PANAMA - vicomex.gob.pa

PANAMA
The Panama
Call Center Opportunity
National Office for Export and Investment Promotion
Ministry of Trade and Industry
PANAMA
TRACKING CALL CENTER DEVELOPMENT
IN PANAMA
1995: SALE OF STATE-OWNED TELECOM COMPANY, INTEL, TO
CABLE AND WIRELESS
1996: NEW TELECOM LEGISLATION IS PASSED. CREATION OF
REGULATORY ENTITY OF PUBLIC SERVICES
JAN. 2001: SITEL (IN JV WITH C&W) GOES LIVE WITH LOCAL
SERVICE
OCT. 2001: CALL CENTER INCENTIVES LAW IS PASSED AND
DOLLAR TAX IS ELIMINATED.
JAN. 2003: END OF C&W MONOPOLY. OTHER CARRIERS BEGIN TO
OFFER LOCAL AND LONG DISTANCE
MAY 2003: DELL AND SPHERION GO LIVE
PANAMA
What is the Panama opportunity?
Social
•
•
•
Language: Large bilingual population with strong english skills
Location: Heart of the Americas
Culture: Diverse and multi-ethnic. Strong affinity to the U.S. --100+ year relationship
Political
•
•
•
•
Incentives: Tax breaks, Real Estate packages and HR
Development assistance
Government backing: Call Center Industry --- Top Priority
Country/Region risk: Stable environment with social, political
and economic calm
Currency issues: negligible level of inflation --- under 2% the
last 50 years. No currency devaluation --- US dollar is legal
tender --- No Central Bank --- No restrictions on movement of
capital
PANAMA
What is the Panama opportunity?
Employee Talent Pool
•
•
•
•
Educational System: Reengineering process underway. More
emphasis on english skills
Quality of work: Has exceeded expectations
Cost of Labor/Average Salary: U$400 – $600
Level 1 Bilingual Agent
HR Development: Experienced and effective training
infrastructure
Infrastructure
•
•
Telecommunications Infrastructure: Best in the region
Roads/Ports/Airports: Best multimodal transport system in the
region
PANAMA
GOVERNMENT BACKING
Panama´s Teleservices Development Strategy is
one of this Administration´s top job-creation
initiatives.
A highly coordinated effort involving 6 different
government agencies, which has generated 2000+
jobs in less than 2 years.
Implementation of most aggressive and innovative
training program in the country´s history
PANAMA
CALL CENTER LEGISLATION
•CALL CENTERS ARE REGULATED UNDER
TELECOMMUNICATIONS LAW 31 OF 1996
•LAW 54 OF 2001 GRANTS INCENTIVES TO
INTERNATIONAL CALL CENTERS. AMONG
THESE: •TAX-FREE OPERATIONS (NO SALES,
INCOME OR ANY OTHER NATIONAL TAXES)
•SPECIAL VACATION SCHEDULES
•MARKET FLUCTUATIONS AS A JUSTIFIED
CAUSE FOR CONTRACT TERMINATION
•SPECIAL EMPLOYEE STABILITY REGIME –
3 YEARS
•NO IMPORT TARIFFS
•RESIDENCE VISAS FOR EXPATS
•PRODUCTIVITY PREMIUMS, BONUSES OR
INCENTIVES ARE NOT CONSIDERED AS
PART OF THE SALARY
PANAMA
LEGAL STABILITY LEGISLATION
For a period of 10 years after registration, the law guarantees:
Legal Stability. The Company will be exempted from any future laws enacted
that may affect or vary the rights of the Company at the moment of Investment.
National Taxation Stability. The Company will be exempted from any future
laws enacted that may affect or vary the taxation regime applicable to the
Company at the moment of Investment.
Labor Stability. The Company will be exempted from any future laws enacted
that may affect or vary the labor regime applicable to the Company at the
moment of Investment.
Import Tariff Stability. The Company will be exempted from any future laws
enacted that may affect or vary the import tariff scheme applicable to the
Company at the moment of Investment.
Municipal Taxation Stability. Any changes to municipal taxation regime will
only be applicable to the Company, every five years.
Panama also has an agreement with OPIC, a US Federal Govt. Agency
that provides country risk insurance for US investments abroad.
PANAMA
EMPLOYER CONTRIBUTIONS
(as a percentage of the salary)
Social security
Educational insurance
Occupational Safety
XIII month
Severance pay
Vacation
National holidays
Sickness license
10.75
1.50
2.84
8.33
1.92
9.09
3.19
5.75
Total
43.37
PANAMA
LABOR POOL
SIZE OF THE LABOR FORCE: 1.1 MILLION
(PANAMA CITY: 600,000. COLON: 80,000). 2000 CENSUS
UNEMPLOYMENT: 14.1% (Q1 ´03)
75% OF EMPLOYED POPULATION WORK IN SERVICES
INDUSTRY
PANAMA
PANAMAHAS
HASAALONG
LONGHISTORY
HISTORY
AS
ASAN
ANINTERNATIONAL
INTERNATIONAL
SERVICES
SERVICESAND
ANDBANKING
BANKING
CENTER
CENTER-----85
85BANKS
BANKSFROM
FROM
MORE
MORETHAN
THAN35
35COUNTRIES
COUNTRIES
PANAMA
EDUCATION
•PANAMA IS THE REGION´S LARGEST INVESTOR IN EDUCATION
PER CAPITA
•FROM 1990-1999, INVESTMENT IN EDUCATION HAS BEEN
DOUBLED, FROM $250M IN ´90 TO $500M IN ´99 (5% OF GDP)
• LITERACY RATE IN THE CITIES OF PANAMA AND COLON IS 97%
•ENGLISH LANGUAGE TRAINING IS COMPULSORY THROUGHOUT
ELEMENTARY AND HIGH SCHOOL, AS OF 2003
•INTERNET ACCESS IN EVERY SCHOOL BY 2004
PANAMA
UNIVERSITY POPULATION
CURRENT UNIVERSITY ENROLLMENT IS +/- 117,000
IN PUBLIC UNIVERSITIES: 97,000
IN PRIVATE UNIVERSITIES: 20,000
WOMEN MAKE UP ROUGHLY 60% OF STUDENT BODY
Most popular undergrad degree programs:
Law, Medicine, Engineering, Business Administration,
Marketing/Advertising
PUBLIC
PUBLIC UNIVERSITIES
UNIVERSITIES ARE
ARE
FUNDED
FUNDED ALMOST
ALMOST ENTIRELY
ENTIRELY BY
BY
THE
THE STATE.
STATE. AT
AT +/
+/-- $$35.00
35.00 PER
PER
SEMESTER,
SEMESTER, UNDERGRADUATE
UNDERGRADUATE
TUITION
TUITION IS
IS MERELY
MERELY SYMBOLIC
SYMBOLIC
PANAMA
MAJOR UNIVERSITIES IN PANAMA
•UNIVERSITY OF PANAMA
•SANTA MARIA LA ANTIGUA CATHOLIC UNIVERSITY
•TECHNOLOGY UNIVERSITY OF PANAMA
•UNIVERSIDAD LATINA
•UNIVERSIDAD LATINOAMERICANA DE CIENCIAS Y
TECNOLOGIA
•FLORIDA STATE UNIVERSITY
•UNIVERSIDAD DEL ISTMO
•UNIVERSIDAD INTERAMERICANA
•UNIVERSITY OF LOUISVILLE
•NOVA SOUTHEASTERN UNIVERSITY
•COLUMBUS UNIVERSITY
PANAMA
H.R. DEVELOPMENT INCENTIVES
GOVERNMENT GRANTS LABOR INCENTIVES FOR
RECRUITMENT, SELECTION AND TRAINING OF
PANAMANIAN WORKERS ON A PROJECT-BY-PROJECT
BASIS
ENGLISH/CALL CENTER TRAINING PROGRAMS:
OCA PROGRAM – ADMINISTERED BY THE TRAINING
OFFICE OF THE MINISTRY OF LABOR. FUNDED BY IDB
AND CENTRAL GOVT.
COSPAE PROGRAMS - PRIVATE SECTOR COUNCIL FOR
EDUCATIONAL ASSISTANCE, an association of private
sector companies dedicated to promoting education. FUNDED
BY CENTRAL GOVT. AND PRIVATE SECTOR DONATIONS
Customized to
meet industry
standards and
requirements
PANAMA
CONNECTIVITY
•Five major submarine
fiber optic cables land in
Panama, providing the
best connectivity in
Latin America.
•100% Digital System.
Comparable with N.Y.,
London and California
•3000+ Gbps bandwith
availability
•Minimal Risk of Natural
Disasters
PANAMA
TELECOM INFRASTRUCTURE
•Substantial redundant bandwidth capacity. The most reliable
systems in the Region
•Private sector has invested hundreds of millions of dollars in
upgrading the telecommunications infrastructure of Panama
•A variety of major carriers are currently providing services in
Panama, promoting a fierce competition in prices and quality of
services. Prices range according to volume and capacity.
PANAMA
REAL ESTATE INCENTIVES
•THE GOVT., THROUGH THE INTEROCEANIC REGION AUTHORITY (ARI),
OFFERS VERY ATTRACTIVE AND COMPETITIVE REAL ESTATE
OPPORTUNITIES IN THE REVERTED AREAS
•REVERTED AREAS: LAND AND INSTALLATIONS THAT WERE FORMERLY
ADMINISTERED BY U.S. ARMED FORCES AND WERE RETURNED TO
PANAMA AS A RESULT OF THE PANAMA CANAL TREATIES
HOWARD AIR FORCE
BASE, PANAMA
FORT DAVIS, COLON
MAJOR CALL CENTERS IN PANAMA CITY AND VICINITY
CITY CENTER
PANAMA CANAL