Software and IT Services

Colombia has a solid and growing software and IT services industry, experienced in developing specialized IT solutions in different verticals such as Fintech, health, agroindustry, oil and gas, energy, telecommunications, logistics, government, digital marketing, virtual and augmented reality, businesses, and big data, among others. With a government’s commitment to digital transformation as the driving force behind Colombia’s transformation by 2022, the country is currently one of the main technology-based service providers in the region.

Why invest in the software and IT services sector in Colombia?

The Colombian software and IT services sector is relevant in the internationalmarket

• In 2019, Colombia positioned itself as the fourth largest IT market in Latin America, after Brazil, Mexico, and Chile. The software and IT services market in the country exceeded USD 8.2 billion in 2019. (IDC - estimated figures). (IDC - estimated figures).
• Colombia has a strong and growing domestic demand, with the following sectors recording the highest IT expenditures: industrial manufacturers (US $1.638 billion), government (US $1.563 billion), financial sector (US $1.494 billion), and communications (US $1.394 billion). (IDC/Gartner).
• There is a solid network of accelerators, incubators, investment funds, and technology parks that add value and contribute to strengthening the country’s innovation ecosystem. .

Export performance in the Colombian software and IT services sector?

• IT services exports experienced an average growth of 3% between 2015 and 2019, reaching USD 229.1 million and positioning the country as a platform to reach different markets, including the United States (33%), Ecuador (14.1%), and Mexico (8.3%).

Colombia has a high-quality telecommunications network and infrastructure

• Colombia has 11 submarine communications cables in operation, ranking second in the region for the highest number of cables. This allows Colombia to offer excellent international connectivity with fast data transmission and stability.
• According to the Ministry of Information Technology, Colombia registered 2.8 million broadband connections in 2010. In 2018, this number increased to 32.7 million connections.

Colombia offers highly qualified human capital at a reasonable cost

• According to the IMD World Talent 2019 Ranking, Colombia’s workforce is the largest in the region, with the highest growth and training rates, surpassing countries such as Peru, Mexico, and Brazil.
• According to the QS World University rankings, 4 Colombian universities ranked among the top 500 in the world and 12 among the top 100 in Latin America.
• Between 2001 and 2018, 690,491 students graduated from Software & IT related programs, mainly in Bogotá, Medellín, Cali, and Bucaramanga. (Ministry of Education).
• The industry is known for having TSP/PSP (Team Software Process/Personal Software Process) certified technicians and professionals, a world-renowned model from the SEI Software Engineering Institute in the United States. (Ministry of Information and Communications Technologies - MinTIC).
• Scholarships are also available for students pursuing Information Technology related careers to help increase and reinforce the availability of talent in this sector.

These are some success stories of software and IT services companies in Colombia

• Global companies such as Amazon Web Services, Microsoft, and Accenture have recognized the potential of the software and IT services industry in Colombia and have invested in the country in recent years.

Investment opportunities in the software and IT services sector in Colombia

• Development of software for different verticals such as agrotech, fintech, blockchain, health, logistics, energy, and e-commerce and leverage what the regions have to offer while increasing their competitiveness at a national and international level.
• Development of mobile applications, software, and digital content, by leveraging the support provided by the government through the Vive Digital and Apps.co programs intended to promote and expand the creation of businesses based on the use of ICTs.
• Creation of software factories, taking advantage of the critical mass of qualified systems engineers and other professionals in related careers who have graduated -or are still learning- with high educational standards.
• Software application maintenance for companies in different industries, as well as implementation of operations that provide comprehensive remote infrastructure management services.