News

As Panama continues to grow as an important international business center, it’s interesting to see the diversity of industries and business taking root in the country. A good example: is business process outsourcing (BPO).

A recent article in Nearshore Americas points out that Panama is a well-established player in the BPO industry. After years of ebbs and flows, the market recorded double-digit growth in the country from 2020 to 2021, and analysts are optimistic about the near-term future of those numbers, the publication reports.

“Once more, Panama’s in the conversation for the next regional BPO hotspot,” the author writes.

While many of us may not know much about BPO — the industry focused on external providers providing services for businesses — it is the type of business that finds Panama a perfect location. And it’s a growing international business, which will bring a consistent flow of jobs and highly-paid executives to Panama City for years.

“Panama is known today among BPO operators as one of the most mature markets in the region,” according to the article. “The Central American country garnered fame as a viable option for investment due to its political and economic stability, infrastructure, English-speaking workforce, use of the dollar as official currency, convenient time zones, and its cultural alignment with the US. These and other perks have sweetened Panama in the eyes of companies that want to ease their way into outsourcing their business operations.”

That is true in many industries and BPO companies have been taking full advantage. The business has been growing at a rapid rate, thanks in part to the pandemic, technology, and a growing focus on outsourcing. The industry is connecting with various industries that also have operations in Panama, and the list is expanding.

“Traditionally, Panama saw a slew of companies coming from telecom, tech, real estate, and retail,” the article says. “Now, buyers are coming from industries as varied as health, manufacturing, and media/entertainment.”

Companies see Panama as an attractive destination for BPO investment. The government has been working to grow the industry as a source of jobs and continued growth. BPO also fits with the country’s growing fintech environment.

“There has also been a wave of what is known in the industry as “digitally born” clients, which include fintech and other sorts of companies that bet on innovation and technological disruption,” the article notes. “For all these, Panama stands as a perfect “gateway” into outsourcing, even when prices remain high when compared with local rivals.”