IT, BPO and Contact Center Hub in Central America

IDC predicts that IT spending growth in the region will be a healthy 7 to 8 percent, with the seven economic powerhouses (Brazil, Colombia, Mexico, Venezuela, Chile, Peru and Argentina) expected to spend nearly U.S. $50 billion on IT in 2009, according to The Economist Intelligence Unit. Roughly half of IT budgets will be spent on hardware , 20 percent on services and 15 percent on software

Latinamerica Business Case

Important Data IT Spending 2009 Present and trends of LatinAmerican IT market

IT Spending 2009 Present and trends of LatinAmerican IT market

Important Data Companies in Latin America can rely on a large pool of motivated workers between the ages of 18 and 39. Many are driven to succeed, and acutely interested in technology and business. They have a good work ethic and great interpersonal skills. Central American countries have moreover benefited from the Central American Free Trade Agreement (CAFTA), which hands signatories duty-free access to the U.S. markets. “When a small- or medium-size economy in Latin America signs a trade agreement with the U.S. or Europe, its market is suddenly increased 10-fold”

Companies in Latin America can rely on a large pool of motivated workers between the ages of 18 and 39. Many are driven to succeed, and acutely interested in technology and business. They have a good work ethic and great interpersonal skills.

Central American countries have moreover benefited from the Central American Free Trade Agreement (CAFTA), which hands signatories duty-free access to the U.S. markets. “When a small- or medium-size economy in Latin America signs a trade agreement with the U.S. or Europe, its market is suddenly increased 10-fold”

Important Data Latinamerica represents fertile hunting grounds and it is key to have a cost competitive advantage as well as access to trainable ad readily available labor force IT labor force: according to Rodolfo Cardenuto, SAP CEO Latinamerica, “We currently have about 25,000 consultants in the region, but the market will be requiring another 25,000 in the next few years”, so just training is a market by itself. Access to competitive labor cost pool is an Honduras competitive advantage. Grupo Karims has a strategic alliance with the main university in IT education: Unitec, part of a large international university network – Laureate.

Latinamerica represents fertile hunting grounds and it is key to have a cost competitive advantage as well as access to trainable ad readily available labor force

IT labor force: according to Rodolfo Cardenuto, SAP CEO Latinamerica, “We currently have about 25,000 consultants in the region, but the market will be requiring another 25,000 in the next few years”, so just training is a market by itself.

Access to competitive labor cost pool is an Honduras competitive advantage. Grupo Karims has a strategic alliance with the main university in IT education: Unitec, part of a large international university network – Laureate.

Important Data Banks and insurance firms are the organizations that are most behind in adopting ERPs because they had a lot of internal development. They were convinced that what they had was good, so they started to adopt ERPs later than other industries. (Tonatiuh Barradas, SAP VP Latinamerica, March 2009) Regional financial services organizations investing in IT tools to improve their customer service, regulation compliance and operational areas. Because of the crisis a more rigid set of regulations will be established, so companies will need to report more often [and they will make IT investments to facilitate that process as well

Banks and insurance firms are the organizations that are most behind in adopting ERPs because they had a lot of internal development. They were convinced that what they had was good, so they started to adopt ERPs later than other industries. (Tonatiuh Barradas, SAP VP Latinamerica, March 2009)

Regional financial services organizations investing in IT tools to improve their customer service, regulation compliance and operational areas. Because of the crisis a more rigid set of regulations will be established, so companies will need to report more often [and they will make IT investments to facilitate that process as well

Honduras Business Case

Important Data Safe & Cost-Competitive Near Shore Location: Honduras offers the most cost competitive solution in the near shore area in a safe, stable environment Positive Business Environment: Solid legal framework for investment ensure the safety and continuity of business relations. Largest English speaking and IT population in Central America (410 bilingual schools), almost 100% more than the rest of Central American countries combined (Approximately 100,000 people in the country)

Safe & Cost-Competitive Near Shore Location: Honduras offers the most cost competitive solution in the near shore area in a safe, stable environment

Positive Business Environment: Solid legal framework for investment ensure the safety and continuity of business relations.

Largest English speaking and IT population in Central America (410 bilingual schools), almost 100% more than the rest of Central American countries combined (Approximately 100,000 people in the country)

Important Data Honduras is connected to the NAP of the Americas through 3 submarine cables, which provide reliable communications infrastructure Honduras has one of the largest fiber optics network in the region. Lowest telecommunication cost in the whole region Sustained economic growth of more than 5.5% during the last 7 years; it is expected to have a 1.5% growth during 2009 Only Central American country not in the seismic region Honduran government has established the service sector as a national priority

Honduras is connected to the NAP of the Americas through 3 submarine cables, which provide reliable communications infrastructure

Honduras has one of the largest fiber optics network in the region. Lowest telecommunication cost in the whole region

Sustained economic growth of more than 5.5% during the last 7 years; it is expected to have a 1.5% growth during 2009

Only Central American country not in the seismic region

Honduran government has established the service sector as a national priority

Important Data Cultural affinity – more than 100 years with presence of U.S. companies operating in Honduran territory More than 25 yrs of democracy – catalogued by the World Economic Forum as a country with good future perspectives Multinational carriers presence (Milicom – Navega, Multidata, Digicel (Irish),Telecorp, Cablecolor, Telcel (Mexican – Claro) Honduras has the human capital and the passion for service culture: opportunity for lower cost operations due to attractive labor rates

Cultural affinity – more than 100 years with presence of U.S. companies operating in Honduran territory

More than 25 yrs of democracy – catalogued by the World Economic Forum as a country with good future perspectives

Multinational carriers presence (Milicom – Navega, Multidata, Digicel (Irish),Telecorp, Cablecolor, Telcel (Mexican – Claro)

Honduras has the human capital and the passion for service culture: opportunity for lower cost operations due to attractive labor rates

Internet costs (VoIP) Source: Julio Herrera, Navega Commercial Manager,March 2009 (Prices in US$)

San Pedro Sula Business Case

Strategic Geographic Location

Important Data 70% of business visitors to Honduras arrive through San Pedro Sula’s airport San Pedro Sula is the motor of the Honduran economy, generating more than 60% of the national GDP San Pedro Sula has become a vibrant economic and industrial city (1.1 M people) with 6 main universities and 52 bilingual schools San Pedro Sula has daily/direct flights to New York, Atlanta, Houston, Miami and connected to Los Angeles, San Francisco, Mexico, Central and South America

70% of business visitors to Honduras arrive through San Pedro Sula’s airport

San Pedro Sula is the motor of the Honduran economy, generating more than 60% of the national GDP

San Pedro Sula has become a vibrant economic and industrial city (1.1 M people) with 6 main universities and 52 bilingual schools

San Pedro Sula has daily/direct flights to New York, Atlanta, Houston, Miami and connected to Los Angeles, San Francisco, Mexico, Central and South America

Altia Business Park

Important Data Altia Business Park will become the most modern technology and business park in the region: Energy redundant – Energy efficient: we have designed the park as energy self sufficient, but also interconnected to the national grid. We have designed all the buildings aimed to obtain the LEED certification. This will be translated to a cost competitive advantage on the power bill (20-30% lower than standard consumption) Connectivity redundancy – high quality, cost effective telecommunication World class environment – we can deliver turn key office space based on your requirements and needs World class security Fully 24/7/365 operational capability

Altia Business Park will become the most modern technology and business park in the region:

Energy redundant – Energy efficient: we have designed the park as energy self sufficient, but also interconnected to the national grid. We have designed all the buildings aimed to obtain the LEED certification. This will be translated to a cost competitive advantage on the power bill (20-30% lower than standard consumption)

Connectivity redundancy – high quality, cost effective telecommunication

World class environment – we can deliver turn key office space based on your requirements and needs

World class security

Fully 24/7/365 operational capability

Important Data Altia Business Park is based as a free zone, which means you are exempt of any local or national tax. Competitive real estate cost We have in place a network of strategic partners and alliances to help you reduce the curve of experience costs and time to have running an operation

Altia Business Park is based as a free zone, which means you are exempt of any local or national tax.

Competitive real estate cost

We have in place a network of strategic partners and alliances to help you reduce the curve of experience costs and time to have running an operation

Strategic Geographic Location 25 minutes, moderate traffic

Building Timeline We are on the 11 th floor (14 floors) Connectivity and power infrastructure installation First tenants will be moving their offices and operations Interior design finished Infrastructure 70% advance on civil works 100% advance Jan ’09 May ’09 Aug ’09 Sept ’09 Nov ’09 Building

Our strategic network

Conclusions Honduras is a country with the right infrastructure and the human capital, perfect for a near (best shore) shore operation; a vibrant city with the business environment aimed for successful ventures; a world class business and technology park with all the required energy, telecommunication, security and modern office space, all of them together providing a real competitive cost advantage; and a business partner with a passion for service: Your success will be ours..

Honduras is a country with the right infrastructure and the human capital, perfect for a near (best shore) shore operation; a vibrant city with the business environment aimed for successful ventures; a world class business and technology park with all the required energy, telecommunication, security and modern office space, all of them together providing a real competitive cost advantage; and a business partner with a passion for service: Your success will be ours..