Risk Radar Newsflash | Recent Political Crisis Poses Increased Risk to Global Services Delivery from Nicaragua

24 Jul 2018

On April 2018, demonstrators in several Nicaraguan cities began protests after President Daniel Ortega proposed a change to the country’s social security provisions that would have forced taxpayers to pay more while simultaneously cutting payouts to beneficiaries. While this provision has been cancelled, opposition to the President has grown and become violent, claiming more than 250 causalities. Nicaragua is an emerging location for nearshore delivery, and the current crisis has disrupted business operations. While leading firms are following a wait-and-see approach, some may soon actively consider partially/fully moving work to other centers in Latin America if a permanent settlement is not reached soon.

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