In Bogota, the business outsourcing industry (BPO) has taken important leadership in receiving foreign investment for over 20 years, due to factors such as the quality of its human capital, competitiveness, connectivity, and government support. This comprehensive combination of advantages has consolidated the city as one of the best environments in Latin America to provide offshore / nearshore services.
What Are Investors Saying?
“From the very beginning, when we started the due diligence for LATAM expansion, Invest in Bogota, as well as other investment entities, added huge value by validating (or correcting) some of our assumptions and hypothesis while providing us with factual information on the market, available talent pool, examples on scalability, laws, engaging with clients that may be interested to come to Colombia but still had credibility issues… walking the road with us side by side…
As a result of that process, today we have more than 2,000 employees in Colombia 800 of which are located in Bogota since mid-2012 and we’ve been able to position our Bogota operation as a solid delivery center that is attracting clients with needs on very specific profiles that only Bogota can provide. The combination between high-level academic foundation (within different fields) plus strong language skills and the will to work and grow as part of an organization, is one of the best assets when operating in Bogota… that’s a fact!.”
Sr. Director of LATAM Business Operation and Solutions, Sutherland
“(...) We found a variety of highly sophisticated human resources in particular for our sales center that requires high-level professionals with postgraduate or undergraduate studies as a minimum. We found that they have a service-oriented attitude and a very neutral accent which is very important to our business considering that we are serving clients throughout Spanish-speaking Latin America from here”.
President for Latin America, SAP
“(...) This is a project that we are very proud of. Consolidating a shared services center in Colombia to support other countries in the world where Citi operates, is not only aligned with our business growth strategy, but also with our commitment to the country.”
CEO, Citibank Colombia S.A.
Why Locate in Bogota?
Experience: For more than 20 years, multinational and national companies located in Bogota provide a variety of back-office services which include IT finance and accounting, human resource management, engineering, and architecture design.
Human resources: Bogota has an economically active population of about 4,6 million people, therefore it is the city with the highest concentration of workforce in Colombia (19%). In addition, the city gathers almost 54% of graduates in management sciences in the last 13 years. Additionally, due to training and certification English programs, Bogota exhibits the largest offer of bilingual professionals in the Colombian labor market.
- Cost structure. The BPO industry in Bogota offers an excellent cost-benefit ratio for wages when compared to other Latin-American cities.
Priority sector for the Government. The Colombian government is committed to supporting the sector. Therefore, the Business Process Outsourcing sector was included as one of the 20 sectors that now have a business plan tailored by the Productive. Transformation Program (PTP), aiming to achieve decisive increases in productivity and competitiveness.
- Strategic location: In the same time zone as the eastern United States and offering multiple flight connections daily to and from major cities in the hemisphere, Bogota is a great nearshore location in the Americas.
Bogota’s Non-Voice BPO Sector
Bogota represents 63% of the Sector's revenues in Colombia.
In terms of the adequacy of Shared Service Centers, investors find in Colombia and particularly in Bogota, a complete ecosystem with the location, incentives, guarantees, costs and human talent, allowing them to install a worldwide class operation. In fact, according to a study made by the firm MVD Consulting / Tholons, 54% of the installed investors of the SSC sector took their decision after evaluating locations as Chile, Argentina, Peru, Uruguay, Costa Rica, Ecuador, and Brazil.
- According to the latest study conducted by The Shared Services & Outsourcing Network, Colombia ranks second in South America on the adequacy of Shared Services Centers ( 11.4 %), behind Brazil ( 38.9 %).
In 2007 Colombia had three SSC projects, 19 in 2010 and 50 in 2015.
- The Contact Center Industry has shown a growth opportunity in Colombia. From 2001 to 2014 its turnover went from $104,566,000 million to $ 2.9 billion. According to the "Estudio de Caracterización y Formulación Estratégica del Sector de BPO, KPO e ITO", in recent years this industry has maintained an average annual growth of 27 % and the growth expectation for 2015 is 11 %.
Currently, the sector has 332 Contact Center, mostly Colombians, although in recent years new international players have entered the country, which is employing about 37% of the workforce in the sector.
- Bogota has become a major destination for multinational companies in the Offshore Services sector within the region. In fact, 85% of the global MNC's of the sector with presence in Colombia is located in Bogota.
Major Players Located in Bogota
- Abbott (US) centralizes all of its HR processes for Latin America in Bogota.
- Citibank (US) centralizes its corporate banking procurement process for Latin America in the city.
- BBVA (Spain) Since 2012 it has the Back Office operation for Latin America in Bogota
- Wyeth (US) provides finance and accounting services for the Andean Region from its Bogota offices.
- TMF is a multinational company from the Netherlands that specializes in BPO in the following areas: F&A, Accounting, and HHRR.
Invest in Bogota has extensive knowledge of this sector. If you require detail, please contact any of the agency Investment Officials in charge.
Updated (mm/dd/yyyy): 12.22.2017