asian-oceanian computing industry organization strategic roadmap for enhancing bangladesh's...
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Asian-Oceanian Computing Industry Organization
Strategic Roadmap for Enhancing Bangladesh's Unique Position as Leading Outsourcing and Freelancing Destination
LOOI Kien LeongASOCIO Chairman
About ASOCIO A grouping of ICT associations representing the
Asian-Oceanian region.
Established in 1984.
ASOCIO Today
22 Member Economies
Represents more than 10,000 ICT companies in the region with ICT revenues of approx US$200 billion.
Objective Mission:
To be globally recognized as the champion for Asia Oceania in the promotion and facilitation of ICT trade and development for ASOCIO members.
Goals:
To create and facilitate frameworks and processes for ICT trade
To engage and influence Asia Oceania’s governments to reduce and remove global trade barriers, and develop the ICT industry
To assist member economies to build globally competitive ICT industry
To be the voice of ICT industry at international trade and technology fora
Brunei
ASOCIO Members
MCFMyanmar Computer Federation
P@SHA
MIDAS/MONITA
Australia – AIIA Bangladesh – BCS Brunei – Infocomm
Federation of Brunei Chinese Taipei – CISA Hongkong – ISIA India – NASSCOM Indonesia - ASPILUKI Japan – JISA Korea – FKII Laos - LICA Macao - CCM Malaysia – PIKOM Mongolia – MIDAS/MONITA Myanmar – MCF Nepal – CAN New Zealand – ITANZ Pakistan – PASHA Philippines – BPA/P Singapore – SiTF Sri Lanka – FITIS Thailand - ATCI Vietnam - VINASA
ICT CAMBODIA
Activities
Multilateral Trade Visits
Plenary Meetings
General Assemblies
Annual ICT Summits
Regional ICT Minister-ASOCIO Dialogues
Ambassador Program
Public Policy Initiatives
Services Trade Leads
Company Listings – ASOCIO Business Directory
Industry Profile
Statistics
Government Policies and Programs
Event support
Information support
Global services, excluding BPO, R&D and Engineering outsourcing market worth U$770B, CAGR 8%
IDC estimates that the global BPO market will grow at a five-year CAGR of 5.8%, reaching US$193 billion by 2014.
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Outsourcing At a Glance
3 most strongly adopt Outsourcing:•Web/e-commerce systems•Application development•Application maintenance
As companies face shortages of e-business application development
skills and narrowing of time-to-delivery requirement
What is Outsourcing
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Total Available Market- All services rendered by 3rd
Party IT providers in the areas of Business & IT
Outsourcing. Include areas of work for vendor who choose to expand their
businesses geographically to deliver services from where
the demand stemsTotal Addressable Market
- Is a sub-set of the available market and represents the
export of the aforementioned services to a country other
than where the services demand originates
2012 Trends & Opportunities
The global IT outsourcing market traditionally outpaced the BPO market growth, but that’s changing
Gartner expects higher demand from services related to customer management, HR outsourcing, banking, financial, billing BPO services and supply management through 2015
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Outlook on 2012 Outsourcing
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Tight Budgets• Minimal discretionary spending• Approvals require rigorous ROI explanations
Operating Model
• Clients frustrated with suppliers ‘ raising cost, governance challenges & uneven performances
Pricing & Wages
• Weak exchange rates and weakness on USD place pressure on suppliers
• Higher inflation anticipated 10-15% in APAC & 8% in Us & Europe
Hiring• Supplier will hire more new-graduates resulted from market
growth and need to reduce cost
Risk Management
• Proactive risk management is important the continued growth of outsourcing industry
Geographic location
• Increase demand on suppliers’ global delivery models with 24/7 coverage
Outsourcing Challenge # 1
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Offshore outsourcing has propelled several countries to prominence in the global business
map. At the same time, it has also worked against the offshoring-worthiness of some destinations due to increasing wages. In
Moscow, IT wages have increased by 50 percent in the past three years. Banking industry IT
turnover in some cities of India has exceeded 30 percent. Hiring talented IT professionals is seen
as one of the biggest challenges for firms.
Gartner’s ranking of offshore outsourcing ‘hot spots’
Competition amongst other countries / region
Outsourcing Challenge # 2
Reason Companies outsource Reduction of Cost or Internal headcountConstrained by increase Capacity & market demandInternal service performance does not meet requirement
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Outsourcer need to sustain by being cost competitive
while meeting service performance
Outsourcing Challenge # 3
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While Organization looking at improvement of business operations, Outsourcer will have toManage Cost while maintained being competitiveOperational efficiencies by retaining talentTransformation
Malaysia: A Case Study
A.T. Kearney Global Service Location Index 2011, India remains the global leader in Outsourcing followed by China and Malaysia.
Ranks countries based on their attractiveness across IT, BPO & Voice Work and survey selected based on corporate input, current remote service, government initiatives to promote the sector.
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What is ETP?
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Economic Transformation Program (ETP)• A comprehensive effort that will transform
Malaysia into a high-income nation by 2020.
Main Objective• To lift Malaysia’s gross national income (GNI)
per capita from USD6,700 or RM23,700 in 2009 to more than USD15,000 or RM48,000 in 2020
WHAT IS EPP?
Entry Point Projects is a growth catalyst Part of the Economic Transformation Program (ETP) Are clearly defined initiatives With implementation plans and funding requirements
clearly articulated.
Entry Point Project 2? Positioned under Business Services EPP Aspiration to create at least 2 globally recognized
outsourcing champions. Put in place policy incentives and marketing initiatives to
allow smaller companies to flourish.18
What Can Bangladesh Do?
Invest in people. Abundant English Speaking Human Resource
Develop Infrastructure Government Support Market Strengths Identify Champions Strengthen Overall Macro Economic Environment
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