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Offshore Opportunities
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Offshore Opportunities
Cuba's off shore readiness can be rated "low" or "not ready." Cuba is one of the world's only remaining communist countries that tightly governs and filters access to internet resources for its citizens, universities, businesses and state run entities. The telecom and network infrastructure has not seen a major upgrade since 1959 and is comprised of 3 Local Area Networks (LAN) in La Habana, Matanzas and Villa Clara. A token ring architecture is used in these LANs and modems are used for data transmission through voice grade circuits. In addition to this depreciated infrastructure, access to the internet and technology resources throughout the world is through a dedicated satellite connection.2 The combination of these factors make Cuba's readiness very low for global companies looking to offshore in Cuba.
Cuba's offshore attractiveness can be seen as "low-medium" or "not highly attractive." Although many of the factors related to Cuba's readiness have a direct impact on its attractiveness Cuba is making great strides in the information technology sector. Beginning with the creation of Cuba's first Ministry of Information Technology and Communications; Cuba offers its citizens free education through college and has developed nearly 45,000 highly skilled workers, 38 per cent of whom have specialized degrees. Today more than 85 percent of the countries IT industry is concentrated in technical services and software development.1 In addition to the surge of IT professionals developing in Cuba many companies and politicians in the US believe Cuba to be a prime spot for offshoreing or nearshoreing due to its relative closeness to the US and is seen as a possible gateway into Latin America. While Cuba has no restrictions on conducting business with American based companies hands are still tied on the US side. According to two Cuba government officials, both of whom work for at DISAIC, a government agency focused on consulting with Cuba business to improve their technology infrastructure, HR, training and technical services; Cristina Ramirez Espinosa, marketing communications director and Mayra Sanchez Barreto, IT consulting director emphasizes that Cuba is focused on a strategy which is driven around exporting professional services, throughout the world. "Our biggest potential is built around our human capital," says Espinosa. According to DISAIC, Cuba can offer specialty services in several areas: IT engineering/ systems; cyber security and Internet specialists and telecom engineering where current professional services outsourcing trading partners include Spain, Venezuela, Colombia and Chile.3
The combination of Low readiness and low to low-medium attractiveness has not yet allowed Cuba to become an acceptable location for off shoring.
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