SERVICES SECTORS

believes in transforming the Colombian economy by creating tools that deliver results and boost growth, productivity and competitiveness in Colombian companies.

TheMinistry of Trade,Industry and TourismRepublic of Colombia

ONE OFTHESETOOLSIS THE

A PUBLIC-PRIVATE PARTNERSHIP THAT:Helps companies and sectors

benefit from Free Trade Agreements: more exports

Coordinates work between public and

private actors

Improves productivity and competitiveness within

economic sectors

Promotes a better way of living for Colombians: more and better jobs

STRATEGIC GOALPromote productivity and competitiveness in economic sectors with high exporting poten-tial, through synchronized work between the Colombian private and public sectors.

The Productive Transformation Program is a worldwide innovation example.— McKinsey & Company & Oxford University —

Chocolate, Confectionery and Raw Materials

Beef and CattlePalm, Oils, Vegetable Fats and Biofuels

Shrimp AquacultureDairy

Horticulture

ECONOMICSECTORS

SERVICES MANUFACTURING AGRO-INDUSTRIAL

BPO&O

Software & IT

Health and Wellness Tourism

Ecotourism

Electric Energy and Services

The National Development Plan 2010-2014 established that the Productive Transformation Program, created by the Ministry of Trade, Industry and Tourism in 2008, would be administered by

The PTP works with 16 key sectors in executing business plans built around 4 key pillars: (i) Human Capital (ii) Industry Development, Promotion and Innovation, (iii) Infrastructure and Sustainability and (iv) Regulation and Legal Affairs.

Editorial and Graphic Communications Industry

Fashion SystemAuto Parts and Vehicles

IndustryCosmetics

Steel, Metalworking and Shipyard Sector

VISION

OPPORTUNITIES IN COLOMBIA

WHAT ARE WE WORKING ON?

BPO - BUSINESSPROCESS OUTSOURCING

SOFTWARE ANDINFORMATION TECHNOLOGY

In the last four years this Colombian sector has grown 61% (Source: IDC), employing more than 120 thousand people, and Gartner included the country in the report "Top 30 locations for offshoring," a position ratified in 2011.The goal is to reach 600 thousand jobs, US$ 45 billion in sales and US$40 billion in exports by 2032, putting in action a strategy aimed to strenghten the human capital by channeling funds to strategic educational actions focused on KPO, ITO, high-added value services and finally by creating specialized clusters in some regions of the country.

4 Colombia’s population is over 46.9 million and it has 8 developing urban centers with more than 500 thousand inhabitants.

4 According to the IMD (2011), the country has the highest index of Work Force Availability Labor Flexibility and holds the second place with the highest quality standards of university education in terms of competitiveness in Latin America.

4 Colombia offers an attractive costs structure for investors as it has the lowest professional wages average in the region, the second lowest cost of Internet, and the third most competitive office rental costs in Latin America.

4 Colombia has a privileged strategic location: it is in the middle of important commercial and financial centers of the hemisphere, both in North and South America, sharing affinity patterns.

4 5 submarine cables, complemented by an internal fiber optic ring that connects 300 municipalities which support the country’s communications infrastructure. It is expected that by 2014, 770 municipalities will be connected to this ring.

4 The strengthening of trade relations between Colombia and the World has opened the door for investment opportunities for all business process outsourcing.

4 A US$ 12 million loan from the IDB aimed to strengthen the human capital within the sector, an aid the internationalization of small and medium enterprises (SMEs) in the sector.

4 Raise awareness about the use of outsourcing by Latin American multinationals as a tool for economic development.

4 Contribute in adapting existing regulations to enable the export of services.

4 Promotion of a clean Colombian industry that extensively uses electricity from sustainable sources (hydroelectric).

VISION

The Software, Information and Communications technology Industry is in a process of consolidation. Businessmen, government and academy are focused on the implementation of actions towards the creation of added value, the international positioning around segments of specialization and the adoption of international standards, certifications or best practice models. Their purpose is to portray Colombia as an attractive destination for software and information technology businesses.

4 Colombia has received key international distinctions: a worldwide recognition in the Barcelona Mobility Fair 2012 as the leading country in the definition of policies for ICT; it is the third most business-friendly country in Latin America; it is number one in making reforms (according to Doing Business); and has the lowest rate of piracy in the region: 55% according to data from BSA (Business Software Alliance).

4 Outsourcing and Integration & Development are the main industry segments that have driven the growth of IT services in the past three years, according to Internet Data Center, IDC. The number of companies valued at Capability Maturity Model Integration, CMMI doubled in the past year.

4 Competitive salaries and labor flexibility in the industry, along with human capital development through training and certification programs -in specific areas- promoted by the Government for more than 1000 people working in the sector.

4 Possibilities of establishing development centers in eight cities of over 500,000 inhabitants.

4 Colombia is located between 5 time zones, enabling it to provide services to the key cities within the continent without surcharges.

4 Telecommunications infrastructure that provides a bandwidth exceeding 550 Gbps. with five submarine cables.

4 Scholarships and language training programs provided through partnerships with public and private educational institutions to development bilingualism and other key skills.

4 Adjustment of the legal settings necessary to strengthen the sector: Software Act, Data Protection Act, policies for the procure-ment of technology, and workshops on intellectual property.

4 Prospective technology studies, promotion of association, and international cooperation.

4 Development of technological parks, clusters, and level 4 datacen-ters.

WHAT ARE WE WORKING ON?

OPPORTUNITIES IN COLOMBIA

ECOTOURISM

VISION

Colombia is developing the tourism sector of health and hopes to be a world class player in the provision of medical services. In 2008 between 4,100 and 7,000 tourists visited the country for a medical purpose and 44,800 for wellness programs (Inspired Wellness). This shows the growing ability of Colombia to meet the international demand for medical services. The health system in Colombia is ranked 22 worldwide and is the number one in Latin America, according to a study of WHO (World Health Organization). We have eight out of the 33 best hospitals and clinics in Latin America, according to the magazine América Economía.

4 Quality of services recognized worldwide.4 A privileged geographical location: Colombia is just a 3 hour flight

away from Miami and less than 6 hours from New York, Washington, Buenos Aires and Mexico City.

4 Cost of services is globally competitive: The international patient In Colombia, can receive full treatment and medical procedures cost between 10% and 35% less compared to the USA costs.

4 Doctors and nurses are highly qualified as they have been trained in the best universities and medical centers in the world.

4 Colombia has invested in building modern hospitals and clinics equipped with the latest technology.

4 Most Colombian hospitals assist foreign patients with travel and lodging accommodations and provide guidance and translation services as needed.

4 Our medical institutions have the infrastructure and technological resources to rank among the finest health centers in the world with Joint Commissions International (JCI) accreditation.

4 Creation of academic programs through partnerships with public and private educational institutions.

4 Adjustments to the Colombian immigration regulation to facilitate the arrival of health tourists and expedite necessary procedures.

4 Strengthening and promotion of the sector through incentives and support for obtaining international accreditation, development and certification of centers of excellence, promotion and international marketing.

4 Support expansion and renovation projects in clinics and hospitals. Detection of logistics bottlenecks that slow growth.

HEALTH AND WELLNESS TOURISM

VISION

Colombia wants to position tourism as one of the most important activities for economic development. The country has channeled public and private efforts to create opportunities for the development of tourism initiatives, showing the commitment of the public and private sectors to strengthening the competitiveness and sustainabi-lity of the sector.From 2002 until 2010 the arrival of foreign visitors to Colombia increased by 1.4 million, from 1.1 million to 2.5 million and featured the return to the country of the major cruise lines, turning Cartagena into a port of embarkation.

4 We are the world's most biodiverse country per square kilometer.4 We are rich in natural resources:

ŸFirst place in bird species in the worldŸSecond place in all known species.ŸFifth place in natural resources according to the Index of

competitiveness of Travel and Tourism World Economic Forum-WEF-2009.

ŸPosition 12 in number of protected areas.4 Extensive tourism portfolio related to biodiversity and cultural

diversity.4 Kindness and hospitality of the Colombian people.4 The public and private sectors are committed to strengthening the

sector by trying to build a real capacity of entrepreneurship and regional development in a sustainable way and with social responsibility.

4 Attractive country for foreign investment in natural resources projects.

4 Scholarships and language training programs provided through partnerships with public and private educational institutions to development bilingualism and other key skills.

4 Detection of all the legal adjustments necessary to strengthen the sector.

4 Identification of infrastructure needs (connectivity, transport infrastructure) that must be improved to meet quality standards and sustainability requirements.

WHAT ARE WE WORKING ON?

OPPORTUNITIES IN COLOMBIA

WHAT ARE WE WORKING ON?

OPPORTUNITIES IN COLOMBIA

ELECTRIC ENERGY AND SERVICES

VISION

The power industry in Colombia has evolved quickly and positively over the past 20 years, becoming an efficient sector with work practices meeting the highest standards, similar to those of world-class companies. The Colombian Government has enabled this progressive improvement through the design and adoption of novel policies, institutional strengthe-ning, as well as appropriate long term planning and regulation for the sector.Currently, Colombia has a wholesale electricity market that supplies the vast majority of the country with high reliability levels. The Colombian electricity market operates following two main principles: the recognition of supply costs, and an adequate planning system which prepares the sector for future expansions. The Colombian electricity market operates freely, responding to market conditions.Colombia is known for being one of the leading producers of clean energy in Latin America; hydropower constitutes 68% of its current energy matrix. Colombia only uses 9% of its hydropower potential, which is only surpas-sed by Brazil in the region.

4 Diversified energy basket: from the total effective system capacity hydraulic plants constitute 68%, gas based thermal energy constitutes 18.64%, coal based thermal energy constitutes 7.45%, liquid fuel heating energy constitutes 5.31%, cogeneration constitutes 0.46% and wind power constitutes 0.14%.

4 Colombia has access to cutting edge technology and industry knowledge for all the subsectors of the value chain.

4 Colombia has a strategic geographical position to enable the Americas power systems interconnection. Up to date there are operating interconnections with Ecuador and Venezuela, and expansion plans

4 Scholarships and language training programs provided through partnerships with public and private educational institutions to development bilingualism and other key skills.

4 Promotion of the sector among high school students, in order to meet future needs for qualified staff in the sector.

4 Review and Benchmarking of the regulatory framework and market structure of the sector, to increase its competitiveness after the entrance of new interconnections in 2022.

4 Road maps for the development of the required infrastructure for electric mobility.

4 Study to identify technical barriers to trade in countries with difficult access (Brazil and Mexico).

4 Promotion of goods and services with Proexport, Prospective technology studies and channeling of technical cooperation to companies and organizations.

4 Conceptual studies for a metrology network required for testing and technological development.

www.ptp.com.co

4 include an interconnection with Panama, and potentially, the Caribbean.

4 Colombia has allowed foreign investment to compete freely, providing equitable and fair conditions for electricity agents, while assuring a reliable supply of the service despite the country´s topographic and security conditions.

4 Colombia has a highly developed market model (regional model): It provides reliability, effectiveness and efficiency in the supply of electricity, self-sufficiency and export capacity.

4 Colombia´s skilled human resource is recognized in Latin America for its high performance, skills level, professionalism and resourcefulness.

WHAT ARE WE WORKING ON?

OPPORTUNITIES IN COLOMBIA

Ministry of Trade,Industry and TourismRepublic of Colombia

www.ptp.com.co