In an increasingly technology-driven economy, strategic investment decisions to boost business are more crucial than ever. Bogota, Colombia’s capital city, stands out as a technological epicenter of excellence, offering a unique combination of factors that make it an investment-friendly location. Here we explore the various advantages that make the Colombian capital an unrivalled destination for those seeking the best opportunities in the technology sector.
Read also: Why Bogota for foreign direct investment?
- Dynamic Economics:
Bogota is a center of entrepreneurship and business. Between 2018 and 2022, the city experienced an average economic growth of 4.1%, outpacing the growth rates of Colombia (3.4%) and Latin America (1.1%). This growth has created an environment conducive to investment. Additionally, thanks to public-private partnership, the city will have the Science, Technology, and Innovation District, which will further boost entrepreneurship and science.
According to figures from Invest in Bogota, between 2018 and 2022 Bogota-Region received 738 foreign direct investment projects for more than USD 9.8 billion. In addition, the software & IT services sector leads the list of foreign investment projects that the city has received with a percentage of 20.2%.
As if this were not enough, Colombia concentrates 19% of the outsourcing market in Latin America, and in 2022 the size of the Contact Center industry in the country amounted to 1,897 million dollars.
This is why the country and its capital have become an export platform for corporate services. The main export destinations are United States (52%), Spain (9%), Chile (5%), Switzerland (3%), Mexico (3%), among others.
Besides, Colombia and Bogota provide strong support to the sector. Some of the main entities supporting the industry are the Ministry of Information and Communication Technologies, Colombia Productiva, Chamber of the Digital Industry, Mayor’s Office of Bogota, Chamber of Commerce of Bogota, Colombian Association of Systems Engineers, Colombian Chamber of Informatics and Telecommunications, ATENEA and Agata.
- Strategic Location:
Bogota’s geographical position facilitates access to key markets in the region. This means that any company looking to expand in Latin America will have an advantageous position if it starts operations in the city.
- World-class human talent:
The engine behind technological development is the workforce. Bogota has highly trained professionals. The city is home to 3 of the top 15 universities in Latin America and concentrates 35% of the active research groups in Colombia, along with 39% of the country’s PhDs.
In Bogota, an estimated 3% (1.6 million inhabitants) of the population is bilingual. Furthermore, 37% of its graduates studied computer science or similar and 33% are trained in STEM (science, technology, engineering, mathematics) disciplines. In addition, Bogota’s workforce, with 6 million people, surpasses Costa Rica, Rio de Janeiro, and Lima.
- Booming technology sector:
The city has emerged as a leader in the software and IT services sector. This sector ranks second in foreign direct investment projects in the industrial sectors, demonstrating the confidence of foreign investors in the city’s technological potential.
The capital also offers multiple business opportunities for the technology sector, with investment opportunities in BPO, KPO, ITO, and CSC/GCG. There is also the presence of emerging subsectors in Cloud services, artificial intelligence, data analysis, FinTech, Blockchain, and cybersecurity, among others.
Colombia has 12.08% of the IT market in South America and the technology market has a GDP share of 9.96%. For its part, Bogota is the main IT market in Colombia, its revenues, employees, and number of companies contribute 71.6%, 71.1%, and 65.5% respectively, compared to the rest of the country.
- International recognition:
Bogota’s achievements do not go unnoticed at the international level. The city has won multiple awards, including first place in LATAM-Cities of the Future by fDi Global Cities of the Future; as well as second place in the Latin American start-up ecosystem in performance according to Startup Genome (2022); and third place in the Latin American start-up tech ecosystem (2023) according to dealroom.co.
- Cutting-edge infrastructure:
The Colombian capital not only shines for its talent but also for its infrastructure. The city has one of the best airports in Latin America and a solid infrastructure that facilitates the operations of tech companies, from high-speed connections to state-of-the-art facilities.
- Renowned technology companies:
Several companies in the technology sector have already bet on Bogota, such as Vinalli Group, Yahoo!, ViaHero, Unisys, Sutherland, and asurion, among many others.
In addition, Colombia is home to 11% of the shared services centers market and Bogota-Region concentrates 65% of these services in the country. Some of the companies in this market located in Bogota-Region are Scotiabank, Amazon, SGS, Johnson & Johnson, Diageo, and Oracle, among others.
Thus, Colombia, and by extension Bogota, not only attracts its economic growth and talent but also offers a solid legal environment for foreign investors. With 18 free trade agreements in force, 18 international investment agreements, and 15 double-title agreements, the country is committed to facilitating foreign investment.
In addition, Colombia has laws in place for the protection of free market competition and intellectual property rights.
In this way, Bogota, with its dynamic economy, strategic location, exceptional human talent, and international recognition, is positioned as a technological epicenter in Latin America. Investing in technology in the city is not only a smart decision, but also an invitation to be part of a success story that is constantly evolving.
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