15 Jun COLOMBIA: AN OPTIMAL INVESTMENT DESTINATION FOR BUSINESS PROCESS OUTSOURCING (BPO)
The BPO sector in Colombia holds significant recognition from the Colombian Government and assumes a strategic role in the country’s service sector and the overall economy. Notably, this industry has thrived by establishing small and medium-sized enterprises (SMEs) with relatively low capitalization. Consequently, Colombia benefits immensely from the sector’s potential for economic growth and the generation of high-quality employment opportunities.
Colombia has displayed a keen interest in driving the Industry 4.0 revolution. Since 2010, the Department of Planning (DNP) has outlined its vision through Document CONPES 3678, forming a Productive Transformation Policy. This policy serves as a guiding framework for the country’s economic growth and welfare by promoting the development of sector-specific models. In alignment with this vision, the Ministry of Commerce, Industry, and Tourism introduced the Programa de Transformación Productiva de Colombia (PTP) in 2016. This program sets clear objectives to strengthen the outsourcing sector and strategies to achieve them. Furthermore, as the demand for outsourcing services continues to rise, the industry is witnessing a need for specialization processes, enabling it to cater to other sectors of the economy and expand its offerings.
Colombia has become a significant destination for call center operations worldwide, securing the top position in the Offshore BPO Confidence Index 2021. Even amidst the challenges posed by the pandemic, the contact center and BPO sector managed to create nearly 22,000 new jobs in the country in 2020. This success has solidified the sector’s strategic role in Colombia’s economic recovery and regional development.
The country has also become an attractive investment destination within the BPO sector. From 2015 to 2021, over 100 investment projects totaling more than USD 300 million have been identified. These investments predominantly originate from countries such as the United States, France, and Spain, showcasing the international community’s confidence in Colombia’s potential (FDI Strategic Awards 2019).
Colombia stands out globally as an ideal location for establishing global services, including call centers, due to its large pool of qualified human talent. With over 24.8 million eligible individuals, the country possesses one of the most robust workforces in Latin America. Additionally, competitive costs and a favorable business climate further contribute to Colombia’s status as a leading exporter of these services (AT Kearney and Gartner).
According to Ana Karina Quessep, Executive President of the Colombian Association of BPO – BPrO, “Colombia has already positioned itself as a hub, but in addition to that, it is a country where the sector experiences incredible dynamism and substantial support in terms of legal and political stability at the national and local levels. This is crucial for expanding operations and creating space for new investors” (Prensario HUB). With its geographical and cultural proximity, Colombia has a remarkable opportunity to cater to the United States market, which is the largest global demander of call center services. The country is actively enhancing its population’s bilingual competencies to capitalize on this advantage.
Fabio Noreña, Accounting Manager
June 15, 2023