CINDE Costa Rica Investment Promotion Agency

June 2013. All Rights Reserved. The facts of this report are believed to be correct at the time of publication. Please note that the contents
delivered are based on information gathered in good faith from both public and proprietary sources. As such, CINDE’s Department of Research
can accept no liability whatsoever for loss or damage arising as a result of the use of this report, either in its published or online format.
CINDE
Costa Rica Investment Promotion Agency
• Private, non-profit, non-political organization, founded in 1982
• Declared of public interest by the Costa Rican Government in
1984
• Active promotion of foreign investment, local support, and
post-establishment services
• Extensive experience in strategic sectors such as Life
Sciences,
Advanced
Manufacturing,
Services,
Clean
Technologies-Renewable Energy, and Projects
Before and After: From a small sector,
to a sophisticated and main revenuegenerating one
From 6 companies operating by the year 2000…
1995
1997 1998 1999 2000
To hosting 25% of FORTUNE 50 Companies,
including the number 1
1995
1997 1998 1999 2000
2003 2004 2005
2008
2010 2011 2012 2013
From few employment possibilities…to a Sector offering a
wide array of sophisticated employment opportunities
Service Sector
Companies Growth
Service Sector
Employment Growth
42,148
121
2012
2012
2000
2000
6
Companies
The number of companies
in this sector is 1,917%
higher than in 2000
Source: CINDE, 2013
1.061
Employment
The employment in this
sector is 40 times higher
than in 2000
From not even representing 2% of GDP…
Exports of Selected Industries as % of GDP
10% 9,1%
8%
7,0%
5,8%
6%
Exports of Services by
Sector, 1999
5,6%
5,4%
4%
Tourism
65,3%
Other
22,6%
Other
business
services
8,7%
2%
1,3%
0%
IT & IT enabled services and other business services
IT & IT
enabled
services
3,4%
Agriculture
Tourism
Source: CINDE based on data from BCCR and Procomer, 2013
To one of the most important revenuegenerating sectors of the economy
Exports of Selected Industries as % of GDP
10% 9,1%
8%
7,0%
5,8%
6%
Exports of Services by
Sector, 2012
5,6%
5,4%
4%
2%
Other
business
services
14,3%
1,3%
0%
IT & IT enabled services and other business services
Tourism
43,6%
Other
9,2%
IT & IT
enabled
services
32,9%
Agriculture
Tourism
Source: CINDE based on data from BCCR and Procomer, 2013
From transactional functions and bilingual services in
Spanish and English provided to the Americas…
Finance
Back Office
• Collections
• Transactional
Accounts
Payable
• Transactional
Accounts
Receivable
• Credit
Application
• Data Entry
• Data
Processing
• Data Update
• IT and Help
Desk Support
Human
Resources
• Payroll
• Travel and
Expenses
Contact
Center
• Customer
Support
• Record-toReport
To a global sophisticated platform…
Finance &
Accounting
Back Office
Engineering &
Design
Human
Resources
Contact Centers
Entertainment &
Media
Procurement
Regional
Centers
Software
Development
Business
Transformation
…and Global Centers of Excellence servicing the world
in more than 15 different languages
End-to-End Centers offering services 24/7, 365 in English, Spanish,
Malay, German, French, Portuguese, Japanese, Dutch, Polish , Czech,
Finnish, Italian, Russian, Farsi, Mandarin
Europe
North
America
Asia
Africa
Costa Rica
South
America
This is Costa Rica’s Services Sector
We are designing the future…
Where companies leverage KNOWLEDGE and
EXPERTISE, not just simple cost reductions
General Business Activities
Source: CGGC, Duke University
based on data from CINDE, 2012
792
10,472
Back Office
1,123
$66.1
BPO
890
6,034
$223.4
$51.3
d
Call Centers IT
$638.2
$84.5
6,106
$186
Call & Contact
Centers
• Average output per
employee increased from
$35K in 2005 up to $45K
in 2012 (+28%)
KPO
Broad
Spectrum
(ITO, BPO & KPO)
Value Added
• Output per employee
depends on activity
sophistication level. It
ranges from $18K up to
$95K per employee
ITO
Industry Specific
Activities
7,753
$140.8
Red Circles illustrate exports in US$ million; Blue Circles show
number of employees (December 2011).
Outsourcing: strategic alliances aimed
at growth, efficiency and excellence
A One-stop location for Global In –house Centers and
Outsourcing Business Solutions
F&A
CC
ITO
HRO
Quality Assurance
for HP Networking
Facility Management
F&A
Digital Creative Content
• Catering to a wide variety of Business Models: Build Operate Transfer
(B.O.T.), Co-Managed operations and Staff Augmentation Services
A Natural Evolution:
Costa Rican companies becoming competitive,
expanding to new horizons and providing services
in new locations
ITS providing ITO & BPO services:
•
•
•
•
•
•
•
United States
Honduras
Guatemala
El Salvador
Nicaragua
Colombia
Dominican Republic
AVANTICA providing software development:
•
•
Peru
USA West Coast
ARTINSOFT providing software development:
•
Washington
Bosz Digital providing creative content services:
•
Colombia
What is next? Offering business solutions
through Central Gate
INVESTING IN COSTA RICA
Central Gate: helping with promotion, marketing and
business development of outsourcing companies in
KPO, BPO, and ITO
• The international strategy offers
business solutions to companies in
Costa Rica and elsewhere and finding
the right partner
• The Costa Rican Foreign Trade
Corporation, PROCOMER, has become
a key supporter of this initiative,
contributing expertise in outsourcing,
exports, and foreign trade
• There are currently 28 outsourcing
vendors, providing Contact Center,
Back Office, Software Development, IT
Support & Engineering, Digital
Production, and Legal Process Services
The Costa Rican Chapter: a strategic alliance
The Chapter will provide:
• A platform to the outsourcing
industry in Costa Rica and
interaction with a global community,
including buyers, vendors,
government and academia
• Possibilities of sharing best
practices with more than 120,000
experts worldwide
– Opportunities with potential clients
– Create close alliance with the most
recognized outsourcing association
in the world
A global event for a global community
Date and venue: December 3rd-5th, 2013, San Jose, Costa Rica, Intercontinental Hotel.
Objective: bring together outsourcing/offshoring global community with the International
Association of Outsourcing Professionals (IAOP)’s network of over 120,000 members
world-wide.
Audience: more than 300 high level representatives from the services industry, including
vendors, buyers and advisors
Agenda: includes learning track sessions, conferences and panels. It comprises site
Buyer/Vendor match site visits to some of the main services companies based in Costa
Rica.
Thank You!