Check out why we operate in Honduras!

1.
Honduras is located in the heart of the Americas - only a
two-hour flight from the US. As the 2nd largest country in
Central America, Honduras has great potential for
growth in the Contact Center Industry. Here’s why…
Why Honduras?
Strategic Location – Honduras is the 2nd largest country in
Central America, located in the heart of the Americas
with great proximity to North America.
Cultural Affinity – Hondurans tend to have great English
speaking skills in a neutral accent. There are many
prestigious international companies that have been
succesfully operating in Honduran territory for more than
100 years.
Low Costs – One of the key advantages in Honduras is the
low cost of real estate and direct labor.
Sufficient Critical Mass and Lower Saturation Relative to
Region – Sustained growth rates of the English speaking
population. Honduras has more than 410 bilingual
schools. It also has the lowest level of saturation of
contact center positions of near shore countries, as
illustrated below.

2.
Since KM2 entered Honduras as the first contact center BPO in the country in
April of 2011, the number of positions has risen to nearly 1,000, however the
saturation index remains the lowest in the region.
CONTACT CENTER SATURATION INDEX
COUNTRY POPULATION CONTACT CENTER SATURATION
POSITIONS INDEX
Costa Rica 3,900,000 32,000 8.21
Jamaica 2,700,000 18,000 6.67
Panamá 3,000,000 18,000 6.00
Dominican Republic 8,800,000 25,000 2.84
El Salvador 7,066,000 8,000 1.13
Guatemala 14,300,000 6,000 0.42
Honduras 7,600,000 1,000 0.13
Source: Business and Economic Development.
In the BPO space, Honduras is seen as a rapidly emerging location, due
primarily to its availability of well‐educated people and the operational
savings realized by companies operating in Honduras. Many other countries
in Central America have been reaching levels of maturation and saturation,
and as a result, costs have risen in those countries by 30‐60% higher than in
Honduras.

3.
Why San Pedro Sula?
San Pedro Sula is the engine of the Honduran economy, generating more
than 60% of the national GDP.
Seventy percent of business visitors to Honduras arrive through San Pedro
Sula (SAP) International Airport.
San Pedro Sula has become a vibrant economic and industrial city (1.1 million
people) with 7 main universities and 52 bilingual schools.
The city has become a hub for business, as well as a tourism destination;
amazing Mayan ruins and beautiful beaches just 30 minutes away, and great
lifestyle and natural sightseeing.
Foreign investors and expatriates living or visiting San Pedro Sula find living
conditions comfortable. Shopping malls and supermarkets carry products
similar to those sold in the US and are conveniently located throughout the
city. There is a wide selection of restaurants that offer a wide variety of
cuisine as well as local specialites.
The lifestyle in San Pedro Sula is ideal for those seking a lush tropical setting
with all of the modern conveniences and amenities available.

4.
Technology & Telecommunications
San Pedro Sula enjoys the most modern and robust telecommunications
infrastructure in the country, and Honduras has one of the most liberalized
telecom markets in the region. Since the government’s deregulation of the
telecom sector, more than 30 telecom service providers and operators have
established operations in Honduras. Navega, a carrier’s carrier, and one of
the leading telecom providers in Central America, has built its infrastructure
with enough capacity to cover all of the countries in the region. It has a
direct submarine link (3 cables) into the NAP of the Americas (Miami). With
more than 2000 miles of fiber optics in redundant rings and SDH technology,
Navega provides capacities of STM‐1 to STM‐4 deployed through an Ethernet
or MPLS netowrk. This provides adequate bandwidth, redundancy, and low
costs to contact centers and IT firms. As a result, telecom costs are the
lowest as compared to other major countries in Central America.

5.
People
Labor shortages in neighbor countries: Guatemala, El Salvador, Nicaragua,
and Costa Rica are all struggling to supply and sustain growth in the BPO and
ITO industries. Honduras is virtually the only country in Central America
capable of supplying the necessary labor pool to provide sustainability to the
outsourcing industry.
A recent approval for the part time labor law opens a whole new market of
opportunities for students that could not work and study at the same time.
Hondurans are ready to work and are excited about the new opportunities
that the contact center industry has to offer. Our data has shown very low
attrition rates, and it is clear that employees are eager to be part of this
industry.
Hondurans are cheerful, have a deep desire to learn, and have a very strong
work ethic. They are passionate believers in peace and democracy and that
this is the land of opportunities.
Honduras is a country with the right infrastructure and human capital,
perfect for a nearshore operation. San Pedro Sula is a vibrant city with a
business environment aimed at creating a climate for success in the contact
center industry, by providing the required energy, telecommunications,
security, and modern office space required.

6. Why is KM² Solutions in Honduras?
During the business planning phase to set up
and build new facilities, the leadership team
at KM² took into consideration a variety of
factors in deciding on Honduras. Some of the
high level considerations were based on
English language skills, labor availability and
total costs, low competition for resources and
the availability of local infrastructure to meet our client’s requirement. Our
new site in Honduras is the first international center in a free trade zone and
compliments our Caribbean sites through the availability of high quality bi‐
lingual Spanish services.
Key Drivers
1. Local Government Incentives: KM² works closely with various Government
bodies that support initiatives in bringing economic growth and diversity of
business to the respective countries. Where possible, our centers are
deployed in Special Economic Zones allowing us to better position our
services from a cost perspective. This approach enables long ‐term growth
benefiting the country, our Clients and KM2.
2. Attracting Labor: Analyzing the labor market helps determine the right
geography fit for any start up or expansion. KM² is the employer of choice in
all of our locations. We take into consideration such aspects as positioning
our location in close proximity to public and private transportation hubs, in
doing so we have been able to draw upon the right skill sets in the right
market which has fostered sustained growth.
3. Market Goodwill: KM² is proud to be the employer of choice in our market.
From attracting the right caliber, to retaining and up‐training, KM² continues
to make the right investment in our People, Our Processes and our
Technology. Today, our biggest referral source is our existing employees who
speak of "The Culture" as the single largest differentiator of our organization,
from Sr. Management visits, to caring for our employees through flexible
work schedules and by rewarding successful behavior, KM² is proud to have
the loyalty of its employees.

7.
4. Utilities: KM² and our local Government partners have invested and
continue to invest in generator and network backup systems to ensure
continuity of business services.
5. Competition: KM² has strategically positioned itself in a business
environment that maintains a major barrier of entry. Few facilities exist, if
any, that can provide adequate space and connectivity necessary for call
center services. The early entrant factor was critical allowing us to build
unencumbered and not have to focus on agent attrition. Unlike in many
major call center markets, once trained, our agents rarely leave for a
competitor. This has lead to KM² evolving to become the employer of choice
and maintaining low attrition.
6. Currency Stability: Our locations do not experience the same currency
volatility that is observed in other global markets, they are economically
viable geographies to conduct business vs. some of the more volatile markets
such as India and the Philippines. The importance of doing our research
upfront and in investing in time to identify the right geography has served
KM² well. We continue to use this disciplined approach as we grow and build
our footprint in new and emerging markets.
7. Proximity: Given the wave of outsourcing into Southeast Asia
and Latin America, it was important to focus on a geography that
was within close proximity to the continental United States
hours of operation. This has allowed for flexibility in travel, and
more importantly our chosen locations are connected by
Tourism and Cable TV that resonates the Culture of North
America, while offering higher levels of quality and productivity
at a compelling price point. To the KM² team, the Caribbean and
Central America are the most logical choices.
8. Attrition: Employee attrition in our selected markets is
historically much lower than generally found in North America or
offshore locations such as India and the Philippines.

8.
KM² Honduras Contact Center
KM² has three operating centers in the English Speaking Caribbean and one
in Honduras. These centers are strategically deployed to allow for maximum
redundancy to support business continuity.
HONDURAS: The KM² center in Honduras is located in several floors of
the main building at the Altia Business Park in San Pedro Sula (pictured
below). This center offers a skilled bi‐lingual labor force in a LEEDs certified
“Green” highly secure facility.
Contact Us:
Joe Wester
Vice President
KM² Solutions, LLC
Office: 262.790.2656
joe.wester@km2solutions.com