OPPORTUNITIES IN THE LOCAL INDUSTRY
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- Aubrey Norris
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1 OPPORTUNITIES IN THE LOCAL INDUSTRY has been one of the most dynamic sectors in mobile internet demand, based on a mass bancarization dynamic sought by the Government to o er everyone the possibility to manage their finances BUSINESS PROCESS OUTSOURCING provision of back o ce and call center services in the country. Colombia has become a distribution hub for outsourcing services and IT and Software Services regionalwide, due to the availability of qualified human capital, the strategic and competitive geographic location with easy access to global markets. Its location in the middle of five time zones has a comparative advantage, sharing a time zone with important business centers in the Americas such as Miami, LAX, NY, Toronto, Mexico City, Buenos Aires, Sao Paulo and Santiago, among others. more than US$ 37 billion over the next years, for the development of road, port, railway, and airport infrastructure in the country, that will require accounting, finance, and logistics support services to control projects operation. Due to the sustained expansion of the health sector and the growing demand of the population (48 million inhabitants), this sector requires increasing support in mobile telecommunication services for remote monitoring of patients (Telemedicine) and information consolidation (Data Entry). demand more services related to mobile telecommunications as well as control and drilling, extraction, and oil transport processes for their daily activities. distribution are growing. demand of BPO and IT services. L ib e rt a d y O r den energy generation, transport and
2 COLOMBIA, A COUNTRY WITH MULTIPLE AREAS OF DEVELOPMENT BOGOTA Create centers for voice BPO in English and Spanish for collection, telemarketing, sales and customer service, because 9.4% of Bogotá's population is bilingual. Additionally the "Colombia Bilingüe " plan aims to consolidate the bilingual human talent database to facilitate its hiring Create centers for voice and non-voice BPO and KPO, because there are more than 144 professionals in management and engineering subjects, which represent a highly skilled workforce. MEDELLIN legal services, design and engineering services, because there are more than 51 thousand professionals on management and engineering courses that constitute a workforce capable of developing added value. Develop basic voice BPO operations with scalability, because there are more than 34 thousand people on technical and technological management and engineering courses in Antioquia. CALI Build centers for voice BPO in activities such as telemarketing, collection and customer service, because there are more than 30 thousand graduates of technical and technology degrees in courses related to management and engineering. Outsource professional services, especially Telemedicine as there are more than 500 companies in the health sector in the region with AN anually growth of 13% per year. Develop Market Research and R&D + Innovation companies particularly for the cosmetics and food industry, with a business network of more than 240 and 380 companies respectively. BARRANQUILLA accounting services, because there are more than 9 thousand graduates of technical and technology courses related to management and engineering. Develop KPO projects specialized in outsourcing Engineering services with COFFEE CULTURAL LANDSCAPE Build basic Voice BPO centers such as telemarketing, collections and customer service, taking advantage of more 15,000 technicians and technologists in Engineering and Management programs. Develop KPO projects, especially in Engineering and R&D + Innovation services thanks to the network of more than 16,000 professionals in Engineering and Management areas. BUCARAMANGA Build O shoring & Outsourcing centers, as a result of the region s strong 2014 listed Bucaramanga as one of the 100 most attractive cities to invest in outsourcing. Outsource customized services and gain access to the more than 2,000 Medicine graduates and 9,000 Law graduates.
3 COLOMBIA, A MARKET THAT DOUBLES THE GROWTH OF THE LATIN AMERICAN MARKET jobs. ( PTP - Grans Consulting 2015.) 368,282 In terms of operating revenues in 2014, the industry grew by 10,3% compared to the previous year. (ACDECC 2015.) On average, 25% of the BPO companies in Colombia are exporting. (PTP - Grans Consulting 2015) According to Gartner, the country ranks as one of the best tions. (Gartner 2015) 12,5% Teleperfomance and Convergys are noteworthy. (ACDECC, 2015.) 3,1% 4,2% 4,9% 52,7% 7,5% BPO INDUSTRY IN COLOMBIA MAJOR SEGMENTS SERVED, 2015 Source: ACDECC. Contact center and BPO Colombian Association, ,0% TELECOMMUNICATIONS BANKING AND FINANCIAL SERVICES MEDIA UTILITIES INSURANCE GOVERNMENT OTHERS
4 A GROWING MARKET WITH HIGH CAPACITY OF SKILLED LABOR 83,007 NUMBER OF GRADUATES IN AND BUSINESS ADMINISTRATION, 2014* Source: Employment Observatory, Ministry of Education, * Taking into account technological, undergraduate and postgraduate programs TOTAL GRADUATES ELECTRIC ELECTRONIC ECONOMY INDUSTRIAL SYSTEMS ACCOUNTING MANAGEMENT Colombia, with 48 million inhabitants, is the world s second largest Spanish-speaking country behind Mexico. It has multiple centers of development: Nine metropolitan areas with a population higher than 500,000 inhabitants. (Source: DANE [National Administrative Department of Statistics].) Colombia is within the 30th largest economies and one of the largest within the non-oecd economies. In Colombia more than 200,000 people graduate every year from higher education. Of those, 54% do so at the undergraduate level and 19% from masters and specializations. (Employment Observatory, Ministry of National Education, 2014.) (IMD, 2015.)
5 CFX - 1 INFRASTRUCTURE, ATTRACTIVE COSTS SAVINGS AND A PRIVILEGED LOCATION GLOBENET AMX - 1 PCCS Prime strategic location: Located in the heartland of the main commercial nityand financial centers of the hemisphere, Colombia shares cultural patterns suitable to consolidate operations in the region. Infrastructure capable of support world-class operations: 10 submarine cables, supplemented by an internal optical fiber ring that ensures the national connectivity, increasing Colombia s competitiveness. (MinTICMinistry of Information and Communications Technologies, 2014.) SAM - 1 MAYA - 1 ARCOS SAN ANDRÉS TOLÚ BARRANQUILLA CARTAGENA TOLU PAN-AM SOURCE: MINTIC, SAC NEW MARKETS OPENING MEDELLIN Continuous strengthening of commercial relations between Colombia and the world, opening a window of opportunities for investment in all business outsourcing services. BUCARAMANGA BOGOTA CALI GOVERNMENT S COMMITMENT WITH THE SECTOR Productive Transformation Program PTP, a strategy that promotes the sector growth. During the last years, the program has created a favorable environment to consolidate a worldwide recognition for the sector. Program e orts develop throughout four main themes: Human Capital and Regulatory Framework, Consolidation, Promotion and Sector Innovation, and Infrastructure and Sustainability. Government plan that aims to generate economic growth based on the use and appropriation of ICTs in the Colombian population and the Presidency of the Republic and the Ministry of Information Technologies and Communications, which, at the end of 2014, managed to connect 1,078 municipalities increasing Internet connections from 2.2 to 10.1 million nationwide. TELECOMMUNICATION INFRASTRUCTURE OF SUBMARINE CABLES ATTRACTIVE REGULATORY FRAMEWORK Available tools to enable operations in areas such as services exports (Plan Vallejo), intellectual property rights, Statutory Law of Habeas Data, Value Added Tax (VAT) exemption for services provided from Colombia, possibility of applying to the free trade zones regime, First Job Law, and opportunities to benefit from Telework.
6 MAJOR FOREIGN COMPANIES HAVE CHOSEN COLOMBIA AS AN INVESTMENT DESTINATION Colombia offers a favorable business climate for Genpact and for our clients a rich talent pool with a high literacy rate and complementary skill sets, a healthy and growing economy, a number of universities with strong business curricula, a diverse array of industries, and open trade practices. Genpact is honored to establish its roots here in Colombia and become a part of its culture and thriving business community. Pramod Bhasin, Non-Executive Vice Chairman, Genpact Sykes, United States: opened a new call center creating 160 jobs in the city of Barranquilla. Genpact, India: added value operations service center, especially in financial and accounting areas for the region. HP, United States: opened a new global service center in Medellin. United States: contact center to serve the US market.
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