Derek Gallimore talks with Raul Acosta Moreno of La Cámara Paraguaya de Contact Center y BPO (CAPACC). Constituted in 2014, CAPACC is the main organization for BPOs and contact centers in Paraguay.
Indeed, offshoring has been booming in terms of its clientele and the countries that offer offshoring and outsourcing services to businesses worldwide. This is why in this episode, Derek and Raul will explore the potential of the Paraguayan outsourcing industry and its characteristics as a player in the Latin American outsourcing climate.
People slowly realize the advantages of offshoring and outsourcing services to both businesses and the countries that offer them. Aside from the clientele, an increasing number of offshoring destinations continue to rise within the years. One of these destinations is Paraguay.
In this episode, Derek Gallimore, Outsource Accelerator CEO and host of the Outsource Accelerator podcast, talks with Raúl Dario Acosta Moreno of the Paraguayan Chamber for Contact Centers and BPOs (CAPACC) about the Paraguayan outsourcing industry.
Raul juggles his work with Avanza along with his responsibilities in CAPACC.
The outsourcing climate in Paraguay
The outsourcing industry in Paraguay has “a high potential” for growth, which Raul implied was evident. This year, the sector “presented an average growth” of 12% compared to 2020, at the onset of COVID.
Per Raúl, contact centers and BPOs are part of the country’s service sector, contributing to more than 50% of Paraguay’s GDP. The industry represents more than 60% of the country’s employment, making it crucial “from an employment point of view.”
Raúl said the country “has a potential to stand out as a unique player” due to the following:
- Low labor costs
- An abundance of the workforce, with 95% of the population aging under 35 years old
- Strategic location, being in the center of South America and only a few hours away from key cities in the region
- Stable economy, having average historical inflation of only 4%
- Language compatibility with having Spanish and Guarani as official languages
- Strengthened regulations for data privacy and labor laws
He added that Paraguay is “not a perfect country,” but it has a great opportunity for growth in the Latin American region.
How CAPACC and Avanza contributes to the outsourcing industry
The Paraguayan Chamber of Contact Centers and BPOs (CAPACC) is a union that “brings together the main contact centers in the country.”
Currently, CAPACC has nine member companies, including Avanza Paraguay, Nexo, Recsa, Trainers, and Voicenter. Combined, the companies employ around 50% of more than 8,000 BPO employees in Paraguay.
The chamber focuses mainly on “promoting the expansion and development of the [BPO] sector,” which improves the creation of qualified jobs for the country’s citizens. They also collaborate with the national government in attracting foreign investments.
Mainly, Avanza provides outsourced services to companies within Paraguay and other countries such as Argentina, Chile, and Spain. They focus on the areas of retail, marketing, and human resource services.
Avanza Paraguay is one of the major contact centers in the country, employing more than 600 people.
The impact of COVID in Paraguayan outsourcing
Per Raúl, the outsourcing industry in Paraguay continued to increase “especially during strict quarantine measures” mid-last year. Some of the top sectors that tapped the location include health, banking, and telecommunication.
Compared to other outsourcing destinations, most Paraguayan BPO employees during COVID “are working in the office.” Raul mentioned that the “bad part of the pandemic” struck them around five or six months ago, though they are in good condition now.
He added that technology increased while physical contact decreased during the pandemic. Clients not only asked about their BPO’s workforce size but also their certifications in several fields.
In terms of automation, Raúl still sees the importance of human capital “the same way [BPOs are] necessary to carry out customer service.” He said that customers “are looking to talk to other people” for their concerns.
For him, being able to interact with a real agent “shows that the company is focused on serving [customers].”