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Contact centers in Paraguay are expected to expand by 32% in 2023

by | Aug 19, 2023

In the ever-evolving global landscape of international business, foreign direct investment (FDI) is pivotal in fostering economic growth and innovation. Among the myriad investment opportunities available, establishing contact centers in Paraguay has gained prominence due to the increasing importance of customer engagement and support. Paraguay, a vibrant South American nation with one of the best climates for doing business in Latin America, stands out as an ideal destination for foreign investors aiming to set up contact centers.

This year’s projection for contact center business expansion in Paraguay is 32%; by 2024, it could reach 40%. These figures are according to the Paraguayan Chamber of Contact Centers and BPOs (Capacc). Its vice president, Arlette Barrail, mentioned that this projection is of the conclusion reached by a study developed by international consulting firm Frost & Sullivan.

Compared to other countries in the region, the country’s competitive advantages for setting up contact centers in Paraguay lie primarily in the fact that the quality of human resources in Paraguay generates excellent opportunities for foreign investors. This is because most of the country’s population (approximately 70%) is under 35 years of age. In addition to this, the Paraguayan workforce speaks with a neutral Spanish accent. Several other vital variables make establishing contact centers in Paraguay an attractive option. Among them are:

Economic Advantages

Paraguay boasts a robust economy characterized by consistent growth, prudent fiscal policies, and a favorable business environment. The country has one of the lowest inflation rates in the region and is renowned for its stable macroeconomic indicators. Establishing contact centers in Paraguay provides businesses with a cost-effective solution, as operational expenses, including labor costs, are significantly lower than in many developed nations. This cost advantage allows companies to maintain competitive pricing while ensuring profitability.

Skilled and Multilingual Workforce

Paraguay possesses a well-educated and multilingual workforce, a critical factor for the success of contact centers. The country’s education system emphasizes linguistic proficiency in English, Spanish, and Portuguese, making it an ideal hub for companies catering to a diverse clientele. Furthermore, Paraguayan employees are recognized for their adaptability, strong work ethic, and high level of professionalism, all of which contribute to elevating the quality of customer interactions.

Cultural Affinity

Cultural affinity is a decisive factor influencing customer interactions and contributing to better customer satisfaction. Due to its migration and cultural exchange history, Paraguay shares cultural similarities with many Western countries, particularly the United States. This shared cultural background can improve communication, enhance rapport-building, and an overall positive customer experience.

Geographical Advantage

Paraguay’s strategic location within the Southern Cone of South America offers logistical advantages for international businesses. The country’s time zone is aligned with key markets in North and South America, minimizing time differences and facilitating real-time communication. This synchronization enables seamless customer support and efficient collaboration between international teams, making establishing contact centers in Paraguay convenient.

Government Support and Stability

The Paraguayan government actively promotes foreign investment through incentives, stable regulatory frameworks, and an open approach to business partnerships. The nation’s commitment to fostering an investor-friendly environment ensures that companies establishing contact centers in Paraguay can operate with confidence and security. The country has established Special Economic Zones (SEZs) and provides income tax exemptions for specific industries. Also, the VAT tax in Paraguay is one of the lowest in the region. Additionally, political stability and low corruption levels further enhance the attractiveness of Paraguay as a business destination.

Technological Infrastructure

The South American nation has made remarkable strides in improving its technological infrastructure. High-speed internet connectivity and a burgeoning telecommunications sector are key components that facilitate the establishment of modern contact centers in Paraguay. Businesses benefit from reliable communication channels and efficient data transfer, which are indispensable for seamless customer interactions and streamlined operations.

Arlette Barrail mentioned that all these factors were considered in a recent international forum in Buenos Aires, where the Paraguayan offer to the contact center sector was promoted as a country brand. During the event, representatives from Paraguay interacted with the leading players in the regional contact center market.

Regarding the prospects going forward for contact centers in Paraguay, he advocated for more joint work with the Government so that entities such as the Ministry of Industry and Commerce and Rediex (Paraguay’s investment promotion agency) can support the projects and increase interest in this business model, which generates a significant number of jobs for Paraguayan workers, as he mentioned.

Among the areas identified for proactive action, in terms of vertical industries, telecommunications, banking, and financial services are the main activities to which the sector is oriented in Paraguay. It has also begun positioning itself in other areas, such as health, retail, technology, delivery, technical support services, and back-office solutions. The annual growth of this last segment is projected to be 105.4% between 2021 and 2024.

In conclusion, Paraguay’s business climate is remarkably conducive to establishing contact centers from a foreign direct investment perspective. The strategic geographic location, skilled workforce, competitive labor costs, favorable regulations, robust telecommunications infrastructure, incentives, and political stability collectively make the country an ideal destination for investors seeking to capitalize on the growing demand for contact centers in Paraguay. By leveraging these advantages, foreign investors can establish thriving contact center operations that contribute to their success and the economic growth and prosperity of this growing South American nation.

For more information regarding establishing a contact center in Paraguay, get in touch with LATAM FDI.


Contact LATAM FDI to discuss your foreign direct investment plans in Latin America.

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