THE “IT” INDUSTRY
IT is fundamentally altering other industries, and automation is changing employment patterns—making Costa Rican IT the industry to be in.
In the current iteration of industrial revolutions, new technologies and fast exchange of information have transformed industries, from manufacturing to banking, and modified the way businesses and institutions conduct their operations. The Internet of Things, big data, automation, artificial intelligence, and cyber security impact all industries. Just as in previous industrial revolutions, those who do not adapt will quickly get left behind.
Costa Rica, as a high-tech service exporter, recognizes the imperative need to adapt to modern digital processes and supply the right manpower to complement new machine power. This fourth industrial revolution, also known as Industry 4.0, combines physical reality and the cyberspace of information. Just as in previous industrial revolutions, some jobs will disappear. But new jobs to most efficiently integrate new technologies and analyze the exponentially exploding amounts of data offer new openings, especially in Costa Rica.
The country has become the back-office of the world, just as China was once called the factory of the world. This is because large companies like Roche, Wal-Mart and Pfizer have established in the country shared-services operations that are exported to markets in North America, Asia, and Europe. According to the Costa Rican Investment Promotion Agency (CINDE), IT service exports represent 6.2% of GDP.
The arrival of Intel, Hewlett Packard, and IBM has placed Costa Rica's software sector amongst the most dynamic industries in Latin America. The Inter-American Development Bank expects that San José will be in the five most important poles in Latin America for the development of the ICT and software industries by 2025—along with Buenos Aires and Córdoba, Argentina; Montevideo, Uruguay; and Santiago, Chile.
Multinational technology company IBM established its operations in Costa Rica in 2004. Today, the company exports services like finance and accounting, supply chain management, cyber security, and business management operations. IBM Country Manager Alberto Mainieri told TBY, “In terms of providing services, the country is well equipped and has the capability to develop the right technical skills and professionals to succeed in this era.” He remarked that private and public sectors must work together with the education sector to develop programs and support schools, technical high schools, and universities.
The country manager of Accenture, an international business management consultancy, concurred, noting that the government is putting efforts into policies that foster creativity and encourage students and universities to specialize in strategic fields such as big data, cloud computing, and analytics.
Enrique Egloff, President of the Costa Rican Chamber of Industries mentioned to TBY, “The speed of technology is going to take us through innovation and new economic activities.” He added that higher added value is extremely important, as well as competitiveness, productivity, and the capacity of human resources and a strong educational system. For this reason, private companies and business chambers have urged universities to promote IT, engineering, and mathematics studies. The Ministry of Education has recently launched dual education programs, in which students are trained in technical schools and the field. Also, the government raised the budget by 6.9% for research and development in 2017.
Though, filling ICT positions will require further investment in R&D to develop the knowledge-based economy and adapt to the latest industrial revolution, according to OECD's Science, Technology, and Innovation Outlook 2016. Local companies indicate low levels of productivity in proportion to the rising flow of FDI. For this reason, the government has focused on further investing in education and creating programs to develop R&D capabilities to better integrate the private sector, IT, and education. Many industry leaders come to the same conclusion: financial capital and technology need to be combined with the right human capital for optimal outcomes.
With all the focus from the private sector, government institutions, educators, and foreign investors, IT is Industry 4.0's “it” industry. And Costa Rica is a hot spot for the building of this new economic pillar.
THE “IT” INDUSTRY
TABLE OF CONTENTS
Interview
Yamileth Astorga, President, Costa Rican Institute of Aqueducts and Sewers (AyA)
TBY talks to Yamileth Astorga, President of the Costa Rican Institute of Aqueducts and Sewers (AyA), on the challenges of providing high-quality potable water and working to prevent a water deficit.
read articleInterview
Luis Carlos Delgado Murillo, President, National Supervisory Council for the Financial System (CONASSIF)
TBY talks to Luis Carlos Delgado Murillo, President of the National Supervisory Council for the Financial System (CONASSIF), on the importance of collaboration between the private and public sectors and facilitating new business.
read articleInterview
Minor Rodríguez, General Manager, Coopesa
TBY talks to Minor Rodríguez, General Manager of Coopesa, on being the only self-managing cooperative in the world dedicated to heavy aircraft, the importance of communication, and maintaining a flat and democratic governance structure.
read articleReview
Reaching the Sky
The construction sector in Costa Rica has recovered significantly from a slump in 2016. However, the country has much to accomplish, especially in terms of ensuring new residential projects are inclusive for all income levels and fixing the infrastructure problem.
read articleInterview
Dr. Fernando Llorca Castro, Executive President, Caja Costarricense del Seguro Social
TBY talks to Dr. Fernando Llorca Castro, Executive President of Caja Costarricense del Seguro Social, on the importance of institutional longevity, joining the OECD, and bringing standardized services to every part of the country.
read articleFocus: Education Training
Get the Ball Rolling
One of the main factors that attracts investors to Costa Rica has been its skilled human capital. For this purpose, the government and academia are collaborating to improve programs and better align them to the requirements of several industries.
read articleReview: Education
Class Is In Session
High levels of public investment have made Costa Rica's education system one of the strongest in Latin America, and government leaders are working to improve teacher quality and ensure that the poorest Costa Ricans have access to quality secondary and tertiary schools.
read articleInterview
Marco Robert, General Manager, IMC Interamericana Medios de Comunicación
TBY talks to Marco Robert, General Manager of IMC Interamericana Medios de Comunicación, on the importance of articulating a clear philosophy, the industry's biggest weaknesses, and the ideal advertising setup.
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