Information Technology in Panama

Overview

Workforce in information technology is mainly concentrated in the telecommunications area. In the past three years, Panamá has had a dramatic increase in the number of call centers as a result of a law that encourages the establishment of these enterprises. The lack of individuals who are fluent in English is presenting a problem, however the government has instituted training centers that seek to train about 3,000 individuals in four months.

Education

There are two main public institutions which offer technical training: the Technical University, and secondary school programs specializing in "computing." Specific data is provided below:

Education Statistics

(Source: CIA World Fact Book)

(Source: Panama en Cifras, 2002 )

Growth in Higher Education

It is problematic to estimate the number of CS/CE/MIS post secondary programs, and graduates per year because Panamá has recently experienced an immense growth in the number of private universities in the country. There were only four main options in higher education, until recently: Universidad de Panamá, Universidad Técnica, Universidad Santa María La Antigua University (private, catholic), and Florida State University (private). There are now about 14 more private universities. These include: Universidad InterAmericana, Universidad Latina, Universidad Latino Americana de Ciencia y Tecnologia (ULACIT), Universidad Latina de Comercio Exterior (ULACEX), Universidad del Istmo, and Columbus University.
It is likely that all data for all universities have not been collected, and published yet. The two main national universities (public sector) that do publish these numbers are the University of Panamá, and the Technological University. The Technological University offers Computer Systems Engineering. The University of Panamá offers programs in other areas such as: Business Administration and Accounting, Public Administration, Architecture, Fine Arts, Agricultural Sciences, Education, Natural Science, Communication, Law and Political Science, Economics, Nursing, Pharmacy, Humanities, Medicine, Veterinarian Medicine, and Dentistry.

Call Centers and Related Entities

In the past couple of years, Panamá has had an increase of ITC related centers. For example, there has been an increasing need for English speaking individuals to supply labor to call centers. Also, small businesses that specialize in posting products to websites like e-bay have also seen a dramatic increase. For most of these positions, IT experienced is not required because they are willing to train individuals, however English fluency is necessary.

Government Promotes Establishment of Call Centers

Panamá approved a special law in 2001 that promotes the establishment of call centers in the country. It is estimated that call centers have grown about 300% since that date. The lack of personnel that is fluent in English is presenting a problem for companies looking for individuals with these qualifications. The government is planning to train about 3,000 Panamanians in advanced English, between December 2003 and March 2004. (24)
Dell opened a call center in the Panamá-Pacific Special Economic Area, on August 4th 2003. Dell invested about $5,000,000, and hired 500 individuals. Dell will be servicing clients in the USA, Canada, and other countries from this location.(25) Two other centers are expected to open next year: Panamerican Call Center and Influient. (26)

Panamá-Pacific Special Economic Area

The Panamanian government also is in the process of formally setting up the Panamá-Pacific Special Economic Area, located in the former Howard military base, its concept is to establish a "technology park" in the country. The new plan has already attracted Dell Computers, which has already established itself in Howard with a call center that currently employs about 1,000 individuals, with monthly salaries of $500-600. (27) The Panamá-Pacific Special Economic Area is expected to create about 3,000 jobs in the first three years. And the International Finance Corporation (IFC) has estimated that, in a time frame of 20 years, up to 55,000 jobs could be created and about $600 million invested in the area. (28) As of, December 10th, the law that would formally create the area has not been passed, and the contract with the World Bank will expire on December 31st. The delay is a result of increasing pressure from the Colón Free Zone interest groups (ZLC-Zona Libre de Colón), who claim that the Howard Area will create immense economic disadvantage for the ZLC, and give an unfair advantage to the companies that will establish themselves in Howard. In practice, the companies that would be housed in Howard, are be high-tech companies and would not focus in the same type of business as the ZLC's companies. Although the ZLC's grievances should be taken into consideration, it would be very unfortunate, for this area not to be developed, because of extended and unnecessary bureaucratic negotiations with this interest group.