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Information Technology in Colombia
Analysis: Impacts on the (Non-IT) Globally-Competing Firm

There are many areas where IT considerations are important to a non-IT globally-competing firm.  If IT considerations where the only considerations for a non-IT company opening in Colombia, there are many areas of interest to be addressed including:

Would you set up a sales office in the country? Would you expand it?

Colombia with its strategic location in South America as well as being in the middle of Latin America is in a prime location for regional sales.  The country has the infrastructure to support sales operations and the transfer of data across borders.  Colombia also has the educated personnel to operate the system

Would you set up a regional distribution center?

The area of regional distribution is one of Colombia's strong points regionally and potentially globally.  Colombia has the computer networks to support regional distribution based upon its past dealings with its dispersed geography and varied systems.  Also, it has the human capital skilled in IT areas to support a distribution center.

Would you set up a manufacturing center?

Colombia has many manufacturing centers for industrial activities.   Colombia's IT supports industrial manufacturing activities and areas involving technical automation.  If technical automation is an integral area of a particular manufacturing company, Colombia has the abilities to provide a competitive advantage through its IT.

Support for network infrastructure:

With privatization and deregulation Colombia is rapidly gaining the ability to support a network infrastructure.  While the availability and quality are not currently at a high level, the cost question is easier to answer since competition encourages lower prices.

Colombia also has government support of technology that encourages growth in the telecommunications industry.  This support is a positive aspect for a non-IT company in Colombia as it shows a commitment to business and development.   Further, the country as a whole is open to technology that encourages the financial development of the country.

IS Professionals to support IS:

Colombia has the technically skilled IS professionals to support distribution and financial systems.  The universities are solidly developed in computer technologies, even through they are not on the cutting edge of technology.

For a globally competing non-IS company, a strong strategy would be to bring their own people and technology to Colombia in order to start the operations.   Colombians have the background in hard computer sciences but need the training in the newer technologies to be truly competitive.


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Author: Heather Batyski
Last Update: December 18, 1998