Header InsideOut

Image
COLOMBIAN SECTOR OPPORTUNITIES

Colombian sector opportunities

Header InsideOut

Image
insideout2021

Colombian sector opportunities

Title

TECHNOLOGY INDUSTRY

April 5, 2022
Image
TECHNOLOGY
Body

COLOMBIA AS A TECHNOLOGICAL HUB FOR LATAM

 

1. Colombia has consolidated its position as a hub for BPO services in Latin America.

  • The country stands out internationally as a favorable location for services. According to the 2021 Global Service Location Index (GSLI), Colombia is the third-largest market in the region.
  • Large multinational service companies are located in Colombia. Some multinationals such as Teleperformance, Sitel, Atento, Concentrix, Accedo, Mercado Libre, etc.
  • The country has consolidated its position as an export platform for BPO services, with an average annual growth of 15% in the last five years, with the United States, Spain, and Chile as its main trading partners.

2. The country has ideal conditions for the growth of the BPO industry.

  • Colombia has the third-largest market in the region, which allows for scaling up the offer
    • 3rd most populous country in Latin America with 51 million inhabitants
    • Population size like Spain and South Korea
    • Multiple cities in Colombia have more than 500 thousand inhabitants, allowing companies to carry out their operations in different regions.

3. There is a human capital base that stands out in the region due to its quality vs. cost ratio

  • Kindness, service orientation, and an entrepreneurial mindset favor business.
  • A high proportion of the population is young, favoring consolidating the existing talent base.
    • 32% of the Colombian population is between 20 and 39 years old
    • A high proportion of the young population helps boost the domestic market and energize the labor force.
  • The costs of human capital for the industry in Colombia are competitive compared to those of the región. The average monthly salary in Colombia is generally 20% less than in representative Latam countries in the BPO sector, such as Costa Rica, Mexico, and Guatemala.
  • The country is distinguished in the region by the neutral accent of its population, in Spanish and English.

4. Colombia has a large and dynamic Software and IT services market.

  • The sector's offer is diversified in different verticals and technologies to respond to market demand. Specialized solutions: FinTech, Logistics, HealthTech, AgriTech, CRM - ERP – HR, Oil & Gas, EduTech, Retail, and Energy & Telecom. And Technology lines: Artificial Intelligence, Blockchain, Virtual Reality, Cloud Computing, Big Data, and Cybersecurity

5. Software is a fundamental part of the country's commitment to increasing its exports.

  • The software industry in Colombia has high export potential, with an average annual growth of 7% in the last five years, with the United States, Ecuador, and Mexico as its main trading partners.
  • The central location in America facilitates the movement to relevant markets in the region and timely customer Service.
    • Colombia is in the middle of 5 time zones, sharing it with essential business centers such as New York, Toronto, and Miami

6. The quality of Internet connectivity facilitates communication with other markets

  • A large number of cables allows for excellent and stable connections, as well as faster data transmissions

7. The existing ecosystem of services and technology favors business and industry growth.

  • The development agenda includes strategic bets on digital development and entrepreneurship.
    • New policies to strengthen the digital ecosystem in Colombia
  • The country has an ICT Ministry and consolidated telecommunications regulations.
    • Telecommunications Regulation - Communications Regulation Commission (CRC).
  • Significant associations and research centers also participate in the ecosystem.
  • Colombia has regional economies, which makes it easier to increase supply. In addition, due to the wide range of specialties developed, more than 10 clusters have been consolidated around the country.