BOGOTA, Colombia--(BUSINESS WIRE)--Colombia has become one of the most important global destinations for BPO and KPO operations, with an 8% and 18% growth in exports in 2022, according to the BPrO's 2022 BPO Sector Data Report. The country has demonstrated a prosperous business environment and a strong commitment to attracting investments that seek social equity and align with the United Nations' Sustainable Development Goals. Additionally, Kearney consultancy ranked Colombia in third place in the 2021 Global Services Location Index, recognizing its prominent position in the BPO industry. Moreover, the country topped the 2022 Offshore BPO Confidence Index.
Colombia is regarded as one of the most important destinations for BPO and KPO operations globally, with exports of these services surpassing USD 1.98 billion in 2022, as per the data compiled by DANE in the 2023 MARO Colombia Productiva - Quarterly Sample of Foreign Trade in Services (MTCES), showcasing consistent growth in the sector, surpassing the USD 1 billion mark recorded in 2018. BPO alone contributed 3.5% to the Colombian GDP in 2021. The reasons behind this success include a prosperous business environment, a consolidated ecosystem of partners and companies, and a strong commitment to attracting investments in pursuit of social equity and the Sustainable Development Goals.
"The Government prioritizes efforts to promote investors' contribution to regional economic growth while focusing on reducing inequality, promoting gender equality, and fostering peace," said Carmen Caballero, President of ProColombia, the country's promotional agency under the Ministry of Commerce, Industry, and Tourism. "These initiatives aim to position Colombia as a prominent player on the global stage," she added.
Colombia counts on significant international actors considering the country as an attractive market for the outsourcing industry, including Amazon, CloudTask, Teleperformance, Tata Consultancy Services, Grupo Konecta, Accedo Technologies, and Mercado Libre, among others. Additionally, the BPO sector in Colombia receives support from important governmental entities and institutions to drive industry development, such as MinTIC, ProColombia, SENA, and Colombia Productiva. Private sector associations like BPrO, ANDI, COLCOB, and the Colombian Credit Ecosystem also contribute to the sector's growth.
One of the great opportunities is offered by the immense scalability capacity and low operating costs throughout the industry. Colombia has the third-largest market in the region, allowing for scalability of supply, as it is also the third most populous country in Latin America. Several cities in Colombia, each with over 500,000 inhabitants, enable companies to carry out their operations in different regions, in addition to six metropolitan areas with over one million inhabitants each: Bogota, Medellin, Cali, Barranquilla, Bucaramanga, and Cartagena, according to DANE. This has made the sector one of the largest job creators in the country, as it exceeded 705,000 jobs by the end of 2021, according to MARO - Colombia Productiva, 2022.
In Colombia, there are professionals and technicians with a wide range of skills and competitive technologies for the development of BPO operations. The salary variation analysis by sector and industry in Total Rewards 2021 by Human Capital demonstrates Colombia's competitiveness in terms of sectoral salaries in the region. Additionally, according to the IMD World Talent Ranking, Colombia ranks second in Latin America in terms of availability of skilled workforce. The country has over 1.38 million people with English language skills, according to the Invest in Bogota report from August 2021. Moreover, Colombia has a solid educational system, with over 390 accredited undergraduate programs and 260 accredited high-quality graduate programs, as verified by the National Information System for Higher Education (SINIES).
The country also excels in infrastructure aspects, especially in terms of internet connectivity, facilitated by submarine cables, communication lines, airport facilities, and commercial spaces. This infrastructure development has led to the emergence of second and third-tier cities, which have gained importance in the BPO industry, thereby strengthening communities in various regions of the country. According to Cable.uk.co, Colombia has the lowest internet connectivity costs in the region, surpassing countries like Brazil, Argentina, Nicaragua, and Jamaica.
Furthermore, the strategic location of the country in the Americas facilitates communication with relevant markets in the region, enabling timely customer service. Colombia is situated in the center of five time zones, which benefits businesses with important economic centers such as New York, Toronto, Los Angeles, or Miami. From Colombia, it is possible to travel to major cities in the Americas in less than six hours by plane. Currently, the United States is the main destination for BPO and KPO services exports from the country (57.1%).
Investors can see that Colombia offers great export opportunities in the sector and provides a diverse range of options in voice BPO centers for marketing, collections, sales, customer service, and call centers. Additionally, non-voice BPO centers are engaged in back-office operations, outsourcing of financial and accounting services, human resources, logistics services, and help desk support.
Moreover, the country is witnessing the growth of KPO operations in fields such as engineering, telemedicine, research and development, graphic design, legal services, and medical transcription, making this juncture a unique opportunity to invest in the country and enhance profitability in a safe and prosperous environment. From 2015 to 2021, over 100 investment projects have been identified, surpassing USD 300 million in capital, mainly coming from countries such as the United States, France, and Spain, according to FDI Markets.
Know the offer that Colombia has in the BPO sector here.
