Venezuela deserves consideration as a potential outsourcing destination and is one of the most urbanized Latin American countries. Once a coffee and cocoa exporter, this country developed into one of the largest oil exporters in the world and is a founding member of the Organization of the Petroleum Exporting Countries (OPEC). According to CIO, Venezuela was “bullish on examining outsourcing relationships in Venezuela. But the last few years have tempered historic enthusiasm”.
University life has been disrupted due to anti-government protests, however, Venezuela houses highly-skilled programmers.
Programmers in Venezuela are fluent in English and are technically proficient.
Economically, Venezuela is struggling. GDP is expected to decline 5% in 2018 and another 1.2% is forecast for 2019. Worse, Venezuela is suffering from hyperinflation, which the International Monetary Fund estimates will reach 2,068.5 % by 2018. As a country which, under the late President Hugo Chavez, shone as a bright economic star due to profitable oil output, Venezuela is now experiencing the downside of deflated crude oil prices and lack of capital investment in the petroleum industry. Currently, Venezuela launched an oil-backed cryptocurrency, petro, to pull the country out of its economic crisis. President Nicolas Maduro vowed that each petro token will be backed by one barrel of petroleum. Maduro claimed to issue 100 million tokens - worth around $6 billion.
Political unrest is high in Venezuela. Fueled by a struggling economy, a lack of jobs, basic supplies and foodstuffs, anti-government protests are a regular occurrence in Venezuela. Yet, while their government is besieged by controversy, Venezuela has close economic ties to the US.