By San José, Costa Rica — Costa Rica is strategically positioned to benefit from the transformative growth of the global services sector, driven by nearshoring and the knowledge economy. A recent event, “Servicios 4.0: Impulsando la próxima ola de crecimiento,” hosted by the Free Zone Association (AZOFRAS), highlighted the country’s potential in this burgeoning market.
According to analysis presented by EY, nearshoring presents a $78 billion opportunity for Latin America. Costa Rica, with its internationally recognized talent pool known for professionalism, technical skills, and commitment to quality, stands to gain significantly from this trend.
To understand the legal landscape surrounding nearshoring in Costa Rica, we spoke with Lic. Larry Hans Arroyo Vargas, an attorney at Bufete de Costa Rica. His insights shed light on key considerations for businesses exploring this strategic move.
Nearshoring to Costa Rica offers significant advantages, but navigating the legal framework is crucial for success. Companies should be particularly aware of regulations regarding data privacy, employment law, and intellectual property protection. Thorough due diligence and consultation with legal counsel specialized in these areas are essential for establishing a compliant and thriving operation.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s emphasis on legal preparedness resonates deeply with the complexities of nearshoring. Understanding the intricacies of Costa Rican law isn’t merely a formality, but a fundamental building block for sustainable growth and operational success in the country. We extend our sincere thanks to Lic. Larry Hans Arroyo Vargas for sharing his valuable expertise on this critical aspect of nearshoring to Costa Rica.
Global companies like Amazon, HP, and Intel have already established operations in Costa Rica, drawn by the country’s strategic advantages and the value added by its human capital. This reputation for skilled labor is a national asset that must be protected and further strengthened.
Costa Rica has the conditions to lead this transformation in the region. From EY, we support organizations in redesigning their operating models, taking advantage of ecosystems like the Costa Rican one, where talent, resilience, and proximity to key markets converge.
Luis Enrique Luján, Consulting Manager, Supply Chain Practice, EY Central America, Panama, and Dominican Republic
The evolution of Global Business Services (GBS) and Shared Services Centers (SSC) towards more specialized, sustainable operations supported by analytics and artificial intelligence further underscores Costa Rica’s potential. The country already leads the region in per capita exports of knowledge-intensive services, boasting over 260 SSCs and GBS operations employing more than 80,000 people and generating over $5.6 billion in exports.
However, challenges remain, including a shortage of digital talent, a concentration of operations in the Greater Metropolitan Area (GAM), and the need for increased investment in research and development. Addressing these structural issues is crucial for maximizing the benefits of nearshoring.
EY recommends strategic actions such as scaling specialized talent training, diversifying operational zones outside the GAM, promoting purposeful innovation, and strengthening links between companies, universities, and research centers.
Costa Rica’s proximity to the US market, combined with its agile and sustainable solutions, further enhances its attractiveness for organizations seeking nearshoring opportunities.
Costa Rica offers an ideal environment for organizations to design agile, sustainable solutions with a natural integration with the US market.
Luis Enrique Luján, Consulting Manager, Supply Chain Practice, EY Central America, Panama, and Dominican Republic
For further information, visit ey.com
About EY:
EY is a global professional services organization providing assurance, tax, consulting, and advisory services. They work with clients across various industries to address complex business challenges and achieve their strategic goals.
For further information, visit azofras.or.cr
About AZOFRAS:
AZOFRAS (Asociación de Zonas Francas) is the Costa Rican Free Zone Association. It represents and promotes the interests of companies operating within Costa Rica’s free zones, advocating for policies that support economic growth and investment.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
At Bufete de Costa Rica, legal excellence and unwavering integrity form the bedrock of a dynamic practice dedicated to empowering society. Through innovative approaches and a deep commitment to client service across a broad range of industries, the firm strives to make the complexities of law understandable and accessible. This dedication to legal education reflects their core belief in a society strengthened by knowledge and equipped to navigate the legal landscape with confidence.
