Exploring the Benefits, Trends, and Investment Opportunities in Colombia’s Nearshoring Industry
Nearshoring has become an increasingly popular practice in recent years, as companies seek to reduce costs, improve efficiency, and access a highly skilled workforce. Colombia has emerged as one of the leading nearshoring destinations in Latin America, thanks to its favorable economic climate, strategic location, and talented workforce.
Overview of Nearshoring Industry in Colombia
Colombia is the fourth-largest economy in Latin America, with a GDP of approximately $317 billion in 2020. The country has maintained a stable economic growth rate of around 3.3% per year over the last decade, making it an attractive destination for foreign companies looking to expand their operations.
One of the key advantages of nearshoring in Colombia is its strategic location, which provides easy access to both the North American and South American markets. The country also has an extensive network of free trade agreements with other countries, including the United States, Canada, and the European Union.
In addition to its favorable economic climate, Colombia has a highly educated workforce with a strong command of the English language. The country has an impressive pool of talent in areas such as software development, engineering, and finance, with several top-ranked universities offering programs in business, technology, and engineering.
Recent Trends in Nearshoring Industry in Colombia
The nearshoring industry in Colombia has experienced significant growth in recent years, with a 23% increase in foreign investment between 2018 and 2019, reaching a total of $1.5 billion. Software development and IT services accounted for the majority of foreign investment in the nearshoring industry.
One of the key drivers of growth in the nearshoring industry in Colombia is the country’s digital transformation. The government has implemented several initiatives to promote digital transformation in the country, including the Digital Transformation Plan, which aims to modernize the country’s infrastructure, improve internet access, and promote the development of the digital economy.
Another trend in the nearshoring industry in Colombia is the growing demand for agile software development methodologies, such as DevOps and Agile. Companies are looking for nearshoring partners that can provide these services to help them quickly adapt to changes in the market and remain competitive.
Government Initiatives to Support the Nearshoring Industry in Colombia
The Colombian government has implemented several initiatives to support the nearshoring industry in the country. The ProColombia Nearshoring program aims to attract foreign investment in the country’s nearshoring industry by offering incentives to companies that invest in the country, such as tax exemptions, subsidies for training and recruitment, and financial support for research and development projects.
The government has also implemented measures to improve the country’s digital infrastructure and promote the development of the digital economy. The Digital Transformation Plan includes several initiatives, such as the deployment of high-speed internet to underserved areas, the creation of digital innovation hubs, and the promotion of e-commerce.
Investment Opportunities in the Nearshoring Industry in Colombia
The nearshoring industry in Colombia presents numerous investment opportunities for foreign companies. Software development and IT services remain the top sectors for foreign investment, but there are also opportunities in business process outsourcing, engineering services, and creative services.
Colombia has a large pool of talent in areas such as finance, accounting, and customer service, making it an attractive destination for business process outsourcing companies. The country also has a growing engineering sector, with a highly skilled workforce in areas such as mechanical, and electrical, and while automation and technological advancements have brought about a lot of positive changes, they have also contributed to an increase in job displacement.
The rise of AI and automation has raised the question of whether robots will replace humans in the workforce entirely. The fear of losing jobs has caused anxiety among workers across industries. However, experts suggest that while robots may replace certain tasks, they cannot replace human creativity, problem-solving skills, and emotional intelligence.
In our company, we are constantly looking for Colombian talent. We help them match with an organization where they can have growth and professional development. Additionally, they can benefit from opportunities and much more. If you have yet to consider hiring Colombian professionals to expand your business, this can be your chance!
At TCA – The Colombian Advantage, we have one of the most valuable resources: the talent of our people. For more information on how to recruit Colombian talent to join your team, contact us!
