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EL SALVADOR - Economy

Federico Paz

Office Managing Partner, Deloitte

Bio

Federico Paz is Office Managing Partner of
Deloitte.

"We have a regional sustainability practice aligned with Deloitte’s global goals to reduce carbon impacts by 2030."

TBY talks to Federico Paz, Office Managing Partner of Deloitte, about almost two decades of in-country operations, digital transformation, and plans for the future.

How has the Salvadoran market evolved since Deloitte opened its doors in 2008?

There have been three key milestones. In the early years, the professional services market in the country was different. It focused heavily on two main services: auditing and accounting, which were the primary services we started offering in the Salvadoran market at the time. Deloitte soon began to expand into additional areas. The next milestone was preparing our professionals to offer more sophisticated services, including technology, strategic planning, cybersecurity, and financial advisory. We spent several years developing talent, focusing on equipping our team with the skills needed to grow in the market and meet evolving client demands. Our vision to anticipate future needs aligned well with the professionals we had been training internally. Our organization is people-focused, so our approach centered on preparing our teams not only in technical skills but also in client service orientation. We emphasized helping them understand that clients are looking for solutions and our role as advisors is to guide them in finding those solutions. By 2016 and again in 2020, we achieved a dominant market position. A major turning point came with our integration into Deloitte’s Spanish Latin American network, connecting us with member firms from Mexico to Argentina. This connection provided us access to specialized resources not only in-country but also regionally, giving us a significant advantage. We can now draw on expertise from professionals who work across borders. This integration has allowed us to offer world-class services to local businesses and help them succeed in increasingly complex markets.

Could you share examples of projects Deloitte has supported, especially in public administration?

Deloitte has been involved in several infrastructure-related projects, particularly in public-private partnerships (PPPs). El Salvador has been a pioneer in Central America in developing PPPs, and we have had the privilege of contributing to key initiatives. For instance, we supported the expansion of the country’s cargo terminal and worked on projects to enhance highway security through video surveillance and lighting systems. In the early stages of our involvement, we often relied on international expertise, particularly from Spanish specialists. Over time, however, we have built regional capacity, enabling us to handle projects independently. We have helped develop not just the technical aspects of infrastructure but also the financial models and regulatory frameworks required for these projects. For about eight years, Deloitte has collaborated closely with the government, aligning our efforts to meet its needs and timelines. We hope to see the successful implementation of PPPs across Central America. By leveraging our expertise, we aim to help other governments in the region benefit from similar strategies.

What key projects has Deloitte undertaken in digital transformation, particularly in areas like AI, predictive analytics, and data-driven solutions?

Big data, AI, and cybersecurity are areas where our capabilities have grown significantly in recent years. Since 2020, Deloitte has been able to provide cybersecurity services and, more recently, AI solutions. This progress was made possible through the integration of global resources and expertise. In El Salvador, these fields remain relatively unregulated, offering a blank slate for innovation. We assist clients in defining roadmaps for applying AI and big data effectively. This lack of regulation provides both challenges and opportunities: while there are fewer constraints, we must ensure that clients adopt best practices to maintain ethical and efficient operations. Our most significant advancements in AI have been in the financial sector, particularly consumer finance. This area has seen the most demand and practical application. While other sectors are gradually catching up, finance remains our focal point for predictive analytics and AI-based solutions.

What initiatives has Deloitte implemented to promote sustainability, and how are they making an impact?

We have a regional sustainability practice aligned with Deloitte’s global goals to reduce carbon impacts by 2030. In many of our countries, sustainability awareness is still in its early stages, so our role is to educate and empower our employees to become change agents. We aim to integrate sustainability principles into both our operations and the services we offer clients. Costa Rica, where sustainability practices are more advanced, serves as a hub for our regional efforts. Professionals from there have participated in private-sector projects across Central America, helping companies adopt environmentally friendly practices. Our goal is to foster a culture of sustainability throughout the region.

Can you elaborate on Deloitte’s initiatives to enhance workplace well-being in El Salvador?

Deloitte is committed to equity and inclusion, with a strong focus on gender equality. In Central America, we have achieved nearly equal participation between men and women, with certain service lines, like tax and legal, even having a higher percentage of women at the partner level. We offer various programs to support our staff, including flexible working hours, remote work options, and enhanced parental leave policies. For instance, maternity and paternity leave are more generous than legally required, with fathers receiving up to four months of leave—a rarity in the region. Additionally, we prioritize mental health through dedicated programs and a hotline for reporting ethical concerns. This resource is available to employees, former employees, and even the general public to address workplace issues and ensure ethical standards are upheld.

How does your company engage in emerging sectors and support economic growth in El Salvador?

One of our recent focuses has been analyzing new laws on digital assets. We are exploring how these regulations can open avenues for funding and investment. By collaborating with international experts, we aim to promote these laws in the market and generate interest among potential investors. We have also guided clients in establishing technological development centers under El Salvador’s international services law, which offers benefits to outsourcing and corporate operations. Our role involves navigating the legal landscape, advising on operational models, and ensuring compliance with local regulations.

What are your plans for the future?

Our main focus is on anticipating economic developments and preparing our team for the changes ahead. By staying ahead of trends, we can help clients and investors capitalize on opportunities presented by new laws, such as those governing Bitcoin and digital assets. We aim to position El Salvador as a regional technology hub by creating specialized task forces to support clients in leveraging these developments. At the same time, Deloitte is committed to nurturing local talent, offering clear career paths, and fostering professional and personal growth. Through initiatives like MECA (Mejores Empresas Centroamericanas), we provide pro bono advisory services to emerging middle-level companies, helping them secure resources and connect with financial partners. Looking ahead, our goal is to continue integrating regional and global expertise to better serve our clients and contribute to the country’s development. By empowering our employees and supporting both local and international businesses, we hope to drive sustainable growth and innovation in El Salvador.

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