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Colombia has moved from IT outsourcing's blacklist to towards the top of the A-list, driven by factors including improved security, business friendly economic policies and a high level of human capital, according to a new report by Latin American IT outsourcing association Nearshore Americas.
The country's contact center market is growing at over 15% per year, reaching revenues of US$845mn in 2012, the report said, citing figures from Frost & Sullivan.
Colombia has become a key market for the Latin American outsourcing operations of several multinationals, including HP (NYSE: HPQ), Citibank (NYSE: CB) and Siemens, as well as BPO firms such as Teleperformance and Capgemini.
The outsourcing sector contributes over 13% of the country's total services export revenues, the report added.
The sector is also expanding its presence outside of capital city Bogotá. The capital remains the largest outsourcing center in the country, but is hotly pursued by second city Medellín and a range of smaller destinations which are looking to capitalize on niche markets.
The possibility of establishing operations in multiple locations has been a further factor fuelling Colombia's outsourcing boom, Nearshore Americas said.
An increasing number of service providers in Colombia are looking to provide specialized outsourcing services in areas such as financial consulting, software development and payroll administration.
Economic stability and government policies are turning Colombia and neighboring Peru into regional business hubs, attracting global investments in the contact center and outsourcing services market, Frost & Sullivan previously said.