to information technology and with 2,200 technical and professionals graduating in this field each year.
The Salvadoran Institute for Vocational Training (INSAFORP, per spanish acronym) is an autonomous government agency that seeks to meet the needs of human resources, as long as they are qualified in the productive sectors of the country.
This Institute promotes financing plans and comprehensive professional development, to adapt the working population to the needs of the labor market.
The positive work environment in companies in El Salvador
Investors rate El Salvador’s legal and regulatory framework as adequate and positive. El Salvador’s Labor Code balances the protection of workers’ rights with the flexibility that companies require to run their businesses and create jobs.
El Salvador is characterized by good relations between companies and employees, thus the degree of unionization and strikes are low in El Salvador.
Average Salary for the Technology Services Industry
El Salvador has very competitive labor costs in Central America, which, together with the high productivity of Salvadorans, position the country as an attractive option for investors in technology services.
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