When most people think about Costa Rica, they picture gorgeous beaches, delectable coffee, or breathtaking tree-top ziplines. But there’s more than just adventure and relaxation to be found in the Central American wonderland.
Thanks to a stable government that supports economic growth and social development, Costa Rica has become an attractive nearshoring location for businesses and foreign investors.
We’ll examine the factors that make nearshoring in Costa Rica attractive, including which roles to outsource. We’ll also review potential partners that can help you access Costa Rican talent.
What Makes Costa Rica a Great Place for Nearshoring?
Costa Rica has become an ideal location for nearshoring. If you’ve not come across the term “nearshoring” before, it is a type of outsourcing. Companies that nearshore outsource work to third parties (companies or independent contractors) in nearby countries that share a border or are located within the same region. It combines the cost-effectiveness of offshoring with the additional benefits that geographic proximity and cultural affinity offer.
Here are five key reasons that solidify Costa Rica’s standing as a popular nearshoring destination:
Time zone compatibility
Costa Rica operates on Central Standard Time (CST), making it an ideal partner for US businesses looking to coordinate in real time with an outsourced team during business hours.
As one of the major advantages of nearshoring, time zone alignment facilitates smoother communication and collaboration and immediate responses to any issues or needs that arise.
Booming IT services market
The market for IT services in Costa Rica has been showing consistent growth, thanks to a robust and developing tech sector. According to Statista, the market value has increased from $246 million in 2020 to $327 million in 2023, with projections reaching $507 million by 2028.
This growth signifies an expanding tech talent pool and services that international companies across industries can tap into.
English proficiency
Language barriers can create significant challenges in outsourcing. Costa Rica’s workforce has a high level of English proficiency, ranking 3rd out of 20 Latin American countries. This proficiency facilitates clear communication for business negotiations or complex projects.
Stable business environment
The Costa Rican government proactively promotes foreign investment and creates a favorable business environment. The country’s political stability, solid legal framework, and incentives for foreign companies contribute to an excellent climate for nearshoring.
The Costa Rican Investment Promotion (CINDE) is a private non-profit that works to attract foreign investment and well-paying jobs to drive the sustainable development of Costa Rica’s economy.
Educated workforce
Costa Rica, with it’s strong emphasis on education, has a high literacy rate and a highly skilled workforce. With numerous universities and technical institutes, the country has a constant influx of new skilled talent joining the workforce.
In addition to those five key advantages, when nearshoring to Costa Rica, you can enjoy shorter travel times for business meetings, protections under trade agreements like the Central America Free Trade Agreement (CAFTA), and cultural similarities that make business integration smoother.
What Roles Can You Outsource to Costa Rica?
Costa Rica’s growing economy and emphasis on education have created a labor force capable of handling a variety of specialized roles. Here are some of the sectors that are ripe for nearshoring to Costa Rica:
- Information technology: With the IT services market flourishing in Costa Rica, you can outsource various technology-related tasks, including software development, mobile app development, cybersecurity, and IT support services.
- Customer service: Costa Ricans’ high level of English proficiency makes them excellent candidates for customer support roles. Companies often set up call centers or customer service hubs to cater to their US customer base.
- Digital marketing: You can benefit from the emerging pool of digital marketing professionals in Costa Rica who are adept at SEO, social media management, content creation, and data analysis to drive marketing campaigns.
- Engineering and design: Costa Rica has a well-represented engineering sector, including industrial, mechanical, and electrical engineering. Design services, including web and graphic design, also offer a growing field for outsourcing.
- Accounting and financial services: Financial processes such as accounting, bookkeeping, compliance, and tax preparations are commonly outsourced to Costa Rica due to the availability of skilled financial professionals.
- Human resources and administration: Efficiently managing HR and administrative tasks is possible with Costa Rica’s proficient administrative workforce.
- Research and development (R&D): Companies interested in innovation can tap into Costa Rica’s R&D capabilities, particularly in sectors like agribusiness, biotechnology, and environmental sciences.
- Legal services: Nearshoring legal processes like research, contract management, and compliance can offer cost savings while ensuring that the work is performed by qualified professionals.
- Healthcare services: Thanks to high standards, outsourcing healthcare services, including back-office operations, medical transcription, and billing, is a growing sector.
- Supply chain and logistics: With its strategic location and strong trade agreements, Costa Rica has become a hub for managing supply chain activities, including procurement, inventory management, and distribution logistics.
Best Companies To Partner With When Nearshoring to Costa Rica
When selecting a partner for nearshoring in Costa Rica, businesses should look for companies with a strong local presence, experience in international collaboration, and a proven track record.
Here are some of the top options (in no particular order):
Near
Yes, we’re putting ourselves first. At Near, we’ve established solid relationships with Costa Rican institutions and talented professionals to give our clients access to top-tier candidates across various industries.
We pride ourselves on acting as a full-service staffing agency capable of sourcing, hiring, and onboarding the highest caliber of talent for your business needs.
Whether you require IT specialists, customer support teams, or skilled professionals in digital marketing, Near can seamlessly integrate skilled Costa Rican professionals with your operations, making them a part of the team in under 21 days.
Tecla.io
Tecla.io is a prominent recruitment company connecting businesses with top software developers and design talent in Latin America, including Costa Rica.
Recognized for their ability to understand the specific technical needs of their clients, Tecla.io uses a thorough vetting process to ensure that companies receive skilled individuals and teams that are tailor-fit to their project requirements.
With expertise in the tech industry and a commitment to providing quality candidates, Tecla.io is a go-to partner for firms looking to nearshore their development and design efforts.
Biz Latin Hub
Biz Latin Hub is a comprehensive business solutions provider that supports companies entering or expanding within the Latin American market. Offering a unique blend of bilingual legal, accounting, and back-office services, they excel in helping businesses navigate the local regulatory landscape and streamline their operations.
By leveraging their local expertise and professional network, Biz Latin Hub ensures a smooth transition for companies looking to nearshore in Costa Rica, encompassing a range of professional needs from legal compliance to tax advisory.
Final Thoughts
Costa Rica is an outstanding nearshoring destination, blending stability, expertise, and strategic benefits. Whether it’s scaling your tech team, enhancing customer service, or streamlining your back-office operations, there’s undeniable value available.
If you’re eager to explore the potential of this vibrant country and want to ensure you’re making the right moves, we’re here to help. From finding talent to devising competitive salary offers and even taking care of salary disbursements, partner with us for end-to-end support.
Many of our clients are already reaping the rewards of nearshoring in Costa Rica. Book a no-commitment consultation call to learn how you can, too.
