Business Process Outsourcing & Off shoring … _BPO_August_2011...Business Process Outsourcing & Off...
Transcript of Business Process Outsourcing & Off shoring … _BPO_August_2011...Business Process Outsourcing & Off...
In 2009, eight sectors formulated and started implementing their
Industry business plans leading to become world class performers. In
2010, four more.
Stimulate the development of
ESTABLISHED SECTORS
into world class
performers
Promote the development of
world class performers of
NEW AND EMERGING
sectors
Promote added value, innovation
and development in
AGRICULTURAL SECTORS
2010
Graphic Communications
Cosmetics and personal care
Auto parts and vehicles
Textiles, Apparel, Design and
Fashion
Electric Energy, products and
services
Health Services
Software & IT
BPO&O Bovine Beef
Palm, vegetable oils and fats
Chocolate, confectionery and
their inputs
Shrimp farming
Roadmap for the development of the law on "Data Protection" on Colombia.
IAOP Chapter Creation of Colombia
(International Association of
Outsourcing Professionals) and
Membership of the South America
Regional Advisory Board.
Industry
Development
and
Promotion
Launch of pilot scheme to strengthen English language skills in SW & IT and BPO&O sectors. Working agreement with the private sector to identify training needs of work force
Human
Capital
Development
Legal
Affairs and
Regulation
Implementation of 20 projects for business innovation and technology services through Sinertic.
Infraestructure
BPO&O Initiatives focused on our Action Program
“…So Colombia represents a wonderful place to do business especially as we
consider serving the Latin American market…
Latin America is a huge continent that represents an amazing opportunity for
us. The business people are keen to expand, work with us and welcome us. The
governments are even more welcoming and really work – its not just lip service,
particularly in Colombia, don’t get me wrong – they have huge issues to tackle,
themselves – corruption, bureaucracy, crime – but their average middle class
citizens can lead a decent life without constant stress on some form or another…”
Pramod Bhasin
Former CEO – Genpact
P.Bhasin Blog
May 14th , 2010
•IT Market L.A.: US$73 billion
•IT Market in Colombia: US$4.3 billion, expected growth (2010-2014) 11%
• Emerging countries considered as key players in the industry according to IDC
Evolution of the IT Market in Latin America US$ Million (2008-2010)
Source: IDC
The IT Sector in Latina America has experienced
a sustained growth
7,500 7,473 9,54015,526 16,126 18,524
41,063 40,46444,768
64,089 64,063
72,832
0
10.000
20.000
30.000
40.000
50.000
60.000
70.000
80.000
2008 2009 2010
Software Services Hardware Total
IT Industry Share Latin America
% IT Share in GDP (2010)
Source: IDC
Sales US$ Million
(2010)
Colombia, third in IT in Latin America
1.04
1.33
1.44
1.48
1.66
1.67
Peru
Venezuela
Argentina
Colombia
Chile
Brazil
IT investment in the region is focused on the
hardware industry.
In Colombia, the investment is focused on
Hardware and IT Services.
2010 LA Argentina Brazil Colombia Chile Peru Venezuela
Hardware 44,768 3,871 19,804 2,131 2,088 1,103 2,240
Services 18,524 786 10,544 1,638 924 315 393
Software 9,540 675 4,549 488 371 187 583
Total IT 72,832 5,332 34,897 4,258 3,383 1,605 3,217
Source: IDC
Colombia is a wide market that still has opportunities
for new IT companies
130125
101
77
62
44
147
132
87 9080
66
159147
113103
97
80
156
143
116107 106
82
Chile Brazil Venezuela Mexico Argentina Colombia
Per capital investment in IT, US$(2006-2009)
2006 2007 2008 2009
Revenues (sales), US$ Million
(2003-2010)
Source: IDC 2010
According to IDC, Colombia’s IT services revenues
have almost doubled since 2005
175 191 213 233 211
455 465 488552 615 686838
1,0171,216
1,318
1,638
767 820 906 992
1,224
1,894 1,9142,131
0
500
1.000
1.500
2.000
2.500
2003 2004 2005 2006 2007 2008 2009 2010
Software Services Hardware
Source: IDC 2010
Segment Share(%)
2010
Total IT Services Market 2010: US$ 1.64 billion
IT Services Market
(2007-2010)
Outsourcing, Integration and Development, fastest
growing segments
Outsourcing41%
Deploy & Support
26%
Integration & Develop.
20%
Consulting11%
Education & Training
2%Segment
US$ MillionGrowth
YoY
2007 2008 2009 2010 2007 - 2010
Outsourcing 276 384 526 676 35%
Deploy and Support 275 380 364 428 16%
Integration and
Development169 278 249 322 24%
Consulting 97 146 154 184 24%
Education and
Training21 29 25 29 11%
Total 838 1,218 1,318 1,638 25%
20 – 59
60 – 109
110 – 605
1 – 19
Number of
companies
Geographic positions of IT Services in Colombia
Meta
Nariño
CaucaHuila
Boyacá
Cundina-
marca
Santander
Norte de
SantanderBolívar
**
****
Atlántico
Valle del
Cauca
Antioquia
*
***
Tolima
** Quindío
**** Caldas
*** Risaralda
* Bogotá
Companies:
27% of total companies are call centers
73% of total companies are providers of Professional
Services
Jobs:
The industry employs over 84,000 peole: 16,000 are
software employees, 10,000 IT Services employees and
58,000 Call Centers employees.
Revenues:
2009 industry sales: US$ 2.5 millones
57% of the total sales are generated by Professional
Services companies
43% of the total sales are generated by Call Centers
Figures from a survey of 164 leading IT services companies
Source: The 5000 companies – Dinero Magazine, Ministry of Information Technologies and Communications, BPR Associates - ISI Emerging Markets. Proexport
Calculations
The segment of Call Centers has shown a sustainedgrowth
Revenues in the Contact Center Industry segment have
almost doubled in less than three years
The number of Jobs in the Contact Center segment has
doubled since 2006
Exports have grown by more than 150% since 2006
260386
478565
684763
0
200
400
600
800
1000
2006 2007 2008 2009 2010 2011f
US$
Million
32 42
50
67 72 80
-
20
40
60
80
100
2006 2007 2008 2009 2010 2011f
Thousands
37
63
8395
116 122
0
20
40
60
80
100
120
140
2006 2007 2008 2009 2010 2011f
US$
Million
Source: ACDCC. Asociacion Colombiana de Contact Center y BPO
F: forecast
H.R Management
Sales and Costumer Care
E – commerce
Credit, Risk and Collection
Management
Database Management
Helpdesk
Backoffice: Document
Management, printing,
procurement.
Finance
Telecommunications
Insurance
Industry and Costumer
Transportation
Media
Health
Public Administration
Software Technology Services
Integration and Technical
Services
Application Development and
Modernization
Infrastructure Technology
Outsourcing
Support ServicesData Center Management
BPO Solutions VerticalsTI Services Solutions
Colombia has become an export platform for Latin America, USA, and Europe providing voice and non-voice services
in Spanish, English and Portuguese
Onshore, Nearshore and Offshore Services
Fuente: MCIT. Andi – Chamber of BPO - Proexport
Source: Mckinsey
Barranquilla
1.1 m de inhabitants
Cartagena
0.9 m de inhabitants
Cucuta
0.6 m de inhabitants
Cali
2.2 m de inhabitants
Medellin
2.3 m de inhabitants
Bogota D.C.
7.2 m de inhabitants
Ibague
0.5 m de inhabitants
Colombia has a population of 46 million inhabitants and has 8 major centers of development
with over 500,000 inhabitants
Bucaramanga
0.5 m de inhabitants
Colombia is a country with multiple
development centers
8%9%
10%11%
12% 12%
13%
15%
Bolivar Santander Atlantico Bogota D.C. Norte de Santander
Antioquia Valle del Cauca Tolima
Fuente: DANE
Colombia’s unemployment rate is 11.7% (January-December, 2010)
Unemployment Rate
(2010)
Bolivar (Cartagena) has the lowest unemployment rate compared
to the other Colombian states
Bogota DC.23%
Medellin7%
Cali5%
B/quilla5%
Cartagena5%
B/manga6%
Others49%
Total of Universities in Colombia (2009): 126
Fuente: Colombian Ministry of education
The 8 main cities in Colombia concentrate 54% of the total universities in 2009
State EconomyBusiness
ManagementAccounting
Electrical
Engineering
Electronic
Engineering
System
Engineering
Bogota D.C 1,527 8,310 2,236 330 1,809 13,993
Antioquia –
Medellin612 5,723 1,377 324 885 1.503
Valle del Cauca
– Cali311 3,613 1,228 71 493 882
Santander –
Bucaramanga238 1,572 456 162 400 444
Bolivar –
Cartagena90 807 363 14 112 286
Atlantico -
Barranquilla130 1,479 402 64 313 422
Colombia has an important availability of human
resource for BPO Opportunities
Number of undergraduates
(2009)
Source: The World Competitiveness Yearbook 2010. Euromonitor International
The second country in Latin America with the highest availability of Human Resources, according to the IMD -
(10 = High Availability)
Number of Universities and Superior Education Centers
(2010)
Human Resources: Highly qualified labor force
2,89
3,33
4,6
5,11
5,3
5,66
0 1 2 3 4 5 6
Venezuela
Peru
Mexico
Argentina
Colombia
Chile
129 279
1.2231.557
5.437
Panama Colombia Brazil Argentina Mexico
Second place in Higher Education in Latin America, according to IMD 2010
(10 = Feels the needs of the economy)
Source: The World Competitiveness Yearbook 2010. Euromonitor International
Human Resources: Highly qualified labor force
4.72 4.624.39
3.84 3.73 3.6
Argentina Colombia Venezuela Mexico Brazil Peru
Source: Euromonitor International
8.593
19,004
86,188
173,751
380,651
Panama
Chile
Colombia
Mexico
Brazil
3,439
7,750
36,740
50,970
58,383
Panama
Chile
Colombia
Brazil
Mexico
Quality and Availability of Human Resources
Number of Science, Business and Law Graduates
(2010)
Number of Engineering, Manufacturing and Construcción Graduates
(2010)
Wages of Business and Engineering graduates
Source: Salary Expert ; Human Capital
Yearly based Wages: Salary Expert Quartile 16.7; HC Quartile 10.
Exchange Rate : Colombia (US dollar = $2,000) Chile (US dollar = $510) Brazil (US dollar = $1.77), Perúu(US dollar = $2.79) Mexico (US dollar = $12.7) Argentina (US dollar =
$3.79)
Financial Analyst (USD)
47.503
33.356
26.746
20.268
12.351
11.676
- 10.000 20.000 30.000 40.000 50.000
Chile
Brazil
Peru
Mexico
Argentina
ColombiaEconomist (USD)
65.920
46.284
37.121
28.127
17.133
11.340
- 20.000 40.000 60.000 80.000
Chile
Brazil
Peru
Mexico
Argentina
Colombia
Accountant (USD)
46.460
32.618
26.159
19.822
12.210
12.079
- 10.000 20.000 30.000 40.000 50.000
Chile
Brazil
Peru
Mexico
Colombia
Argentina
Electronic Engineer (USD)
60.267
42.321
33.937
25.715
15.669
9.714
- 20.000 40.000 60.000 80.000
Chile
Brazil
Peru
Mexico
Argentina
Colombia
Human talent at competitive costs
Competitive wages for the most representative jobs of the industry
Data Entry Clerk (USD)
21.501
15.100
12.108
9.173
5.589
3.858
- 5.000 10.000 15.000 20.000 25.000
Chile
Brasil
Perú
México
Argentina
ColombiaPersonal Assistant (USD)
33.019
23.188
18.592
14.087
7.552
6.450
- 10.000 20.000 30.000 40.000
Chile
Brasil
Perú
México
Argentina
Colombia
Database Administrator (USD)
59.689
41.912
33.611
25.467
15.518
15.360
- 20.000 40.000 60.000 80.000
Chile
Brasil
Perú
México
Argentina
Colombia
Computer Operator(USD)
29.591
20.785
16.663
12.626
7.695
4.536
- 10.000 20.000 30.000 40.000
Chile
Brasil
Perú
México
Argentina
Colombia
Human talent at competitive costs
Source: Salary Expert ; Human Capital
Yearly based Wages: Salary Expert Quartile 16.7; HC Quartile 10.
Exchange Rate : Colombia (US dollar = $2,000) Chile (US dollar = $510) Brazil (US dollar = $1.77), Perúu(US dollar = $2.79) Mexico (US dollar = $12.7) Argentina (US dollar =
$3.79)
Monthly Wages for the Call Center and Contact Centers Industries
USD (2010)
Agent (Basic Profile)
333,3
320,5
320,5
296,9
270,0 280,0 290,0 300,0 310,0 320,0 330,0 340,0
Barranquilla
Bogota D.C.
Medellin
Cali
Help Desk
670,0
620,5
620,5
512,8
0,0 200,0 400,0 600,0 800,0
Bogota D.C.
Medellin
Cali
Barranquilla
Bilingual Customer Care
589,7
492,3
485,0
441,0
0,0 200,0 400,0 600,0 800,0
Bogota D.C.
Barranquilla
Medellin
Cali
Coordinator (Spanish)
923,1
769,2
682,1
682,1
0,0 200,0 400,0 600,0 800,0 1000,0
Bogota D.C.
Barranquilla
Medellin
Cali
Source: Manpower (2010). MMLW = COP $515,000. Exchange Rate: USD 1 = COP $1,850. High level wages
Human talent at competitive costs
Labor Flexibility Index
0 - 100 ( 0 = More Flexible)
Source: World Bank (Doing Business Report, 2010)
País Day Shift Night Shift
Argentina 6 a.m. – 9 p.m. 9 p.m. – 6 a.m.
Colombia 6 a.m. - 10 p.m. 10 p.m. - 6 a.m.
Costa Rica 5 a.m. – 7 p.m. 7 p.m. – 5 a.m.
Ecuador 6 a.m. – 7 p.m. 7 p.m. – 6 a.m.
Mexico 6 a.m. - 8 p.m. 8 p.m. – 6 a.m.
Source: Colombia: Law 50 1990 and Law 789 2002. México: Labor Law 1969. Costa Rica: Law 2 1943. Ecuador: Labor Code 2005. Argentina: Law
11,544 1933 and 20,744 1976.
Colombia has the most flexible labor regimen in
Latin America
23.7 24.4
34.8
45.9 47.8 48.2
79.3
0
10
20
30
40
50
60
70
80
90
Colombia Chile Argentina Brazil Mexico Peru Venezuela
The severance payment for dismissal without just cause is the lowest in Latin America. The chart is based on the case of an
employee working with a company during 2 years with a monthly salary of US$ 1,000
3,768
3,000
2,333
2,000 2,000
1,667
USD 0
USD 500
USD 1.000
USD 1.500
USD 2.000
USD 2.500
USD 3.000
USD 3.500
USD 4.000
Brazil Peru Costa Rica Argentina Chile Colombia
Lowest Lay off Costs in Latin America
Source: Colombia: Article 64 of the Labor Code. Mexico. Article 50 of the Federal Labor Law; Peru. Article 94 of the Supreme Decree 003-97; Costa Rica.
Article 28 and 29 of Labor code. Argentina article 245 of Law 20744 of 1976. Brazil. Article 478 and 487 of Law 5452 of 1943 – (Consolidation of the Labor
Laws and FGTS -Unemployment Service Fund in Law 5107 of 1966). Chile article 161 and 167 of Labor Code.
Infraestructure to support world-class operations
Fuente: ICT Colombian Ministry
OCEANO
PACIFICO
ECUADOR
PANAMA
PDP TUNJA
EDIFICIO SOCIEDAD DE INGENIEROS
RED METRO
BOGOTACalle 100, Paseo El Lago, Pedro
Domeq y Colpatria
PDP VILLAVICENCIO
EDIFICIO ONDAS DEL META
NEIVA
SE EL BOTE
IBAGUE
SE MIROLINDO
POPAYAN
SE SAN BERNARDINO
PDP CALI
CHIPICHAPE
SE JAMONDINO
CUCUTA
SE SAN MATEO
PDP RIOHACHA
EDIFICIO EL EJECUTIVO
SE SABANALARGA
PDP TOLUPDP SINCELEJO
EDIFICIO BANCO DE BOGOTÁ
PDP MONTERIA
EDIFICIO MALENA
PDP BUENAVENTURA
EDIFICIO PTC
VENEZUELA
OCEANO
PACIFICO
OCEANO
ATLANTICO
PANAMA
META
PDP ARMENIA
AYA
RED METRO
BUCARAMANGACabeceras, José Acevedo y
Gómez
BARRANCABERMEJA
SE COMUNEROS
PDP VALLEDUPAR
EDIFICIO CAJA AGRARIA
SE PARAGUAIPOA
PDP MEDELLIN SEDE ISA
PDP PEREIRA
EDIFICO ANTONIO CORREA
PDP SANTA MARTA
EDIFICIO BCH
USTUPO
PDP CARTAGENA
EDIFICIO CHAMBACÚ
CABLE ARCOS-1
Hacia Quito
SE FUNDACIÓN
MARACAIBO
CABLE EMERGIA
CABLE PANAMERICANO
CABLE CFX
CABLE MAYA
PDP BOGOTÁ
EDIFICIO WBP
BUCARAMANGA
SE LOS PALOS
OCAÑA
SE OCAÑA
SE EL COPEY
SE CUESTECITAS
SE SAN CARLOS
SE PRIMAVERA
SE TORCA
SE EL BANCO
SE BETANIA
SE YUMBO
SE LA VIRGINIA
ER EL ROBLE
ER EL TAMBOR
SE MIRAFLORES
SE CAUCASIA
SE YARUMAL
SALITRAL
PDP BARRANQUILLA
NOGALES
MARACAIBO
SE PURNIO
PDP MANIZALES
AVANTEL CHIPRE
CABLE GLOBAL
CROSSING
PDP PASTO
PLAZUELAS
SE ANCÓN SUR
RED METRO
MEDELLÍNHotel Dann, Santillana, Asomadera
SE TERMOGUAJIRA
SE GUAVIO
Año
2008
OCEANO
PACIFICO
ECUADOR
PANAMA
PDP TUNJA
EDIFICIO SOCIEDAD DE INGENIEROS
RED METRO
BOGOTACalle 100, Paseo El Lago, Pedro
Domeq y Colpatria
PDP VILLAVICENCIO
EDIFICIO ONDAS DEL META
NEIVA
SE EL BOTE
IBAGUE
SE MIROLINDO
POPAYAN
SE SAN BERNARDINO
PDP CALI
CHIPICHAPE
SE JAMONDINO
CUCUTA
SE SAN MATEO
PDP RIOHACHA
EDIFICIO EL EJECUTIVO
SE SABANALARGA
PDP TOLUPDP SINCELEJO
EDIFICIO BANCO DE BOGOTÁ
PDP MONTERIA
EDIFICIO MALENA
PDP BUENAVENTURA
EDIFICIO PTC
VENEZUELA
OCEANO
PACIFICO
OCEANO
ATLANTICO
PANAMA
META
PDP ARMENIA
AYA
RED METRO
BUCARAMANGACabeceras, José Acevedo y
Gómez
BARRANCABERMEJA
SE COMUNEROS
PDP VALLEDUPAR
EDIFICIO CAJA AGRARIA
SE PARAGUAIPOA
PDP MEDELLIN SEDE ISA
PDP PEREIRA
EDIFICO ANTONIO CORREA
PDP SANTA MARTA
EDIFICIO BCH
USTUPO
PDP CARTAGENA
EDIFICIO CHAMBACÚ
CABLE ARCOS-1
Hacia Quito
SE FUNDACIÓN
MARACAIBO
CABLE EMERGIA
CABLE PANAMERICANO
CABLE CFX
CABLE MAYA
PDP BOGOTÁ
EDIFICIO WBP
BUCARAMANGA
SE LOS PALOS
OCAÑA
SE OCAÑA
SE EL COPEY
SE CUESTECITAS
SE SAN CARLOS
SE PRIMAVERA
SE TORCA
SE EL BANCO
SE BETANIA
SE YUMBO
SE LA VIRGINIA
ER EL ROBLE
ER EL TAMBOR
SE MIRAFLORES
SE CAUCASIA
SE YARUMAL
SALITRAL
PDP BARRANQUILLA
NOGALES
MARACAIBO
SE PURNIO
PDP MANIZALES
AVANTEL CHIPRE
CABLE GLOBAL
CROSSING
PDP PASTO
PLAZUELAS
SE ANCÓN SUR
RED METRO
MEDELLÍNHotel Dann, Santillana, Asomadera
SE TERMOGUAJIRA
SE GUAVIO
Año
2008
5 submarine cables that generate over 500 Gbps of
bandwidth
North-South Ring
Source: Colliers International
Category A+ y A Buildings
Competitive Internet CostMonthly US$ for 1Mbps (Megabytes per second)
Average Rent Costs in Buildings at Competitive Prices US $/m²
81
60
47
45
45
42
- 10 20 30 40 50 60 70 80 90
Peru
Chile
Venezuela
Argentina
Colombia
Brazil
17.0
16.6
13.9
11.9
11.8
9.5
0 2 4 6 8 10 12 14 16 18
Santiago
Buenos Aires
Caracas
Bogota
Ciudad de México
Lima
Highly Competitive Operating Costs
Time ZoneNew
YorkWashington
Ciudad
de
México
Buenos
AiresSantiago
Sao
Paulo
Los
AngelesMontreal
Bogota - - (-1) (+2) (-1) (+2) (-3) 0Buenos
Aires(+2) (+2) (+3) - (+1) - (+5) (+2)
Sao Paulo (+2) (+2) (+3) - (+1) - (+5) (+2)
Ciudad de
México(-1) (-1) - (-3) (-2) (-3) (+2) (-1)
Colombia is in the middle of 5 time zones, and share time zone
with important business centers like New York, Toronto and
Miami
Source: www.turistaloserastu.es
Colombia is in the middle of 5 time zones
German Enterprise of Sales and Customer Service for Latin America in Mexico, Puerto Rico, Dominican Republic, Venezuela, Ecuador, Peru, Chile, Argentina and Colombia
American Enterprise of Software solutions help desk for Latin America. Sales of call centers and network support for Latin America –nor Brazil neither Mexico-
Andean Region Headquarters for Colombia, Venezuela, Peru and Ecuador
American Enterprise of Financial Services, Communications and Infraestructure for Latin America in: Colombia, Venezuela, Peru, Ecuador and Pananma
Andean Region Headquarters for Colombia, Venezuela, Peru, Ecuador and Panama
American Enterprise of Customer Service for Personal and Corporate Banking in twelve countries in Latin America, except for Brazil and Mexico
American Enterprise of IT Services in Colombia
American Enterprise of Sales and customer service for Latin America except Brazil
Free Trade Zone Operation for a Managed Service Center. Andean Region F&A shared services for the Americas
American Enterprise of IT Services operating in North America and Latin America
American Data Center based in Bogota for the Andean Region. Backup center of the NAP Americas in Miami
Headquarters and Logistics Operations F&A shared services for the Andean Region
American Bilingual contact center operation for United States and Colombia
French Bilingual contact center for The Americas and Western Europe
Colombia’s Main Call Centers Companies
Source: Asociación Colombiana de Contact Center y BPO - ACCC
Workstations 160
Jobs 180Colombia
Workstations 4,600
Jobs 6,900
Workstations 2,700
Jobs 4,200
Workstations 1,290
Jobs 1,000
Workstations 220
Jobs 215
Workstations 500
Jobs 500
Workstations 960
Jobs 550
Workstations 400
Jobs 600
Workstations 3,800
Jobs 5,400
Workstations 1,100
Jobs 1,200
Workstations 1,900
Jobs 2,600
Workstations 70
Jobs 35