Outsourcing in Chile: There is quite a big chance that you are also one of those who doubt the potential of Chile in service providing especially outsourcing.
Looking for a suitable destination to outsource some of your business’s work and are stuck in the race of Europe and Asia? If your case is like this or anything close to this, you need to leave that part of the world because South America is extremely underrated in this section. When talking about South America, Chile is probably the biggest outsourcing (mostly BPO) market in that region of the planet.
There is quite a big chance that you are also one of those who doubt the potential of Chile in service providing especially outsourcing.
Only for that reason, we are here to unleash the world of wonders in a rather obscure country (geographically).
In this article, we’ll be talking about every aspect of outsourcing in Chile along with the detailed understanding of different sections of outsourcing including HR, Accounting, Marketing, AI, and IT. So, let’s jump into the country of curiosities:
Complete Introduction to Outsourcing in Chile
Chile, the world’s thinnest and longest country doesn’t need any introduction. But the problem is that people know about its eastern range more than its service-providing industry. What a shame!
Even many big businesses don’t realize how good of an outsourcing industry Chile is. You can get an idea of it by knowing the BPO (business process outsourcing) market revenue of Chile.
According to an authentic source, just in 2023, Chile’s BPO market is projected to make more than 500 million USD which is amazing for a South American country where not many people pay attention.
Reasons behind the Success of Outsourcing in Chile
Chile is evolving every day as an outsourcing destination. When we only talk about BPO market, it’s getting bigger and bigger at a growth rate of 5.39% CAGR 2023-2028).
It means that the revenue of this section of outsourcing in Chile will be no more or less than 650 million USD by 2028 (if things go according to the plans). So, let’s understand what’s behind this splendid success:
Nearshoring
Nearshoring is a type of outsourcing in which companies outsource their work to agencies or individuals near them instead of moving to another part of the world.
For example, most companies in the UK outsource their work to Irish capital Dublin. Just like this, big companies from countries like Brazil and the US decided to outsource their tasks to Chile instead of expensive or distant destinations. This played a great role in evolution of Chile as an outsourcing industry.
Advance Technologies
Arguably the most underestimated thing about Chile is that it is quite well-developed and filled with advanced technologies that people and businesses use in daily life.
When companies from neighbouring countries first came to Chile, they weren’t expecting advancement in tech industry. But when they explored the country, they attracted many other companies as well. From small start-ups to big companies, everyone is interested in investing in Chile for that reason.
No In-house Issues
This benefit is generally associated with outsourcing industry itself. No country is credited in this case, but Chile is different. It has many more benefits related to this thing when compared with other outsourcing destinations.
You no longer have to pay extra rent for employees for workplace. That’s a general benefit of outsourcing but when you do it in Chile, you won’t have to manage full-time team, you won’t have to give insurance and stuff, and your employees will take care of everything remotely from their homes.
Things to Understand Before Leaping into Outsourcing in Chile
If it’s your first time leaping into outsourcing or it’s your first time doing it to Chile, you must never just start working without discovering and understanding a few things completely such as:
Local Business Culture
Every country has a different atmosphere of business. That’s why some of the biggest companies in the US have even failed in other countries due to lack of information about local business culture.
For US-based companies, South America has been the most difficult place only because they think that South America is just like North America but the reality is completely opposite. So, research properly before doing anything.
Laws and regulations
Just like business culture, laws and regulations are also different in every country. There is a chance that an illegal thing according to Chilean government can be completely legal in business in the US.
So, be always aware of stuff like tax details, cybersecurity, and government legislation by following official law sites. A few other laws you need to take care of are:
- If you outsource anything to Chile, you won’t be the one with authority (related to law) there. You will have to follow every law of the Chilean government and outsourcing firms.
- Chile also has laws for the transfer of any employee or company task so you’ll have to follow them as well.
- While sharing personal data, be aware of laws related to this and always choose a reputable outsourcing firm or agency. Because people have been blackmailed in past.
After completely introducing outsourcing in Chile to you with some insight into its successful journey, it’s perfect time to leap towards overview and benefits of different departments of outsourcing like AI, HR, Accounting, IT, and Marketing.
HR Outsourcing in Chile
HR management is not a 9-to-5 job especially when it comes to remote or freelance work. That’s why you have to go for a country whose time zone is close to yours.
In Chile, time zone is exactly same as the New York.
Benefits of HR Outsourcing in Chile
English Speakers
In HR department, it’s always better if your employees and HR managers speak the same language. And more than 1.8 million people of Chile are fluent in English which is one of the best in Latin America. It means that you can’t get any better HR outsourcing options in South America.
Stable Country
In HR department, you can have situation where you have to contact the HR manager or consultant anytime. But doing this is kind of impossible in an unstable country because there can be any internet breakdown or political unrest anytime, but Chile is stable. Even, Chile is ranked as one of the most crime-free, drug-free, and stable nations in Southern America.
Accounting Outsourcing in Chile
Accounting outsourcing in Chile is also a quite complete industry. The only thing we’ll recommend you here is that going for reputable outsourcing firm is always better than any individual for safety of your confidential information even if you have to pay extra.
Benefits of Accounting Outsourcing in Chile
Data Security
Stability of Chile as a nation is quite commendable in Latin America. The government of Chile has created many policies to save your personal data while working with someone who’s a complete stranger to you. But you must be aware of laws and policies every time.
Cost Saving
The cost of living in Chile is way less than in the US. For example, according to a reputable source, monthly expenses of an average Chilean household are worth $1175.86 USD per month. And on average Chileans earn no more than 1.4k USD.
In the US, on average, people earn more than 54k USD per year, which means they earn more than 4.5k USD per month. Any labor in the US earns more than any skilled and educated employee in Chile. It implies that Chile is four times less expensive than the USA for you.
Marketing Outsourcing in Chile
Marketing outsourcing is a kind of outsourcing that gives different experiences in every country due to several reasons.
But the biggest reasons are different mentalities of people and different business cultures.
Benefits of Marketing Outsourcing in Chile
Knowledge of the Region
If you want to target the consumers of Latin America for your business, you have to hire workforce from the same region. Because they know what people of that region want and how they’ll be influenced by you, and in that case, Chile is almost perfect!
New Marketing Methods
Marketing is no longer just telling people about your business and asking them to buy your stuff while standing on the road with a board. Marketing has become more of an online thing. Due to that, many people think that South Americans might not be the good fit because they are way behind the US in online trends. But it’s just a myth because Chilean people know local marketing as well as your favourite (digital) marketing.
AI Outsourcing in Chile
AI outsourcing has become a need of hour for every company on the planet. That’s why it’s always good to find a country that has skilled people but they don’t charge super amount.
Yes, Chile is that country!
Benefits of AI Outsourcing in Chile
Developing AI Industry
Many people don’t believe but Chile is among the big fishes of AI that are ruling AI on the planet. AI industry in Chile is growing at extremely fast rate and it is expected to reach a massive amount of 655 million USD.
Educated Individuals
Literacy rate of Chile (96.4%) is more than usual literacy rate of Latin America (93.9%). Moreover, more than 21% of the country’s GDP comes from education sector. Moreover, there are whole bunch of Chilean universities that are among world’s one of the best universities. Hence, it’s not difficult to find AI experts in the country.
IT Outsourcing in Chile
Being the biggest outsourcing market, IT outsourcing also hit hard Latin America and it was a blessing for Chile because Chile already had a great tech infrastructure.
Many big businesses and small start-ups came here and decided to stay here for long only due to that reason.
Benefits of IT Outsourcing in Chile
Tech Industry
In less than a decade, Chile has advanced amazingly in tech industry. Before 2010, no big company was interested in Chile’s tech world. But now big fishes like Google, IBM, and Cisco have proper businesses in Chile.
Successful Industry
IT outsourcing in Chile is even bigger than BPO market on this Latin American nation. According to Statista, IT outsourcing market of Chile made a whopping revenue of 583.50 million USD just in 2023.
Moreover, this growing industry is expected to grow even more. It will reach a great annual revenue of more than 1 billion USD by 2028. It means that IT outsourcing will grow at a superb rate of 12.25% (CAGR 2023-2028). And this is not it!
The best part about this market is that you won’t have to pay massive amounts to talented people to get IT services. According to reports, on average, you’ll just have to pay 59 USD per employee in 2023.
FAQs
Should I visit my outsourcing team in Chile?
Well, it’s quite a wide topic to discuss, but shortest answer to it is ‘Yes.’
There can be many reasons behind that but if there is a doubt in your mind and you have budget, go for it. Here are some common reasons why people prefer meeting their outsourcing team before starting work:
- Generally when outsourcing to a new country.
- To understand the working of outsourcing team properly.
- You can’t trust anyone before meeting them.
- It’s your first time outsourcing as a big company.
If you also have any of these reasons, it means you have proper right to meet the vendor or team.
Can I outsource both back-office and front-office functions in Chile?
Yes, you can and we would always encourage you to do it!
Chile has a proper business-friendly infrastructure that has helped many businesses before and you should also make hay while the Sun shines. Chile’s talented workforce is capable of handling both back-office and front-office tasks.
Is Chile altogether a safe country for outsourcing and business?
Yes!
Whenever we talk about South America, first thing we think about is crimes like drug dealing. Well, that’s somewhat true but Chile is termed as (arguably) the safest South American nation. Politics, business, and general safety of Chile of up to the market and attractive towards new foreign investments.
Conclusion
In the end, you can say that Chile is one of the best outsourcing nations, especially near the US, and just like any other outsourcing destination (on the planet).
Chile also has some risks and measurements that need to be taken care of. Otherwise, it’s an amazing option!
Find more resources about outsourcing:
Outsourcing Information Technology
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