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By Manfred Kissling President Occidental Business Services Outsource World New York October 2006 The Costa Rica Business Case
By
Manfred KisslingPresident
Occidental Business Services
Outsource World New YorkOctober 2006
The Costa Rica Business Case
OCCIDENTAL BUSINESS SERVICES S. A.
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Offshore Outsourcing & Costa Rica
OBS
OCCIDENTAL BUSINESS SERVICES S. A.
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Why COSTA RICA…The NEARSHORE AlternativeThe NEARSHORE Alternative
A Pro Business FocusA Pro Business Focus Stable political and business culture (Nobel Peace Price) Reliable and trustworthy legal system Western culture and values Costa Rica’s track record in BPO & Call Center:
Business EnvironmentBusiness Environment Very competitive economy (Global Competitiveness Index 2006) CAFTA signatory
– Guarantees market access on current conditions should the US start taking protectionist actions
– Strengthens international legal framework to reduce corporate risk– Ratifies economic standards between USA and Costa Rica– Further increases assurance of Intellectual Rights
Fiscal Incentives
Source: PWC, CINDE, PROCOMER
OCCIDENTAL BUSINESS SERVICES S. A.
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Why COSTA RICA…The NEARSHORE AlternativeThe NEARSHORE Alternative
PeoplePeople Availability of highly skilled labor force Educated in bilingual skills: English and Spanish Strong work ethic (labor law, workforce attitude)
Cost of Doing BusinessCost of Doing Business Low labor costs – wages 40%-80% lower than U.S. Very easy access: Direct daily flights from a number of cities in the
US and Latin America (just 2 ½ hours from Miami) Costa Rica standard time follows CST and MST = real time response
InfrastructureInfrastructure Highly reliable telecom infrastructure (2 submarine cables on
Caribbean and 1 on the Pacific) World class tourist destination and Internationally ranked
accommodationsSource: PWC, CINDE, PROCOMER
OCCIDENTAL BUSINESS SERVICES S. A.
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Offshore Outsourcing & Costa Rica
OBS
OCCIDENTAL BUSINESS SERVICES S. A.
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Company Bios *
Founded: 1999 Headquarters: Costa Rica, where it
operates 2 sites. Offices: All Central America and
Dominican Republic Sales 05 $1.2M. Budget 06 $2.3M Headcount: 120 people
* Combined Latin American and US market operations
OCCIDENTAL BUSINESS SERVICES S. A.
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CUSTOMERS
OCCIDENTAL BUSINESS SERVICES S. A.
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CORE SERVICES…
SALES & LOGISTICS Processes:– Sales Research and Outbound Telemarketing– Inbound Telemarketing and Logistics– Customer Support
OPERATIONS Processes:– Research, data collection and analysis– Analysis and conversion of data into processed
information– Data entry and Forms processing
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Manfred KisslingPresident
Occidental Business ServicesPhone: (800) 531-4055
Email: [email protected]: www.obsamericas.com
T h a n k s !
OCCIDENTAL BUSINESS SERVICES S. A.
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Costa Rica: +0hrs Egypt: +8hrs India: +11hrs
OCCIDENTAL BUSINESS SERVICES S. A.
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Country/Economy 2006 Rank 2005 Rank Changes 2005-2006
Switzerland 1 4 3
United States 6 1 -5
Canada 16 13 -3
Chile 27 27 0
India 43 45 2
Costa Rica 53 56 3
China 54 48 -6
Mexico 58 59 1
Brazil 66 57 -9
Philippines 71 73 2
Global Competitiveness Index 2006 and 2005 comparisons
OCCIDENTAL BUSINESS SERVICES S. A.
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OCCIDENTAL BUSINESS SERVICES S. A.
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POPULATION
Age Structure by GenderAge Structure by Gender
12108642024681012
0-9
20-29
40-49
60-69
80+
Percentage
Female
Male
Population to July, 2006:Population to July, 2006: – 4.33 million– 34.2% of population is 15 to 35
years old
Labor force 2005: 1.8 millionLabor force 2005: 1.8 million– Unemployment, July 2005: 6.6%– Underemployment, July 2005: 8.4%
Universal Health Care and Universal Health Care and Education SystemEducation System
– Pillars for the national stability– 6.5% of the GDP’s destiny is for
education
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EDUCATION
Universal, free and compulsory education since 1870 (the first in Latin America)
Computer labs in 18% of the public schools and 82% of public high schools
English teaching in 38% of public schools and almost all of private schools
92% of high school students will present graduate English test
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EDUCATIONAL INSTITUTIONS
Training centersTraining centers– Technical High Schools (89)– University Foundations– INA: Free on-site technical training – CEFOF: Center for training trainers – CENFOTEC: Software training
Universities, 56 (52 private, 4 state)Universities, 56 (52 private, 4 state) – Including HBS/INCAE (#10 in the International MBA schools ranking
according to The Wall Street Journal Guide to The Top Business Schools 2006)
