#1CINDE essential. Invest with purpose INVEST IN COSTA RICA COSTA RICA INVEST IN COSTA RICA Services sector JULY, 2023 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 Investment Intelligence Department can accept no liability for loss or damage arising as a result of the use of this report, either in its published or online format#2Discover how the #1 investment promotion ..CINDE agency in the world can help you venture in Costa Rica essential. COSTA RICA • Private, non-profit, non-political organization. +40 years actively promoting FDI • Extensive experience in strategic sectors: #1 INVESTMENT PROMOTION AGENCY IN THE WORLD • Corporate & Digital Services . Life Sciences . Advanced and Light Manufacturing International Trade Center, United Nations. 2017-2018 - 2019 2020-2021-2022 The right place for business... Invest with purpose#3Invest with purpose SERVICES IN COSTA RICA BEYOND EXPECTATIONS ••CINDE essential INVEST IN COSTA RICA COSTA RICA#4COSTA RICA ..CINDE INVEST IN COSTA RICA essential COSTA RICA A PROVEN BUSINESS PARTNER FOR +350 MULTINATIONAL CORPORATIONS GRUPO BIMBO amazon P&G 3M kyndryl Roche BACARDI ЗАТ BCG Hakkōda Walmart Mondelez International citi BAYER Kimberly-Clark accenture intel Pfizer BAYER Boston Scientific auxis CONSULTING & OUTSOURCING Microsoft DELL MOODY'S foundever™ Smith Nephew H BOSCH vmware® EMERSON TM genpact AstraZeneca MERCK infinite EQUIFAX BRIDGESTONE align stryker Akamai align cognizant Western Union#5..CINDE INVEST IN COSTA RICA essential COSTA RICA Services sector at a glance 112,930 TOTAL JOBS CREATED 228 COMPANIES IN CR Size of the companies in CR N° of collaborators SSC and back office: 41,246 Digital Technologies: 29,601 BPOs & Contact Centers: 40,688 SSC and back office: 82 Digital Technologies: 95 BPOs & Contact Centers: 38 0-100: 43% 101-500: 37% 501-1000: 7% +1001: 13% Invest with purpose *Preliminary data subject to changes. 70% Services operations are multifunctional F&A, HR, IT, analytics, strategic sales support, automation, supply chain management, marketing & more 32 Fortune 500 companies#6COSTA RICA - SERVICES SECTOR EVOLVING TO A MULTI-FUNCTIONAL SERVICE DELIVERY MODEL % OF CENTERS DELIVERING A GIVEN FUNCTION CORPORATE SERVICES COMPANIES Finance and accounting 62% IT support and development 56% Contact center 53% HR services 34% Procurement 28% BI and other business processes 25% QA and compliance 15% Marketing and content creation 12% Engineering services 11% Architecture services 2% Other 22% ••CINDE essential INVEST IN COSTA RICA COSTA RICA DIGITAL TECHNOLOGIES COMPANIES Software development Testing and QA Web development 77% 70% 57% Software engineering & design Mobile app development Legacy systems support 57% 53% 53% Back-end, front-end & full-stack... 53% Data analytics and data management 47% Cloud 47% Enterprise architecture 37% ERP programming 37% Cybersecurity 30% Automation, ML & AI 27% Embedded software development 27% Source: CINDE, based on information provided by the companies to the Investment Advisory Department, 2020.#7COSTA RICA SERVICES SECTOR MULTILINGUAL SERVICES DELIVERY End-to-end centers offering services 24/7 Ideal time zone to service the Americas 84% Business centers provide regional and global support • Multilingual capabilities and experience serving multiple markets positions Costa Rica as a strategic hub to service the American continent Language capabilities in: • English Spanish Portuguese French German 66% ••CINDE essential INVEST IN COSTA RICA COSTA RICA Markets served from Costa Rica 36% 32% 23% 16% 16% North LATAM Local America EUR APAC Middle Africa East Source: Corporate Services Survey Costa Rica: KPMG Costa Rica & Chamber of High Technology Corporate Services (CamSCAT), June 2020.#8COSTA RICA - SERVICES SECTOR Contact centers • • • • • • Collections Legal collections Simultaneous Interpretation Video remote interpreting Customer Service/Care (via phone, e-mail & chat) Technical Support (Tier 1-4) • Sales/B2B sales Technical sales support • Billing ° Insurance validation ° Seller/Vendor support Marketing support IT support • Local IT support • IT Global Helpdesk • IT Infrastructure • • • • Network design, operations, support & maintenance Web Development & support Software design, development & validation Application design • Quality assurance & testing • Database administration . Big Data • Cybersecurity Cloud implementation • Data center operations Data entry, mining & processing Financial processes • General Ledger Accounts Payable • Accounts Receivable . Invoicing & Collections • Order-to-Cash • Purchase-to-Pay Record-to-Report Credit Verification • Fraud Control • Auditing • Reconciliation Cash Application • Cash flow management • Cost Accounting • Financial Planning & Analysis Fixed Assets • Controlling . Tax Filing & Analysis • Treasury Revenue Cycle • Transfer pricing Statutory audit ••CINDE essential. INVEST IN COSTA RICA COSTA RICA Human resources • Payroll • Benefits & compensation • Recruitment Screening & staffing services • Talent Management • • • • • . HR planning & reporting Expat relocations & training Learning and development Performance management Travel & expenses Employee data management Employee service desk Global mobility Hire to retire Marketing • Digital production • Web, microsites and banner design Content production and curation Social media planning & management Community management Procurement & supply chain • Procurement-to-Pay Bidding Strategic Sourcing & Purchasing Transportation planning and execution Suppliers & Vendor management Planning Forecasting and seasonality Customer order tracking Supply chain management Manufacturing planning Vendor & materials compliance Inventory allocation and management End-to-end logistics Advanced business services Master Data Management R&D Investment research Portfolio Analysis Risk Management • • SOX audit and controls . • Financial Reports • • FCC/GAAP reporting • Forecasting Report standardization Management reporting Campaign development • E-commerce Creative conceptualization • • Modeling • Web & mobile development . SEO, SEM 2D and 3D animation Postproduction • • Social listening Reporting • Strategic consulting • Contract reviewing Business process mapping • Digitalization • Robotic Process Automation • Machine learning implementation . Advanced Analytics • Compliance / anticorruption#9COSTA RICA - SERVICES SECTOR Digital Technologies • Banking & financial software development Insurance software development • ERP programming • . Statistical programming for clinical data Embedded software (front & back end) Software design, engineering, maintenance, customization & implementation Testing & development support for electronic devices (aeronautic industry) Back-End Programming Quality Assurance & Testing IT Architecture Solutions Business Intelligence & Analytics Technical Project Management Server administration Front-End web development Application design, development, maintenance & support Mobile application & software development Oracle consulting (apps and ERP, hosting & support) Engineering support for wireless communication Cloud services: storage & security. Cybersecurity Risk management Database administration Networking Digital Services • Digital production: multimedia, art direction, graphic design, storyboard illustration, web microsites, and banner design Digital marketing: content production, email production and management (viral mkt, search engine optimization) Social media management: intelligence, reporting, creativity, social network planning and media mgmt., community mgmt., production and development) Animation: 3D, HTML • • Gaming • • Advertising: interactive and digital ad, campaign development and promotions, multi-channel campaigns E-commerce • Creative design, direction & • Web Design, Development & • conceptualization Production User interface design: UX / UI Mobile app development (iOS and Android) Consumer behavior analysis: data and search analytics • VR & AR ••CINDE essential. INVEST IN COSTA RICA COSTA RICA Engineering and Design • • • • • • • Application Engineering Orthopedic Reconstruction & Design Orthodontic 3D Design Hardware design, development, testing & validation Architecture drawing & design CAD CAM Technology support Proof of concept Product testing Prototyping • Writing of technical manuals • Budgeting and sales support • Project Management • • Process Management Engineering R&D+i Invest with purpose#10Invest with purpose SERVICES IN COSTA RICA OUR TALENT MAKES THE DIFFERENCE ••CINDE essential INVEST IN COSTA RICA COSTA RICA fleve#11• COSTA RICA - SERVICES SECTOR A ROBUST EDUCATION SYSTEM Technical High Schools 136 institutions +16,500 technical high-school graduates in 2020 Annual growth rate of 13% since 2015 54 different specializations including Accounting, Graphic Design, Cybersecurity, Computer Programming, Service Center Executive, IT support, Logistics and Distribution, and other Services. +2,600 graduates on average each year in Accounting and finance since 2015 +2,000 graduates on average each year in Software and IT support since 2015 • Universities ⚫ 63 universities in total: 5 public and 58 private • 52,135 graduates in 2021 Over 122,000 students enrolled in state universities in 2021 +4,400 diplomas granted in engineering areas in 2021 +4,300 degrees granted in health sciences each year • Main engineering careers such as Electronics, Mechanical and Industrial are accredited by the CEAB in some institutions Sources: CINDE based on data from MEP, INA, CONARE, 2021 Notes: CEAB - Canadian Engineering Accreditation Board ••CINDE essential INVEST IN COSTA RICA COSTA RICA#12• • COSTA RICA SERVICES SECTOR UNIVERSITIES Total of 63: 5 public, 58 private Public Universities: • • Universidad de Costa Rica Instituto Tecnologico de Costa Rica Universidad Nacional Universidad Estatal a Distancia Universidad Tecnica Nacional Private Universities: • ULACIT • Universidad Creativa de Costa Rica Universidad Fidelitas ••CINDE essential INVEST IN COSTA RICA COSTA RICA University graduates, 2017-2024* Total graduates 2021: 52,135 60,578 57,622 54,810 52,135 47,312 47,998 44,869 41,893 • Universidad Hispanoamericana • Universidad Internacional de las Americas • Universidad Latina 2017 2018 2019 2020 2021 2022 2023p 2024p • Universidad Veritas Universidad CENFOTEC UCIMED, UNIBE (Medical and Life Sciences) Source: CINDE based on data from CONARE, 2022 Note: 2022-2024 CINDE projections.#13COSTA RICA - SERVICES SECTOR UNIVERSITY GRADUATES IN BUSINESS & ECONOMICS 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 University Graduates in Economic Sciences, 2017-2021 2017 2018 2019 2020 2021 Business administration Accounting 2022p 2023p 2024p Finance Marketing International business Economics Planning Others Note: 2022 to 2024 CINDE projections Source: CINDE based on data from CONARE, 2022 •CINDE essential INVEST IN COSTA RICA COSTA RICA Major programs include: . Business . Economics Finance and Accounting. Marketing Human Resources +13.700 graduates on average since 2017 Around 31% of total university graduates were in the fields of economic sciences#14COSTA RICA - SERVICES SECTOR UNIVERSITY GRADUATES IN SOFTWARE & INFORMATICS University Graduates in IT, 2017-2021 3,500 3,000 2,500 ••CINDE essential INVEST IN COSTA RICA COSTA RICA +70% of 2021 IT graduates, studied in an institution in the Central Region +2,500 diplomas in IT each year* 2,000 1,500 1,000 500 IT-related field Graduates 2021 Computer Sciences 256 Software Engineering 826 Computer Engineering 78 Information Systems 667 2017 2018 2019 2020 2021 2022p 2021p 2024p Information Technologies 927 I Information Systems Computer Science Note: 2022 to 2024 CINDE projections Source: CINDE based on data from CONARE, 2022 ■Software Engineering Information Technology Total 2,754 ■Computer Engineering *average for 2017-2021#15COSTA RICA - SERVICES SECTOR UNIVERSITY GRADUATES IN ENGINEERING University graduates in engineering, 2017-2024* 6,000 5,000 4,000 3,000 2,000 1,000 2017 2018 ■Industrial engineering Architecture Other engineerings 2019 2020 2021 2022p 2023p 2024p ■Mechanical engineering ■Electric engineering ■Civil engineering Electronic engineering Source: CINDE based on data from CONARE, 2022 Note: 2022-2024 CINDE projections. Others includes: Topography, Environmental, Occupational health, Chemistry, Materials and Electromedical engineering • ••CINDE essential INVEST IN COSTA RICA COSTA RICA #1 in Latin America Workforce Skills and Quality of Education: Skillset of Secondary-education graduates and University graduates Digital skills among population Source: WEF, Global Competitiveness Report, 2019#16COSTA RICA - SERVICES SECTOR ••CINDE essential INVEST IN COSTA RICA COSTA RICA TECHNICAL HIGH SCHOOLS +16,500 • GRADUATES IN 2020 Inclusive: +54% of graduates were women Technical high school graduates, thousands, 2016-2023* 24,587 21,532 18,857 16,514 14,562 13,506 54 different specializations in three areas (services, industrial, and agribusiness) 10,854 9,699 136 technical high schools (2021) Students graduate in diverse areas of professional specialization, some bilingual, including accounting, programming, electronics, graphic design, precision mechanics, software development, among others. Source: CINDE based on data from Ministry of Public Education, 2020 Note: 2020-2023 Forecast 2016 2017 2018 2019 2020 2021p 2022p 2023p#17COSTA RICA SERVICES SECTOR TECHNICAL HIGH SCHOOL GRADUATES FOR SERVICES OPS 14,000 12,000 10,000 8,000 6,000 4,000 2,000 2015 Technical high school graduates for services ops, thousands, 2015-2022* 2016 2017 2018 2019 2020 2021p 2022p ■Executive for Service Centers and Secretary ■IT Support ■Administration and Customs Operations ■Accounting and finance-related ■Informatics and Software Development Occupational health Design and Digital Development Source: CINDE based on data From Ministry of Public Education, 2021 Note: 2021-2022 Forecast CINDE -sential. INVEST IN COSTA RICA COSTA RICA 25 different specializations for services Some examples: • Accounting Banking & Finance • Computer Programming • Cybersecurity • Electronics Graphic Design Industrial Maintenance Logistics and Distribution • Network Informatics Software Development Informatics#18COSTA RICA - SERVICES SECTOR CINDE essential INVEST IN COSTA RICA COSTA RICA INVESTMENT CLIMATE A FOCUS ON TALENT DEVELOPMENT Building competitiveness advantages to improve the investment climate and enable growth opportunities for FDI companies and Costa Rica Understand companies' current & future needs Serve as liaison between stakeholders to enable alliances Improve & develop human talent capabilities Monitor & leverage key topics related to talent to improve investment climate#19COSTA RICA - SERVICES SECTOR ••CINDE essential INVEST IN COSTA RICA COSTA RICA AN ACTIVE TALENT DEVELOPMENT STRATEGY Open, receptive and collaborative Academia A constant collaboration between academia and companies allows the development of new programs, specializations and courses that fulfills the talent requirements of the private sector effectively. Focusing on the skills of tomorrow Specialized programs developed with local and international academia • • Leadership Agile methodology Six sigma Design thinking • Digital marketing User experience Software programming Georgia Tech CIID CCFENHAGEN INSTITUTE OF INTERACTION DES ON blueprism M UNIVERSITY OF MINNESOTA ULACIT UNIVERSIDAD LATINOAMERICANA DE CIENCIA Y TECNOLOGÍA COSTA RICA • . Artificial intelligence Web development Finance Blockchain • Data analytics • Cybersecurity RICE TEC Tecnológico coursera de Costa Rica universidad cenfotec Lab AST ARIZONA STATE UNIVERSITY TEXAS TECH UNIVERSITY#20Invest with purpose SERVICES IN COSTA RICA EXCELLENT BUSINESS CLIMATE AND QUALITY OF LIFE ••CINDE essential INVEST IN COSTA RICA COSTA RICA#21COSTA RICA - SERVICES SECTOR ••CINDE essential INVEST IN COSTA RICA COSTA RICA A country with the right setting for business Strong stability pillars Healthcare: 8.0% of GDP Education: 7.4% of GDP (2019) #2 in Political Stability and Absence if Violence/Terrorism in LATAM (Worldwide Governance Indicators 2020, World Bank) Costa Rica's democracy system stands out in Latin America (Democracy Index 2021, EIU) Costa Rica ranks #2 in the Social Progress Index in Latin America (Social Progress Imperative, 2021) San Jose is one of the Safest Cities in Latin America (Liveability Index 2021) Immigration Procedures Streamlines immigration applications and visa granting, and no limitation on number of foreigners working in companies#22COSTA RICA - SERVICES SECTOR 100% REDUNDANCY in our telecom infrastructure Lago Cocibolca Costa Rica - CINDE essential. INVEST IN COSTA RICA COSTA RICA Worldwide broadband speed league 2019 LATAM countries ranked - Out of 207 Uruguay 69 Panama 76 Mexico 98 Brazil 111 Costa Rica 117 Dominican Rep. 121 Chile 124 Paraguay 129 Colombia 131 Ecuador 132 Panama Guatemala 137 El Salvador 144 Peru 147 Honduras 148 Argentina 149 154 Robust optic fiber network through submarine cables in both coasts: Atlantic Maya, Arcos and AMX1 (2022*), Pacific - "Global Crossing" Nicaragua Bolivia 171 Venezuela 183 Sources: TeleGeography, November 2021, Worldwide broadband speed league 2019, cable.co.uk, 2019.#23Explore your possibilities in the ideal conditions to reach your SDGs ENVIRONMENT Reduction of carbon emissions prioritizing energy efficiency EQUALITY AND INCLUSION Reflect the diversity of your global operations 99% ELECTRICITY COMES FROM RENEWABLE SOURCES #1 GLOBAL GREEN ECONOMY INDEX IN LATAM 6.5% OF WORLD'S BIODIVERSITY #2 GENDER EQUALITY IN LATAM (HUMAN DEVELOPMENT REPORT, 2020) 49% NEW JOBS GENERATED BY MULTINATIONALS IN CR WERE HELD BY WOMEN 40% OF STEM ENROLLMENT IN UNDERGRADUATE AND GRADUATE PROGRAMS ARE WOMEN Invest with purpose ..CINDE INVEST IN COSTA RICA -essential COSTA RICA#24Why Costa Rica? ..CINDE essential COSTA RICA A proven track record with +320 high-tech multinational companies with operations in the country Exceptionally talented and bilingual young workforce. Ideal location in the middle of the Americas, which provides an ease of logistics and communications ((cps)) யை Excellent business climate based on a renowned democratic tradition, economic and political stability. Robust utilities infrastructure with almost 100% renewable energy and redundant telecommunications access. An attractive tax incentives package to drive competitiveness. The right place for business... Invest with purpose#25..CINDE INVEST IN COSTA RICA essential COSTA RICA Thank you! Learn more about Investing & setting up your operation in Costa Rica cinde.org CONTACT US ANA MARIA ROMERO [email protected] | +506 2201 2848 ERICK MORA ALVAREZ [email protected] | +506 2201 2840 ISAAC SOLIS [email protected] | +506 2201 2845 ..CINDE #1 INVESTMENT PROMOTION AGENCY IN THE WORLD Follow us invest_cr InvestInCosta Rica in cinde International Trade Center United Nations 2017 2018 - 2019 2021