Outsource to Colombia: What you should know
Why should you outsource to Colombia?
Outsourcing to Colombia gives US and Canadian firms a nearshore team with bilingual talent, low costs, and a time zone that matches the East Coast.
- The country sits close to North America, so collaboration stays easy.
- It offers a large, skilled, and bilingual labor force.
- Its rules and time zones align well with US business.
South America has grown into a top nearshoring region. For years, buyers have watched its tech scene expand. Meanwhile, skill shortages have pushed firms to look abroad. This guide covers what you should know before you outsource to Colombia.
Colombia as a viable nearshoring destination
Colombia keeps building its outsourcing sector. As a result, it draws more foreign investment each year.
The country has served this market for over 20 years. In fact, it gained from the first outsourcing wave. However, that early lead faded due to instability and the rise of popular destinations in Asia.[1]
Since 2019, the government has promoted nearshoring hard. Because of this, the country has drawn over US$1 billion in investment. In addition, groups like ProColombia keep courting new clients.
From its 13th rank, Colombia rose to 11th in Kearney’s 2023 Global Services Location Index. So it now sits ahead of Brazil, Mexico, and Chile, and just above the Philippines.
Clearly, the country has what it takes to compete. It is also South America’s fourth-largest call center market.
Most centers sit in six large cities. These are Bogota, Medellin, Cali, Barranquilla, Bucaramanga, and Cartagena. Meanwhile, better infrastructure points to a shift toward knowledge-based work.
Notable facts about Colombia
Here are a few key facts about the country:
- Economy. Colombia has the fourth-largest economy in Latin America, after Brazil, Mexico, and Argentina.
- Coffee. Its mountains grow Arabica crops. As a result, many families rely on the coffee trade.
- Flower Fair. Medellin hosts the Feria de las Flores each August. In short, it celebrates local culture, music, and flowers.
- Cartagena de Indias. Also called La Heroica, it is a prized historic site. It earned the name for resisting a 105-day siege in 1815.
- Bogota. Known as the “Athens of South America,” it anchors culture and finance. It also stands out for its stability.
Reasons why companies outsource to Colombia
Colombia runs one of the largest BPO markets in the region. In addition, it posts strong yearly growth of around 9%.
It also leads the 2021 Offshore BPO Confidence Index with a 90.9% rating. Below are the main reasons firms choose the country.
Vast labor force
Colombia has the third-largest labor force in South America. Its population includes about 25 million workers, with a 63.2% participation rate. Around 600,000 of them work in call centers and BPOs.
So global firms gain a deep talent pool close to the US. As a result, finding the right staff stays simple. In fact, thousands join the workforce each year.
Multilingual service
Colombia serves clients in both English and Spanish. As a result, you can add local support for the Spanish market with ease.
However, those are not the only languages on offer. For example, the country certifies thousands of French speakers each year. Outsourced Global is just one of the top providers there, offering bilingual support to North American businesses.
Business environment
The government works hard to keep the economy stable. In addition, it has drawn foreign investment with clear reforms.
These efforts are paying off. In fact, the World Bank ranks Colombia among the best places in the region to do business.
Improved IT infrastructure
IT infrastructure in Colombia keeps improving. As a result, research points to steady investments in infrastructure.
Some call the country Latin America’s Silicon Valley. In fact, it hosts thousands of tech companies. Meanwhile, more schools now teach tech skills. So clients can use this modern base to their advantage.
Affinity to the US
Colombia sits close to the US in culture and distance. It also shares almost the same time zone as the East Coast.
As a result, teams work in sync without odd hours. In addition, local laws mirror US rules on many points. So clients worry less about IP and compliance.
Services ideally outsourced to Colombia
Colombia once focused on blue-collar outsourcing. These days, though, firms delegate a wide range of services.
Customer service
First, Colombia is a strong source of call center services. It offers bilingual support, low call costs, and round-the-clock cover. As a result, it can rival hubs like India and the Philippines.
Information technology
Next, the country delivers quality nearshore IT services. So clients gain low-cost network and infrastructure support. In short, that beats building an IT team in-house.
Software development
Colombia is also a go-to for software development. US firms value its quality work and shared time zones. Meanwhile, the government keeps funding digital transformation. As a result, local developers stay well trained.
Human resources
Finally, HR makes up a share of outsourced work. For example, firms that set up locally can delegate payroll and workforce management.
What to watch before you outsource to Colombia
Colombia’s outsourcing industry still holds big potential. However, keep these drawbacks in mind before you hire.
- Cultural and language gaps. Much local support is still in Spanish. So you may hit language barriers with your first provider.
- Data protection. Colombian data protection rules differ from GDPR. As a result, review the local limits with care.
- Quality checks. At first, you may face doubts about work quality. So your team may need steady follow-up and clear communication.
Frequently asked questions
Why do companies outsource to Colombia?
Firms outsource to Colombia for its nearshore location and bilingual talent. In addition, costs stay low and the time zone matches the US.
What services can you outsource to Colombia?
Common services include customer support, IT, software development, and HR. As a result, the country suits both voice and tech work.
Is Colombia a good nearshoring destination?
Yes. It ranked 11th in Kearney’s 2023 index. In fact, it now sits ahead of Brazil, Mexico, and Chile.
Do Colombian teams speak English?
Many do. The country offers both English and Spanish support. However, English cover is still growing, so confirm skills with your provider.
What are the risks of outsourcing to Colombia?
The main risks are language gaps and different data rules. So plan for steady follow-up and check local compliance first.
Key takeaways
- Outsourcing to Colombia offers nearshore talent close to North America.
- The country brings a large, bilingual, and growing labor force.
- Its time zone and laws align well with US business.
- Top services include customer support, IT, software, and HR.
- Still, plan for language gaps and different data protection rules.
Article references:
[1] Popular Destinations in Asia: Bardhan, Ashok and Kroll, Cynthia A., The New Wave of Outsourcing (October 2003). Fisher Center for Real Estate & Urban Economics Research Report Series No. 1103, Available at SSRN: https://ssrn.com/abstract=985741 or http://dx.doi.org/10.2139/ssrn.985741
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