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In the last decade, Nicaragua has managed to improve its educational, social, and infrastructural systems despite the regional context - the LatAm has become one of the least stable regions for investors. Also, even with small steps, the Nicaraguan economy registers positive growth, 0.6% per year, which gives a ray of hope to already existing foreign investors in the country
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The IT Industry in Nicaragua: General Portrait
In the last decade, Nicaragua has managed to improve its educational, social, and infrastructural systems despite the regional context - the LatAm has become one of the least stable regions for investors. Also, even with small steps, the Nicaraguan economy registers positive growth, 0.6% per year, which gives a ray of hope to already existing foreign investors in the country.
All these factors, helped the local IT industry to overcome challenges and difficulties that the entire region confronts, and thus, placing Nicaragua as the top digital services provider in the region.
According to Payscale, the average salary in the IT system in Nicaragua reaches 24K USD/year, even if the country, like many others in the region transformed into a BPO center for North American companies, especially from the US and Canada.
Investors have access to cheap skilled professionals, cheap real-estate, and also to fiscal facilities established by the government to stimulate the IT industry’s growth.
Why you should work with Nicaraguaian IT companies
Human resources - plenty, educational level - relatively high compared to the region, IT infrastructure - decent, but could be better. These are the key factors that attract both companies and clients to the Nicaragua tech market.
Yes, probably it’s not the brightest choice, but for North American companies and investors, Nicaragua can be considered a gold mine.
For a long time, Nicaragua has been a BPO center, locals also started to develop their own businesses in the IT sector, benefiting from not already skilled, but now even experienced workforce that is able to handle almost all types of digital projects. Even if we are not talking about a startup boom, the already existing IT companies from Nicaragua can compete with North-American companies at certain levels and services.
What you should pay attention to when working with IT companies based in Nicaragua
One thing that Nicaragua misses is the business culture, and along with it - low project management and communication skills that are vital to attracting clients. This is rather a challenge than a missed opportunity, but by the time this challenge will be overpassed, Nicaraguan companies will lose their competitiveness.
Are Nicaraguaian Companies reliable?
In terms of reliability, Nicaragua has an important advantage. Professionals that worked for international companies in the BPO are now working for their own companies. The rich experience and connections gained previously, help Nicaragua companies find clients and partners for their digital projects.
How does the Nicaraguan tech industry relate to the neighboring countries?
With Colombia and Peru as neighbors, the Nicaraguaian IT industry is in full development. But even so, it will take some time to get ahead of them. According to the Global Innovation Index 2020, Nicaragua is in the 99th position out of 130 countries, while Colombia is in the 68th position and Peru at 76.
Nonetheless, in the digital era, overnight transformation is real and, if implemented correctly, the reforms in the IT industry can make Nicaragua one of the most developed countries in LatAm
IT Industry in Nicaragua in 2022
2022 might be tense for the IT industry in Nicaragua as the Meta company accuses the country of hosting troll farms. As a direct consequence, more than 1000 accounts have been shut down on Instagram and Facebook. So even if the Nicaraguan authorities will run reforms in the IT sector, it could already be compromised in the long run if the accusations prove to be true. That's one reason why Nicaragua may not benefit from foreign investments and even lose the existing ones in 2022