The ITO Opportunity in Bogota Global Solutions
A Seasoned IT Industry • For over 20 years, Bogota has hosted local and multinational IT companies. The industry is made up of a number of large multinational and many small - medium domestic firms which provide a wide range of services at a local and offshore level. • During the period 2000-2010 revenues of software and associated services grew at a 12.5% CAGR. Colombian IT Services Industry Revenues (2010)*
Revenues (US$Millons)
1.800
29
1.500
179
IT Outsourcing
1.200
304
Deploy and Support
900 600
21 97 169
Integration and Development
417
Consulting
275
0
Education and Training
580
300 276 2006
2007
2008
2009
2010
*Expected revenues for 2010. Source: International Data Corporation, 2010.
Experience Across Various Verticals The industry has developed great expertise in the financial and healthcare sectors. Main Verticals Served by Bogota IT Services Providers (2010) Finance Healthcare and SS Retail & e-commerce Goverment Telecommunications Industrial & manufacture Transportation Utilities
18.5 15.5 10.2
0
3.8 4
2
8.2 8.1 7.8 7.6 6
8
10
12
% of companies serving verticals
14
16
18
20
Source: Invest in Bogota analysis.
Abundant and Highly Qualified Talent • Over 130,000 students per year are enrolled in IT related fields in Bogota. • Every year more than 17,000 students graduate from engineering and careers related to the IT industry, ensuring an on-going source of talent for companies operating in Bogota. Average Annual Supply of Engineering and IT Graduates Gualadajara Monterrey Metro Manila Santiago Sao Paulo Bogota Bangalore Buenos Aires San Jose
25 24 23 22 19 17 17 11 0
3.3 5
10
Source: Everest Research Institute.
15 Thousand graduates
20
25
30
Competitive Costs • For IT services, arbitrage potential from Bogota is comparable to other emerging offshore destinations. • Bogota offers competitive salaries for IT positions and one of the most flexible labor legislations in Latin America. Gross Salaries for Selected IT Positions 2010
Position
Average monthly salary in US$*
Database Administrator
US$ 2,378
Senior Business Analyst
US$ 1,909
Junior Business Analyst
US$ 1,085
Senior Architect
US$ 3,278
Senior Software Dev. Engineer
US$ 2,640
Junior Software Dev. Engineer
US$ 1,170
* 2.000 COP= 1 USD. Source: Fedesoft, Salary survey 2010.
Major Players Located in Bogota (Multinationals)
Success Stories This Argentinean Company is one of the top 10 software development companies in the world. Globant arrived in Bogota in 2010 and projects to hire 200 people in their first two years. Clients: Google, Dreamworks, Linkedin and EA.
Zemoga specializes in the creation of interactive experiences and applications since 2001. It has 140 employees developing products for clients such as: Continental, Yahoo, Sears and Mozilla.
This local company is dedicated to the creation of cross media multi-platform experiences. It has 45 employees and a portfolio of global clients including top agencies in Europe, North America, Asia, and Latin America.
Andres Giolito, Site Manager Colombia, Globant.
“Globant’s philosophy is to get set up were the talent is, and Colombia is definitely a place to grow. To get installed in a country is not simple, it is fundamental that companies like Invest in Bogota help to generate local contacts, giving information and statistics that ease a quick analysis of the business and give proven solutions to the region’s characteristic difficulties”.
Invest in Bogota is the investment promotion agency for Bogota and its region • The Agency provides a broad range of investor services, free of charge with complete confidentiality.
Contact us: Carrera 7 No. 71-21, Torre B, Suite 901 Bogota, Colombia PBX: +57 (1) 742-3030 E-mail: info@investinbogota.org www.investinbogota.org twitter.com/investinbogota facebook.com/investinbogota