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US companies are constantly looking for ways to expand their businesses overseas and take advantage of outsourcing opportunities. Puerto Rico, an island territory of the US, is a worthy candidate for business outsourcing. Here we’ll go over everything you need to know before outsourcing your business needs to Puerto Rico. 

SERVIAP can help with your global expansion needs. Contact us today to learn how you can expand your business with PEO in Puerto Rico. 

Tech Graduates & Workforce 

Puerto Rico is an established hub for technology innovators and scientific research. The tech industry has boomed under the Puerto Rico Science, Technology & Research Trust, which seeks to invest in tech and advance Puerto Rico’s economy. This trust has operated since 2004 to stimulate and create jobs in multiple sectors, including: 

  • Life Sciences: Puerto Rico is home to many pharmacy and medical concerns and is regarded as a prime location for this industry given its climate and ease of trade with the US. 
  • Alternative Energy: Puerto Rican workers offer extensive experience creating renewable energy for both commercial and residential purposes. 
  • Environmental and Agricultural Sciences: Puerto Rico has several land grants and experimental stations on the island, which offer a hotbed for developing alternate agriculture tech.  
  • Computer Science and Information Technology: Many Puerto Rican colleges offer advanced degrees in the information technology discipline, creating tens of thousands of graduates each year. 

Additionally, there are many colleges in Puerto Rico offering technology-focused degrees. The workforce in Puerto Rico has a wide variety of knowledge in science and engineering, with over 20,000 STEM degrees being awarded by the island’s colleges each year. 

Key Sectors for Local Activity 

Aside from tourism, which is a large industry in Puerto Rico, the island is well known as a hub for medicine and pharmaceutical production. As the population is well-educated and highly STEM-focused, there is a large scientific industry on the island.  

The largest scientific industries include: 

  • Biotechnology 
  • Medical Devices 
  • Aerospace 
  • Agricultural Sciences 

Puerto Rico is also a massive manufacturer of a variety of common household goods.  

The island’s economy relies on manufacturing several different products, such as electronics, medicines, and textiles, for a large portion of its yearly income. 

Key Sectors for Outsourcing 

Puerto Rico’s workforce has a great deal of experience in process development, quality control, manufacturing automation, and other work ancillary to the STEM fields. Any highly technical, scientific business or business that would benefit from a bilingual workforce should consider outsourcing to Puerto Rico.  

English Speakers 

English is one of the two official languages of the island. Though Spanish is the first official language and the most widely used, a large portion of the population can recognize English. They are not, however, considered fluent in English.  

In the professional business sector, however, English and Spanish are both spoken. A large percentage of the technical and medical working population is bilingual.  

Average Wages 

Puerto Rico has some of the lowest labor costs of any territory under US control. Whereas the US minimum wage is $7.25 per hour, Puerto Rico’s minimum wage comes to $6.55 per hour, with exceptions that apply to employees who receive tips.  

The Federal Fair Labor Standards Act covers some businesses, and they must follow the US federal minimum wage of $7.25 per hour.  

However, average wages are typically around $20,000 per year or approximately $9 per hour. As with most average wage reports, actual averages will vary depending on the job. Businesses may pay more on average if the jobs being outsourced are more technical. 

Keep in mind that some employers may pay a special rate below the Puerto Rican minimum wage if they can prove that paying minimum wages would stall employment in their industry. 

Prominent Cities for Business 

As Puerto Rico has many enticing perks for any outsourced business, many places within Puerto Rico offer desirable characteristics for a business center. Some examples include:  

  • San Juan: This largest city recently built a new business development and leisure center for the island, attracting both tourists and business travelers.  
  • Dorado: Located 25 miles away from San Juan, Dorado is a highly desirable residential location and home to a large English-speaking population. 
  • Ponce: This walkable city hosts vibrant nightlife, making it a great option for younger residents and businesses seeking a younger workforce.  

Turnover Rates 

Turnover rates in Puerto Rico are about the same as the rates within the US. Higher paying jobs tend to see less turnover, while jobs with lower annual salaries lose workers more frequently. Additionally, industries with a good chance of upward mobility for the workers see less turnover.  

Is Puerto Rico Right for Your Business? 

SERVIAP is a leading Professional Employer Organization (PEO) ready to help your business expand operations throughout the Western Hemisphere. PEO is a model of co-employment, where we assume total responsibility for your talent, allowing you to focus on the strategic activities of your organization. Contact us today to learn more about how you can expand your business in Puerto Rico. 

Contact Us 

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