How To Open a BOT Operations Center in Colombia

Expanding operations in Colombia? The Build-Operate-Transfer model could be the most efficient way to do it. This approach allows companies to establish a presence, leverage local expertise, and gradually take full control without the upfront risks of going solo. The country’s tech sector grew by 10.6% in 2023, according to ProColombia, and its workforce is highly skilled yet cost-effective compared to North America. Add in strong government incentives, and it’s clear why global companies are setting up BOT operations centers here.

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But launching a BOT center isn’t just about finding the right location. You’ll need to navigate legal requirements, choose a trusted local partner, and build a scalable team. This guide breaks down each step, from market research to full ownership, so you can successfully set up and scale a BOT operations center in Colombia. Keep reading to learn more!

What Is a BOT Operations Center?

A Build-Operate-Transfer (BOT) operations center is a strategic outsourcing model that allows companies to establish a fully functional business unit in a foreign market before assuming full ownership. Instead of launching from scratch, you work with a local partner who builds the infrastructure, manages operations, and transfers control once the center is stable and self-sufficient.

Unlike traditional outsourcing, where a third-party provider maintains ownership, a BOT model ensures that your company ultimately takes over the facility, workforce, and processes. This approach minimizes initial risks while giving you long-term control over your operations in Colombia’s fast-growing business ecosystem.

The Key Components of a BOT Operations Center

• Infrastructure Development – Your BOT partner sets up office space, IT systems, and operational frameworks to align with your business needs.
• Talent Acquisition & Management – The partner hires and trains employees, ensuring compliance with local labor laws and business regulations.
• Operational Oversight – During the “operate” phase, the center runs under the local partner’s management while you monitor performance and refine processes.
• Ownership Transfer – Once the center reaches full efficiency, ownership transitions to your company, typically within 3 to 5 years, depending on the contract terms.

Why Colombia Is Ideal for BOT Operations Centers

Colombia’s Thriving IT and BPO Sectors:

Colombia has become one of the fastest-growing outsourcing destinations in Latin America, Fueled by increasing demand for software development, customer support, and fintech services. With a strong pipeline of skilled professionals, businesses can quickly establish and scale BOT operations.

Cities like Bogotá, Medellín, and Cali have developed into major tech hubs, offering access to a workforce fluent in both Spanish and English. This language advantage is critical for global companies that require bilingual support and seamless communication with international teams.

Lower Operating Costs Compared to North America:

Setting up a BOT operations center in Colombia can reduce expenses by 30-50% compared to North American markets. Salaries for skilled developers, IT professionals, and customer service agents remain competitive while maintaining high service quality.

Real estate costs are also significantly lower. Modern office spaces in Colombia’s major cities provide high-speed internet, security, and business amenities at a fraction of the price of U.S. or European counterparts. This cost advantage makes long-term operations more sustainable and profitable.

Government Incentives for Foreign Investment:

The Colombian government actively supports foreign businesses through tax exemptions, free trade zones, and investment incentives. Companies establishing BOT operations can benefit from reduced corporate taxes, lower import tariffs, and fast-tracked business registration processes.

Several free trade zones across the country offer additional tax benefits, including lower income tax rates (20% vs. the standard 35%) and VAT exemptions on goods and services (Zonas Francas de Colombia). These policies make Colombia a cost-effective and attractive destination for BOT expansion.

Ease of Doing Business and Regulatory Stability:

Colombia has strengthened its business regulations, making it one of the top five countries in Latin America for ease of doing business, according to the World Bank. The government has streamlined procedures for company registration, permitting, and compliance, reducing bureaucratic delays for foreign investors.

Intellectual property laws, cybersecurity regulations, and data protection measures align with international standards. This legal framework ensures that businesses operating under the BOT model can secure assets, protect sensitive data, and comply with global business requirements without unnecessary risks.

Strategic Location for Global Market Access:

Colombia’s geographic position provides seamless access to both North and South American markets. The country shares time zones with the US, making real-time collaboration easier for companies managing remote teams.

With multiple international airports, modern ports, and advanced logistics networks, businesses can efficiently serve customers across the Americas. This accessibility makes Colombia an ideal location for companies seeking nearshore outsourcing solutions and long-term market expansion.

Colombia’s Technology and Infrastructure for BOT Operations

Colombia has made significant investments in technology and infrastructure, creating an ideal environment for Build-Operate-Transfer (BOT) operations centers. With high-speed internet connectivity, modern office spaces, and a strong cybersecurity framework, the country is well-equipped to support global businesses looking to establish a long-term presence.

Expanding Fiber Optic and 5G Networks.

Colombia’s internet infrastructure has grown rapidly in recent years. The country now has over 80% fiber optic coverage in urban areas, ensuring reliable high-speed internet for businesses, according to MinTIC. Major cities like Bogotá, Medellín, and Barranquilla boast some of the fastest and most stable connections in Latin America.

The rollout of 5G networks is underway, with Colombia aiming for nationwide coverage by 2025. This expansion will enhance connectivity, reduce latency, and improve digital infrastructure, making it easier for companies to run BOT operations that depend on cloud computing, AI, and real-time data processing.

Modern Business Hubs and Smart Cities.

Colombia’s leading cities have transformed into high-tech business hubs with modern office spaces, coworking environments, and innovation districts. Medellín, often called the "Silicon Valley of Latin America," has heavily invested in smart city projects, offering businesses access to state-of-the-art infrastructure.

Specialized IT parks and free trade zones provide companies with world-class facilities, tax incentives, and proximity to top tech talent. Over 75% of new office buildings in Bogotá and Medellín are equipped with LEED-certified technology, ensuring energy efficiency and sustainability, according to Colliers.

Robust Cybersecurity and Data Protection Laws.

Colombia has implemented strong cybersecurity regulations to protect businesses from cyber threats. Law 1581 of 2012 establishes strict data privacy requirements, ensuring compliance with GDPR-like standards for companies handling sensitive customer or business information.

In 2023, the Colombian government launched a national cybersecurity strategy, reinforcing protections against data breaches and cyberattacks. This framework makes the country one of the safest IT environments in Latin America, giving businesses confidence when setting up BOT operations reliant on secure data transmission.

Reliable Power and Sustainable Energy Investments.

Power reliability is critical for BOT operations centers, and Colombia has a strong energy infrastructure that ensures business continuity. The country generates 70% of its electricity from renewable sources, primarily hydroelectric power, according to IEA, reducing risks of outages while supporting sustainability goals.

In major cities, electricity uptime exceeds 99.5%, minimizing disruptions for companies operating 24/7. The government has also invested in smart grid technology and energy-efficient infrastructure, ensuring long-term stability for businesses that depend on uninterrupted operations.

Steps to Open a BOT Operations Center in Colombia

1. Define Business Goals and BOT Model:

Before launching a Build-Operate-Transfer (BOT) operations center, establish clear business objectives. Decide whether the center will handle IT services, customer support, software development, or back-office functions. Align the BOT model with long-term growth plans, ensuring a smooth transition when the operation is fully transferred.

Consider factors like scalability, cost savings, and regulatory requirements. A well-defined strategy will help streamline operations, minimize risks, and maximize efficiency.

2. Choose the Right Location:

Selecting the right city is critical. Bogotá, Medellín, and Barranquilla are top locations for BOT operations, offering strong infrastructure, a skilled workforce, and business-friendly policies.

Evaluate key factors such as real estate costs, access to tech talent, and connectivity. Free trade zones offer tax benefits and reduced operational costs, making them an attractive option for foreign companies.

3. Establish a Legal Entity:

Setting up a legal entity in Colombia requires compliance with local corporate regulations. The most common structures for BOT operations are Simplified Joint Stock Companies (SAS) or Limited Liability Companies (LLC).

Registration involves:

• Obtaining a Tax Identification Number (NIT) from DIAN (Colombia’s tax authority).
• Registering with the Chamber of Commerce to obtain legal status.
• Complying with employment laws and tax regulations to ensure a smooth setup.

4. Secure Infrastructure and Technology:

A successful BOT center requires state-of-the-art office space, reliable internet, and cybersecurity measures. Colombia has over 80% fiber optic coverage in urban areas, ensuring high-speed connectivity, according to MinTIC.

Invest in cloud computing, data security, and scalable IT infrastructure to support long-term operations. Modern office buildings in Colombia also offer LEED-certified facilities, optimizing efficiency and sustainability.

5. Hire and Train Local Talent:

Colombia has a highly skilled workforce has over 100,000 IT and engineering graduates annually (World Bank, 2023). To attract top talent:

• Partner with universities and tech training programs.
• Offer competitive salaries and benefits to retain skilled professionals.
• Implement onboarding and training programs to align teams with company culture and goals.

6. Comply With Local Regulations:

Labor laws in Colombia require compliance with minimum wage, employee benefits, and social security contributions. Hiring through Professional Employer Organizations (PEOs) can simplify compliance.

Additionally, Colombia has strong data protection laws, similar to GDPR, ensuring secure handling of customer and business data.

7. Develop a Transition Plan:

A well-structured transition plan ensures a seamless transfer of operations. Establish clear KPIs, timelines, and performance benchmarks to transition from the operator to the parent company.

Gradually shift leadership and decision-making responsibilities while ensuring quality and operational continuity. Effective knowledge transfer is key to a successful BOT exit strategy.

Ready to Open a BOT Operations Center in Colombia?

Opening a BOT operations center in Colombia offers significant advantages, from a skilled workforce to cost-efficient infrastructure. With over 100,000 STEM graduates annually and a growing digital economy, Colombia is positioned as a prime nearshore destination for businesses looking to scale efficiently. However, setting up a BOT model requires local expertise, legal compliance, and a well-planned transition strategy.

At BOT LATAM, we specialize in all kinds of BOT solutions, guiding businesses through entity formation, talent acquisition, compliance, and operational scaling. Our team ensures a seamless setup, reducing risk and optimizing costs while providing a structured exit strategy. With deep expertise in Latin America’s regulatory environment and tech ecosystem, we help companies establish high-performing, future-ready operations centers. Book a call today to explore how a BOT model can accelerate your expansion into Latin America’s thriving business landscape!