Dozens of BPOs made 2023 a bonanza for Colombia’s Atlántico Department, home to Barranquilla, by creating nearly a thousand jobs.
Big names like Foundever, Sagality, Solvo Globa, and Hinduja Global Services (HGS) all set up shop in the Atlantico region. Foundever alone hired 400 employees, mostly bilingual candidates.
ProBarranquilla, a key investment promotion agency, reported a remarkable 130% increase in foreign direct investment (FDI) in 2023, totaling a staggering US$602 million. fDi Intelligence ranked Barranquilla third for Latin American and Caribbean cities with the fastest-growing foreign direct investment.
The services sector, led by BPOs, attracted 46% of foreign capital inflows.
Twenty-eight companies in manufacturing and services expanded into the province, generating 2,234 direct jobs. Nearly 80% of these investments came from companies based in the United States, Italy, and Spain, according to ProBarranquilla.
Foreign investors are familiar with Colombia’s Atlántico Department. In mid-2022, ProBarranquilla reported processing around US$1.3 billion in foreign investment flows over five years.
Authorities attribute the region’s success to the “English for Work” program, launched in late 2021 by the Barranquilla government. The program aims to increase the number of bilinguals in the region’s main city, targeting 8,000 graduates by the end of 2023.
As of now, Barranquilla’s authorities haven’t confirmed if that goal was met. However, recent data indicates a decrease in students at the lowest proficiency level (from 45% of the total in 2022 to 38% in 2023), and a slight increase (from 11% to 12%) in students with B1 and B+ proficiency.
Challenges ahead
Challenges accompany Barranquilla’s BPO boom. The influx of companies drove rental costs in the real estate market upward.
A report by local news outlet El Heraldo reveals that office vacancy rates dropped from their pre-2019 average of 25-27%. Finding suitable office space, especially for large call centers needing 600 square meters, has become increasingly challenging.
The rise of remote work left many offices vacant, sparking fears of a collapse in Barranquilla’s office real estate market. However, as concerns over COVID eased, several businesses began recalling workers to the office.
Employers and employees are still grappling with return-to-office policies. Meanwhile, the office rental market appears to be rebounding in Colombia’s major cities.
Experts suggest a shift towards smaller offices and collaborative spaces to attract potential recruits and entice staff back to the workspace, rather than a return to the pre-COVID status quo.
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