Barranquilla: Strategic Platform. Services. for BPO & IT

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1 Barranquilla: Strategic Platform for BPO & IT Services

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3 Contents 1. Barranquilla s Potential at a Glance BPO& IT Industry in Colombia BPO& IT Industry in Barranquilla Student Population in Barranquilla Real Estate Infrastructure at Competitive Prices Telecommunications Infrastructure Government Support Quality of Life They talk about Barranquilla How can ProBarranquilla help you? 19

4 01 Barranquilla s Potential at a Glance Barranquilla, capital of the State of Atlantico and heart of the Colombian Caribbean Region, has a population of 1.2 million. It is located the north of Colombia, and it has positioned itself as one of the 10 Latin American Cities of the Future and as one of the cities in the world that by 2025 will contribute with 60% of the global GDP (McKinsey & Co). Availability of qualified talent pool: With more than 25 higher education institutions and nearly 80,000 students enrolled each semester, Barranquilla has one of the greatest concentrations of young and qualified talent pool in Colombia. This represents over 35% of the student population of the Caribbean Region. Competitive operation costs: Barranquilla provides a cost-benefit solution being a 30% more competitive in real estate, payroll, and telecommunications infrastructure. Port of Telecommunications: Barranquilla has submarine cables connected directly to the city, which is completed with an offer of more than 10 telecommunication carriers. Government support to the scalability of the operations: The city has developed programs such as Contact Barranquilla for English training with an emphasis on the needs of the industry.

5 02 TOP 10 LATIN AMERICAN CITIES OF THE FUTURE 2010/11 RANK CITY STATE COUNTRY 1 Santiago Santiago Chile 2 Lima Lima Peru 3 Monterrey Nuevo Leon Mexico 4 Bogota Capital District Colombia 5 San Jose San Jose Costa Rica 6 Guadalajara Jalisco Mexico 7 Queretaro Queretaro Mexico 8 Barranquilla Atlantico Colombia 9 Hermosillo Sonora Mexico 10 São Paulo São Paulo Brazil The city has a strategic location within the same Eastern time zone in the United States; located an hour away from Central America and 2 hours away from Miami by plane. BARRANQUILLA ATLANTIC OCEAN COLOMBIA PACIFIC OCEAN ATLANTICO

6 03 Barranquilla is home to BPO&IT companies that are currently delivering costumer service, help desk, technical support, as well as software and application development to companies located in the United States, Spain, Mexico, Chile, Peru, among other countries. Companies such as Sutherland Global Services, VSI Nearshore Outsourcing, Bilateral, Mincom, ZenOk, Koombea, Indra Company, among others have operations in Barranquilla, from where they deliver their services to these markets. BPO IT

7 04 BPO& IT INDUSTRY IN COLOMBIA TOTAL BPO JOBS Thousands Source: Colombian Association of BPO and Contact Centers TOTAL BPO SALES US$ Millions p Source: Colombian Association of BPO and Contact Centers p

8 05 TOTAL SOFTWARE SALES US$ Millions ,216 1,318 1,894 1,914 2, ,638 1, , Hardware Source: Fedesoft 2008 Services Software TOTAL IT JOBS Min and Max- Knowledge of a vertical Thousands Source: Fedesoft p 2012p 2013p

9 06 BPO& IT INDUSTRY IN BARRANQUILLA BPO JOBS Jobs ,457 3, ,291 1, ,131 % 746 2,326 2, , Source: ProBarranquilla Calculations English 2012 (January) Spanish MAIN BPO VERTICALS Others 15% Logistics Telecommunications 31% 8% 8% Health 15% Utilities Source: ProBarranquilla Calculations 23% BFSI

10 07 MAIN IT VERTICALS Health 9% Logistics 9% BFSI 26% 13% Others 26% 17% Manufactures Commerce Source: ProBarranquilla Calculations MAIN BPO MARKETS SERVED Europe Latin America 1%1% Colombia 32% 66% North America Source: ProBarranquilla Calculations

11 08 MAIN IT MARKETS SERVED Europe 11% Latin America 45% 22% Colombia 22% North America Source: ProBarranquilla Calculations COMPANIES: BPO ACTIVITIES No voice 31% 69% Voice Source: ProBarranquilla Calculations

12 09 COMPANIES: IT ACTIVITIES Applications 9% 26% Infrastructure 65% Development Source: ProBarranquilla Calculations AVERAGE BPO VOICE SALARIES $2,500 $2,000 US$ -Month $2,000 $1,250 $ 1,500 $750 $ 1,000 $ 500 $283 $425 $- Agent Salaries without social security Source: Manpower Bilingual Agent Supervisor Account Manager Director of Operations

13 10 AVERAGE BPO NON VOICE SALARIES Min. and Max- Knowledge of a vertical $4,000 $3,500 $3,500 US$- Month $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 $500 $400 < 1 year $750 $500 $1,250 $ years 3-4 years $620 $620 Cali Medellin $1,250 >5 years Salaries without social security Source Manpower AVERAGE HELP DESK SALARIES $800 $700 $670 US$-Month $600 $512 $500 $400 $300 $200 $100 $- Bogota Without social security Source: Manpower Barranquilla

14 11 AVERAGE IT SALARIES $2,500 $2,500 $2,250 $2,000 $1,750 $1,500 US$-Month $1,500 $1,250 $1,250 $1,000 $750 $1,750 $850 $1,000 $600 $650 $500 $750 $450 $250 $0 Junior Graphic Senior Graphic Junior Designer Designer Programmer Without social security Source: Manpower Junior Project Leader Senior Project Leader IT TECHNICAL SUPPORT CENTER: 50 EMPLOYEES Salaries and Social Security $3.0 US$-Month $2.5 $2.4 $2.3 $2.0 $2.1 $1.9 $1.5 $1.0 $0.5 $- Bogota Source: fdi Benchmark Medellin Cali Barranquilla

15 12 SOFTWARE DEVELOPMENT: 100 EMPLOYEES Salaries and Social Security USD Millions year $6.0 $5.6 $5.2 $4.7 $4.3 Bogota Medellin Cali Barranquilla $5.0 $4.0 $3.0 $2.O $1.0 $- Source: FDI Benchmark

16 13 STUDENT POPULATION IN BARRANQUILLA GRADUATES PER ACADEMIC FIELD Business School 13% Others Laws and Related Sciences 10% 31% 8% Psychology Therapy Electronics Engineering 4% 4% 7% 4% 7% 7% Systems Engineering 7% Medicine Education Source: Labor Observatory of Education Ministry of National Education. Accounting Industrial Engineering

17 14 STUDENT POPULATION IN BARRANQUILLA Thousands * Source: SNIES (National Higher Education Information System), Ministry of National Education *Preliminary Results 2010 BILINGUAL POPULATION* 10.0% 9.0% 8.0% 9.4% 7.0% Population % 6.0% 6.6% 5.0% 5.8% 4.0% 5.5% 4.7% 3.0% 2.0% 1.0% 0.0% Bogota Barranquilla Cali Medellin *Last census performed Source: 2005 DANE (Administrative Department of National Statistics) Census Bucaramanga

18 15 REAL ESTATE INFRASTRUCTURE AT COMPETITIVE PRICES REAL ESTATE COSTS IN BUILDINGS Min. Max costs $40 $35 $28 US$-Month $30 $25 $20 $18 $22 $20 $19 $15 $10 $5 $10 $7 $7 $- Source: Colliers International Barranquilla Bogota TELECOMMUNICATIONS INFRASTRUCTURE Cali Medellin Arcos-1 Panamerican CFX Maya-1 TCS-1 BARRANQUILLA Barranquilla is the point of entrance of submarine cables that connect Colombia to the rest of the world, as well as the home to approximately 10 telecommunications suppliers that provide global quality services at competitive prices. Furthermore, the state of Atlantico is the only one at a national level with all of its municipalities interconnected with optic fiber, giving the companies multiple installation options. COLOMBIA

19 16 GOVERNMENT SUPPORT In Barranquilla s Mayor Office, through Aliarse Foundation, created a program called Contact Barranquilla, which purpose is the training in English (level B2, Common European Framework) of seniors at public schools. As of December, 50 students were undertaking their professional internships at one of the BPO operations in the city. As of 2012 this project will expand to students of other academic levels at the schools, thus reaching an amount of 1,000 additional youths that have benefited from this program. QUALITY OF LIFE HOW SATISFIED ARE YOU WITH LIFE IN YOUR CITY? % 82% 80% 77% 70% % of satisfaction 60% 50% 67% 63% 62% Cartagena 70% Bogota 80% 84% 40% 30% 20% Source: Colombian Network of: Cities, how are we doing? Business School Cali Ibagué Medellin Valledupar Bucaramanga 0% Barranquilla 10% Barranquilla has quality in health services, diversity in academic offers, bilingual schools, and social clubs with all kinds of sport activities, such as golf and water sports, among others.

20 17 THEY TALK ABOUT BARRANQUILLA Barranquilla offers a strategic location and an ideal concentration of academic institutions that allow having a world-class quality bilingual human resource and an excellent environment for performing business. Additionally, it has shown an effective commitment between the public and private sectors, to facilitate the development of BPO&IT, the companies that offer services to the rest of the world from this city have already portrayed this. Santiago Pinzon, Executive Director, Chamber of BPO &IT. During the past few years, Colombia s potential for offering contact centers and BPO services to any place in the world has become evident. The continuous support of the Government for the development of the sector, the availability of trained personnel, legal stability, excellent infrastructure, costs and the continuous preparation of the different regions of the country, contribute to profiling the industry as a world-class sector with a continuous growth over the past 11 years. Ana Karina Quessep, Executive Director. A company with HQ in Rochester, New York, which began operations in November 2010 and currently has 1,100 agents delivering services to the United States telecommunications and technology market. Sutherland has approximately 30,000 employees distributed within 33 locations in 10 countries. Our location in Barranquilla has been a fundamental part of our success, the willingness to serve and work disposition of its people, in addition to the access of under 3 hours offered by the airports of Barranquilla and Cartagena to the United States, has allowed many international clients to be willing to consider the city as an option for their operations. Once they visit us and see what we can do, they not only give us their business but become frequent visitors and ambassadors of the benefits of the country and region. Lelio Sotomonte, President

21 18 Indra has a presence in the country since 1995 and it is today one of the top three IT companies in Colombia. It has more than 1,500 professionals and offices in the cities of Bogota, Barranquilla and Medellin, as well as a Lab Software that meets the needs of the country, which is enabled also as a service center for the rest of Latin America. The multinational has solid experience in providing solutions and services for markets including Financial Services, Utilities and Energy, Security and Defense, Transport and Traffic, Public Administration and Health, Industry and Consumer Affairs, and Telecommunications Our company has been active in the contact center and BPO market for 8 years. We have always focused on the international market and our main business is exporting services. Four years ago we decided to expand our operations and after analyzing several cities in the country, we decided that the best option was Barranquilla. The factors that were taken into account for making such decision mainly: access to bilingual personnel, the size of the city and the number of inhabitants, support provided by the district to new industrial developments, security, mass transportation systems and closeness to the United States compared to the other cities of the country Alfredo Yamhure, President Bilateral has a population of young men and women that graduated from the Contact Barranquilla program. Our company Adapting was created in Valencia in 1999 and is dedicated to consulting and developing computer solutions for data management. The opening of an office in Barranquilla (Colombia) is the consequence of two factors: the need to reduce costs in the production of software, and the search of new markets in Ibero-America. The choice of Barranquilla was because of the wide range of qualified personnel availability, low costs in labor and in real estate, important institutional support, nice weather and a proper location, near other strategic markets such as the United States and Brazil. Rubén Lafuente, Americas Manager. Mincom decided to locate its HQ in Barranquilla because the city provided a strategic location for their operations in the region. From Barranquilla services are provided to more than 12 countries in Latin America and the United States, thus achieving the expectations in terms of market penetration, costs, human resource and product development for our operations Fernando Lee, VP Sales Northern Region.

22 19 HOW CAN PROBARRANQUILLA HELP YOU? ProBarranquilla is the Investment Promoting Agency of Barranquilla and the state of Atlantico. It is a non-profit organization, sponsored by more than 100 companies of the private sector and it also has the support of the Mayor s and State s Office. ProBarranquilla has a support scheme for the BPO&IT sector, turning into a strategically partner in your investment projects: Personalized and customed information Search for real estate options Contact entities specialized in training human talent Approaching the academic sector for creating agreements Creation of agendas according to the specific needs of the companies Contact with telecommunications operators Approach to support entities at a local and national level Engagement with the public and private sector ProBarranquilla is a member of the Colombian Chapter of the IAOP.

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24 Address: Calle 77B No Of. 305 Phone number: (+57 5) Fax: (+57 5) Centro empresarial las Americas, Barranquilla Colombia.

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