🇭🇳Expand Your Business to Honduras
Discover Central America's best-kept secret: competitive costs, eager workforce, and strategic location for serving North American markets.
Why Expand to Honduras?
Lowest Costs in Region
Most competitive salaries in Central America. Average CS salary: $6,000-10,000/year.
Young Workforce
65% of population under 30. Eager to learn and grow with international companies.
Government Support
ZOLI free zones offer tax exemptions. ProHonduras actively supports foreign investment.
CST Timezone
Same timezone as Texas and Mexico. Perfect for real-time collaboration.
Growing Infrastructure
Improving telecom, new business parks, and expanding English education programs.
CAFTA Member
Free trade agreement with US provides legal framework and business advantages.
Our Operations in Honduras
San Pedro Sula
What We've Built
- 200+ employees in modern business park facility
- Spanish and bilingual support operations
- Partnership with local universities for recruitment
- In-house English training program
Key Learnings
- •Invest in English training - huge ROI potential
- •Security concerns are overblown for business districts
- •Employee loyalty is exceptional with right culture
- •Transportation benefits are essential
Services We Deliver from Honduras
Data Processing
Data entry, document processing, digitization, quality control
Spanish Support
Customer service for LATAM markets, Spanish documentation
Back Office
Order processing, inventory management, basic accounting support
Entry-Level Roles
Perfect for training programs and developing specialized skills
Economic Overview
Salary Benchmarks
Average Salary by Role
Note: Salaries vary by experience level, location, and company size. Add 20-40% for benefits, taxes, and overhead.
Tax Environment
Tax Environment
Tax Considerations
Tax rates vary by entity type, industry, and location. Consult with local tax advisors for specific requirements. Some countries offer tax incentives for tech companies and foreign investment.
Incorporation Requirements
Incorporation Requirements
Available Entity Types
SA most common, requires notary, tax ID, local address
Visa & Mobility
Visa & Mobility
Work Visa Types
Work permit required for employment, resident visa for long-term
Startup Ecosystem
Startup Ecosystem
Emerging tech scene, San Pedro Sula hub, cost advantage
Compare Honduras with Other Countries
See how Honduras stacks up against other expansion markets. Compare salary, tax, hiring difficulty, and more.
Real Cost Analysis
| Role | Honduras Cost | US Cost | Savings |
|---|---|---|---|
| Data Entry Clerk | $5,000-7,000 | $28,000-35,000 | 75-80% |
| Customer Service | $6,000-10,000 | $32,000-40,000 | 70-75% |
| Team Supervisor | $10,000-15,000 | $45,000-55,000 | 70-75% |
| Back Office Specialist | $7,000-12,000 | $35,000-45,000 | 70-80% |
| Operations Manager | $15,000-25,000 | $70,000-90,000 | 70-75% |
Note: Costs include base salary only. Add 30-40% for social security, benefits, and overhead. ZOLI free zone companies enjoy tax exemptions.
Keys to Success in Honduras
What Works Well
- Create career development paths - employees value growth
- Provide transportation - essential for employee retention
- Invest in English training - creates loyal employees
- Partner with universities - great talent pipeline
Cultural Insights
- •Family-oriented culture - flexible with emergencies
- •Respect is crucial - formal titles matter
- •Employees appreciate stability and security
- •Team celebrations boost morale significantly
Competitive Advantages
- Lowest operational costs in Central America
- Young, trainable workforce eager for opportunities
- Government actively supporting BPO sector
- Strategic location for nearshore operations
Considerations
- ⚠English proficiency requires investment
- ⚠Choose business district locations carefully
- ⚠Infrastructure improving but still developing
- ⚠Rainy season can affect transportation
Honduras BPO: Lowest Cost Nearshore Option
Lowest Nearshore Costs
Most competitive pricing in Latin America. $11-16/hour all-in costs - 15-25% cheaper than Mexico, Colombia, or Dominican Republic. Ideal for cost-sensitive operations.
- 70-75% savings vs US operations
- ZOLI free zone tax exemptions
- No import/export duties
CST Timezone Alignment
Central Standard Time (CST) - same as Chicago, Dallas, Mexico City. Perfect for US Central/Mountain time operations. No night shifts required.
- Real-time collaboration with US teams
- Live support during US business hours
- Same-day issue resolution
Young, Eager Workforce
65% of population under 30 years old. Eager to learn, high trainability, strong work ethic. Growing English education programs in universities.
- 35% English proficiency (growing)
- High employee loyalty & retention
- University partnership opportunities
Why Choose Honduras for Cost-Sensitive BPO
Cost Advantages
- ✓ Lowest hourly rates: $11-16/hr vs $12-25/hr other nearshore
- ✓ ZOLI free zones: 0% corporate tax, import/export exemptions
- ✓ 70-75% savings vs US (highest in nearshore)
- ✓ Government BPO incentives & support
Best Use Cases
- ✓ Data entry & processing (high volume)
- ✓ Spanish customer support (LATAM markets)
- ✓ Back office operations & document processing
- ✓ Entry-level contact center roles
Honduras BPO Setup Timeline
Week 1-2: Partner Selection & ZOLI Setup
Define requirements. Evaluate BPO partners in San Pedro Sula or Tegucigalpa. Explore ZOLI free zone options for tax benefits. Review English proficiency levels.
Week 3-5: Contracting & Infrastructure Verification
Negotiate SLAs and pricing. Verify facility security, backup power, internet redundancy. Finalize ZOLI registration if applicable. Sign MSA and SOW.
Week 6-8: Recruitment & Training
Recruit through university partnerships. Conduct English assessments for bilingual roles. 3-4 week training program including English reinforcement if needed.
Week 9-10: Launch & Scale
Pilot launch with 30% volume. Monitor quality metrics daily. Iterate on training and processes. Scale to full production once KPIs are met.
Timeline: 9-10 weeks from kickoff to full production • Team Size: Start with 20-50 agents, scale as needed
Honduras BPO Pricing: All-In Costs
San Pedro Sula (Industrial Hub)
Tegucigalpa (Capital)
What's Included in All-In Pricing:
- Base salary + mandatory benefits (30-40% overhead)
- Social security (IHSS), pension contributions
- 14th month salary (mandatory bonus)
- English language training programs
- Office space in secure business parks
- Technology infrastructure & internet
- Transportation benefits
- Quality assurance & BPO management
Cost Savings vs US Operations
Honduras BPO operations save 70-75% vs US-based teams - highest savings in nearshore LATAM. A 30-person data processing team costs $330K-420K/year in Honduras vs $1M-1.5M+ in the US.
ZOLI Free Zone Benefits
Operating in ZOLI (Zonas Libres Industriales) free zones provides: 0% corporate income tax, 0% import/export duties, 100% exemption on equipment/machinery imports, simplified customs procedures. Requires minimum investment and job creation commitments.
Honduras BPO: Frequently Asked Questions
Why is Honduras the lowest cost nearshore option?
Honduras offers the most competitive BPO costs in Latin America at $11-16 per hour (all-in), which is 15-25% cheaper than other nearshore options:
- • Honduras: $11-16/hour (lowest nearshore)
- • Dominican Republic: $11-18/hour
- • Colombia: $12-22/hour
- • Mexico: $15-25/hour
Lower costs are driven by: competitive labor market, government BPO incentives, ZOLI free zone tax exemptions (0% corporate tax), lower cost of living, and young, trainable workforce eager for employment opportunities.
What are ZOLI free zones and how do they benefit BPO operations?
ZOLI (Zonas Libres Industriales) are government-designated free trade zones that provide significant tax benefits for BPO and manufacturing operations:
- 0% Corporate Income Tax: Complete exemption on corporate profits
- 0% Import/Export Duties: No tariffs on imported equipment, technology, or exported services
- Sales Tax Exemption: No VAT/sales tax on purchases within zone
- Simplified Procedures: Streamlined customs, fast approvals
Requirements: Minimum investment thresholds, job creation commitments (typically 20+ employees), export-oriented services. Major BPO hubs in San Pedro Sula and Tegucigalpa operate in ZOLI zones.
How is English proficiency in Honduras for BPO services?
Honduras has moderate English proficiency (35% workforce), improving through education investments:
- Growing English Education: Universities increasingly require English. Government investing in bilingual programs. Young workforce (65% under 30) has better English than older generations.
- BPO Training Programs: Most BPO providers offer intensive English training as part of onboarding. 3-4 week programs to reach B1/B2 levels for customer service roles.
- Best Use Cases: Excellent for Spanish-first operations, data entry/processing, back office. For entry-level bilingual support, expect to invest in English training.
Recommendation: Honduras is ideal for Spanish customer support (LATAM markets), high-volume data processing, and back-office operations. For complex bilingual support requiring strong English, Mexico or Dominican Republic may be better fits.
San Pedro Sula vs Tegucigalpa: Which city is best for BPO?
San Pedro Sula is recommended for most BPO operations:
- San Pedro Sula (Industrial Capital): $11-16/hour. Largest BPO sector, most established free zones, best infrastructure. Close to international airport (10 min). Concentrated business park developments. Ideal for manufacturing-adjacent BPO and data processing.
- Tegucigalpa (Political Capital): $11-17/hour. Similar costs, smaller BPO sector, government/administrative focus. Mountainous terrain creates traffic challenges. Airport 20-30 min from city center.
Recommendation: San Pedro Sula for established BPO infrastructure, easier logistics, and concentration of service providers. Most successful nearshore operations are based in San Pedro Sula's ZOLI zones.
How long does it take to set up BPO operations in Honduras?
Honduras BPO setup typically takes 9-10 weeks:
- Week 1-2: Partner selection, ZOLI feasibility assessment
- Week 3-5: Contract negotiation, ZOLI registration (if applicable), infrastructure verification
- Week 6-8: Recruitment via university partnerships, 3-4 week training (including English if needed)
- Week 9-10: Pilot launch, quality monitoring, scale to production
Start with 20-50 agents and scale as quality targets are met. Slightly longer than other nearshore locations (6-8 weeks) due to ZOLI registration process and extended training for English proficiency.
What services work best for Honduras BPO outsourcing?
Honduras excels at high-volume, cost-sensitive BPO operations:
- Data Entry & Processing: High-volume data entry, document digitization, form processing, data validation. Honduras's cost advantage is strongest for large-scale operations.
- Spanish Customer Support: LATAM market support, Spanish documentation, bilingual support with training investment. Native Spanish speakers with Central American accent.
- Back Office Operations: Order processing, inventory management, claims processing, basic accounting support. Ideal for standardized, repeatable processes.
- Entry-Level Contact Center: Inbound customer service, appointment scheduling, simple technical support. Young workforce is highly trainable for standardized scripts.
Not Recommended For: Complex technical support requiring advanced English, software development, highly skilled knowledge work. For these, consider Colombia or Mexico.
How does Honduras compare to other nearshore countries for BPO?
Honduras vs Mexico:
- ✓ 25-35% lower costs: Honduras $11-16/hr vs Mexico $15-25/hr
- ✓ ZOLI tax benefits: 0% corporate tax vs Mexico's standard rates
- × Mexico advantage: Much stronger English proficiency, larger tech talent, USMCA benefits
Honduras vs Colombia:
- ✓ 20-30% lower costs: Honduras $11-16/hr vs Colombia $12-22/hr
- ✓ CST timezone: Better for US Central/Mountain vs Colombia's EST
- × Colombia advantage: Stronger tech talent, better innovation ecosystem, superior for development roles
Honduras vs Dominican Republic:
- ✓ Similar low costs: Comparable $11-16/hr vs DR $11-18/hr
- ✓ ZOLI advantages: Stronger tax incentives than DR free zones
- × DR advantage: Better US proximity (2.5 hrs Miami), stronger hospitality/tourism culture
Best Use Case for Honduras: High-volume data processing, cost-sensitive back-office operations, Spanish customer support, and companies maximizing cost savings for standardized processes.
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Honduras is a key part of our global delivery network. Explore how we leverage our presence across 8 strategic locations to deliver seamless 24/7 operations for your business.
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