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Advantages of outsourcing to OBS - Costa Rica
In the very competitive
environment that faces companies in most industries
today, companies have to focus and stretch their
resources on their Core Competences to remain
competitive. In addition to the constraint of
resources, other activities that may be performed
by a company may keep the focus of executives
away from mission critical activities.
In addition a company
can shop around for different alternatives when
outsourcing with the purpose of finding the
best suitable option.
When companies
outsource a service, it moves from a fixed cost
into a variable cost structure, it also allows
a company to increase or decrease quantity and
quality of services provided, according to its
needs, and business cycles without having to
go thru reorganization.
The key reason
for the explosive growth, high potential and
the very dynamic momentum of Outsourcing is
because the competitive pressures are forcing
corporations to lower their costs. Years ago
Outsourcing was a comparative advantage to the
companies that pioneered it, however today is
necessary to do offshore outsourcing just to
remain competitive.
Some
advantages that companies can access by outsourcing
to OBS are:
| 1 |
Highly skilled, educated
and flexible labor force necessary to archive
complex customer requirements and customer
satisfaction. |
| 2 |
Low labor costs – wages 40%-80%
lower than U.S. |
| 3 |
Costa Rica’s track record in Business
Process Outsourcing with brand names such
as INTEL, P&G, BAXTER, IBM, HP, MAERSK,
Western Union operating from the country |
| 4 |
Very easy access: Direct
daily flights from a number of cities
in the US and Latin America. Located 2
½ hours from Miami, and US citizens
can enter the country without visa or
passport, just with a picture Id. This
allows very easy and inexpensive customer
care, personnel training, audits, the
will have an ever growing importance as
of the Sarbanes-Oxley Act. |
| 5 |
Costa Rica’s culture neutrality.
Being a small country, so close to the US
and not having an indigenous population
resulted in an adoption of American culture
into Costa Rica. |
| 6 |
Highly reliable telecom infrastructure
(along with 2 submarine cables and soon
a 3rd) and world class accommodations. |
| 7 |
Political stability and stable and secure
business environment. |
| 8 |
Stable and trustworthy legal system. |
| 9 |
Very competitive Economy (World Competitiveness
Forum Ranking) |
| 10 |
Costa Rica standard
time is the same EST and CST when the
US starts its daylight savings time. |
| 11 |
A Free Trade Agreement
with the United States. Some of the advantages
are:
| a |
Warranties market access on current
conditions should the US start taking
protectionist actions. |
| b |
Strengthens legal framework to
further reduce country risk. |
| c |
Integrates both economies US and
Costa Rica together.
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| d |
Further increases assurance of
Intellectual Rights |
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