Due to the unequal distribution of wealth and infrastructure 69% of all telephones are in Guatemala City.(1) This means that any IT development will either be concentrated in or around this area or will be forced to develop its own proprietary IT system. With the advance in technology, development of a proprietary system is now much more affordable than it once was, and by some standards, is even considered cheap. Therefore, development of a proprietary system is most likely the best direction for companies wishing to develop their IT structure, or new companies wishing to enter into the country.

Reasons for a Technology Cluster

There are a number of advantages of Technology Clusters.

Geographical Proximity
Critical Mass of Firms
Complementary Firms
Often a major university located in cluster
Access to the best people and a high degree of movement between firms
Positive effect of competition between firms

At this time there are no technology clusters found within Guatemala.