Software and it services sector 2016

1. OPPORTUNITIES IN
THE LOCAL INDUSTRY
In terms of demand for IT services, the financial sector is one of the most
dynamicsectorsasaresultoftheGovernment’smassbankization,allowing
trendhascreatedalotofopportunitiesfortheprovisionof back-o ceand
call center services across the country.
Colombia has become a distribution hub for outsourcing services, IT and
software services regionalwide, due to the availability of qualified human
capital, its strategic and competitive geographic location with easy access
to global markets, and its location in the middle of five time zones shared
with important business centers.
the development of road, port, railway and airport infrastructure in the
support services in accounting, finance and logistics.
(48 million) increasing demand for services in patient monitoring
(telemedicine) and information consolidation (data entry) areas.
mobile telecommunications to control well and drilling, oil extraction, and
transportation processes for their daily activities.
Colombia has experienced a tremendous growth in its energy
generation, transportation and distribution companies, which are in a
process of expansion in the region that generates growing demand for
IT and BPO services.
SOFTWARE AND IT SERVICES
Libertad y Orden

2. COLOMBIA, A COUNTRY WITH
MULTIPLE AREAS OF DEVELOPMENT
biggest bet of Bogota is to offer software and IT services given
the large numbers of banks that have concentrated in the
country’s capital.
Develops large-scale software projects due, in part, to Bogota’s
abundant human capital, which are proficient in the most
relevant corporate software platforms like SAP, ORACLE,
Microsoft, IBM. (Invest in Bogota.)
Develops innovative solutions for the energy sector in parallel
with the ICT cluster, the Medellinnovation district and Ruta N
software and IT services industry given the existing corporate
network in the region.
Develops software and IT services for the agribusiness industry.
It is the biggest regional bet given the cooperative efforts that cut
across both industries.
Develops Big Data, IT services and infrastructure, particularly in
the logistics realm aimed at the port of Buenaventura which is
Colombia’s main port connecting the country with more than 20
markets worldwide.
Fosters partnerships with 11 research, development and
innovation centers to shape new solutions in the sector. (Invest
in Pacific.)
BOGOTA
MEDELLIN
CALI
DevelopsprojectmanagementsoftwareformajorinfrastructureprojectsinColombialocatedinthisregion
suchastheRutadelSol(RouteoftheSun),rehabilitationoftheMagdalenaRiverandtherailwaycorridor.
ProvidesIT&softwareservicesforthelogisticsandtransportationindustry.Itisthesinglebiggestregional
ofaservicingplatformallowingaccesstomorethan1.3billionconsumersworldwide.
Using the expertise of 5,000 engineers in diverse areas, software in Java and Oracle can be developed to
managedocuments,designandcreatemobileapplications,technicalsupportand3Dcontent.
BARRANQUILLA
computational analysis of biological information in Latin America that will help create
agricultural information systems and biotechnical improvements.
COFFEE TRIANGLE

3. COLOMBIA, A MARKET IN
CONSTANT DEVELOPMENT
IT MARKET IN
COLOMBIA - 2014
MARKET SHARE PER IT
SERVICES % SALES
IT MARKET IN
COLOMBIA - 2014
MARKET SHARE PER
TECHNOLOGY MARKET
% SALESIn 2014, IT spending in Colombia added up to US 8.440
million, showing 10% growth in comparison with 2013.
During the last 10 years, the IT market has grown at a
compound rate of 18%; software has grown 19.1% and IT
services have grown 15.4%. IDC, 2015.
IT Services
13
remain as the third technology market,
arerelatedwithoutsourcingandimplementation&support.
IDC, 2015.
ITO represents 37.9% of all outsourcing incomes
and PaaS. PTP - Grans Consulting 2015.
Source IDC.
Source: IDC, 2015
Source IDC.
HARDWARE
IT SERVICES
SOFTWARE
OPERATION MANAGEMENT
SUPPORT SERVICES
IMPLEMENTATION
PLANNING
TRAINING AND EDUCATION
56%
43%
25%
19%
12%
1%
31%
13%
is the vertical with the highest software demanda in Colom-
bia. Nationwide, the media industry is the higher IT services
demandant.

4. A GROWING MARKET WITH
HIGH CAPACITY OF SKILLED LABOR
After Mexico, Colombia with 48 million inhabitants is the second largest spanish-speaking country in the world. It has multiple areas
of development: nine metropolitan areas with population over 500,000 inhabitants.
Colombia is within the 30th largest economies and one of the largest within the Non - OECD economies.
Eachyearmorethan200.000peoplegraduateintertiaryeducation.Around54%dosoinundergraduateleveland19%inmasterstudies
and specializations. Ministry of National Education, 2014.
NUMBER OF GRADUATES IN
ENGINEERING FIELDS 2014*
SYSTEMS ENGINEERING,
TELECOMICATIONS AND
RELATED
175.013
17.278
6.178
3.188
ELECTRIC
ENGINEERING
AND RELATED
20.270
ELECTRONIC ENGINEERING
TELECOMMUNICATIONS AND
RELATED
72.327
Source: Ministry of Education, 2014.
Primestrategiclocation:Locatedintheheartland
of the main commercial and financial centers
in the hemisphere, it shares cultural a ity
patterns, suitable to consolidate operations in
the region.
Infrastructure capable of support world-class
operations: 10 submarine cables, supplemented
by an internal optical fiber ring that ensures the
national connectivity, increasing Colombia´s
competitiveness.MinTIC,(MinistryofInformation
andCommunicationsTechnologies),2015.
INFRASTRUCTURE
AND PRIVILEGED LOCATION
TOTAL
GRADUATES
2001 – 2014
* Taking into account technological, undergraduate and postgraduate programs
5

5. INNOVATION AND NEW
MARKETS OPEN UP
ATTRACTIVE REGULATORY
FRAMEWORK
TELECOMMUNICATIONS
INFRASTRUCTURE
SUBMARINE CABLES
Available tools to enable operations in areas such as services exports (Plan
Vallejo), intellectual property rights, Statutory Law of Habeas Data, Value
Added Tax (“VAT”) exemption for services provided from Colombia,
incometaxexemptionforsoftwaredevelopedinthecountry,possibilityof
applying to the free trade zones regime, First Job Law, and opportunities
to benefit from Telework.
enter emerging markets, where the idea is to locate innovation
centers to suit the requirements of target markets. In line with this
trend, the National Government encourages the establishment of
innovation centers in the country.
Continuous strengthening of commercial relations between Colombia
and the world, opening a window of opportunities for investment in
all business outsourcing services.
THE GOVERNMENT’S
COMMITMENT TO THE SECTOR
Productive Transformation Program – PTP – a strategy that promotes
the sector growth. During the last years, the program has created a
favorable environment to consolidate a worldwide recognition for the
sector. Program e orts develop throughout four main themes: Human
CapitalandRegulatoryFramework,Consolidation,PromotionandSector
Innovation and Infrastructure and Sustainability.
Government plan aimed at generating economic growth based on the use
and appropriation of ICT in Colombia and the development of a national
(Ministry of Information Technologies and Communications) lead the
plan.attheendof2014,managedtoconnect1,078municipalitiesincreasing
Internetconnectionsfrom2.2to10.1millionnationwide.
PAN-AM
SAC
CFX - 1
SAM - 1MAYA - 1
BARRANQUILLA
CARTAGENA
TOLÚ
SAN ANDRES
MEDELLIN
BOGOTA
BUCARAMANGA
CALI
ARCOS
FUENTE: MINTIC, 2015.
PCCS
GLOBENET
AMX - 1

6. MAJOR FOREIGN COMPANIES WHICH HAVE CHOSEN
COLOMBIA AS AN INVESTMENT DESTINATION
Peter Kroll, Senior Vice President,
Capgemini, North Latin America.
“Colombia is a key country in our regional expansion strategy; it’s a country experiencing strong growth that has
a very capable workforce and a very competitive cost structure. For that reason, we decided to open offices here.”
Indra, Spain:
company opened its second software laboratory in the country in Pereira
in order to meet both domestic and international demands.
Synapsis, Chile:
American broadband and IT services provider Diveo (investment: USD 35
million). After this, Synapsis was purchased by the Brazilian company TIVIT,
in order to expand its presence in 7 Latin American countries.
Capgemini, France:
serve local and regional clients, establishing its regional headquarters in
Colombia. (Jobs created: 400.)
Stefanini, Brazil:
IT development company Informatica & Tecnologia, consolidating its
presence in Latin America.
Globant,Argentina:
transnationalcorporationestablishedasoftwaredevelopmentcenterinBogota
aimed at the international market.