CHILECHILE Nearshore Alternative for Information Technology Services

August 2008 Chilean Economic Development Agency - CORFO

HUMAN CAPITAL IN HUMAN CAPITAL IN CHILECHILE

OVER 60 UNIVERSITIES

109 TECHNICAL CENTERS

48 Professional Institutes

21 MBA Programs

SMALL BUT HIGHLY EDUCATED COUNTRY

Source: Ministry of Education (www.mineduc.cl) 2007, National Statistics Institute (www.ine.cl) 2007

Total Population: 16.3 million

Total Workforce: 6.6 million

Workforce in Santiago: 3.1 million

Educational Coverage:

Primary: 98.6%

Secondary: 90%

Higher: 31.4%

HIGHER EDUCATION ENROLLMENT (2007)

Source: CORFO figures & Ministry of Education (www.mineduc.cl)

AREAENROLLM

ENTTechnology 162,760

Education 109,661

Health 100,223

Social Sciences 74,843

Commerce and Administration

128,654

Law 63,250

Arts and Architecture 48,519

Agriculture and Fishing

34,780

Basic Sciences 17,580

Humanities 13,272

Total 753,542

GRADUATES BY CAREERS (2007)

Source: Mineduc www.mineduc.cl 2008, Higher Education Council of (www.cse.cl)

TECHNOLOGY AREAS

COLLEGE DEGREE

2 TO 4 YRS

UNIVERSITY DEGREE+ 5 YRS

TOTAL

Computer Science

3,151 2,940 6,091

Electronic/Electrical

1,261 2,531 3,792

Civil/ Industrial Engineers

1,730 2,296 4,026

Mining, Chemical, Mechanical

2,350 891 3,241

TOTAL 8,492 8,658 17,150

Source: America Economía Magazine (www.americaeconomia.com), 2006

THE BEST BUSINESS SCHOOLS IN LATIN AMERICA

RANKING SCHOOL COUNTRY

1st INCAE Costa Rica

2nd Universidad Católica de Chile Chile

3rd Universidad Adolfo Ibáñez Chile

4th Egade (Tec de Monterrey, Campus Monterrey) Mexico

4th ITAM (Instituto Tecnológico Autónomo de Mexico) Mexico

6th Universidad de Chile (Graduate School of Business and Economics)

Chile

7th IAE (Instituto de Altos Estudios Empresariales) Argentina

8th Universidad de Chile – (Industrial Engineering) Chile

9th Coppead – UFRJ Brazil

10th Fundação Instituto de Administração Brazil

MANAGERIAL SKILLS

CORFO created a National Register for English speakers certified with the TOEIC test. Total: 37,000 people registered nationwide

Profile:- 70% university students and technicians under 30 years old- 39% related to engineering, IT and business careers

In 2008, CORFO will sponsor 3,000 scholarships for IT engineers to improve English capacities.

REDUCING THE ENGLISH GAP

CORFO´s register and training programs are available for foreign companies looking for local

talent

SUPPORT SERVICES

CORFO - THE CHILEAN ECONOMIC DEVELOPMENT AGENCY CORFO, founded in 1939, is a government organization committed with the economic development of Chile, through the promotion of inward investment and the support of competitiveness for domestic companies.

GOVERNMENT SUPPORT

INVEST CHILELaunched in 2000 with the purpose of attracting technology-intensive foreign investment and assisting companies interested in establishing permanent operations in Chile.

Information services Support during the different stages of project

implementation Access to business networks and public agencies Investment incentives

FOSTERING INNOVATION THROUGH NEW POLICIES IS A GOVERNMENT PRIORITYTHE MINING ROYALTY LAW: aimed to increase the national budget for science, technology and innovation from 0.7% to 1.5% of GDP by 2010.

THE NATIONAL COUNCIL FOR INNOVATION: in charge of designing the national strategy of innovation for competitiveness, with a timeframe of 12 years and evaluations every 4 years. It created the nationwide 8 cluster framework.

35% TAX CREDIT FOR R&D: for the adoption and generation of technologies in conjunction with universities and research centers.

NEW VERSION OF THE DIGITAL AGENDA: Established 10 years ago between the public and private sector, includes: internet access & broadband, education & training, e-government, industry development and legal framework.

BIOTECHNOLOGY AGENDA: Developed 3 years ago between the public and private sector, it includes: entrepreneurship, training of human resources, modernization of regulatory framework and development of public institutions.

The Global Services Cluster has been created to turn Chile into the near-shore platform of choice for BPO, KPO and ITO. A Private & Public Partnership has been created for this purpose, that includes Government agencies, business associations, academia and foreign companies.

CHILE´S STRATEGY TO DEVELOP THE GLOBAL SERVICES INDUSTRY

Basic Application RequirementsForeign companyHigh value project / High tech projectOver US$ 500.000 investment (except alliance among institutes of technology)Apply before location decision making.

INVEST CHILE GRANTS

PRE-INVESTMENT

STUDY

PROJECT LAUNCH

ASSISTANCE

ON-THE-JOB TRAINING FOR

HUMAN RESOURCES

EQUIPMENT &INFRASTRUTU

RE

LONG TERM PROPERTY LEASING

SPECIALIZED TRAINING &

RECRUITMENT

Up to 60% of the pre-

investment study cost.

Maximum=USD 30,000

Up to USD

30,000 for start-up

activities

Up to 50% of annual

salaries. Maximum= USD 25,000

per employee hired

Up to 40% of investment on

equipments and

infrastructure. Maximum=USD 2.000.000

Up to 40% of long-term

property leasing costs (5 years). Maximum=USD

500.000

Up to 50% of the

specialized training or

recruitment. Maximum=USD 100.000

ENTREPRENEURIAL

INNOVATION

4 funding lines from USD

100,000- 6M

Private profit oriented R&D for process/product

development (prototypes, design,

pilots)

INNOVATION FUND & CORFO PROVIDE MATCHING GRANTS FOR R&D

TECHNOLOGY TRANSFER

CONSORTIA DEVELOPMENT

Up to 70% or USD 400,000

Up to 50% or USD1M

Partner prospect in Chile and

abroad, business plan formulation,

patenting, internships

Public interest and pre

competitive innovation

SUCCESS SUCCESS STORIESSTORIES

BACK OFFICE CONTACT CENTERSHARED SERVICE

& IT CENTERKNOWLEDGE

CENTERTECH DEVELOPMENT

CENTER

Hosting, data center,

database mgmt,

transactional processes

Customer care,

telesales, telemarketing, technical

support

International services,

both shared and

centralized business

processes

Professional services,

research & analysis

Labs, product design &

development, new

technology research

Valu

e

Low impact & complexity High impact & complexity

10

A RECORD OF SUCCESS AS AN OFF-SHORE BASE

Thank you!

www.hightechchile.comwww.corfo.cl