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FOR A WORLD FULL OF DEMANDING CHALLENGES,
WE OFFER A COUNTRY FULL OF IT SOLUTIONS.
Libertad y Orden
colombiabringiton.co
COLOMBIA
Bring ITon
For a world full of challenges, Colombia is a
country full of IT solutions, which range from
content generation to software development, to
be unified under a single concept:
ColombiaBringITon
Get to know the Colombian offer in the IT sector.
Why
Colombia?Colombiaisclosetomajorglobaleconomic
hubs, and has one of the most thriving and
competitive economies among developing
countries. Also, Colombia has one of the
best connectivity infrastructures in the
hemisphere, and has implemented award-
winning programs, like Vive Digital. The
human talent in the country is growing
in terms of both quality and quantity, and
the IT sector enjoys legal certainty and
incentives. Therefore, Colombia is steadily
becoming a world-class IT vendor.
As a result, Colombia is the perfect
destination for international investors and
buyers in search of technological products
and services.
Learn why Colombia is an up-and-coming
IT global player!
2.5
7.0
6.5
3.9
5.5
5.3
4.7
4.9 4.5
6.7 6.9
5.7 3.5
7.7
2.0
4.0
6.6
3.7
2.4
4.0 4.3
1.9
3.6
4.4 4.6
3.4 3.6
4.5 4.3
3.5 3.3
4.5
1.7
15.6
14.1
13.7
11.8 12.0
11.2 11.3
12.0 11.8
10.8
10.4
8.5 8.8
8.1
7.4 7.1 6.8
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014P
2015P
2016P
2017P
2018P
GDP
Unemployment Rate
Inflation
Competitive
factors
Key factors like a sound
economy, a privileged
geographical location, and high
connectivity make Colombia one
of the most attractive countries
in the world to invest in and to
buy IT products and solutions.
Sound,
growingeconomy
Progress and planning regarding the GDP, inflation, and unemployment.
P: Projected
3.6%
Inflation rate below target
inflation for Colombia.
4.2%
GDP growth in 2014, 3rd
quarter, a higher figure than
Latin America’s average
forecasted (1.3%).
7.7%
Unemployment rate in
November 2014 was the
lowest in 15 years.
A favorable and balanced
outlook
Majorinternationalagencieslike
Standard&Poor’sandFitchRatingsare
assessingColombiafavorablyafterits
macroeconomicimprovements.
19 Positions
Colombia has climbed 19 positions
in the World Bank’s Doing Business
ranking between 2010 and 2015 in
terms of the ease of doing business,
and it is the third in Latin America.
Top 6 in growth
The Economist magazine
highlights Colombia as one
of the six countries with the
largest share in global economic
growth, above globalized leaders
like Brazil, Russia, Mexico, United
States, and Japan.
Privileged
geographical
location
High
connectivity
9 submarine
cables
Colombia is one of
the countries with the
best submarine cable
connectivity in the
Americas, providing
excellent international
connection, faster
data transmission, and
connection stability.
8.8 million
broadband
connections
(through Vive
Digital)
Exceeding all expectations,
this figure was achieved in
2013, representing 4 times
the total in 2010; and its
expected to triple by 2018,
reaching 27 million. This
shows that Colombia has
one of the largest number
of Internet connections and
users in Latin America.
GMT-5 Time zone
Colombia is in the midst of five
time zones, located in the same
one as important business centers
like New York, Toronto, and Miami.
935 Frequencies
Weekly international direct air
frequencies available, which
make business travel easier to
and from the rest of the world.
All municipalities
have Internet access
Atotalof1,078municipalitieshaveInternetaccess
thankstotheNationalFiberOpticsNetwork,amilestone
achievednowhereelseinthecontinent.Fiberoptics
cannotbedeployedintotheremaining45municipalities
duetogeographicalreasons,butconnectionvia
microwavesor4GLTEtechnologyisavailable.
Government
Plan
Colombia is becoming
a global IT leader. This
was not achieved by
chance, but thanks
to the Government
programs and
initiatives that
focused on increasing
connectivity, improving
professional training,
fostering bilingualism,
and developing the
outsourcing industry,
among other factors.
Vive Digital Plan
What is it?
The Ministry of ICT (Information and Communication Technologies) created this
program in 2010 to support technological and IT development in the country by
bringing the Internet to the public and by driving digital platforms and their four
basic components: Infrastructure, IT services, software, and users.
The Best ICT Policy
in the World
In 2012, the Vive Digital Plan
earned Colombia an award during
the Mobile World Congress in
Barcelona, and it has become a role
model abroad.
50%+homes
connected
Over half of Colombian homes, now
have Internet access.
99.8% businesses
have gone digital
The proportion of enterprises
with Internet access increased
with growing demand for software
and IT services and solutions to
compete in the domestic and
global arenas.
899 Vive Digital
Locations
ThesepublicInternetcenters,located
incitiesandmunicipalcapitals,provide
accesstopeoplewithlowincome.
51.7% of Colombians
are now connected
This figure places Colombia as
one of the countries with the most
widespread Internet access in Latin
America above Brazil, Mexico,
Ecuador, Costa Rica and Peru.
ViveLab
The ViveLab National Network
is comprised by 17 laboratories
deployed across the country. These
labs have cutting-edge technology
to create, develop, and produce
digital content. More than 15,000
people will be trained in the period
2014-2018.
Implement 6
Digital Rights
Digital ID, email account, basic cloud
space, medical history information,
ICT ownership.
5 new national
strategies for ICT
appropriation
A.	 ‘En TIC Confío’: secure and
responsible ICT use.
B.	 $2.5 million ‘Digital Users’ .
C.	 ‘Redvolución’ through innovative
learning.
D.	 120,000 teleworkers nationwide.
E.	 ‘Cinema for everyone’ offers people
with disabilities, new means for
entertainment by using technology.
75.000
New students on IT careers.
7,621 Vive Digital
Kiosks
By the end of 2014, Colombia will
have this number of public access
points to bring Internet and ICT
tools to remote locations and
jurisdictions with a population
over 100 persons.
More than 4,700+
During its first five open calls,
Digital Talent has provided more
than 4,700 forgivable loans to help
Colombian students who wish to
pursue an ICT-related career.
USD$15.9billion
Total budget available for Digital
Talent until the end of 2014.
Digital Talent
Apps.co
Finishing Schools
What is it?
This is an initiative to provide Colombians with
training through technical and technological,
graduate and post-graduate programs in order to
meet the increasing domestic and global demand
for IT services and solutions.
What is it?
An initiative within Vive Digital to promote and
support ICT-based businesses, focusing on software
development (particularly mobile apps), and digital
contents.
What is it?
A program created by a public-private partnership
in order to support the outsourcing industry (i.e.,
KPO, BPO, ITO) with scholarships granted to industry
workers worth up to USD $2.500, particularly in fields
like software and IT services.
USD $12 million
This is the total budget for Finishing Schools, provided
by the Inter-American Development Bank (IDB).
2,000
Total number of mobile apps developed thanks to this
initiative by the end of 2014.
60,000 +
This is the total number of entrepreneurs who have
created or renewed projects or companies with a focus
on software and ICT.
Regulations
and incentives
Free Trade
Agreementes (FTA)
3 Trade
Agreements in
negotiation
Colombia is currently
negotiating 2 FTAs
and a Trade in Services
Agreement (TiSA).
1,600
This is the total
number of companies
that exported their
products or services to
the United States for
the first time during
the first 2 years of the
FTA. These include
software and IT
services firms.
5 agreements
signed
With South Korea,
Costa Rica, Israel,
Panama, and the Pacific
Alliance pending
Congress approval to
become effective.
13 agreements
in force
The 13 trade
agreements entered
into with over 50
countries include the
FTAs with the United
States, the European
Union, the Southern
Cone Common
Market (Mercado
Comun del Sur,
Mercosur), Mexico,
Chile, and the Andean
Nations Community
(Comunidad Andina de
Naciones, CAN).
Double
Taxation Agreements (DTA)
International
Investment Agreements (IIA’s)
What are they?
The purpose of DTAs is to eliminate or reduce double taxation, promote
cooperation between states to prevent tax evasion and to promote trade
between countries. The DTAs are limited to the tax on income and on
capital; indirect taxes such as sales tax (“VAT”) are not covered by these
instruments, nor territorial taxes such as industry and commerce (“ICA”)
are included.
What are they?
These are agreements created under a transparent regulatory framework
with a clear set of rules to reduce non-commercial risks for investors. These
are international Investment Agreements that provide security to foreign
investments in the country with which the agreement has been signed.
10 countries
Colombia has entered into
DTAs with Mexico, Chile,
Canada, Spain, Switzerland,
India, Peru, Ecuador,
Bolivia, and South Korea.
11 IIA’s
This is the total number of
current IIA’s with countries
like Chile, China, Spain,
India, Peru, United States,
Mexico, and Canada.
Exemption on
the export of
services
Habeas
Data Law
Labor Incentive:
Tax Discounts
Support for
scientific
and technological
development
What is it?
A decree signed in 2013 that grants
value added tax (VAT) exemption for all
exported services for exclusive foreign
use or consumption.
What is it?
In terms of Personal Data Protection,
Colombia is up-to-date with international
standards on the protection of personal data.
In order to promote the hiring of people
under 28 years of age and women older
than 40 years of age, as well as displaced,
reintegrated and disabled people,
employers enjoy discounts in income tax
and in complementary parafiscal and payroll
contribution taxes for up to 3 years.
Income tax deduction equivalent to 175% of the
amount invested in technological research and
development projects which does not exceed 40%
of the net income.
Full income tax exemption for 5 years for new
software developed with a high amount of scientific
and/or technological research.
“The country has the potential to become a global
leader in the digital era”.
These thoughts by the Minister Diego Molano Vega
(Ministry of ICT) are starting to become a reality, and
the digital revolution is evident in two ma jor sectors:
Software & IT services and digital contents.
Learn why Colombia is now a global player!
Colombians’ aptitude, know-how, and creativity are
acknowledged around the world, and they find a land
of opportunities in the software & IT services sector.
In fact, Colombia makes software for domestic and
international markets, and the country provides IT
services for companies around the world.
Software
& IT
USD $932.9 million
Total sales in the Colombian
software industry by 2014.
The most sought-after
services
Among large companies in
the country are business risk
management and supply chain
management solutions.
The most
powerful cloud
The demand for cloud computing
apps and services in Colombia
will notably increase among large
companies and MSMEs.
The main industries
demanding software
and IT products
Telecommunications, financial,
government, mass consumption,
and manufacturing.
Data management in
the rural sector
Small and large agricultural, hunting,
fishing, and forestry producers
are demanding data management
software to reduce costs, conduct
vermin control, and improve their
production chain.
Oil and gas sector,
eager to implement IT
services
Colombian State oil company
Ecopetrol and related transnationals
are demanding more and
more IT services, like mobile
telecommunications to optimize
their drilling, extraction, and logistics
procedures.
Internet and mobile
apps: Pivotal services
for the banking system
The financial sector is seeking to
expand the banking services in the
country, and apps and mobile services
are the perfect tool to meet this goal
thanks to the widespread use of
mobile Internet and smart phones.
Infrastructure,
bolstered
through mobility
The Colombian Government is
determined to develop the air, road,
port, and railway infrastructure with a
budget over USD $9 billion. Software
and mobile communication services
are fundamental to improve efficiency,
reduce time, and control expenses.
Telemedicine becomes
a reality
Thanks to the country’s high Internet
connectivity and the widespread use
of smart phones and mobile devices,
telemedicine is now available for
Colombians. As a result, both large
and small health institutions are
looking for technological products
and services to help them care for
their patients remotely.
The power sector
also demands mobile
services
As with other sectors, the
power industry demands mobile
communications services for
process optimization and network
management.
Domestic
demand
Total sales for
the IT services
industry in Colombia:
$2.24 billion USD
Source: General characterization of BPO, KPO, ITO (IDC, 2013).
Overview:Software&IT
in Colombia
Colombia is
the third country
with most IT services sales in Latin
America after Brazil and Mexico.
Specialized
humantalent
Leading the region
Colombia has the most qualified manpower and
the highest development in Latin America, ahead
of countries like Argentina, Chile, and Brazil
(IMD).
342,225*
This is the total number of graduates from
Systems Engineering and other IT-related careers
in Colombia between 2001 and 2013 (12.9% of
the total of new professionals).
*Includes Systems Engineering, Telematics, Electronics,
Telecommunications and Industrial.
+4,700 Digital talent
beneficiaries
This is the total number of recipients
of forgivable loans to enroll in
technical, technological, graduate,
and post-graduate programs with
high demand in the IT sector.
TotalIT
academic
programs
(2001-2013)
29.9%
45.9%
5%
19.2%
Systems Engineering
and Related Fields
Electric Engineering
and Related Fields
Electronic Engineering
Telecommunications
and Related Fields
Industrial Engineering
and Related Fields
* Source: Ministry of National Education of Colombia
78 CMMI-appraised companies
These companies are rated at different software
maturity levels according to the CMMI program
and, with the support of the Ministry of
Information and Communication Technologies,
45 companies are between Level 2 and 4, and
10 companies are in CMMI Level 5, and another
66 companies are under preparation for future
appraisal under the CMMI model.
15 companies holding other
certifications
Colombian IT companies are also certified according to
quality standards like MoProSoft and MPSBR.
144 TSP/PSP-certified companies
Colombia has 144 companies with Team Software
Process/Personal Software Process certifications, and
more than 100 will soon obtain theirs.
465 individuals certified in TSP/PSP
Besides companies, 465 developers have personal
certifications, with 149 of them being certified by the
Software Engineering Institute (SEI), the international
authority in this field.
50 IT Mark-certified companies
This is the total number of companies certified
under this international IT model for MSMEs, and
other 63 companies are currently undergoing the
certification process.
Certifications
Colombia’s potential is spread
out across its regions, bringing an
additional competitive advantage
over other countries that
concentrate around one or two
cities.
Six major regions present significant
achievements for the software &
IT sector, each of them featuring
different strengths, advantages, and
approaches.
(Source: “Strategic overview of the software sector
and related services” survey, MinICT, 2013).
The Caribbean:
Logistics and transportation
Antioquia:
Energy
Santander:
Mining and hydrocarbons
Cundinamarca:
Banking and financial services
The Pacific:
Agribusiness
Coffee Cultural
Landscape:
Agribusiness and Biotechnology
Local
opportunities
Development centers
The region has field-specific development centers,
like the Colombian Oil Institute (Instituto Colombiano
del Petroleo), with the capacity to drive technological
solutions in the sector and reach not only other regions
of Colombia, but the rest of the world
First research group
Currently, there is a research group developing
specialized software for oil companies such as Ecopetrol
and Halliburton.
Banking and financial services
This industry is a regional priority for the software &
IT sector, as Bogotá hosts main offices of national and
international banks.
Demanding industry
Historically, banks have spearheaded the integration
of new technologies and they are the industry with the
most stringent quality standards regarding software
and services. Nowadays, organizations demand or
prefer CMMI-certified providers and PMP-certified
project managers.
Mining and hydrocarbons
Historically, this is the main industry in the region, and
the software & IT sector is heavily investing in it.
Antioquia
Energy
As the main energy companies gather in this region
(e.g., Empresas Publicas de Medellin, Isagen, or ISA),
local software & IT sector companies focus on the
energy industry.
Department Plan
The Science and Technology Plan of Medellin includes
a specific item common for both the IT and energy
industries.
2 clusters
The region has one ICT and one energy cluster that
complement each other to develop software and
technology solutions and to improve performance,
competitiveness, and profitability in the sector.
Santander Cundinamarca
TheCaribbean
Logistics and transportation
The Colombian Caribbean software & IT sector focuses
on logistics and transportation.
Key infrastructure
The current main infrastructure developments in
Colombia include the Sun Route (Ruta del Sol), the
restoration of the navigable canal in the Magdalena
River, and the railway corridor.
Cartagena and Barranquilla,
world-class ports
Thanks to a focus on logistics and transportation, both
capital cities are expected to become major ports in
Latin America and be among the best ports in the world
by 2032.
Agribusiness
In order to leverage the region’s biodiversity and
develop environmentally-friendly exploitation plans,
the software & IT sector in the Coffee Cultural
Landscape is placing its bets on agribusiness.
2 clusters in sync
PacifiTIC, a cluster promoting ICT, and another that
promotes the agribusiness sector operate in the
region. This promotes an environment that facilitates
the creation of joint projects.
developed in Colombia include United States,
Mexico, Ecuador, Chile, Peru, and Spain.
Agribusiness
Considering the region’s geographical and economic
features, the software & IT sector lends its hand to
agribusiness.
4 research groups
Focused on engineering, software, biotechnology/
bioinformatics, and ICT. (Source: Colciencias)
Biotechnology and bioinformatics
The main opportunities for the sector are
biotechnology and bioinformatics applied in
agriculture and agroindustrial activities.
2 challenges
The main challenges for the IT sector in the region
are to develop agricultural information systems and
improve local competitiveness.
CoffeeCultural
LandscapeThePacific
Main destinations
for software
Digital
The digital contents sector includes all creative
activity that leverages digital data and meets
the needs of the various economic sectors.
Content
• Video games
• Animation
• Mobile apps
• Audiovisual
• 2D and 3D animation
• Mobile apps
• Websites
• Motion graphics
• 	 Advertising support and digital marketing	
strategies, including Branding Content
•	 Shortandfull-lengthfilmformats:Filmsand
television (series, soaps), advertisement,
documentaries.
• Advergames
• Augmented reality
Considering Colombia´s strenght in
human talent and the high level of foreign
demand, PROCOLOMBIA´s strategies for
internationalization and attraction of FDI
revolve around mobile apps, digital animation,
audiovisual products, and video games.
Colombia’sdigitalcontents
sub-sectorsinclude:
Themaindigitalcontent
productsmanufactured
inColombiainclude:
ThisSectorfocuses
onentertainment,
advertisement,andutility
marketing/toolsand
education.
An
exporting
sector
Over 57% of digital content
companies export their products
and services.
Exports were more than 30% of
these firms’ incomes.
Main export destinations are
United States, Mexico, Canada,
Latin America, and Spain.
Latin
America
Mexico
57%
Media or formats where
productions are displayed
Total of companies per sector served (domains).
Entertaiment
48
25
23
18
10
10
10
8
8
7
5
4
4
3
2
2
2
Goverment
Education
Commerce
Other
Telecommunications
Finance
Health
Percentage of companies
per sub-sector
Clients
The main attended industries by the digital contents
sector are entertainment, government, and education.
More than 40% of the companies belong to this area.
Entertaiment
Advertising/ Marketing
33%
10%
4%
Education
Others
Tools/utility
6%
Films
7%
Consoles
9%
Other
36%
Web
28%
Mobile APPS
14%
Television
Main competitive
factors in
companies
Overview: Digital
contents in Colombia
Talent
Knowledge
Government support
Quality
Infrastructure
Privileged location
Cauca
Quindio
Atlantico
Valle
Caldas
Santander
Department
Cundinamarca
Antioquia
Bogota D. C.
Risaralda
7
8
93
4
5
6
10
2
1
3
8
7
6
5
9
10
2
4
1
According to a survey by
PROCOLOMBIA and the
Ministry of ICT, approximately
9 of every 10 companies in the
survey were founded between
2006 and 2013. The oldest
company was created in 1994.
88% are new companies
Sub-sectors
and opportunities
Colombia’s digital contents
sector has 4 main sub-
sectors: Mobile apps, video
games, digital animation, and
audiovisual services.
Percentage of companies
per sub-sector
Colombian
Companies
4
5
23 24
5
10
15
20
25
1994-2000 2001-2005 2006-2010 2011-2013
Source: survey by
ProColombia and Ministry of ICT.
13%
Digital
Marketing
6%
E-books
6%
Other
23%
Video
Games
20%Mobile
Apps
17%
Audiovisual
Products
15%
Digital
Animation
These are pieces of software for smart
phones, tablets, or other mobile devices.
There are numerous mobile app
categories, such as entertainment,
education, health, news, and professional
and business apps, among others.
Electronic games are highly demanded
among adults, teenagers, and children, and
are available across different platforms,
like PCs, consoles, mobile devices, and even
social media like Facebook.
Main destinations for mobile apps and
video games developed in Colombia
Mobile apps
Video games
Digital animation is a technique that creates
moving images through computer technology.
Graphics are 2D or 3D.
Animation end products appear in movies, short
films, advertising, video games, augmented reality,
commercials, among others, and are created
for different platforms like TV, movie theaters,
websites, video game consoles, PCs, and mobile
devices, among others.
Main destinations for animation
developed in Colombia
Digital
animation
The concept of “audiovisual” mixes image
and sound to produce a new language or
experience. Just like digital animation,
audiovisual products are used across
different platforms like movies, television,
Internet, video games, and mobile devices.
Audiovisual
products
Main destinations for audiovisual
productions made in Colombia
France
Film
Industry Act
Eligibility
•	 Minimum spending of 1,800 current minimum
monthly wages (approximately USD $600,000 ).
•	 The project must be registered by the producer,
and the producer must be a legal entity.
Colombia offers a cash rebate for films partially or totally
produced in Colombia (long feature films, TV, movies with a
broadcast of up 2 episodies, documentaries an animation).
40% for “film services” (services related to audio-visual pre-
production, production or post-production including artistic
and technical services) and 20% for “fiilm logistics services”
(thosethatareprovidedforhotel,catering,andtransportation)
of the amount spent in the country.
The cash rebate applies to services provided by Colombian
companiesthataredomiciledorresidinginthecontry.Itwillbe
paid resourses of the Colombian Film Fund (FFC for its Spanish
acronym), a financing instrument or account created in 2012
with funds from the General Nation Budget.
For more information visit:
www.locationcolombia.com
•	 Filmed in part or in full within the national
territory.
•	 Foreign projects must hire cinematographic
servicesthroughColombiancompaniespreviously
registered with the Ministry of Culture.
Cash rebate 40% - 20%
Countries likely
to produce
audiovisual work
in Colombia
France
Office in charge of designing,
adopting, and promoting ICT
policies, plans, programs, and
projects like Vive Digital and
Digital Talent.
The breakthroughs of Colombia
regarding competitiveness,
productivity, entrepreneurship,
IT development, and scientific
and technological research were
achieved thanks to the efforts by
the National Government, regional
offices, and private organizations.
The major organizations in charge
of Colombia’s development include:
Supporting
Offices
Ministry of
Information
Technology and
Communications
Office in charge of
supporting entrepreneurship,
tourism projects, and
the production of goods,
services and technology
across the country in order
to improve competitiveness
and sustainability, as well
as promoting value-added
products and services.
Ministry of
Trade, Industry
and Tourism PROCOLOMBIA is the government
office in charge of attracting foreign
investment, supporting non-
traditional exports, and promoting
the country as an international
tourism destination. It provides
its clients with comprehensive
support and expert advice through
its domestic and international
branch offices, granting access to
services and means to facilitate
the design and implementation of
their internationalization strategy,
looking to create, develop, and
consolidate business opportunities.
PROCOLOMBIA
A National Government
program focused on
improving Colombia’s
industry and on developing
companies in 20 sectors
of key importance to
the domestic economy,
including Outsourcing &
BPO and software and IT
development.
Productive
Transformation
Program (PTP)
NationalBusinessAssociation
ofColombia(Asociacion
NacionaldeEmpresariosde
Colombia,ANDI)isanon-profit
organizationthatpromotesand
fostersthepolitical,economic,
andsocialprinciplesofafree
marketsystem.
Proimagenes
Colombia
This is a second-tier bank that
designs and provides financial and
non-financial instruments to drive
competitiveness, productivity,
growth and development of micro,
small, medium and large Colombian
enterprises that both export or
trade domestically.
A non-profit private
organization that groups
domestic and international
software firms and develops
strategies to drive the
software and IT sector and
promote Colombia as a
world-class producer
TheDigitalandAudiovisual
MediaContentsTradeUnion
supportsanimationandvideo
gamecompanies,andpromotes
information,production,and
commercializationofthese
contents.
The Colombian Equity
Funds Association
(Asociacion Colombiana
de Fondos de Capital,
COLCAPITAL) is a private
equity funds trade union
that aims to support,
develop, and promote
industry in Colombia.
Office established in 2012
to support and promote
extraordinary entrepreneurial
development, that is, business
initiatives that can develop
quickly, cost-effectively,
and continuously. To achieve
this goal, the office fosters a
high level of innovation and
entrepreneurship.
Investment Promotion Offices
(Agencias de Promocion de Inversion, APRI)
ACI Medellin • Invest in Bogota • Invest in Pereira • Invest in Manizales • Invest in Armenia • Invest in Santander
InvestPacific • Probaranquilla • Invest in Cucuta • Invest in Huila • Invest in Cartagena • Invest in Choco
The Video Game Developers
Association of Colombia
(Asociacion de Desarrolladores de
Videojuegos de Colombia, IGDA) is
a non-profit organization that aims
to develop and support the video
game industry of Colombia.
IGDA
Fedesoft Bancoldex
iNNpulsa SOMOS ANDI
The Mixed Fund for Film
Promotion (Proimagenes
Colombia) is a non- profit
organization that aims to
consolidate and support
Colombia’s film industry.
COLCAPITAL
Watch our videos and
learn more about the solutions
we can provide for your business.
Share your comments and opinions with us
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Colombia Bring IT on

  • 1. FOR A WORLD FULL OF DEMANDING CHALLENGES, WE OFFER A COUNTRY FULL OF IT SOLUTIONS. Libertad y Orden colombiabringiton.co COLOMBIA Bring ITon
  • 2. For a world full of challenges, Colombia is a country full of IT solutions, which range from content generation to software development, to be unified under a single concept: ColombiaBringITon Get to know the Colombian offer in the IT sector.
  • 3. Why Colombia?Colombiaisclosetomajorglobaleconomic hubs, and has one of the most thriving and competitive economies among developing countries. Also, Colombia has one of the best connectivity infrastructures in the hemisphere, and has implemented award- winning programs, like Vive Digital. The human talent in the country is growing in terms of both quality and quantity, and the IT sector enjoys legal certainty and incentives. Therefore, Colombia is steadily becoming a world-class IT vendor. As a result, Colombia is the perfect destination for international investors and buyers in search of technological products and services. Learn why Colombia is an up-and-coming IT global player!
  • 4. 2.5 7.0 6.5 3.9 5.5 5.3 4.7 4.9 4.5 6.7 6.9 5.7 3.5 7.7 2.0 4.0 6.6 3.7 2.4 4.0 4.3 1.9 3.6 4.4 4.6 3.4 3.6 4.5 4.3 3.5 3.3 4.5 1.7 15.6 14.1 13.7 11.8 12.0 11.2 11.3 12.0 11.8 10.8 10.4 8.5 8.8 8.1 7.4 7.1 6.8 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014P 2015P 2016P 2017P 2018P GDP Unemployment Rate Inflation Competitive factors Key factors like a sound economy, a privileged geographical location, and high connectivity make Colombia one of the most attractive countries in the world to invest in and to buy IT products and solutions. Sound, growingeconomy Progress and planning regarding the GDP, inflation, and unemployment. P: Projected 3.6% Inflation rate below target inflation for Colombia. 4.2% GDP growth in 2014, 3rd quarter, a higher figure than Latin America’s average forecasted (1.3%). 7.7% Unemployment rate in November 2014 was the lowest in 15 years. A favorable and balanced outlook Majorinternationalagencieslike Standard&Poor’sandFitchRatingsare assessingColombiafavorablyafterits macroeconomicimprovements. 19 Positions Colombia has climbed 19 positions in the World Bank’s Doing Business ranking between 2010 and 2015 in terms of the ease of doing business, and it is the third in Latin America. Top 6 in growth The Economist magazine highlights Colombia as one of the six countries with the largest share in global economic growth, above globalized leaders like Brazil, Russia, Mexico, United States, and Japan.
  • 5. Privileged geographical location High connectivity 9 submarine cables Colombia is one of the countries with the best submarine cable connectivity in the Americas, providing excellent international connection, faster data transmission, and connection stability. 8.8 million broadband connections (through Vive Digital) Exceeding all expectations, this figure was achieved in 2013, representing 4 times the total in 2010; and its expected to triple by 2018, reaching 27 million. This shows that Colombia has one of the largest number of Internet connections and users in Latin America. GMT-5 Time zone Colombia is in the midst of five time zones, located in the same one as important business centers like New York, Toronto, and Miami. 935 Frequencies Weekly international direct air frequencies available, which make business travel easier to and from the rest of the world. All municipalities have Internet access Atotalof1,078municipalitieshaveInternetaccess thankstotheNationalFiberOpticsNetwork,amilestone achievednowhereelseinthecontinent.Fiberoptics cannotbedeployedintotheremaining45municipalities duetogeographicalreasons,butconnectionvia microwavesor4GLTEtechnologyisavailable.
  • 6. Government Plan Colombia is becoming a global IT leader. This was not achieved by chance, but thanks to the Government programs and initiatives that focused on increasing connectivity, improving professional training, fostering bilingualism, and developing the outsourcing industry, among other factors. Vive Digital Plan What is it? The Ministry of ICT (Information and Communication Technologies) created this program in 2010 to support technological and IT development in the country by bringing the Internet to the public and by driving digital platforms and their four basic components: Infrastructure, IT services, software, and users. The Best ICT Policy in the World In 2012, the Vive Digital Plan earned Colombia an award during the Mobile World Congress in Barcelona, and it has become a role model abroad. 50%+homes connected Over half of Colombian homes, now have Internet access. 99.8% businesses have gone digital The proportion of enterprises with Internet access increased with growing demand for software and IT services and solutions to compete in the domestic and global arenas. 899 Vive Digital Locations ThesepublicInternetcenters,located incitiesandmunicipalcapitals,provide accesstopeoplewithlowincome. 51.7% of Colombians are now connected This figure places Colombia as one of the countries with the most widespread Internet access in Latin America above Brazil, Mexico, Ecuador, Costa Rica and Peru. ViveLab The ViveLab National Network is comprised by 17 laboratories deployed across the country. These labs have cutting-edge technology to create, develop, and produce digital content. More than 15,000 people will be trained in the period 2014-2018. Implement 6 Digital Rights Digital ID, email account, basic cloud space, medical history information, ICT ownership. 5 new national strategies for ICT appropriation A. ‘En TIC Confío’: secure and responsible ICT use. B. $2.5 million ‘Digital Users’ . C. ‘Redvolución’ through innovative learning. D. 120,000 teleworkers nationwide. E. ‘Cinema for everyone’ offers people with disabilities, new means for entertainment by using technology. 75.000 New students on IT careers. 7,621 Vive Digital Kiosks By the end of 2014, Colombia will have this number of public access points to bring Internet and ICT tools to remote locations and jurisdictions with a population over 100 persons.
  • 7. More than 4,700+ During its first five open calls, Digital Talent has provided more than 4,700 forgivable loans to help Colombian students who wish to pursue an ICT-related career. USD$15.9billion Total budget available for Digital Talent until the end of 2014. Digital Talent Apps.co Finishing Schools What is it? This is an initiative to provide Colombians with training through technical and technological, graduate and post-graduate programs in order to meet the increasing domestic and global demand for IT services and solutions. What is it? An initiative within Vive Digital to promote and support ICT-based businesses, focusing on software development (particularly mobile apps), and digital contents. What is it? A program created by a public-private partnership in order to support the outsourcing industry (i.e., KPO, BPO, ITO) with scholarships granted to industry workers worth up to USD $2.500, particularly in fields like software and IT services. USD $12 million This is the total budget for Finishing Schools, provided by the Inter-American Development Bank (IDB). 2,000 Total number of mobile apps developed thanks to this initiative by the end of 2014. 60,000 + This is the total number of entrepreneurs who have created or renewed projects or companies with a focus on software and ICT.
  • 8. Regulations and incentives Free Trade Agreementes (FTA) 3 Trade Agreements in negotiation Colombia is currently negotiating 2 FTAs and a Trade in Services Agreement (TiSA). 1,600 This is the total number of companies that exported their products or services to the United States for the first time during the first 2 years of the FTA. These include software and IT services firms. 5 agreements signed With South Korea, Costa Rica, Israel, Panama, and the Pacific Alliance pending Congress approval to become effective. 13 agreements in force The 13 trade agreements entered into with over 50 countries include the FTAs with the United States, the European Union, the Southern Cone Common Market (Mercado Comun del Sur, Mercosur), Mexico, Chile, and the Andean Nations Community (Comunidad Andina de Naciones, CAN).
  • 9. Double Taxation Agreements (DTA) International Investment Agreements (IIA’s) What are they? The purpose of DTAs is to eliminate or reduce double taxation, promote cooperation between states to prevent tax evasion and to promote trade between countries. The DTAs are limited to the tax on income and on capital; indirect taxes such as sales tax (“VAT”) are not covered by these instruments, nor territorial taxes such as industry and commerce (“ICA”) are included. What are they? These are agreements created under a transparent regulatory framework with a clear set of rules to reduce non-commercial risks for investors. These are international Investment Agreements that provide security to foreign investments in the country with which the agreement has been signed. 10 countries Colombia has entered into DTAs with Mexico, Chile, Canada, Spain, Switzerland, India, Peru, Ecuador, Bolivia, and South Korea. 11 IIA’s This is the total number of current IIA’s with countries like Chile, China, Spain, India, Peru, United States, Mexico, and Canada.
  • 10. Exemption on the export of services Habeas Data Law Labor Incentive: Tax Discounts Support for scientific and technological development What is it? A decree signed in 2013 that grants value added tax (VAT) exemption for all exported services for exclusive foreign use or consumption. What is it? In terms of Personal Data Protection, Colombia is up-to-date with international standards on the protection of personal data. In order to promote the hiring of people under 28 years of age and women older than 40 years of age, as well as displaced, reintegrated and disabled people, employers enjoy discounts in income tax and in complementary parafiscal and payroll contribution taxes for up to 3 years. Income tax deduction equivalent to 175% of the amount invested in technological research and development projects which does not exceed 40% of the net income. Full income tax exemption for 5 years for new software developed with a high amount of scientific and/or technological research.
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  • 12. “The country has the potential to become a global leader in the digital era”. These thoughts by the Minister Diego Molano Vega (Ministry of ICT) are starting to become a reality, and the digital revolution is evident in two ma jor sectors: Software & IT services and digital contents. Learn why Colombia is now a global player! Colombians’ aptitude, know-how, and creativity are acknowledged around the world, and they find a land of opportunities in the software & IT services sector. In fact, Colombia makes software for domestic and international markets, and the country provides IT services for companies around the world. Software & IT
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  • 14. USD $932.9 million Total sales in the Colombian software industry by 2014. The most sought-after services Among large companies in the country are business risk management and supply chain management solutions. The most powerful cloud The demand for cloud computing apps and services in Colombia will notably increase among large companies and MSMEs. The main industries demanding software and IT products Telecommunications, financial, government, mass consumption, and manufacturing. Data management in the rural sector Small and large agricultural, hunting, fishing, and forestry producers are demanding data management software to reduce costs, conduct vermin control, and improve their production chain. Oil and gas sector, eager to implement IT services Colombian State oil company Ecopetrol and related transnationals are demanding more and more IT services, like mobile telecommunications to optimize their drilling, extraction, and logistics procedures. Internet and mobile apps: Pivotal services for the banking system The financial sector is seeking to expand the banking services in the country, and apps and mobile services are the perfect tool to meet this goal thanks to the widespread use of mobile Internet and smart phones. Infrastructure, bolstered through mobility The Colombian Government is determined to develop the air, road, port, and railway infrastructure with a budget over USD $9 billion. Software and mobile communication services are fundamental to improve efficiency, reduce time, and control expenses. Telemedicine becomes a reality Thanks to the country’s high Internet connectivity and the widespread use of smart phones and mobile devices, telemedicine is now available for Colombians. As a result, both large and small health institutions are looking for technological products and services to help them care for their patients remotely. The power sector also demands mobile services As with other sectors, the power industry demands mobile communications services for process optimization and network management. Domestic demand Total sales for the IT services industry in Colombia: $2.24 billion USD Source: General characterization of BPO, KPO, ITO (IDC, 2013). Overview:Software&IT in Colombia Colombia is the third country with most IT services sales in Latin America after Brazil and Mexico.
  • 15. Specialized humantalent Leading the region Colombia has the most qualified manpower and the highest development in Latin America, ahead of countries like Argentina, Chile, and Brazil (IMD). 342,225* This is the total number of graduates from Systems Engineering and other IT-related careers in Colombia between 2001 and 2013 (12.9% of the total of new professionals). *Includes Systems Engineering, Telematics, Electronics, Telecommunications and Industrial. +4,700 Digital talent beneficiaries This is the total number of recipients of forgivable loans to enroll in technical, technological, graduate, and post-graduate programs with high demand in the IT sector. TotalIT academic programs (2001-2013) 29.9% 45.9% 5% 19.2% Systems Engineering and Related Fields Electric Engineering and Related Fields Electronic Engineering Telecommunications and Related Fields Industrial Engineering and Related Fields * Source: Ministry of National Education of Colombia
  • 16. 78 CMMI-appraised companies These companies are rated at different software maturity levels according to the CMMI program and, with the support of the Ministry of Information and Communication Technologies, 45 companies are between Level 2 and 4, and 10 companies are in CMMI Level 5, and another 66 companies are under preparation for future appraisal under the CMMI model. 15 companies holding other certifications Colombian IT companies are also certified according to quality standards like MoProSoft and MPSBR. 144 TSP/PSP-certified companies Colombia has 144 companies with Team Software Process/Personal Software Process certifications, and more than 100 will soon obtain theirs. 465 individuals certified in TSP/PSP Besides companies, 465 developers have personal certifications, with 149 of them being certified by the Software Engineering Institute (SEI), the international authority in this field. 50 IT Mark-certified companies This is the total number of companies certified under this international IT model for MSMEs, and other 63 companies are currently undergoing the certification process. Certifications
  • 17. Colombia’s potential is spread out across its regions, bringing an additional competitive advantage over other countries that concentrate around one or two cities. Six major regions present significant achievements for the software & IT sector, each of them featuring different strengths, advantages, and approaches. (Source: “Strategic overview of the software sector and related services” survey, MinICT, 2013). The Caribbean: Logistics and transportation Antioquia: Energy Santander: Mining and hydrocarbons Cundinamarca: Banking and financial services The Pacific: Agribusiness Coffee Cultural Landscape: Agribusiness and Biotechnology Local opportunities
  • 18. Development centers The region has field-specific development centers, like the Colombian Oil Institute (Instituto Colombiano del Petroleo), with the capacity to drive technological solutions in the sector and reach not only other regions of Colombia, but the rest of the world First research group Currently, there is a research group developing specialized software for oil companies such as Ecopetrol and Halliburton. Banking and financial services This industry is a regional priority for the software & IT sector, as Bogotá hosts main offices of national and international banks. Demanding industry Historically, banks have spearheaded the integration of new technologies and they are the industry with the most stringent quality standards regarding software and services. Nowadays, organizations demand or prefer CMMI-certified providers and PMP-certified project managers. Mining and hydrocarbons Historically, this is the main industry in the region, and the software & IT sector is heavily investing in it. Antioquia Energy As the main energy companies gather in this region (e.g., Empresas Publicas de Medellin, Isagen, or ISA), local software & IT sector companies focus on the energy industry. Department Plan The Science and Technology Plan of Medellin includes a specific item common for both the IT and energy industries. 2 clusters The region has one ICT and one energy cluster that complement each other to develop software and technology solutions and to improve performance, competitiveness, and profitability in the sector. Santander Cundinamarca TheCaribbean Logistics and transportation The Colombian Caribbean software & IT sector focuses on logistics and transportation. Key infrastructure The current main infrastructure developments in Colombia include the Sun Route (Ruta del Sol), the restoration of the navigable canal in the Magdalena River, and the railway corridor. Cartagena and Barranquilla, world-class ports Thanks to a focus on logistics and transportation, both capital cities are expected to become major ports in Latin America and be among the best ports in the world by 2032.
  • 19. Agribusiness In order to leverage the region’s biodiversity and develop environmentally-friendly exploitation plans, the software & IT sector in the Coffee Cultural Landscape is placing its bets on agribusiness. 2 clusters in sync PacifiTIC, a cluster promoting ICT, and another that promotes the agribusiness sector operate in the region. This promotes an environment that facilitates the creation of joint projects. developed in Colombia include United States, Mexico, Ecuador, Chile, Peru, and Spain. Agribusiness Considering the region’s geographical and economic features, the software & IT sector lends its hand to agribusiness. 4 research groups Focused on engineering, software, biotechnology/ bioinformatics, and ICT. (Source: Colciencias) Biotechnology and bioinformatics The main opportunities for the sector are biotechnology and bioinformatics applied in agriculture and agroindustrial activities. 2 challenges The main challenges for the IT sector in the region are to develop agricultural information systems and improve local competitiveness. CoffeeCultural LandscapeThePacific Main destinations for software
  • 21. The digital contents sector includes all creative activity that leverages digital data and meets the needs of the various economic sectors. Content
  • 22. • Video games • Animation • Mobile apps • Audiovisual • 2D and 3D animation • Mobile apps • Websites • Motion graphics • Advertising support and digital marketing strategies, including Branding Content • Shortandfull-lengthfilmformats:Filmsand television (series, soaps), advertisement, documentaries. • Advergames • Augmented reality Considering Colombia´s strenght in human talent and the high level of foreign demand, PROCOLOMBIA´s strategies for internationalization and attraction of FDI revolve around mobile apps, digital animation, audiovisual products, and video games. Colombia’sdigitalcontents sub-sectorsinclude: Themaindigitalcontent productsmanufactured inColombiainclude: ThisSectorfocuses onentertainment, advertisement,andutility marketing/toolsand education.
  • 23. An exporting sector Over 57% of digital content companies export their products and services. Exports were more than 30% of these firms’ incomes. Main export destinations are United States, Mexico, Canada, Latin America, and Spain. Latin America Mexico 57%
  • 24. Media or formats where productions are displayed Total of companies per sector served (domains). Entertaiment 48 25 23 18 10 10 10 8 8 7 5 4 4 3 2 2 2 Goverment Education Commerce Other Telecommunications Finance Health Percentage of companies per sub-sector Clients The main attended industries by the digital contents sector are entertainment, government, and education. More than 40% of the companies belong to this area. Entertaiment Advertising/ Marketing 33% 10% 4% Education Others Tools/utility 6% Films 7% Consoles 9% Other 36% Web 28% Mobile APPS 14% Television
  • 25. Main competitive factors in companies Overview: Digital contents in Colombia Talent Knowledge Government support Quality Infrastructure Privileged location Cauca Quindio Atlantico Valle Caldas Santander Department Cundinamarca Antioquia Bogota D. C. Risaralda 7 8 93 4 5 6 10 2 1 3 8 7 6 5 9 10 2 4 1
  • 26. According to a survey by PROCOLOMBIA and the Ministry of ICT, approximately 9 of every 10 companies in the survey were founded between 2006 and 2013. The oldest company was created in 1994. 88% are new companies Sub-sectors and opportunities Colombia’s digital contents sector has 4 main sub- sectors: Mobile apps, video games, digital animation, and audiovisual services. Percentage of companies per sub-sector Colombian Companies 4 5 23 24 5 10 15 20 25 1994-2000 2001-2005 2006-2010 2011-2013 Source: survey by ProColombia and Ministry of ICT. 13% Digital Marketing 6% E-books 6% Other 23% Video Games 20%Mobile Apps 17% Audiovisual Products 15% Digital Animation
  • 27. These are pieces of software for smart phones, tablets, or other mobile devices. There are numerous mobile app categories, such as entertainment, education, health, news, and professional and business apps, among others. Electronic games are highly demanded among adults, teenagers, and children, and are available across different platforms, like PCs, consoles, mobile devices, and even social media like Facebook. Main destinations for mobile apps and video games developed in Colombia Mobile apps Video games
  • 28. Digital animation is a technique that creates moving images through computer technology. Graphics are 2D or 3D. Animation end products appear in movies, short films, advertising, video games, augmented reality, commercials, among others, and are created for different platforms like TV, movie theaters, websites, video game consoles, PCs, and mobile devices, among others. Main destinations for animation developed in Colombia Digital animation
  • 29. The concept of “audiovisual” mixes image and sound to produce a new language or experience. Just like digital animation, audiovisual products are used across different platforms like movies, television, Internet, video games, and mobile devices. Audiovisual products Main destinations for audiovisual productions made in Colombia France
  • 30. Film Industry Act Eligibility • Minimum spending of 1,800 current minimum monthly wages (approximately USD $600,000 ). • The project must be registered by the producer, and the producer must be a legal entity. Colombia offers a cash rebate for films partially or totally produced in Colombia (long feature films, TV, movies with a broadcast of up 2 episodies, documentaries an animation). 40% for “film services” (services related to audio-visual pre- production, production or post-production including artistic and technical services) and 20% for “fiilm logistics services” (thosethatareprovidedforhotel,catering,andtransportation) of the amount spent in the country. The cash rebate applies to services provided by Colombian companiesthataredomiciledorresidinginthecontry.Itwillbe paid resourses of the Colombian Film Fund (FFC for its Spanish acronym), a financing instrument or account created in 2012 with funds from the General Nation Budget. For more information visit: www.locationcolombia.com • Filmed in part or in full within the national territory. • Foreign projects must hire cinematographic servicesthroughColombiancompaniespreviously registered with the Ministry of Culture. Cash rebate 40% - 20%
  • 31. Countries likely to produce audiovisual work in Colombia France
  • 32. Office in charge of designing, adopting, and promoting ICT policies, plans, programs, and projects like Vive Digital and Digital Talent. The breakthroughs of Colombia regarding competitiveness, productivity, entrepreneurship, IT development, and scientific and technological research were achieved thanks to the efforts by the National Government, regional offices, and private organizations. The major organizations in charge of Colombia’s development include: Supporting Offices Ministry of Information Technology and Communications Office in charge of supporting entrepreneurship, tourism projects, and the production of goods, services and technology across the country in order to improve competitiveness and sustainability, as well as promoting value-added products and services. Ministry of Trade, Industry and Tourism PROCOLOMBIA is the government office in charge of attracting foreign investment, supporting non- traditional exports, and promoting the country as an international tourism destination. It provides its clients with comprehensive support and expert advice through its domestic and international branch offices, granting access to services and means to facilitate the design and implementation of their internationalization strategy, looking to create, develop, and consolidate business opportunities. PROCOLOMBIA
  • 33. A National Government program focused on improving Colombia’s industry and on developing companies in 20 sectors of key importance to the domestic economy, including Outsourcing & BPO and software and IT development. Productive Transformation Program (PTP) NationalBusinessAssociation ofColombia(Asociacion NacionaldeEmpresariosde Colombia,ANDI)isanon-profit organizationthatpromotesand fostersthepolitical,economic, andsocialprinciplesofafree marketsystem. Proimagenes Colombia This is a second-tier bank that designs and provides financial and non-financial instruments to drive competitiveness, productivity, growth and development of micro, small, medium and large Colombian enterprises that both export or trade domestically. A non-profit private organization that groups domestic and international software firms and develops strategies to drive the software and IT sector and promote Colombia as a world-class producer TheDigitalandAudiovisual MediaContentsTradeUnion supportsanimationandvideo gamecompanies,andpromotes information,production,and commercializationofthese contents. The Colombian Equity Funds Association (Asociacion Colombiana de Fondos de Capital, COLCAPITAL) is a private equity funds trade union that aims to support, develop, and promote industry in Colombia. Office established in 2012 to support and promote extraordinary entrepreneurial development, that is, business initiatives that can develop quickly, cost-effectively, and continuously. To achieve this goal, the office fosters a high level of innovation and entrepreneurship. Investment Promotion Offices (Agencias de Promocion de Inversion, APRI) ACI Medellin • Invest in Bogota • Invest in Pereira • Invest in Manizales • Invest in Armenia • Invest in Santander InvestPacific • Probaranquilla • Invest in Cucuta • Invest in Huila • Invest in Cartagena • Invest in Choco The Video Game Developers Association of Colombia (Asociacion de Desarrolladores de Videojuegos de Colombia, IGDA) is a non-profit organization that aims to develop and support the video game industry of Colombia. IGDA Fedesoft Bancoldex iNNpulsa SOMOS ANDI The Mixed Fund for Film Promotion (Proimagenes Colombia) is a non- profit organization that aims to consolidate and support Colombia’s film industry. COLCAPITAL
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