Transcript apd sunum

Global network
of innovation
FDI and Offshoring
within the ICT Sector
Mustafa Çağan
November 2005
Global network
network
Global
of innovation
innovation
of
Service Economy
Services have steadily increased their share of global GDP.
Source: World Development Report 2000/2001
And service economy has no boundary!...
If you lose your luggage on British Airways, the techies who track it down are
here in India. If your Dell computer has a problem, the techie who walks you
through it is in Bangalore, India's Silicon Valley. Ernst & Young may be doing
your company's tax returns here with Indian accountants. The brain chip for
every Nokia cell phone is designed in Bangalore. Renting a car from Avis
online? It's managed here.
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Global network
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Global
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Country Specialization Examples by Niche
Ireland :
• Packaged Applications
• Localization
Russia :
• High-End Software Eng.
• Product Development
China :
• Embedded Software
• Hardware Services
• Localization
Canada :
• Application Development
• Application Development
• BPO
• Contact Centers
Israel :
• High-End Software
• Learning Systems
Philippines :
India :
• Application Outsourcing
• ITO
• BPO
• Product Development
• Contact Centers
• BPO
• Contact Centers
• Animation
• Application Development
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A Real Success Story: Philippines
 Consists of 7,108 islands off the southeast coast
of the Asian mainland
Location is strategic
“Situated on the crossroads of Asia’s
commerce and transportation, it plays a significant role in
international affairs. It serves as a bastion of democracy
and a convenient and vital link between the two worlds –
the East and the West.”
Doing Business in the Philippines” by Price Waterhouse
“ICT will be our leading sector for
economic growth… We expect ICT to
be the key to finding our proper niche
in the global village in the 21st
century.”
-President Gloria Macapagal-Arroyo
2000
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In 2004 they reached export volume of
1.4 B USD in IT Services
268 M USD*
483 M USD*
40 M USD*
Examples of
Global
References
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Source: Outsource Philippines, CEO forum 2004 (Figures are 2004 Estimates)
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Philippines: Levers of the Success Story
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Philippine Economic Export Zone (PEZA): Free Trade
zones for IT Services Export
Philippine Export-Import Credit Agency (PhilEXIM)
 Loan guarantee
 Export Credit Insurance
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Technical Education and Skills Development Authority
(TESDA)
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What about Turkey?
Strategy: Missing long term strategy and also ownership in
the Government about ICT
Regulations: Insufficient regulations and incentive
mechanism
Technopolice: Limited contribution to the service export
Education: Current education system does not match the
need in the market
50 M USD IT Services’ Export
%17,6 young population unemployment rate (Source: DIE 2005)
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If we don’t, someone will do!
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Global network
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Back Up
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Global network
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%60 Electronic
Equipment and Parts...
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