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  1. 1. Libertad y Orden COLOMBIA BringIT on colombiabringiton.proexport.com.co FOR A WORLD FULL OF DEMANDING CHALLENGES, WE OFFER A COUNTRY FULL OF IT SOLUTIONS.
  2. 2. Colombia is close to major global economic hubs, and has one of the most thriving and competitive economies among developing countries. Also, Colombia has one of the best connectivity infrastructures in the hemisphere, and has implemented award-winning programs, like Vive Digital. The human talent in the country is growing in terms of both quality and quantity, and the information technologies (IT) sector enjoys legal certainty and incentives. Therefore, Colombia is steadily becoming a world-class IT vendor. As a result, Colombia is the perfect destination for international investors and buyers in search of technological products and services. Learn why Colombia is an up-and-coming IT global player! Why Colombia ?
  3. 3. Progress and planning regarding the GDP, inflation, and unemployment. 2.5 7.0 6.5 3.9 5.5 5.3 4.7 4.9 4.5 6.7 6.9 5.7 3.5 7.7 2.0 4.0 6.6 3.7 2.4 4.0 4.3 1.9 3.0 4.4 4.6 3.4 3.6 4.5 4.3 3.5 3.3 4.5 1.7 15.6 14.1 13.7 11.8 12.0 11.2 11.3 12.0 11.8 10.8 10.4 8.5 8.8 8.1 7.4 7.1 6.8 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20132014 2015 2016 2017 2018 Unemployment Rate GDP Inflation Key factors like a sound economy, a privileged geographical location, and high connectivity make Colombia one of the most attractive countries in the world to invest in and to buy IT products and solutions. Competitive factors 4.3% This was the GDP growth in 2013, a much higher figure than Latin America’s average (3.2%). 8.5% The unemployment rate in 2013 was the lowest in 15 years. 1.94% This inflation rate is the lowest in 15 years and the lowest in Latin America, and it is among the lowest in the world. Sound, growing economy
  4. 4. Top 6 in growth The Economist magazine highlights Colombia as one of the six countries with the largest share in global economic growth, above globalized leaders like Brazil, Russia, Mexico, United States, and Japan. 23 Colombia has climbed 23 spots in the World Bank’s Doing Business ranking between 2008 and 2014 in terms of the ease of doing business, and it is the third in Latin America. A favorable and balanced outlook Major international agencies like Standard & Poor’s and Fitch Ratings are assessing Colombia favorablyafteritsmacroeconomic improvements. Privilegedgeographicallocation GMT-5 Colombia is in the midst of five time zones, located in the same one as important business centers like New York, Toronto, and Miami. 878 These are the total international direct air frequencies available, which make business travel easier to and from the rest of the world. 4,900 These are the total domestic frequencies available through more than 20 airlines. Highconnectivity Internet connection for over 8.8 million Exceeding all expectations, this figure was achieved last year, representing 4 times the total in 2010. This shows that Colombia is one of the countries with the largest number of Internet connections and users in Latin America. Fiber optics available in 1,078 municipalities The National Fiber Optics Plan was scheduled to deploy a network across 753 municipalities by 2014. However, this goal was achieved in 2013, and by the end of this year, almost all municipalities in the country will have direct access to fiber optics, providing better connectivity for citizens, entrepreneurs, and the Government. 3 more under development 3 additional submarine cables will begin operations in the short term: 2 are joining the 6 currently installed in the Atlantic coastline, and the other will be the first to connect Colombia directly with 60 countries across the Pacific. 9 submarine cables Colombia is one of the countries with the best submarine cable connectivity in the Americas, providing excellent international connection, faster data transmission, and connection stability.
  5. 5. Vive DigitalPlan 50% + homes connected Over half of Colombian homes, even the underprivileged households, now have access to Internet services. 60% of MSMEs have gone digital The proportion of micro, small, and medium enterprises (MSME) with Internet access increased from 7% to 60%, with growing demand for software and IT services and solutions to compete in the domestic and global arenas. 66% of Colombians are now connected This figure places Colombia as one of the countries with the most widespread Internet access in Latin America above Brazil, Mexico, Argentina, and Peru. The Best IT&C Policy of the World In 2012, the Vive Digital Plan earned Colombia an award during the Mobile World Congress in Barcelona, and it has become a role model abroad. What is it? The Ministry of Information Technologies and Communications (MinTIC) created this program in 2010 to support technological and IT development in the country by bringing the Internet to the public and by driving digital platforms and their four basic components: Infrastructure, IT services, software, and users. Government PlanColombia is becoming a global IT leader. This was not achieved by chance, but thanks to the Government programs and initiatives that focused on increasing connectivity, improving professional training, fostering bilingualism, and developing the outsourcing industry, among others.
  6. 6. DigitalTalent What is it? This is an initiative to provide Colombians with training through technical and technological, graduate and post-graduate programs in order to meet the increasing domestic and global demand for IT services and solutions. 56,005 + certificates This is the total number of people who have taken the exams and are certified in basic, intermediate and advanced English levels since 2009. The figure for 2013 alone was 25,000. 130 + This is the number of domestic and international organizations with access to the database. What is it? This is a program implemented by the Ministry of Trade, Industry and Tourism and the Productive Transformation Program to evaluate and certify the English language skills of Colombian residents. The program provides domestic and international organizations with a database of Colombians with certified English skills following the Common European Framework of Reference for Languages (CEFR). iSpeak 899 Vive Digital Locations These public Internet centers, located in cities and municipal capitals, provide access to people with low income. 4,660+ During its first five open calls, Digital Talent has provided 1,277 forgivable loans to help Colombian students who wish to pursue an IT&C-related career. USD $19 billion This is the total budget available for Digital Talent until the end of 2014. 7,621 Vive Digital Kiosks By the end of 2014, Colombia will have this number of public access points to bring Internet and IT&C tools to remote locations and jurisdictions with a population of over 100 persons. All municipalities have Internet access A total of 1,078 municipalities have Internet access thanks to the National Fiber Optics Network, a milestone achieved nowhere else in the continent. Fiber optics cannot be deployed into the remaining 45 municipalities due to geographical reasons, but connection via microwaves or 4G LTE technology is available.
  7. 7. 60,000 + This is the total number of entrepreneurs who have created or renewed projects or companies with a focus on software and IT&C. 2,000 This is the total number of apps, particularly mobile applications, to be developed thanks to this initiative by the end of 2014. What is it? An initiative within Vive Digital to promote and support IT&C-based businesses, focusing on software development (particularly mobile apps), and digital contents. Apps.co What is it? A program created by a public-private partnership in order to support the outsourcing industry (i.e., KPO, BPO, ITO) with scholarships granted to industry workers worth up to COP $5 million, particularly in fields like software and IT services. USD $12 million This is the total budget for Finishing Schools, provided by the Inter-American Development Bank (IDB). FinishingSchools
  8. 8. What is it? The new office in charge of creating purchase policies for the public sector, as well as promoting innovation and standards according to the world’s best practices and technology. It provides information about government procurement, making government deals transparent and thus more attractive and cost-effective for both the relevant offices and domestic and international providers, including small and medium enterprises. ColombiaProcuresEfficiently (Colombia Compra Eficiente) Secop This is the Government Procurement Electronic System (Sistema Electronico para la Contratación Publica, Secop), which is changing the way the government purchases and contracts goods and services. 2,139 This is the total number of public tenders finalized in 2014, according to data by Efficient Procurement Colombia. 15% of the GDP This is the total share of the government procurement system in Colombia (more than COP $100 trillion a year). Colombia has made every effort to enter into Free Trade Agreements and provide investors with legal certainty. Regulationsand incentives
  9. 9. Double TaxationAgreements(DTA) International InvestmentAgreements(IIA’s) What are they? The purpose of DTAs is to eliminate or reduce double taxation, promote cooperation between states to combat tax evasion and to promote trade between countries. The DTAs are limited to the tax on income and on capital; indirect taxes such as sales tax ("VAT") are not covered by these instruments, nor territorial taxes such as industry and commerce ("ICA") are included. More than 9 countries Colombia has entered into DTAs with countries like Mexico, Chile, Canada, Spain, Switzerland, India, Peru, Ecuador, and Bolivia. What are they? These are agreements created under a transparent regulatory framework with a clear set of rules to reduce non-commercial risks for investors. These are international Investment Agreements that provide security to foreign investments in the country with which the agreement has been signed. 11 This is the total number of current APPRIs with countries like Chile, China, Spain, India, and Peru. FreeTradeAgreements 1,600 This is the total number of companies that exported their products to the U.S.A. for the first time during the first 2 years of the FTA with the United States. These include software and IT services firms. 13 agreements in force The 13 trade agreements entered into with over 50 countries include the FTAs with the United States, the European Union, the Southern Cone Common Market (Mercado Comun del Sur, Mercosur), Mexico, Chile, and the Andean Nations Community (Comunidad Andina de Naciones, CAN). 5 agreements signed With South Korea, Costa Rica, Israel, Panama, and the Pacific Alliance pending Congress approval to become effective. Likewise, Norway and Iceland are pending confirmation of their FTAs with Colombia. 2 new FTAs Colombia is currently negotiating agreements with Turkey and Japan.
  10. 10. ValueAddedTax exemptionfor exportsservices What is it? A decree signed in 2013 that grants value added tax (VAT) exemption for all services rendered from within Colombia for exclusive foreign use or consumption. HabeasDataLaw What is it? In terms of legislating Personal Data Protection, Colombia is current with international standards on the protection of personal data. LaborIncentive: TaxDiscounts In order to promote the hiring of people under 28 years of age and women older than 40 years of age, as well as displaced, reintegrated and disabled people, employers enjoy discounts in income tax and in complementary parafiscal and payroll contribution taxes for up to 3 years. Supportforcompanies’ scientificandtechnological development Income tax deduction equivalent to 175% of the amount invested in technological research and development projects which does not exceed 40% of the net income. Full income tax exemption for 5 years for new software developed with a high amount of scientific and/or technological research. The breakthroughs of Colombia regarding competitiveness, productivity, entrepreneurship, IT development, and scientific and technological research were achieved thanks to the efforts by the National Government, regional offices, and private organizations. The major organizations in charge of Colombia's development include: Supporting Offices
  11. 11. iNNpulsa Office established in 2012 to support and promote extraordinary entrepreneurial development, that is, business initiatives that can develop quickly, cost-effectively, and continuously. To meet this goal, the office fosters a high level of innovation and entrepreneurship. National Learning Service The National Learning Service (Servicio Nacional de Aprendizaje, SENA) develops and provides comprehensive professional education and training programs to bring people into productive activities that contribute to the social, economic, and technological developmentofColombia. Invest in Pereira The investment promotion office of Pereira and Risaralda promotes investment among domestic and internationalcompaniesintheregion. Bancoldex This is a second-tier bank that designs and provides financial and non-financial instruments to drive competitiveness, productivity, growth and development of micro, small, medium and large Colombian enterprises that both export or trade domestically. Ministry of Information Technology and Communications Officeinchargeofdesigning,adopting, and promoting IT&C policies, plans, programs,andprojectslikeViveDigital andDigitalTalent. Productive Transformation Program(PTP) A National Government program focused on improving Colombia’s industry and on developing companies in 20 sectors of key importance to the domestic economy, including Outsourcing & BPO and software and IT development. Fedesoft A non-profit private organization that groups domestic and international software firms and develops strategies to drive the software and IT sector and promote Colombia as a world-class producer. Proimagenes Colombia The Mixed Fund for Film Promotion (Proimagenes Colombia) is a non- profit organization that aims to consolidate and support Colombia's film industry. Proexport Proexport is the government office in chargeofattractingforeigninvestment, supporting non- traditional exports, and promoting the country as an international tourism destination. It providesitsclientswithcomprehensive support and expert advice through its domestic and international branch offices, granting access to services and means to facilitate the design and implementation of their internationalization strategy, looking to create, develop, and consolidate businessopportunities. IGDA The Video Game Developers Association of Colombia (Asociacion de Desarrolladores de Videojuegos de Colombia, IGDA) is a non-profit organization that aims to develop and support the video game industry of Colombia. SOMOS The Digital and Audiovisual Media Contents Trade Union supports animation and video game companies, and promotes information, production, and commercialization of these contents. COLCAPITAL The Colombian Equity Funds Association (Asociacion Colombiana de Fondos de Capital, COLCAPITAL) is a private equity funds trade union that aims to support, develop, and promote industry in Colombia. ACI The Cooperation and Investment Office (Agencia de Cooperacion e Inversion, ACI) of Medellin and the Metropolitan Area promotes the city and the region abroad through cooperation, business deals, and investments. ProBarranquilla This investment promotion office of Barranquilla and the department of Atlantico seeks to bring investment projects and to promote the city as an attractivedestinationforinvestors. Invest Pacific The Investment Promotion Office of the Colombian Pacific promotes Valle del Cauca as Colombia’s platform in the Pacific. It provides services for current and potential investors in order to attract new investments in the region. Invest in Bogota The investment promotion office of Bogota, it is a public-private initiative between the Chamber of Commerce of Bogota and the Capital District. Its main goal is to support investors who are looking for opportunities in Bogota. Colciencias The Science, Technology, and Innovation Administrative Department (Departamento Administrativo de Ciencia, Tecnologia e Innovacion, Colciencias)promotespublicpoliciesto foster science, technology, and innovation(ST&I)inColombia. Ministry of Trade, Industry and Tourism Office in charge of supporting entrepreneurship, tourism projects, and the production of goods, services and technology across the country in order to improve competitiveness and sustainability, as well as promoting value-addedproductsandservices. ANDI National Business Association of Colombia (Asociacion Nacional de Empresarios de Colombia, ANDI) is a non-profit organization that promotes andfostersthepolitical,economic,and social principles of a free market system. Investment Promotion Offices (Agencias de Promocion de Inversion, APRI) ACI Medellin • Invest in Bogota • Invest in Pereira • Invest in Caldas • Invest in Armenia • Invest in Santander • InvestPacific • Probaranquilla • Invest in Cucuta • Invest in Huila • Invest in Cartagena
  12. 12. “During the hardware and electronics revolution, Colombia never had the chance to be a key player. However, the country has the potential to become a global leader in the digital era”. These thoughts by the Minister Diego Molano Vega (MinTIC) are starting to become a reality, and the digital revolution is evident in two major sectors: software & IT services and digital contents. Learn why Colombia is now a global player! Colombians’ aptitude, know-how, and creativity are acknowledged around the world, and they find a land of opportunities in the software & IT services sector. In fact, Colombia makes software for both the domestic and international markets, and the country provides IT services for companies around the world. Software & IT
  13. 13. Overview Software & IT in Colombia and the rest of the world. + USD $124 billion Total IT market sales in Latin America in 2013 (IDC). + USD $47 billion Total software & IT services sales in the region in 2013 (IDC). +20% growth Total expected growth of the software & IT sector in the region by 2016 (IDC). $ USD 407.3 billion Total worldwide returns for the software industry in 2013, with a total growth of 4.8% compared to the previous year. + USD $3 billion Total sales for the software & IT sector in Colombia in 2013 (IDC). It is expected that this figure will double by 2018. Colombia, Top 3 Colombia is the country with most IT services sales in Latin America after Brazil and Mexico. Outstanding growth Latin America is the region with the highest development in this sector, and Colombia is among the leading countries. According to data by IDC: IT services sales increased by 10% compared to 2012. Between 2007 and 2012, the software & IT sector grew by 177%. Colombia is expected to show the greatest development in the region regarding IT services. Outsourcing still in the lead Outsourcing adds to 42% of the total IT services sales; however, "Implementation and support” and “Integration and development” are getting a firm hold. Distribution ofITServices Sales 2% 20% 11% 25% 42% Outsourcing Implementationandsupport Integrationanddevelopment Consultingservices Trainingandeducation 2% 20% 11% 25% 42% Outsourcing Implementationandsupport Integrationanddevelopment Consultingservices Trainingandeducation
  14. 14. USD $1 billion Total sales in the Colombian software industry by 2014 (BMI). The most sought-after services The most sought-after services among large companies in the country are business risk management and supply chain management solutions. The main industries demanding software and IT products Telecommunications, financial, government, mass consumption, and manufacturing (BMI). TotalsalesfortheITservices industryinColombia:$2.23billionUSD Source:GeneralcharacterizationofBPO,KPO,ITO(IDC,2013) 67% of solutions will revolve around five trends Business solutions will be centered on mobility, apps, Cloud computing, social business, and Big Data, with a combined share of 67% in 2020 (IDC). +50% Over half of employees use a smart phone or device to conduct businesses, and half of organizations allow their use (IDC). This trend, also known as Bring Your Own Device (BYOD), entails big opportunities for app development, safety management, and software administration. The most powerful cloud The demand for cloud computing apps and services will notably increase among large companies and MSMEs. Globaltrends Wearable and IoT trends, the next big thing The Internet of Things (IoT) and wearable technology will explode in the next few years, driving Big Data. Analysts estimate that between 30 and 100 million items will connect to the Internet by 2020. Big Data: The tip of the iceberg The massive use of Internet, social media, entrepreneurial and government databases, and the increasingly popular use of smart mobile devices have driven a new trend known as Big Data, which helps make the best of large amounts of data. However, the Internet of Things (IoT) and wearable technology will boost data even more, and Big Data will become a pivotal element for thousands of companies. A third of companies will invest in Big Data within the next 5 years (IDC). New payment methods Electronic commerce will keep developing thanks to the rise of new payment methods, like electronic wallets, mobile payment platforms, and new technologies like Near Field Communication (NFC). Sound apps for daily life The development of apps that help with everyday tasks will continue to grow in Latin America and the rest of the world (IDC). Apps from financial organizations, public transportation systems and online government tools will grow in popularity.
  15. 15. Infrastructure, bolstered through mobility The Colombian Government is determined to develop the air, road, port, and railway infrastructure with a budget over USD $9 billion. Software and mobile communication services are fundamental to improve efficiency, reduce time, and control expenses. The power sector also demands mobile services As with other sectors, the power industry demands mobile communications services for process optimization and network management. Specializedhumantalent Internet and mobile apps: Pivotal services for the banking system The financial sector is seeking to expand the banking services in the country, and apps and mobile services are the perfect tool to meet this goal thanks to the widespread use of mobile Internet and smart phones. Telemedicine becomes a reality Thanks to the country’s high Internet connectivity and the widespread use of smart phones and mobile devices, telemedicine is now available for Colombians. As a result, both large and small health institutions are looking for technological products and services to help them care for their patients remotely. Oil and gas sector, eager to implement IT services Colombian state oil company Ecopetrol and related transnationals are demanding more and more IT services, like mobile telecommunications to optimize their drilling, extraction, and logistics procedures. Data management in the rural sector Small and large agricultural, hunting, fishing, and forestry producers are demanding data management software to reduce costs, conduct vermin control, and improve their production chain. 295,574 This is the total number of graduates from Systems Engineering and other IT-related careers in Colombia between 2001 and 2012 (13.4% of the total of new professionals). Leading the region Colombia has the most qualified manpower and with the highest development in Latin America, ahead of countries like Argentina, Chile, and Brazil (IMD). Domesticdemand
  16. 16. TotalITacademic programs 47.2% 28.8% 19.4% 4.6% The lowest costs in the region While human talent from Colombia leads the region and the monthly wages for sector-related workers are among the highest in the country, they are still the lowest in the continent, which makes Colombia the most attractive country from which to hire IT staff. +56,000 - iSpeak This is the number of students certified by the iSpeak program, which focuses on supporting bilingual talent in Colombia. +4,660 Digital talent beneficiaries This is the total number of recipients of forgivable loans to enroll in technical, technological, graduate, and post-graduate programs with high demand in the IT sector. SystemsEngineering andRelatedFields ElectricEngineering andRelatedFields SystemsEngineering andRelatedFields ElectricEngineering andRelatedFields (2001-2012) Monthlywages forworkersintheITsector Colombia Argentina Mexico Peru Brazil Chile Accountant Financial Analyst Economist Electronics Engineer ComputerScience Engineer 1.718 1.719 2.341 1.325 1.966 2.680 1.407 2.341 3.191 1.691 2.050 2.794 1.564 1.963 2.690 3.024 3.163 4.818 3.461 3.622 5.516 4.122 4.313 6.568 3.609 3.776 5.751 3.474 3.635 5.536 *Includingalllaborbenefits Source:HumanCapital-SalaryExpert ElectronicEngineering Telecommunications andRelatedFields IndustrialEngineering andRelatedFields
  17. 17. Local opportunities Colombia's potential is spread out across its regions, bringing an additional competitive advantage over other countries that concentrate around one or two cities. Six major regions present significant achievements for the software & IT sector, each of them featuring different strengths, advantages, and approaches. (Source: “Strategic overview of the software sector and related services” survey, MinTIC, 2013). TheCaribbean: Logisticsandtransportation Antioquia: Energy Santander: Miningandhydrocarbons Cundinamarca: Bankingandfinancialservices ThePacific: Agribusiness CoffeeCulturalLandscape: Agribusiness Cundinamarca: Bankingandfinancialservices ThePacific: Agribusiness CoffeeCulturalLandscape: Agribusiness 50 IT Mark-certified companies This is the total number of companies certified under this international IT model for MSMEs, and other 63 companies are currently undergoing the certification process. 78 CMMI-appraised companies These companies are rated at different software maturity levels according to the CMMI program and, with the support of the Ministry of Information Technologies and Communications, 40 are between level 3 and 5. And 11 companies are in CMMI Level 5, and another 66 companies are under preparation for future appraisal under the CMMI model. Certifications 465 individuals certified in TSP/PSP Besides companies, 465 developers have personal certifications, with 149 of them being certified by the Software Engineering Institute (SEI), the international authority in this field. 144 TSP/PSP-certified companies Colombia has 144 companies with Team Software Process/Personal Software Process certifications, and more than 100 will soon obtain theirs. 15 companies holding other certifications Colombian IT companies are also certified according to quality standards like MoProSoft and MPSBR.
  18. 18. TheCaribbean Key infrastructure The current main infrastructure developments in Colombia include the Sun Route (Ruta del Sol), the restoration of the navigable canal in the Magdalena River, and the railway corridor. Logistics and transportation The Colombian Caribbean software & IT sector focuses on logistics and transportation. 1.3 billion consumers thanks to the local geographical conditions. Cartagena and Barranquilla, world-class ports Thanks to a focus on logistics and transportation, both capital cities are expected to become major ports in Latin America and be among the best ports in the world by 2032. Antioquia Department Plan The Science and Technology Plan of Medellin includes a specific item common for both the IT and energy industries. Power As the main energy companies gather in this region (e.g., Empresas Publicas de Medellin, Isagen, or ISA), local software & IT sector companies focus on the power industry. 2 clusters The region has one IT&C and one energy cluster that complement each other to develop software and technology solutions and to improve performance, competitiveness, and profitability in the sector. Santander Development centers The region has field-specific development centers, like the Colombian Oil Institute (Instituto Colombiano del Petroleo), with the capacity to drive technological solutions in the sector and reach not only other regions of Colombia, but the rest of the world. Cundinamarca First research group Currently, there is a research group developing specialized software for oil companies Ecopetrol and Halliburton. Mining and hydrocarbons Historically, this is the main industry in the region, and the software & IT sector is heavily investing in it. Demanding industry Historically, banks have spearheaded the integration of new technologies and they are the industry with the most stringent quality standards regarding software and services. Nowadays, organizations demand or prefer CMMI-certified providers and PMP-certified project managers. Banking and financing services This industry is a regional priority for the software & IT sector, as Bogota hosts the headquarters of the largest Colombian banks.
  19. 19. Agribusiness In order to leverage the region’s biodiversity and develop environmentally-friendly exploitation plans, the software & IT sector in the Coffee Cultural Landscape is placing its bets on agribusiness. Biotechnology and bioinformatics The main opportunities for the sector are biotechnology and bioinformatics applied in agriculture and agroindustrial activities. 2 challenges The main challenges for the IT sector in the region are to develop agricultural information systems and improve local competitiveness. CoffeeCulturalLandscape 2 clusters in sync PacifiTIC, a cluster promoting IT&C, and another that promotes the agribusiness sector operate in the region. This promotes an environment that facilitates the creation of joint projects. Agribusiness Considering the region's geographical and economic features, the software & IT sector lends its hand to agribusiness. 4 research groups Focused on engineering, software, biotechnology/bioinformatics, and IT&C. (Source: Colciencias) ThePacific The main countries exporting software are United States, Mexico, Ecuador, Chile, Peru, and Spain. Export opportunities: United States Spain Mexico Ecuador Chile Peru
  20. 20. Digital Content The digital contents sector includes all creative activity that leverages digital data and meets the needs of the various economic sectors.
  21. 21. • Video games • Animation • Mobile apps • Audiovisual products • 2D and 3D animation • Mobile apps • Websites • Motion graphics • Advertising support and digital marketing strategies, including Branding Content • Short and full-length film formats: Films and television (series, soaps), advertisement, documentaries. • Advergames • Augmented reality In light of the strengths of Colombia’s human talent and the high level of foreign demand, Proexport’s internationalization strategies revolve around mobile apps, digital animation, audiovisual products, and video games. Colombia’sdigitalcontents sub-sectorsare: Themaindigitalcontent productsmanufactured inColombiainclude: Allsectorsfocuson entertainment, advertisement,andutility marketing/toolsand education.
  22. 22. Overview:Digitalcontents inColombia andtheworld 90% choose video Video is the main product in the digital contents sector, and more than 90% of the online population is expected to watch online videos regularly by 2017 (Forrester Research). 66% video This is the percentage of the online video traffic in the world. By 2018, this figure will increase to 79% (Cisco Visual Networking Index, 2013-2018). More mobile devices than people In 2013, the total amount of mobile devices and phones exceeded 7 billion units, that is, the global population total (Cisco, 2013). Portable devices challenge television In the US, people watch 127 minutes worth of content per day from mobile apps, against 168 minutes of television. But the time devoted to apps increases by more than 30% every year (Flurry, 2012). Video games: As profitable as movies The American video game industry produces revenues of USD $24 billion in comparison to USD $10 billion from Hollywood productions. USD $222 billion This was the global income in the animation market in 2013. United States, Canada, Japan, China, and France are the largest markets (Global Animation Industry, Digital Vector, 2013). Not just Internet The demand of digital animations comes not only from websites or platforms like YouTube or social media, but also from the TV and cinema. Major studios search for allies The main global digital content producers are in search of providers and partners around the world in order to reduce production costs, gain schedule flexibility, and come up with new ideas and creativity. 86.27% of companies 86.27% of Colombian digital content companies have settled in Bogota, Antioquia, and Cundinamarca. 110 billion app downloads In May of 2013, the App Store announced 50 billion app downloads. On the other hand, Google announced that the Play Store had reached 48 billion. The rest of the platforms add up to about 12 billion. Downloads keep increasing at a rate of more than 30% per year. USD $76 billion This was the size of the international video game market in 2013. And it is expected to reach USD $86 billion by 2016. High demand from China This is the country with the highest online video game demand and revenues in the world, with more than 30% per year. 2 million apps iOS has 900,000 apps available; Android has 800,000 apps; and Windows Phone and BlackBerry, 100,000 apps each. (Source: Stores’ official data). 27% with mobile marketing Approximately 3 out of 10 companies in the world are planning to implement mobile marketing strategies (Econsultancy, 2013). Mobility: Disruptive media 25% of media and marketing executives identify mobility as the most disruptive trend in the industry (AdMedia Partners, 2013). The HD boom 26% of the online video traffic corresponds to high-definition (HD) video, and it is expected to reach 52% by 2018 (Cisco Visual Networking Index, 2013-2018). 21% mobile This is the global Internet traffic coming from mobile devices. And this figure is increasing at a fast pace (Uberflip, 2013).
  23. 23. Generationofcompaniesin Colombia According to a survey by Proexport and MinTic, approximately 9 of every 10 companies in this sector were founded between 2006 and 2014. The oldest company was created in 1994. 88% arenew companies Cauca Quindio Atlantico Valle Caldas Santander Cundinamarca Antioquia Bogota D. C. Amount Total51 Department 1 1 1 1 2 2 5 7 32 20 15 5 10 33 23 22 1994 - 2000 2001 - 2005 2006 - 2010 2011 - 2014
  24. 24. The growing demand of mobile devices will boost the development of mobile apps (Gartner, 2013). 3D animation will keep growing faster than 2D animation due to the development of devices supporting this kind of content (Global Animation Industry, Digital Vector, 2011) The digital contents market will focus on those with distribution rights and content distribution optimization models. The fast evolution of technology has made digital animation available for mass consumption and now this is one of the fastest-growing industries (Global Animation Industry, 2013). Global trends
  25. 25. Sub- sectorsand opportunities Colombia’s digital contents sector has 4 main sub-sectors: Mobile apps, video games, digital animation, and audiovisual services. Percentage of companies per sub-sector 27% 20% 7% 4% 15% 12% 15% E-books OtherOther Video Games Video Games Audiovisual Products Audiovisual Products Digital Animation Digital Animation Mobile Apps Mobile Apps Digital Marketing Digital Marketing
  26. 26. Mobileapps These are pieces of software for smart phones, tablets, or other mobile devices. There are numerous mobile app categories, such as entertainment, education, health, news, and professional and business apps, among others. Videogames Electronic games are highly demanded among adults, adolescents, and children, and are available across different platforms, like PCs, consoles, mobile devices, and even social media like Facebook. United States Brazil Panama Peru Ecuador Chile Northern Triangle United Kingdom Spain Canada Argentina The Caribbean Main destinations for Colombian mobile apps and video games Costa Rica
  27. 27. Digitalanimation Digital animation is a technique that creates moving images through computer technology. Graphics are 2D or 3D. Animation end products appear in movies, short films, advertising, video games, augmented reality, commercials, among others, and are created for different platforms like TV, movie theaters, websites, video game consoles, PCs, and mobile devices, among others. Main destinations for Colombian animation
  28. 28. Audiovisualproducts The concept of “audiovisual” mixes image and sound to produce a new language or experience. Just like digital animation, audiovisual products are used across different platforms like movies, television, Internet, video games, and mobile devices. Main destinations for Colombian audiovisual products United States The Caribbean Northern Triangle United Kingdom Spain Canada Brazil Panama Peru Costa Rica
  29. 29. Anexportingsector The main export destinations are United States, Mexico, Canada, Latin America, and Spain. Over 53% of digital content companies export their products and services. Exports were more than 30% of these firms’ incomes. Yes No 54% United States Spain Canada Latin America Mexico
  30. 30. Domains The main domains served by the digital contents sector are entertainment, government, and education. More than 40% of the companies belong to this area. Total of companies per sector served (domains). Percentage of companies per sub-sector Media or formats where productions are displayed Entertaiment Advertising/ Marketing Entertaiment Goverment Education Commerce Other Telecommunications Finance Health 41 20 19 12 10 10 10 8 8 7 5 4 4 3 2 2 2 25% 10% 4% 28% 7% 7% Web Mobile devices Television Films Consoles Other
  31. 31. Maincompetitive factorsin companies Human talent: High professional quality and expertise Use of value-added tools created for different purposes Creativity High technical development capacity Social responsibility Custom products Innovative products with high social and educational content
  32. 32. MinTic Programs ViveLab The ViveLab National Network is comprised by 17 laboratories deployed across the country. These labs have cutting-edge technology to create, develop, and produce digital content. More than 4,000 people have been trained at ViveLab. Colombia3.0. This is the top annual event for digital content in Latin America. During this event, the digital content industry presents and promotes their products and services, creates business opportunities, and holds conferences and workshop sessions with experts and national and international leaders in the field.
  33. 33. Film IndustryAct Law 1556 of 2012 supports the industry in Latin America by promoting the national territory as a location to film movies. All full-length films, documentaries, animations and telefilms (except television series) recorded in part or in full in Colombia are subject to a percentage refund for the production expenditures worth 40% of the total expenses from cinematographic services and 20% of the total expenses from logistic services.
  34. 34. • Minimum spending of 1,800 current minimum monthly wages (approximately USD $600,000 ). • The project must be registered by the producer, and the producer must be a legal entity. • Filmed in part or in full within the national territory. • Foreign projects must hire cinematographic services through Colombian companies previously registered with the Ministry of Culture. Eligibility
  35. 35. Countrieslikely toproduce theirworkin Colombia United States Mexico Spain France Argentina
  36. 36. COLOMBIA BringIT on colombiabringiton.proexport.com.co Libertad y Orden