Shared Services Centers
Colombia has an industry of Shared Services Centers - SSC, with experience in providing specialized solutions in human resources, finance, supply, logistics, technology, general and administrative services, and digital transformation, among others, ensuring the highest levels of efficiency and the strategic support that companies require.
WHY INVEST IN THE SHARED SERVICES CENTER SECTOR IN COLOMBIA?
COLOMBIA HAS AN OUTSTANDING SHARED SERVICES CENTER INDUSTRY IN THE REGION
Colombia is the 4th largest market in Latin America, concentrating 11% of the SSC in the region. Bringing together important international players such as Amazon, SAP, 3M, and Bayer (ATKearney).
Colombia ranks 3rd in Latin America and has registered an excellent performance positioning itself in the top 15 in recent years in the global indicator of locations of services of A.T. Kearney. Aspects such as financial attractiveness and business environment stand out.
COLOMBIA HAS CONSOLIDATED OPERATIONS OF SHARED SERVICES CENTERS
SCCs in Colombia advance in terms of digitalization, value-added processes, and increased cost competitiveness The industries to which the most services are provided from Colombia are: financial (70%) supply chain, HR and IT (36%), and Help Desk Support (10%).
According to the EY Shared Service Center Industry report, Latin America (70%) and North America (17%) are the main regions served by the SSCs. Colombia is increasing its regional reach, providing service in several languages, mainly Spanish, English, and Portuguese.
The current composition of the portfolio of these centers in Colombia is mainly made up of the following verticals: human resources, finance, supply, logistics, technology, general and administrative services, and digital transformation.
COLOMBIA HAS HIGHLY QUALIFIED HUMAN TALENT FOR OPERATIONS OF SHARED SERVICES CENTERS
According to the IMD World Talent 2021 Report, Colombia has the largest workforce in the region, surpassing countries such as Peru, Mexico, and Brazil. Within the factors evaluated by the IMD, Colombia is characterized by offering a variety of training alternatives to employees and by granting and facilitating different learning schemes for their development.
Colombia offers the possibility of having scalable operations available in 6 metropolitan areas with more than one million inhabitants (Bogotá, Medellín, Cali, Barranquilla, Bucaramanga and Cartagena). (DANE)
Cultural ties: with respect to the Spanish language, Colombia has the third largest Spanish-speaking population in the world, which makes it an ideal market to centralize operations for the rest of Latin America, in addition, it has one of the most neutral accents for voice operations. (Economist Intelligence)
According to Fedesarrollo, it is estimated that 10% of the economically active population is bilingual, the majority of the bilingual population in the Colombian labor market are young people between 20 and 29 years old.
According to the Hays human talent survey 2021, remote work and flexible hours are the benefits most valued by professionals in Colombia, which is why shared service centers in the country have dropout rates of less than 5%.
COLOMBIA HAS COMPETITIVE COSTS FOR THE PROVISION OF SHARED SERVICES CENTER SERVICES
According to the Colliers office market report, at the end of 2021, Colombia has 4,196,969 m² of competitive inventory with locations in major urban centers such as Bogotá, Medellín, Barranquilla, and Cali with an average rental price per square meter between USD 12 up to USD 16.
Colombia is the second country in the region with the lowest internet connectivity costs in the region (Average monthly cost of fixed broadband internet is USD24.63). Colombia has an infrastructure capable of maintaining world-class operations and has the presence of 11 telecommunications companies offering dedicated Internet and IP telephony.
Colombia is characterized by the competitiveness of salaries in the sector, with values that are between USD400 per month for call center consultants in different cities.
SUCCESSFUL CASES OF THE SHARED SERVICES CENTER SECTOR IN COLOMBIA
Global companies recognize the potential of the SSC sector in Colombia:
- Amazon, which in October 2019 opened its regional service center with an operation of 600 people.
- Johnson & Johnson, an American manufacturer of medical devices, opened a new shared services center in Bogotá, Colombia in 2017. The company's first center in Latin America created 200 new jobs.
- SBD has grown up in Medellin. Evaluating potential locations for the Americas Shared Services Center, Jamie Ritter says, “Medellín is a growing, innovation-focused city with a wealth of talent, which provides an attractive location.”
INVESTMENT OPPORTUNITIES IN THE SHARED SERVICES CENTER SECTOR IN COLOMBIA
- Development of SSC operations taking advantage of the quality of professionals graduated in different regions of the country.
- SSC assembly for finance, accounting, IT, purchasing, human resources, and value-added services. Operations in English and Spanish.
- Installation of SSC specialized in telemarketing, collection, sales, customer service, and call centers that allow a greater insertion into formal work, especially by the country's technical and technological workforce.
- Installation of SSC concentrated in back office, outsourcing of financial and accounting services, human resources, logistics services, and 2nd level help desk that allows meeting the business needs of the financial, logistics, and oil sectors, among others.Construction of outsourcing centers for engineering services,
- telemedicine, R+D+i, graphic design, and business analytics, since these are high value-added services demanded by different verticals in Colombia.
- Installation of offshore platforms to serve foreign markets.