Posted at 10.15.2018
The Dominican Republic did a major shift in its market, coming from an agricultural overall economy, to one predicated on services. An estimation of the industries contribution to the country are, 60. 2% in services (tourism, transportation, communications, funds, others), 15. 5% in industry (processing), 11. 5% in development, 11. 3% in agriculture, and 1. 5% in mining (CIA truth book). By right now only travel and leisure leads the service industry, but is soon to be challenged by the investment of contact centers. Because of this change in its overall economy the Dominican Republic is becoming home to various foreign investments, however the one this research will focus on is on the overseas direct investment in contact centers, or call centers because they are also known. It is important to explore advantages the Dominican Republic offers to catch the attention of such overseas investment, as well as to analyze the fact that although there are benefits, it might also lack the required infrastructure to sustain this rapidly growing industry.
Due to the ongoing world financial meltdown, many international companies are battling to keep their business afloat and seeking to build their contact centers outside of their home based mostly countries. Saving money and reducing operational cost are a few of the primary reason companies move and do international immediate investment (FDI) in another country. Investing and doing operations overseas appears to be the answer that international contact centers are looking for in order to meet such goals. It can be said that the Dominican Republic provides an answer to the difficulties contact centers companies are experiencing and continue to confront back again at home. Some of the solutions directed at these businesses are a great business weather for foreign direct investment (FDI), bonuses and good physical location, among other compensations. As a result of moving overseas contact centers gain a specific gain over their rivals. These advantages can range from cheaper operational cost, tactical location and skilled workers, to a variety of options which might or might not exactly be available in the Dominican Republic. But like everything in life not everything is perfect, the country also needs to confront a sad reality, which is the fact that although it offers "good things" to shareholders, it also lacks of other "good things".
This study will provide the key areas of contact centre FDI in the Dominican Republic to be able to present a few of the vulnerable and strong factors the country has on this industry. Using this method the report looks at what the united states has to offer to current and future shareholders in the contact center industry. It will also provide-from the traders' point of view-what makes the Dominican Republic a wonderful place to spend foreign capital connected centers, as well as a few of the problems encountered throughout the business project. Although information provided by the governmental establishments in charge of spreading information relating to this industry say "the united states is capable, suitable and ready to meet all the requirements of international investors", it's true that no system is ideal. This is where facts will be laid down to be able showing what truly allures, keep or loses these investment funds on the island. Predicated on those earlier mentioned facts the study will look at what improvements can be produced by the country in order to keep a competitive border on the rapid growing industry.
With this information the audience will comprehend the defects in the system, and what procedures are needed to be able to correct them and create a far more positive investment environment. Along with this positive investment climate the study will show the impact call center FDI has had in the country. A competent and effective investment weather can only just be produced by pointing out the professionals and downsides of what the Dominican Republic provides to its investors. The conclusion of the study wishes to convey that these advancements can be achieved by firmly taking action upon the advice given. Being that study is based largely on empirical knowledge, a few of the observations made will be shown predicated on the industry skills of the author of over 7 years or working experience in this field.
Is the Dominican Republic a good place for FDI?
Have contact centers FDI created a genuine impact in the Dominican Republic?
In order to answer the questions mentioned previously, this newspaper we use a mixture of methodologies to be able to analyze if the country is truly a good place for contact middle FDI and when the industry has already established an impact in the Dominican Republic. These methodologies include interviews, qualitative research and quantitative data.
This doc will be made up of four chapters, the first one being its introductory part. The first chapter will provide a brief introduction and track record of the Dominican Republic and what sectors include the FDI in the united states, combined with the research questions and research methodology. The second chapter will present a synopsis of foreign immediate investment, inflows, fads, performances and investment local climate that pertains the country, as well as the advertising agency in charge of FDI in the united states. This information will be in comparison with determined economies from the Caribbean, Latin America and more. The third section will cover a far more in-depth examination of contact centers in the Dominican Republic, defects and investor point of view. The analysis will also look at a specific company that the study will depict the impact this specific center has already established in the country. The concluding and fourth section will provide key findings from the study and recommend future advancements predicated on those findings.
The Dominican Republic, like many other developing countries, is actively seeking to appeal to FDI. They are not only seeking FDI as a key point in creating employment opportunities and additional income source, but instead for the reason of potential spillovers of knowledge and technology. The strong general population support for FDI in the Dominican Republic is indicated through the creation of the Center for Exports and Investment of the Dominican Republic, establishment in charge of all exports and investment, along with other measures considered by the federal government. Some of these methods include simplification of administrative techniques, aid from the CEI-RD in logistics and information, subsidies, tax breaks, exemptions and other devices that facilitate FDI. Before dealing with the question of whether FDI in the Dominican Republic has led to development, spillovers of knowledge and technology, as well as, if it is a good place for contact centers to establish and invest, the study will provide a synopsis of FDI inflows and tendencies in the Dominican Republic.
FDI inflows in the Dominican Republic have made a miraculous recovery from 2004 to 2008 according to the data by the earth Bank (World Bank or investment company, World Development Indicators). As any other developing country, the inflow of overseas capital was affected by the political environment, which shown in an average loss of almost 200 million dollars per year through the 2000-2004 governmental period. During this period the collapse of a major bank caused financial turmoil and many investors were compelled to leave the country. After a change of federal and the macro stability was placed back monitor by the new specialists, the country received an average foreign capital inflow of 450 million dollars yearly, to earn a complete of over two billion us dollars in FDI inflows (See number below). This great recovery happened during the 2004-2008 period, as it was initially mentioned, and it is still bettering as the united states keeps positioning itself as a preferred destination for FDI. Although contact centers aren't the main reason behind this fast restoration in the FDI, the new speedy industry of contact centers are playing an essential role as it continues to evolve into a respected industry in the service field.
In Leader Fernandez first governmental period (2004-2008) the united states recovered from the most severe financial meltdown in many years. During 2005 the united states expected a GDP progress of 9. 3% and inflation to be brought under control at 7. 3% throughout the 2004-2008 years. By taking care of these issues Chief executive Fernandez said "We've rescued the self-confidence of traders by achieving macroeconomic balance" (Leonel Fernandez, 2004). Having achieved macroeconomic stability, the Dominican Republic received US$1 billion worthy of of foreign direct investment (FDI) in 2005, up 40% from 2004, and U. S. investment accounted for about 40% of the full total (CEI-RD, 2006). This led to a noticable difference of FDI inflows and mechanisms to keep attracting and sustaining this recently found investments. Below are the net inflows of FDI for various Latin American and the Caribbean countries, including the Dominican Republic.
When one thinks of the Dominican Republic, images of tropical beaches and all-inclusive resorts will come in your thoughts, but this ten million-strong nation, occupying two thirds of the Caribbean island of Hispaniola, also has one of the Americas' fastest growing economies and diverse surroundings in the Caribbean (BusinessWeek, 2006). The briefing paper "Foreign Investment in Latin America and the Caribbean", 2008 is one of the latest editions of a string issued on a yearly basis by the Unit of Investment and Corporate Strategies of the Economic Fee for Latin America and the Caribbean (ECLAC) Department of Production, Output and Management. This record presents-in an extremely detail manner-the overseas investment done in Latin American and Caribbean countries, showing their relative variations and investment local climate among other indications. This survey also details on the contact middle industry, which has contributed greatly to the increasing FDI inflow of the Dominican Republic. Assessing to other countries the Dominican Republic shows one of the better FDI inflows by reflecting a relative difference of 83%. What this means is that FDI activities has been constantly growing in the country, thus reflecting good initiatives from the country and a positive improving investment climate (see image below).
A good investment climate is not created by simple marketing; it takes hard work, good economic regulations and first-class governance with respect to the government and its own Head of Point out. Because many countries offer appealing investment conditions companies frequently ask themselves, where they need to commit their capital. The solution needs to be provided by the country that desires to be the coordinator of the overseas investments these companies wish to make. The Dominican Republic has characteristics that make it a desirable place to invest of any sort, however the question that still lingers around is if the united states can really sustain an investment of great magnitude. Offering the right investment weather in the Caribbean is something that the country wishes to achieve, but is not always successful on doing this. With an extended history of getting considerable FDI in a number of areas, the Dominican Republic is a regional leader in attracting contact center overseas investment. Longstanding political stableness and a diversifying market have led many international firms to find the Dominican Republic as an investment vacation spot. Recent success in getting FDI is due to the country's investor-friendly legal program, generous bonuses, and infrastructure capable of supporting new systems, including information technology (FDI Magazine. Financial Times Journal. August 2005). As stated earlier, this success is fairly new and the Dominican Republic still faces the task of retaining and attracting this foreign purchases.
A great way to observe how well placed is the united states and the investment weather it includes is to do a comparison of economies. "CONDUCTING BUSINESS 2010: Reforming Through Difficult Times" is the seventh in some annual reports looking into regulations that enhance business activity and the ones that constrain it. The record presents quantitative indications on business rules and the safety of property privileges that may be likened across 183 economies, from Afghanistan to Zimbabwe, over time (Doing business, 2010). Looking as of this specialize report the Dominican Republic shows its standing in ease of conducting business and other important world standing criteria's that foreign investors consider necessary to know before buying any. Although this statement is using specific economies, the data compares the Dominican Republic to the economies of countries around its region, as well as others from a faraway hemisphere plus much more developed than the island.
One basic criterion for investment is the ease of doing business, the graph below reflects an obvious weakness for the Dominican Republic in this field by ranking lower than a Puerto Rico and Jamaica. Puerto Rico and Jamaica are much smaller countries, which might contribute to more agile procedures, but the simple fact that they are neighboring countries there must be a larger similitude included in this in terms of how business is handle. This is a definite signal that depending how a country deals with its business will echo how efficient their mechanisms are, therefore providing a bigger simple conducting business. Another factor which should not be of much importance is the actual fact that Jamaica and Puerto Rico receive assistance, advice and sometimes are regulated by developed countries. This should not be a justification for why the Dominican Republic is falling behind in that basic and important theory.
(Doing business, 2010).
The chart below, which has been extracted from the "CONDUCTING BUSINESS 2010: Reforming Through Difficult Times" Record, details on another very important factor for buyers when they consider making an investment abroad. The rank given in this graph is compared to the determined economies of Haiti, Puerto Rico, Singapore, Rwanda yet others. This comparison is performed once again in order to show the way the Dominican Republic occurs as a favorable investment location. Yet again this favorable climate for traders is not providing the best weather because is falling behind to neighboring economies which only advantage seems to be a more organize and productive system. The Dominican Republic goes on to boost, but is weakened in its bureaucratic process, which as a result continues to slow down its progress.
(Conducting business, 2010)
Once an investment is performed, one of the biggest-if not the main matter of any investor-is how secure is their investment in a overseas country, meaning how are they secured from any unwanted situation. The Dominican Republic has recently passed a new legislation which gives a greater coverage to its shareholders, thus providing shareholders with a contingency plan if anything happens. The graph below shows the global position of the Dominican Republic in conditions or protecting its investors, which really is a great improvement from other areas already mentioned. Although this is an essential concern for buyers, it still addresses a post-investment situation. What this mean is the fact it does not really provide an immediate impact in getting a international investment if the other factors are motivating, but it can boost investors confidence in the country they plan to invest as well as increasing a much better investment climate.
(Conducting business, 2010)
In an interview to CEI-RD Minister Eddy Martinez in the renowned Dominican daily show "Hoy Mismo", sent by route 9, he talks about the investment climate in the Dominican Republic and mentions key factors that produce the united states a great spot to invest-compared abroad in the region. He discusses establishing incentive mechanisms in order to attract those capitals which appraise the value of the investment not limited to the amount, but also for the impact these purchases will have in terms of technology transfer, creation of occupation, type of career, quality of products produced in the country and if indeed they will perform Research & Development activities. Although this system is something the country whishes to execute, it is still not fully integrated, thus giving room for mistake. The institution continues to be trying to educate and incorporate the contact center community so they can share these bonuses and goals with other shareholders who wish to do future business based on the country motivation structure.
To disseminate these details the CEI-RD has done seminars involving these incentives, which is continue to the implementation of these incentive policies. During the interview CEI-RD Minister stated that many ventures come through different ministries, therefore many shareholders aren't sure who and exactly how their investment are handle. This reflects a clear disorganization in the governmental mechanisms, which results in a weakness. Minister Martinez implies the government creates an "integrated device of investment". What this means is that no subject the origin of the investment or ministry, it will end up in a single place. This allows proper follow up of the investment, and in case a job gets caught, the establishment can determine where being detained anticipated to bureaucracy or lack of project handling. Based on that integrated system the country can increase its FDI inflows insurance agencies all projects within a place, thus providing yet another reason to purchase the Dominican Republic.
The Dominican Republic's federal has carried out a liberal platform for attracting FDI. It makes no differentiation between overseas and local companies in conditions of ownership limitations and capacity to be eligible for investment incentives. Overseas investment is permitted in all sectors except those related to public health and the environment (such as storage space and disposal of dangerous or radioactive waste), as well as national security. The Dominican Republic federal also offers full exemption from all taxes, obligations, charges, and fees that affect production and export activities in free trade areas, which it presented in 1969. The free trade areas aim to get high-tech creation (including consumer electronics and electronic components) as well as more traditional manufacturing-such as of motor vehicle parts, medical devices and pharmaceuticals, plastics, metals, treatment molding, textiles and sneakers, jewelry, tobacco and of course contact centers. The bonuses offered previous up to 25 years for zones on the Haitian boundary, or more to 15 years for all other zones. IN-MAY 2006 there have been 59 commercial parks and free trade areas in the Dominican Republic, hosting more than 600 companies, providing over 190, 000 direct jobs, and occupying 2. 1 million rectangular meters. Although there are no performance requirements for foreign traders, few sector-specific incentives can be found to them. (World Lender Group, MIGA, Snapshot of the Caribbean, 2007)
All of the huge benefits mentioned above and the continuing inflow of investment is going on thanks to initiatives from the federal government and the establishment responsible for carrying out FDI campaign. The institution carrying out this very important activity is the Dominican Republic's Export and Investment Middle (CEI-RD), which is headed by Eddy Martinez, as the Minister and Exec Director of this government organization that promotes nationwide strategic export and international investment opportunities and works hands-on with local and international enterprise to accomplish business activity. Because the institution knows the importance of investment they are simply aggressively targeting shareholders through offices in NY, Miami and California, and because of the nation's entry into the Central North american Free Trade Arrangement, or CAFTA-DR. The Centro de Exportacion e Inversion de la Repєblica Dominicana (CEI-RD) as it is called in Spanish, is the country's one-stop investment campaign intermediary. It has three main departments: Export Promotion, Investment Promotion, and a Training Middle. The CEI-RD aspires to strategically promote the valuable conditions that the Dominican Republic offers as an investment destination and foreign trade programmer, by pursuing main concern areas as defined by the Government, to increase occupation, technological transfer and the social welfare of the country. The company organizes and participates in trade missions both abroad and locally as well as provides tools to assist investors, such as an export index. (World Standard bank Group, MIGA, Snapshot of the Caribbean)
The CEI-RD is the state organization responsible for the advertising of international trade and Foreign Direct Investment (FDI). It was created as something of the fusion of the Center for the Campaign of Exports of the Dominican Republic (CEDOPEX) and the Office for the Campaign of Investment funds of the Dominican Republic (OPI-RD), matching to Rules 98-03, effective on June 17, 2003. The CEI-RD is made up of two main functional areas, export advertising and foreign investment promotion and its functions include many deals, however, many of a lot more highly relevant to this review are promotion of the country's advantages to attract foreign investment, coordination with other authorities organization related to international trade in the interest of obtaining an expedient and successful circulation of exports and opportunities in the country, campaign and development of FDI and business from the CEI-RD office buildings abroad, currently in Miami, NY and Chicago, participating positively in trade negotiations and administration of resulting agreements, donate to the improvement of the legal framework and its proper application. Also throughout the Foreign Service network, new office buildings will be beginning soon in Puerto Rico and Silicon Valley
The establishment services are for sale to local and foreign companies to help in the exports and purchases of the country which is an advantage to any entrepreneur. One of the services the CEI-RD offers, and which can be highly relevant to this study, they have got specialized consulting, specialized assistance in meeting the laws and norms required for the export of goods and services, which is helpful to new trader who are not sure of the legal platform. There is also validation of certificates of origin, technical assistance relating to trade agreements, recommendations for improving the production process and profiting from tariff preferences. The new trader can also benefit from visits with respect to the CEI-RD customized staff to their companies in order to evaluate the creation process under trade agreements and preferential programs. One very important service the CEI-RD offers is that they ensure the right application of norms associated with export and investment steps by administrating Legislation 84-99 on the reactivation and campaign of exports and Law 16-95 on overseas investment. Other services, but not specific to the industry, provided by the CEI-RD and that investors could profit are product information and market research, business intellect, legal and economic information, registration of exports and international immediate investment, facilitation of the network of associates abroad and foreign trade documentation centre.
As some other promotion agency the CEI-RD has several campaign programs that produce the Dominican Republic attractive for FDI. These programs include Country wide and International Industry events and expos where it reveals companies, local and international, can showcase their products. The CEI-RD also coordinates trade missions in order to ensure an effective business deal as well as training programs relating to international trade. In these specific programs-relating to international trade-local companies can get educated and learn how to export their products and international investors can learn about the local market and opportunities. Another very important promotion program-and the main one of the very most significant-is the coordination of business meetings to present what the country's provides, as well concerning contact potential shareholders and exporters. With this two-way program, international and local investors will have a shared gain by making the necessary contacts to get their business began, thus creating future FDI. (CEI-RD, 2010)
As it once was mentioned, this study looks at the professionals and downsides of contact centre FDI from various perspectives, one been from the coordinator country viewpoint and the other the investor's perspective. From the variety country the analysis takes under consideration a report created by the economist Jonathan Aragonez, from the guts of Export and Investment of the Dominican Republic (CEI-RD), as well as other documents of contact centers from the CEI-RD. These documents will provide the necessary data to point out the country's benefit and disadvantages. Do to having less published paperwork that truly criticize or examine the contact middle industry, this study will support a lot of its facts on three things. These three key efforts are empirical understanding of the article writer, interview conducted to the economist previously mentioned, and interview with a contact centre owner who's doing FDI in the Dominican Republic.
The Dominican Republic has had strong export services for many years, and because of this there are 40 to 50 call centers authorized with the Dominican Call Centre Association. Investors currently operating in the country cited skilled personnel, almost all of whom are bilingual, as their main reason for choosing it as their investment location (Dominican Republic Contact Center Association, 2010). The country has a large, well-trained labor force and although Spanish is the country's formal language, investors can find staff that also speak British.
"In addition to the firm, fast growing economy, attractive cost composition and "near shore" location, it could be said that people are the primary competitive advantages in the Dominican Republic. Shareholders in the Dominican Republic always highlight the Dominicans high learning capability and proficiency in English". (Eddy Martinez, 2006).
The country's large size means that land is designed for green field investment-if one was to be done-although most buyers opt to rent or rent a work space for their procedures. The country also offers great usage of all marketplaces being that is one of the six countries on earth that has a free trade agreement with the U. S. and Europe. Some of the other countries which have such a privilege are Israel, Jordan, Chile and Mexico (Office of america Trade Agent, 2010). Other beneficial investment factors included the country's well-developed, affordable telecommunications infrastructure which is the only one in the Caribbean with access four international cables through the Americas Region Caribbean Optical-Ring System Cable connection (ARCOS-1). This implies that the Dominican Republic link with the U. S. or any other country is redundant, thus guaranteeing contact center businesses to always be connected.
Contact centers in the Dominican Republic make 25, 000 immediate jobs, from the 57 companies authorized and operating in the united states. Within the next 2 yrs those centers are anticipated to generate 30, 000 additional careers, which when put into the indirect ones tend to be more than 150, 000 in. This information originates from the CEI-RD, which also says the vast majority of the data and it centers have been installed in the united states in the past three years, indicating this great progress has been done in record time. This season alone-and not including centers outside of free trade zones-Contact Centers constituted 15% of approved companies in the free trade zones of the Dominican Republic, being matched only by textile companies (Approved companies by the Free Trade Zone and Export Committee, 2010). In past accounts the committee also shows how these businesses enhance the country's GDP year after year, reflecting in a reliable and secure expansion of this industry.
Free Trade Area and Export Committee, 2010)
The contact center industry in the Dominican Republic is one which has maintained a steady and significant expansion. By doing so they have provided significant amounts of jobs in the Dominican labor market, citing that for the entire year 2009 the industry counted with 22, 000 careers. Considering that the growth of this industry will be around 27% and 36% total annual growth during the next five years, this means that by 2014 the amount of jobs can grow to an amazing 150, 000 careers if the common annual progress rate is of only 27%. When the industry develops at typically 37% annually, we have been discussing having 250, 000 careers, which is nearly double of the previous projection. (Jonathan Aragonez, 2010)
Deciding whether to invest or not in a country is a choice which is influenced by what the united states has offered and proved you, and how many other buyers say their experience has been. Buyers will likely take other investors input as the reality of how business works in a country. With that said, one of the biggest disadvantages stated by investors is that the Dominican Republic doesn't count number with a big enough British speaking community to carry growing businesses. This statement comes from the interview with Mr. Blake Janover, contact center owner that has experienced having less English speaking staff. He mentions that the Dominican Republic is a superb place to spend, but not the best in the globe due to some more important flaws than not enough English personnel. The main weaknesses talked about by this contact middle owner are bank, funding, and overall infrastructure, which explains why he works everything via an external company abroad instead of legitimately constituting a Dominican company. He also says that it takes time to get things moving in the united states, but he prefers the Dominican Republic because "it provides a huge taxes benefit, as the united states offers almost none" (Blake Janover, 2010). Further details given by Mr. Janover can be seen in the Appendix.
As for the interview with Mr. Jonathan Aragonez, an economist for the guts of Export and Investment of the Dominican Republic, he clarifies that the Dominican Republic offers contact middle investors significant amounts of benefits. In his interview he mentions some of the exclusivity of Dominican Republic, its treaty and skilled labor force. The most significant interpretation I could accumulate form the interview was that an entrepreneur is usually winning when purchasing a contact middle.
"This is an industry that is likely to grow at a reliable 27 to 36 percent in average in the next 5 years, so the investor is bound to make a great revenue available". (Jonathan Aragonez, 2010)
Both the trader and the host country agree in a single thing, the Dominican Republic offers advantages that lots of other countries don't possess, and that's the reason the country is becoming a leader in the industry. These advantages aren't only prolonged to the country and the entrepreneur, but are also transferable to the workforce. The common starting earnings in the contact centers are between RD$18, 000 to RD$22, 000 pesos. This amount is 3 x more than the average salary of RD$6, 000 pesos-established by law-for people working office careers such as laws clerk, assistant or financial analyst (Ministry of Labor of the Dominican Republic, 2007). The contact center salaries are just matched up by those of Doctors or Technicians in production crops, which is very demanding professional field in comparison with being a contact centre agent. Although this is good for a person whose only skill may be to speak English, it affects other labor market segments because of the fact that the salary is so much more attractive than nearly every other field. This disparity triggers a shortage of much needed solicitors, accountants and other professionals in the country. However the industry strong expansion in the united states significantly requires more personnel, there continues to be the problem of failing woefully to secure a supply of skilled manpower, which causes higher costs and impacts competitiveness by having such attrition.
In order to show the impact of contact centers FDI in the Dominican Republic this research can look at "Nearshore Call Middle Services". Predicated on this company we will be able to evaluate the impact of FDI by performing a case study. The analysis will illustrate the impact this enterprise has already established in the united states such as spillover results, technology transfer and capacitating real human resource.
Nearshore Call Centre Services (NCCS) is a contact centre proven in 2006, which started out with significantly less than 100 chairs as a conductor of FDI. Associated with referenced as a conductor of FDI is basically because the company deals with foreign accounts although it is constituted by local capital. Today NCCS has turned into a leading contact centre in the Dominican Republic, boasting over 1800 seats across three locations and offering immediate and indirect career to numerous Dominicans. Because of its attention to aspect, execution and management that rivals any call middle in america, NCCS is getting constant investment from its international clientele. Nearshore has achieved its expectation thanks to the development of a skilled international management team that provides individuals from the USA, Britain, Canada, Italy, France and the Dominican Republic, so that it is a cross ethnic company that not only will get foreign currency, but it also brings a fresh culture. As a result of having such a diverse workforce they have given employees new organizational culture and transfer of knowledge in terms of management.
Besides the copy of knowledge there was also technological copy. Due to the sort of clients NCCS was controlling state-of-the-art facilities are designed to the best standards, implementing Cisco enterprise solutions and N+1 redundancy across all potential factors of failure. Being that clients don't want their information compromise they have also brought their own experts to provide specific security assessment and gained their experience. These clients have also brought in to the company/country its software which handles customers' needs, presenting the Dominican labor force new knowledge on Customer Romance Management (CRM) tools. Another great profit Nearshore has received indirectly is the responsibility to comply with international requirements such as PCI and HIPPA documentation, which obviously exemplifies security of data. With these international certifications-which are needed by international clients-Nearshore exposes its Dominican employees to international criteria, thus providing them with an increase of transfer of knowledge.
NCCS in addition has provided a chance not only for students to cover their studies also for adults to aid their families. Most of the agents in contact centers are individuals with people who consider this their everlasting job. Is not the same for students who see their job as a mean so you can get an education and furthering their profession in some cases-as it ought to be. Few other careers in the Dominican Republic pay RD$18, 000 to RD$22, 000 pesos to someone who has no SENIOR HIGH SCHOOL diploma or College Degree and whose only certification is that they speak British. There isn't much opportunity for growth and development connected centers, and many teenagers only take the job to have the ability to purchase their education, but that alone means that call centers impact in the countries young ones. Nevertheless, there a wide range of instances where agents have become supervisors or QA experts and also have even become professionals or exposed their own call center.
NCCS is an entity predicated on international capital that not only provides immediate jobs to the people mentioned above, but it addittionally provides indirect career to over 80 other individuals. For the indirect careers, NCCS facilities outsource their security, maintenance and legal personnel along with other modest contracting services. Security alone provides over 50 jobs, maintenance provides 25 jobs and a legal personnel is composed of 4 lawyers. All this can be reported to be an indirect consequence of FDI in the country because of NCCS.
With the ongoing advancements being done by the Dominican federal, it could be said that the united states is now a great place to do FDI. A very important matter among the numerous others talked about is security, which is something every entrepreneur will require. The Dominican Republic must maintain macroeconomic steadiness and security, which is responsibility of most institutions of their state. Currently there is lack of coordination within governmental entities and there needs to be support from most of them. Another support that should be given is at culture itself. Recent studies measure the impact a country's basic culture has when bringing in overseas investment. These studies have found out that there is correlation between greater cultural track record in the united states including museums, colleges, historical centers and entertainment, and the quantity of investment a country obtains. Aside from these bonuses, all the infrastructure and individuals resources-which is the main asset-the country matters with, are essential factors as it pertains to attracting overseas investment in the contact centre industry. When it comes to those aspects Dominican Republic does very well in the region and still enhancing, but it can't be satisfied with measuring itself within the spot. The Dominican Republic is greatly located in comparison with Haiti or Cuba, but that's not the measurement they should be looking for, which explains why in a recent analysis done by South Korea, the country is measuring itself against Ireland, Singapore, Mauritius and South Korea. The united states needs to continue gathering the criteria's of great companies like those on the Lot of money 500 list or great European and Asian countries who are now looking at other countries within the Latin America region apart from Mexico and Brazil. Becoming a leader in the world of contact centers is something that many countries are trying to achieve and the Dominican Republic is one which is doing such a thing. Although it still lacks in certain areas, it provides greater benefits to shareholders over other countries in your community and the local workforce.
As for the impact contact centers experienced in the united states, is clear it offers helped more than any other industry by providing jobs to a great amount of individuals. Most of the time these contact centre workers have no skills, and are specialists with no experience or just lately graduated without business connections in their field. Those individuals will most likely start out making RD 8, 000 per month on other careers, if they're lucky enough to obtain a job on the field or something related to it. Contact centers work with accountants, doctors, attorneys, and other pros who cannot find an improved paying job in their field, thus having to have a job in a contact centre. Regarding tenured experts is to pay the bills until they find something better. Around 90% of contact centre staff at the agent/operator level haven't any marketable skills or job experience, aside from being bilingual (Dominican Today, 2008). With that being said is clear that contact centers are a source of income to those who are in need.
The country must realize the potential it has on this industry and begin taking activities and creating options that allows it to become a innovator for FDI in the contact centre industry. Even though the industry is utilizing professional from different areas, it will also start thinking about hiring professionals in the field of "call centers". Having experts from different fields does not provide security to this industry. A doctor, accountant, attorney or any other career will always look for something in their field of study, therefore causing a high turnover and attrition rate in the centers. The state needs to set up training facilities that create provide trained specialists in the area. There should also help facilitate trained personal to help capacitate the staff already in place since there are many whose only ability is to speak English. At a larger scale the government needs to use the integrated mechanism of investment. By placing this technique into place investment will see its way to the right place and person to assist in this matter.
A subject matter that was not directly resolved in the analysis and which is vital is to account for all contact centers in the Dominican Republic. Even though CEI-RD and the decision Center Association accounts for formally signed up contact centers, there are a huge selection of informal centers in the Dominican Republic. Accounting and registering the real quantity of centers provides more accurate figures, possible conglomerates and creation of unified strategies in the united states. Another advice for the development of the sector is to provide smaller centers with better bonuses to be able to grow. Small call centre operations do not rely with the necessary capital to provide or maintain major functions. With an active development plan which includes low interest rate loans, training, assistance and workshops these centers could easily draw in a great amount of international investment, therefore causing a larger impact in the country. With these tools-which can be found to bigger enterprises-many of these minor companies will not be overlooked and may become part of these industry. Last but not least is the value of disseminating all the huge benefits this industry gets and offers so that more people can be encouraged to join into these projects. If these tips should be taken into consideration the country can simply position itself as the future investment destination for FDI in the growing sector of contact centers.
Call Centers, FDI Global Market Intellect and Foresight, CEI-RD Jonathan Aragonez, Economist for the Investment Foresight Middle, 2010
Center for Export and Investment of the Dominican Republic - CEI-RD - www. cei-rd. gov. do
Central Loan provider of the Dominican Republic - www. bancentral. gov. do
CIA fact publication - https://www. cia. gov/library/publications/the-world-factbook/
Doing Business 2010: Reforming Through Difficult Times, The International Bank or investment company for Reconstruction and Development / THE ENTIRE WORLD Bank
Dominican Republic Contact Center Connection - http://w2. acc-rd. org/index. php?lang=en
Foreign Direct Investment in Latin America and the Caribbean, 2008
FDI Magazine. "A Caribbean Jewel. " Financial Times Journal. August 2005
Interview to Minister Eddy Martinez, Director of the CEI-RD in the daily show "Hoy Mismo", sent in channel 9. (http://www. youtube. com/watch?v=ip82PT_Qj0M&feature=related)
Ministry of Labor of the Dominican Republic - File about minimum income in the united states allocated by the National Income Committee, 2007. www. ste. gov. do
Nearshore Call Center Services - www. nearshore. cc
Newspaper Dominican Today, Economy treatment, May 2008 www. dominicantoday. com/dr/economy/2008/5/13/27963/Dominican-Republics-57-Call-Centers-account-for-25000-jobs
Office of the United States Trade Agent www. ustr. gov/trade-agreements/free-trade-agreements