SHARED SERVICES CENTERS

COLOMBIA: WIDE ARRAY OF QUALIFIED HUMAN CAPITAL, STRATEGIC GEOGRAPHICAL LOCATION AND INFRASTRUCTURE TO RUN SHARED SERVICES CENTERS

BENEFITS FROM SETTING UP A SHARED SERVICES CENTER

A strategic and privileged geographical location. Quali�ed human capital – skilled professionals able to meet the Service Centers industry requirements.A data infrastructure capable of supporting world-class operations.Sustained growth of the BPO industry.A Government committed to the sector.

Cost reduction through a single expert management team.Process-driven approach: relieving operating loads from the core business, thus allowing strategic teams to focus on key business activities.Management process standardization and simpli�cation.Unique control environment: company information control and centralization at the regional level.Quality assurance, streamlined service, and continuous improvement.More e�cient strategic support to help the company.

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KEY DRIVERS IN THE COLOMBIAN INDUSTRY

Between 2001-2014, the number of students graduating with Business Administration, Accounting, and Economy-related degrees was approximately 962,761, and the number of engineers was approximately 635,965. (Ministry of Education, 2015)

Colombia was included in the “Top 30 Countries for O�shore Services” report. �e report features the advantages of the country’s location to run call center operations and transactional BPO activities, as well as the government’s proactive support towards the IT sector and competitive costs. (Gartner, 2015)

Cultural Ties: in terms of language, Colombia has the second largest population among Spanish-speaking countries around the world, making it ideal to serve the Latin American market. In addition, the Colombian accent is one of the most neutral sounding, which is perfect for voice servicing. (Economist Intelligence Unit, 2014)

Costs and quality of labor: Colombia is second place in average salaries in the region, keeping quality in line with labor costs in addition to Colombia ranking as a competi-tive market in terms of o�ce costs. (IMD, 2014)

Colombia has become an exporting platform for Latin America, the US, and Europe, providing voice and back o�ce services in Spanish and English for the most part.

According to the IMD’s World Competitiveness Yearbook 2015, Colombia is the South American economy with the best-quali�ed work force, way ahead of countries like Peru and Brazil. Within South America and Central Ame-rica, Colombia is ranked second place.

A STRATEGIC AND PRIVILEGED GEOGRAPHICAL LOCATION

COLOMBIA enjoys a highly strategic location - the country is at the center of �ve time zones and sits in the same zone as important business centers such as New York, Toronto, and Miami.

Located in the middle of the major business and �nancial centers in the hemisphere, it shares cultural linkages, important in the consolidation of regional operations.

As of 2015, Colombia has: 1,082 direct international �ights per week, 5,984 domestic �ights per week, it is located less than 6 hours from the main capital cities in Latin America, and there are 24 di�erent airlines operating in Colombia. (OAG, december 2015)

Cost reduction through a single expert management team.Process-driven approach: relieving operating loads from the core business, thus allowing strategic teams to focus on key business activities.Management process standardization and simpli�cation.Unique control environment: company information control and centralization at the regional level.Quality assurance, streamlined service, and continuous improvement.More e�cient strategic support to help the company.

WORLD - CLASS INFRASTRUCTUREHIGH CONNECTIVITY

BOGOTÁ

BUCARAMANGAMEDELLÍN

TOLU

BARRANQUILLA

CALI

SAC

MAYA - 1

CFX - 1

SAM - 1

PAN-AM

AMX - 1

PCCS

ARCOS

GLOBENET

CARTAGENA

COLOMBIA HAS 10 SUBMARINE CABLES, INCLUDING: Sam 1 25,000 kmGlobenet 23,500 kmCfx 22,000 km Submarine data infrastructure in Colombia has increased. currently, there are 10 cables that reach colombian shores, with tra�c focused on the Atlan-tic and recently towards the Paci�c. (IT Manager, 2014)

Cali is becoming a key location for data output to Asia. (IT Manager, 2014)

Source: Teleography

Maya Cable & Wireless - Verizon

Columbus Network -Axtel

Columbus Network

America Movil

Telefonica

Tata CommunicationsAT&T

Cable & Wireless - Telefonica

BGT Pactual

Level3

Arcos Riohacha and Cartagena

Tolu

Amx - 1 Barranquilla and Cartagena

Sam 1 Barranquilla

PCCS Cartagena

CFX Cartagena

Globenet Barranquilla

South AmericanCrossing

Buenaventura (Pacifico)

PanAm Barranquilla

922.5 Gbt/s

Lit Capacity: 450Gbt/sEnd of life: 8.4 Tbt/s

End of life: 85Tbt/s

Lit Capacity: 40 Gbt/s

Lit capacity: 70 Gbt/sEnd of life: 300 Tbt/s

End of life: 10 Tbt/s

Lit capacity: 900 Gbt/sEnd of life: 12 Tbt/s

Lit capacity: 1.2 Tbt/sEnd of life: 7 Tbt/s

Lit capacity: 8 Tbt/s

MinTicSan Andres-Tolu

San Andres - Tolu 826 km

CABLE DESTINATION IN COLOMBIA BUILDER CAPACITY

Continuous consolidation of trade relationships between Colombia and the rest of the world opens a window of opportunity for investment in all business outsourcing services. Given the shared service industry seeks for process centralization and services exports to the region, Colombia becomes a highly prepared destination for such operations.

COLOMBIA, A COUNTRY WITHMULTIPLE DEVELOPMENT CENTERS

OPENING OF NEW MARKETS

INTERESTING GOVERNMENT PROGRAMS

Bogotá

Medellín

Cali

Barranquilla

Bucaramanga

�e National Government is determined to provide support and help throu-gh the Productive Transformation Program, a strategy focused on promo-ting the development of the sector which, in recent years, has created a positive momentum to build world recognition. �e work the program conducts within the sector is centered on four drivers: human capital, standards and regulatory framework, strengthening, promotion and innova-tion of the sector, and infrastructure and sustainability.

A government plan with the purpose of fostering economic growth based on the use and approval of ICTs among the Colombian population and develop-ment of a national digital environment. �is project is led by the National Government and MinTIC. Among other results, it is expected to provide connectivity for 1,078 municipalities for a total of 1,100 by 2014.

Job creation program: the objective is to create a 40,000 employment program for young people between 18 and 28 years old with government support for salaries and payroll taxes during the �rst 6 months.

ATTRACTIVE REGULATORY FRAMEWORK

COMPETITIVE LABOR REGULATIONSFlexible shifts in a 48-hour week spread across 6 days; up to 10 continuous hours per day without overtime. �ere are no mini-mum local employee thresholds when hiring foreign workers. Flexible salaries according to di�erent types of work contracts.

VALUE ADDED TAX EXEMPTIONApplicable for cross-border services granted in Colombia, either used or consumed exclusively abroad. To be eligible for this tax exemption, Colombian companies must be enrolled in the Unique Tax Registry as a service exporter and hold the relevant documents that authorize service exports.

MAJOR FOREIGN COMPANIES CHOSE COLOMBIA AS AN INVESTMENT DESTINATION TO SET UP SHARED SERVICE CENTERS

“Holcim chose Colombia due to the quality of its human values, quali�ed personnel, hard-working attitude, and commitment to service. A service center relies on its human resources, and Colombia provides skilled personnel capable of providing high-quality services to eight di�erent countries in Latin America”. Alejandro Carballido,CEO Holcrest

“�ere are a number of reasons why we decided to invest in Colombia: Colombia has a strategic location in the middle of the region; from the business and institutional point of view, the country is very stable, with a bright future ahead and, most importantly, people here meet our expectations. Colombia has great talent, trained professionals, several universities, language-pro�cient sta�, and people with great passion and energy making a di�erence”. Gonzalo Arias, CEO – SSC Diageo Colombia.

“For Johnson & Johnson Colombia is a Strategic country for them to go. �ey believe that Colombia is very appropriate for them to start a shared service center. �e three main reasons are: �rst of all Colombia is a very stable economy, second it’s a country that has strong institutions, and third because it’s also a country that attracts a lot of talent and well educated people.”Susan Rivetti, Johnson & Johnson Chairman Latin America

“After an exhausted search AIG determined that Colombia was the best option based on the progress that they will �nd and the most exceptional talent. �ey also know that there is a great stability in Colombia. Today, Colombia is a very safe place to invest and life.Jorge Gilling, Gerente General Centro de Servicios Compartidos AIG Colombia.

AIG