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 revenue-

generating 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

6

121

Companies

Service Sector Companies Growth

2012

2000

The number of companies in this sector is 1,917%

higher than in 2000

1.061

42,148

Employment

Service Sector Employment Growth

2012

2000

The employment in this sector is 40 times higher

than in 2000

Source: CINDE, 2013

From not even representing 2% of GDP…

Source: CINDE based on data from BCCR and Procomer, 2013

1,3%

5,8%

9,1%

5,6%

7,0%

5,4%

0%

2%

4%

6%

8%

10%Exports of Selected Industries as % of GDP

IT & IT enabled services and other business services Agriculture Tourism

Tourism 65,3%

IT & IT enabled services

3,4%

Other business services

8,7%

Other 22,6%

Exports of Services by Sector, 1999

Tourism 43,6%

IT & IT enabled services

32,9%

Other business services

14,3%

Other 9,2%

Exports of Services by Sector, 2012

1,3%

5,8%

9,1%

5,6%

7,0%

5,4%

0%

2%

4%

6%

8%

10%Exports of Selected Industries as % of GDP

IT & IT enabled services and other business services Agriculture Tourism

To one of the most important revenue-

generating sectors of the economy

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

• Collections

• Transactional Accounts Payable

• Transactional Accounts Receivable

Back Office

• Credit Application

• Data Entry

• Data Processing

• Data Update

• IT and Help Desk Support

Human Resources

• Payroll

• Travel and Expenses

Contact Center

• Customer Support

• Record-to-Report

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

Costa Rica

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

North

America

South

America

Africa

Asia

Europe

This is Costa Rica’s Services Sector

We are designing the future…

ITO KPO

General Business Activities Industry Specific Activities

Va

lue

Ad

de

d

Broad Spectrum

(ITO, BPO & KPO)

d

$638.2

$223.4

$186

$140.8C

all

& C

on

tac

t

Ce

nte

rsC

all

Ce

nte

rs IT

Ba

ck

Off

ice

$51.3

$66.1

$84.5

10,472

6,034

BPO

7,753

6,106

792

1,123890

Where companies leverage KNOWLEDGE and

EXPERTISE, not just simple cost reductions

• Output per employee

depends on activity

sophistication level. It

ranges from $18K up to

$95K per employee

• Average output per

employee increased from

$35K in 2005 up to $45K

in 2012 (+28%)

Source: CGGC, Duke University

based on data from CINDE, 2012

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

• Catering to a wide variety of Business Models: Build Operate Transfer

(B.O.T.), Co-Managed operations and Staff Augmentation Services

F&A

ITO

HRO

Quality Assurance

for HP Networking

F&A

Facility Management

Digital Creative Content

CC

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

INVESTING IN COSTA RICA

What is next? Offering business solutions

through Central Gate

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

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.

A global event for a global community

Thank You!