Outsourcing to El Salvador

Why do companies consider outsourcing to El Salvador?

Outsourcing to El Salvador gives US and Canadian firms a nearby, bilingual, and cost-effective workforce in the same time zone.

• The country sits just a few hours from North America by plane.
• Its bilingual staff serve both English and Spanish-speaking customers.
• It uses the US dollar and shares strong cultural ties with the United States.

As more companies outsource work, they look for easier ways to hire and manage staff. Many now turn to nearshoring. Outsourcing to El Salvador is one popular option.

US tech companies have long relied on the viability of the Latin American countries for nearshore services. El Salvador, in particular, has become one of the most popular choices.

El Salvador has been in the industry for almost two decades. Still, the country has room to grow into a leading nearshoring destination. So let us look at El Salvador, why companies outsource there, and the top services on offer.

El Salvador as an outsourcing country

El Salvador sits south of Guatemala and Honduras. It is one of the smallest nations in Central America. Despite a long civil war, its outsourcing industry keeps growing.

The country also holds its own against its neighbors. It compares well in population, development, and ease of doing business.

The outsourcing industry started around 2004 to 2005. Dell and Sykes were among the first BPOs in El Salvador. As a result, these early firms created about 9,000 jobs for local workers.

The sector has grown steadily since then. Today, dozens of BPOs operate in the country, and many serve global clients. Most of these clients are in the United States and Canada.

More recently, the country has explored digital and financial technology to support its BPO sector. So several firms have invested in stronger infrastructure to make teams more agile and flexible.

El Salvador fast facts

Geographical placement

Among Central American countries, El Salvador is the only nation not on the Caribbean Sea.

Oldest capital city

El Salvador holds the oldest capital city in the region: San Salvador.

Economy

The country operates on a mixed economy system. So it blends private freedom with central planning and government rules.

English proficiency

El Salvador ranks in the middle tier of the English Proficiency Index. Still, its bilingual talent pool keeps growing.

Population

The country has around 6.3 million people.

El Salvador’s outsourcing competitors

As a growing destination, El Salvador can compete with the Philippines and India on cost. For services and other factors, it also holds its own against Latin American neighbors. So let us look at its main competitors.

Brazil

Brazil ranks among the top outsourcing hubs in the region. In fact, it is the main location for call center outsourcing in South America.

Brazil was named an IT outsourcing alternative to India. Its draws include a young workforce and a wide English-speaking population.

Puerto Rico

Puerto Rico is another IT outsourcing spot in the region. It benefits from easy access to the United States and strong cultural ties.

As a result, it has climbed the global rankings of top outsourcing destinations over the years.

Costa Rica

Costa Rica is a well-known nearshore and offshore destination. In fact, large BPOs such as Sykes and Concentrix have expanded there.

US firms also outsource to Costa Rica for its time zone fit and easy access to talent. Plus, cultural and language ties help.

Mexico

Nearshore manufacturing and IT in Mexico help businesses of all sizes.

Besides low labor costs, clients gain access to talent and low staff turnover. In addition, trade treaties with the US and Japan add value. For a closer look at regional options, see this comparison of Colombia and the Philippines.

Why businesses outsource to El Salvador

Central American nations, including El Salvador, are now strong outsourcing options. For one, the government started providing benefits to outsourcing companies. These include tax-free imports and tax exemptions.

Costs in the country also compete with top offshore hubs like India and the Philippines. In general, bilingual agents earn more than Spanish-only agents. Still, both cost far less than US-based staff.

Those who outsource to El Salvador also enjoy these benefits.

Cultural affinity to developed countries

The country has strong cultural ties with the United States. They share TV shows, pastimes, and work culture. Many Salvadorans have also lived in the US at some point.

The country uses the US dollar too. As a result, it is easier to transact with local businesses.

Bilingual services

Spanish is still the official language of El Salvador. Yet the number of English speakers keeps rising. They speak with a neutral accent, which helps communication.

So the bilingual workforce lets foreign firms reach a new market. As a result, companies can serve both English and Spanish-speaking customers. This is why bilingual call centers are on the rise across the region.

Easy access

Compared to offshore countries, El Salvador is only a two to four-hour flight from North America. So US and Canadian firms can reach their teams with ease.

This proximity also makes communication simpler. As a result, companies spend less on calls and tools, and they can meet in person when needed. Many pair this with wider outsourcing across Latin America.

Time zone compatibility

El Salvador’s location gives it a real time zone edge. The country runs on Central Standard Time (UTC-6), and it does not use daylight saving.

As a result, its workday lines up closely with US business hours. So teams can collaborate in real time throughout the day.

Popular outsourced services

Customer service

El Salvador’s top outsourced function is customer service. Call centers there can cost far less than US and European agencies. So foreign companies save a lot.

Agents also speak excellent Spanish and English. As a result, companies reach a wider market. El Salvador is popular for inbound support, lead generation, and sales support.

Software development

For software development, firms choose El Salvador for its proximity, stable infrastructure, and skilled talent.

Universities there offer strong IT programs. So the country produces well-trained programmers and developers each year. As a result, San Salvador has no shortage of skilled talent.

Project work also runs smoothly thanks to easy access and time zone fit. Nearby teams often deliver nearshore services with faster feedback loops.

Payroll

Companies often outsource payroll to El Salvador to streamline operations.

Professional employer organizations (PEOs) and payroll firms handle pay, tax documents, and compliance across countries. So their platform skills make the work more efficient.

Recruitment

Companies that outsource recruitment to PEOs in El Salvador get strong value. Firms that hire locally and remotely need help with compliance in many locations.

So instead of doing this alone, they let local firms manage it. As a result, PEOs handle job posts, screening, and filing for records, benefits, and taxes. Many firms combine this with EOR and PEO services for full coverage.

BPO companies in El Salvador

Many large and small BPOs run seats in the country. Most serve the United States and Canada. As a result, clients can outsource a wide range of services there. Here are some of the top BPO companies in El Salvador.

Uassist.me

Uassist.me provides BPO and virtual assistant services to small and medium businesses worldwide. Its edge is flexible, scalable bilingual teams.

The company also offers back-office and admin services. So it serves sectors like e-commerce, real estate, and legal services.

Accelerance

Accelerance is a global outsourcing adviser for tech startups. It focuses mostly on software development. As a result, it helps companies find providers, teams, and solutions for design and development needs.

Novatech

Novatech is a full-stack company that builds development solutions. It helps improve customer satisfaction through agile methods and clear communication. In fact, it has worked with Fortune 500 firms to build strong software.

Easybee Answering Services

Easybee Answering Services aims to offer a very cost-efficient live virtual reception service. It keeps a small team for each client to build familiarity.

The company believes this helps customers connect with each business. As a result, clients build stronger relationships.

Frequently asked questions about outsourcing to El Salvador

Is outsourcing to El Salvador cheaper than the Philippines or India?

Costs in El Salvador can compete with top offshore hubs. However, its main edge is proximity and time zone fit for US clients. So it often wins on nearshore convenience rather than the lowest price.

What languages do teams in El Salvador speak?

Spanish is the official language, and English use keeps rising. As a result, bilingual agents serve both English and Spanish-speaking customers.

What is the time zone difference with the US?

El Salvador runs on Central Standard Time (UTC-6). It does not use daylight saving. So its hours line up closely with US business hours all year.

What services are best to outsource to El Salvador?

Customer service, software development, payroll, and recruitment are popular. So the country suits both BPO and IT outsourcing.

How far is El Salvador from North America?

It is only a two to four-hour flight away. As a result, US and Canadian firms can visit their teams with ease.

Key takeaways

• Outsourcing to El Salvador offers a nearby, bilingual, and cost-effective workforce.
• The country uses the US dollar and shares strong cultural ties with the United States.
• Its Central Standard Time zone lines up closely with US business hours.
• Top services include customer service, software development, payroll, and recruitment.
• Leading BPOs include Uassist.me, Accelerance, Novatech, and Easybee Answering Services.