There are 3 Companies in Colombia
that provide Due Diligence Services!

Colombia is now a strategic center when it comes to the outsourcing of IT and business services, with international investors attracted by the skills and size of its workforce, its favorable business climate, and its geographic location.

The sector has shown impressive growth, with Colombia receiving 387 new investment projects in the BPO, KPO, software, and IT services sector in the past seven years, according to fDi Markets and PRO COLOMBIA reports.

Why you should work with Colombia-based IT companies

One of the biggest draws for investors is the breadth and diversity of Colombian talent. Colombia has the second most qualified workforce in South America, according to the IMD World Talent Report 2016, ahead of countries such as Brazil, Peru, Chile and Venezuela.

Colombia's Ministry of Information Technology and Communications (MinTIC) certified more than 37,000 Colombians in digital skills in the third quarter of 2017, adding to the field of innovative developers in the software development sector.

Figures suggest there are more than 4,000 software and IT service companies across Colombia. About 3% of those are large companies, 80% of which are based in the central region of the country with four percent in the north, six percent in the west, four percent in the east, and the rest distributed across the country.

What you should be aware of when working with Colombian-bassed IT companies

South America tends to be a more attractive destination for the IT market, and Colombian IT companies and web agencies are taking advantage of this opportunity. However, there are several aspects that need to pay attention to when working with companies based in Colombia. Lack of experience, underdeveloped IT infrastructure and the incapacity of competing with the US and Europe IT companies create challenges and doubts for potential clients in whether to choose a Colombian IT company as a partner for their next web project, despite the cheap hourly rate it has to offer compared to the international global market. 

How reliable are Colombian-based IT companies

Gartner Inc, an international consultancy company ranked Colombia as one of five destinations in Latin America to offer Business Process and Information Technology Outsourcing highlighting the country’s bilingual labor force and salary competitiveness within the sector. In addition, Everest Group the global consulting firm mentioned Colombia as an optimal market for finance and accounting outsourcing (FAO), legal process outsourcing (LPO), and business process outsourcing (BPO). Likewise, the company asserted the country’s strengths for its commerce. 

How does Colombian IT infrastructure relate to the neighboring countries?

As the third-largest provider of IT services in Latin America after Brazil and Mexico with US$ 2.579 million (According to the International Data Corporation – IDC), Colombia is rising to the top due to its skilled workforce of more than 1.2 million professionals in the financial and services industry, incentives provided by the government, a continuous free trade agreement platform, competitive free trade zone regime, proximity, and connectivity to North America. These features and benefits have created an ideal business environment for venture capital firms and angel investors looking to invest in innovative and attractive opportunities.

Due diligence services are like thorough investigations that help businesses make informed decisions. They assess risks and opportunities when entering into partnerships, acquisitions, or other critical business transactions.

Many IT companies offer due diligence services, specializing in analyzing technology, data security, and compliance aspects of potential business ventures. Notable IT companies providing due diligence services include Deloitte, KPMG, and Ernst & Young (EY).

Due diligence service providers use a combination of tools and technologies to assess various aspects of a business. These may include data analytics platforms, cybersecurity tools, compliance management software, and financial modeling software. They also leverage document management systems and communication tools for efficient collaboration during due diligence processes.

Due diligence and audit services share similarities in their examination of the financial and operational aspects of a business. However, they differ in scope and purpose. Due diligence is typically conducted before entering into a business transaction to evaluate the potential risks and rewards. In contrast, audit services are often part of ongoing financial reporting and compliance requirements within a business.

Due diligence services are closely related to other advisory and consulting services, including:

• Financial Advisory: Providing financial insights and recommendations.

• Cybersecurity Assessment: Evaluating a company's cybersecurity posture.

• Mergers and Acquisitions (M&A) Consulting: Assisting in the strategic aspects of M&A transactions.

• Compliance Consulting: Ensuring adherence to industry regulations and standards.

Selecting the best IT company for due diligence services requires evaluating their expertise, industry knowledge, track record, and the comprehensiveness of their due diligence process. Seek providers who can tailor their services to your specific industry and transaction type.

Due diligence service providers are essential for various projects, including:

• Mergers and Acquisitions: Evaluating the financial health and potential risks of target companies.

• Investment Assessments: Analyzing potential investments in startups or new ventures.

• Partnership Agreements: Assessing the suitability and risks of partnering with another organization.

• Regulatory Compliance: Ensuring adherence to data protection and industry-specific regulations.

Conducting due diligence is essential for businesses of all sizes and industries. Some examples include private equity firms, which need to assess potential investments and portfolio companies; startups, which must evaluate the feasibility and risks of new business ventures; large corporations, which conduct due diligence on acquisitions and strategic partnerships; and financial institutions, who ensure compliance and risk management in lending and investments.

The cost of due diligence services can vary significantly based on the scope and complexity of the project. Factors such as the size of the target company, industry regulations, and the depth of analysis required influence the price. In the US, costs can range from a few thousand dollars to millions for complex M&A transactions. UK and Australian costs can be similar but may also vary depending on regional factors and the specific nature of the project. It's advisable to obtain quotes and assess the value provided by service providers before proceeding with due diligence.