Facts:

The Electronics and Software sector is a growing area of the world economy that currently accounts for 6.5% of global GDP.  This area holds great possibilities for investment, but currently in Colombia the E&S sector is small compared to the country's overall GDP. (25)

However, Colombia does have advantages in the area of E&S that allow for future growth possibilities and even the possibility of a regional or global role for Colombia.   Colombia's advantages in the area of software manufacturing include:

      Distribution!

The electronics sector of Colombia is made of approximately 350 small companies with total 1994 sales of US$ 50 million while the software sector is formed by 400 small companies.  Colombia has both the location and the experience to offer regional distribution systems and stands poised to make a strong stand in the distribution, service, and support of electronic and software products. (26)

The geographical dispersement of Colombia's major cities as well as its varied geographical settings have caused local companies to develop highly sophisticated distribution systems.  Also, because of the geographical disparity and isolation, extensive service and support options have been made available.

     People!

Colombia has a large pool of engineers who have become known for their problem solving skills and innovative tatics, due in part to the geographical despersement.  It is a lack of experience with up and coming technical advancements and complex automation that have caused large multinationals to direct work to foreign engineering firms.

With training and experience, however, Colombia has a ready pool of engineers to promote future technology developments.  While other countries lack the personnel, Colombia lacks training for its talent pool.  By training its workforce, Colombia stands to gain much in future advancements.  Colombia's privatization and deregulation to permit foreign entry should further this cause.

     Language and Latinized Programs!

Many South American firms use software in English or bypass computer programs because of the language barrier.  The supply of "Latinized" programs is currently below the demand.  (27) A small point, but an area nevertheless where Colombia stands to develop a niche based upon its skilled workforce and their programming skills.  Also, with Colombia's distribution network and arrangement with other Andean countries, Colombia has the ability to distribute across borders anything that is developed.

Major Domestic Players

Colombia has a small but growing number of players in the domestic software industry who have had a presence of many years in the market.  These companies have proven their abilities and have offered services to Colombian businesses as well as to businesses in Venezuela and Chile.  Examples of these companies include:

1. Productora de Software Ltda (PSL) provides accounting and banking information systems as well as software development and programming through a "Software without frontiers" approach.  PSL recognizes that software should be flexible in a changing world as well as identifying that geography can be overcome through technology.  PSL's software integrates across regions and encompasses areas of finance,distribution, banking, and human resources.

2. Energy Computer Graphics Ltd is an international company based in Bogota that develops and markets software for telephone, cable television, and electric power distribution systems.  It specialty is software involving distribution systems as seen through these mediums.

3. MECOsoft is a company located in Medellin that has international ties across South America.  Overall the company has developed more than 40 software products from conception through to selling.   The company works not only with clients to develop products but also with other hardware and software companies to produce integrated endproducts.  The company is also know for the support it provides with its products.

Overall, Colombia is most developed in the software development and integration market rather than the packaged or embedded software arenas.  This fact reflects Colombia's engineering talent and need for integration in its often disparate systems.  Colombia does not have the mass production areas or the Internet accessibility to promote packaged software, nor does it have advanced technological partners to corraborate with in the embedded software market.

Given Colombia's developing niche areas of workforce and distribution, with the current state of increasing privatization and deregulation, Colombia's software developers who continue to focus on distribution and integration should find the market receptive not only at home, but also across Latin American borders.

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