Honduras is a Central American country with Caribbean Sea coastlines to the north and the Pacific Ocean to the south. It is the second largest country in Central America and a popular tourist destination due to its beaches, coral reefs, and archaeological sites. Honduras now ranks third in Latin America and thirty-third globally on the 2024 EF English Proficiency Index, further enhancing its appeal as a reliable destination for Business Process Outsourcing (BPO). With over 20,000 agents working in contact centres, the country has earned a reputation as a dependable delivery market for inbound and outbound BPO services.
Honduras has a population of 10.5 million people and has been growing by 1.5% per for the past few years. The GDP of Honduras is U.S. $31.72 billion and has been growing (3.5-4%) since the pandemic. Honduras is a stable geography and the local BPO market has grown since the pandemic. The capital city of Honduras is Tegucigalpa which is set in the mountains 3,200 feet above sea level. Tegucigalpa is famous for its well-preserved Spanish colonial architecture and is now a centre of BPO activity. Spanish is the official language of Honduras; a substantial number of Honduran professionals and business executives are bilingual speaking Spanish and English. English is commonly spoken in the Bay Islands which are a tourist hot spot.
The education system in Honduras has a similar structure to the United States. However, all subjects receive instruction in Spanish, while English serves as a secondary foreign language. Honduras has 12 universities, 8 of which are in the capital city, Tegucigalpa. Each year, hundreds of graduates enter the workforce with training in fields related to IT and customer service. Initiatives from the government and private sector, like Bilingüismo para el Empleo, aim to improve the English proficiency and technical skills of young Hondurans. These programs aim to improve English language capabilities to reach at least 50% of the urban youth by 2030, creating a larger, bilingual talent pool suited for BPO work. Strong cultural affinity with the United States and international tourism provides an abundance of bilingual agents for the BPO market.
Ramon Villeda Morales International Airport (IATA: TGU, ICAO: MHTG) also known as La Mesa International is the largest airport in Honduras. Located 11 kilometres southeast of the city of San Pedro Sula, it handles 1.2 million customers annually. In 2021 Palmerola International Airport (PIA), opened to replace the heavily congested and ageing Toncontin airport. Flight times from the United States vary depending on the city of departure but are around 3 to 5 hours with direct flights available from Spirit Airlines, American Airlines, Delta, United Airlines and many others. Plans to build a rail network are gaining momentum with the government proposal build a coast-to-coast network. Honduras has an abundance of instantly recognisable international hotel chains with budgets to suit all business travellers.
The telecom services market size in Honduras was valued at $900 million in 2022 and the market is expected to grow at a CAGR of 4.2% during the forecast period, 2022-2027. The government’s national broadband plan to boost broadband connectivity in the country will be one of the key drivers supporting the Honduras telecom market growth. Honduras has 2 main mobile operators, Tigo and Claro. The latest data shows 76.7% of the population have a mobile phone connection with Ookla giving average download speeds of 31.45 Mbps. Broadband is available in the major cities with downloads of 47.18 Mbps. Honduras benefits from 3 submarine data cables giving the highest redundancy in LATAM. The NHN1 data centre is in the capital city Tegucigalpa on Boulevard Morazan.
The government of Honduras has prioritized the growth of the BPO industry by implementing supportive policies, providing tax incentives, and investing in education and infrastructure. Honduras has established Zonas Libres, or Free Zones, such as Altia Smart City, with favorable labor laws that provide support to BPOs. Additionally, laws like the Ley de Empleo por Hora (Hourly Employment Law) allow BPO companies to manage seasonal peaks by hiring part-time or temporary staff more easily. Programs like Honduras 20/20 aim to improve young Hondurans’ employability through English language, customer service, and IT training. The Honduran government has collaborated to support the creation of UNITEC, the Central American Technology University. With more than 10,000 annual student enrollments, this initiative supports local graduates in joining the BPO industry.
In 2004, KM2 set up the first international BPO in Honduras, and that has grown to 14 domestic and international BPOs today. In 2010, Altia Smart City was opened in San Pedro Sula. Technology-powered and built on sustainable values, Altia Smart City is a pioneering ecosystem that positively impacts the lives of thousands of people and their communities, all while protecting the environment over the long term. The Honduran BPO industry has experienced growth of around 8% annually over the past five years, with over 30,000 direct jobs in the sector as of recent years. With strong bilingual capabilities and up to 50% cost savings compared to the onshore United States, it’s easy to understand why Honduras is growing in popularity as a BPO destination.
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