Global network of innovation FDI and Offshoring within the ICT Sector Mustafa Çağan November 2005.
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Transcript of Global network of innovation FDI and Offshoring within the ICT Sector Mustafa Çağan November 2005.
Global networkof innovation
FDI and Offshoring within the ICT Sector
Mustafa ÇağanNovember 2005
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Global networkof innovation
Global networkof innovation
Services have steadily increased their share of global GDP.
Service Economy
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.
And service economy has no boundary!...
Source: World Development Report 2000/2001
Global networkof innovation
Global networkof innovation
Country Specialization Examples by Niche
Ireland :
• Packaged Applications
• Localization
• Product Development
Russia :
• High-End Software Eng.
Canada :
• Application Development
• BPO
• Contact Centers
Israel :
• High-End Software
• Learning SystemsIndia :• Application Outsourcing• ITO• BPO• Product Development• Contact Centers
Philippines :
• BPO
• Contact Centers
• Animation
• Application Development
China :
• Embedded Software
• Hardware Services
• Localization
• Application Development
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Global networkof innovation
Global networkof innovation
Consists of 7,108 islands off the southeast coast of the Asian mainlandLocation 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
A Real Success Story: Philippines
“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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Global networkof innovation
Global networkof innovation
In 2004 they reached export volume of 1.4 B USD in IT Services
Source: Outsource Philippines, CEO forum 2004 (Figures are 2004 Estimates)
40 M USD*
268 M USD*
483 M USD*
Examples of Global
References
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Global networkof innovation
Global networkof innovation Philippines: Levers of the Success Story
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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Global networkof innovation
Global networkof innovation 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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Global networkof innovation
Global networkof innovation If we don’t, someone will do!
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Global networkof innovation
Global networkof innovation
Back Up
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Global networkof innovation
Global networkof innovation
%60 Electronic Equipment and Parts...