Outsourcing in Mauritius€¦ · Outsourcing: Global Services Location Index 2007. 21 February 2008...

Outsourcing in Outsourcing in MauritiusMauritius

Dr M K OolunDr M K OolunICT Authority ICT Authority –– Mauritius Mauritius

21 February 200821 February 2008 Symposium on Telecom Symposium on Telecom -- GenevaGeneva 22

Presentation outline Presentation outline •• Mauritius ???Mauritius ???•• Mauritius commitments Mauritius commitments -- White paperWhite paper•• LiberalisationLiberalisation processprocess•• PoliciesPolicies•• ICT factsICT facts•• New orientations New orientations –– ITES (outsourcing)ITES (outsourcing)•• Outsourcing value chain Outsourcing value chain •• The way forwardThe way forward


Country Profile Country Profile -- 11

•• A volcanic island of lagoons and palmA volcanic island of lagoons and palm--fringed beaches in the Indian Ocean, fringed beaches in the Indian Ocean, has a reputation for stability and has a reputation for stability and harmony among its mixed population harmony among its mixed population of Asians, Europeans and Africans.of Asians, Europeans and Africans.


Country Profile Country Profile -- 22•• Full name: Full name: The Republic of Mauritius The Republic of Mauritius •• Population: Population: 1.26 million1.26 million•• Capital and largest city: Capital and largest city: Port Louis Port Louis •• Area: Area: 2,040 sq km (788 sq miles) 2,040 sq km (788 sq miles) •• Major languages: Major languages: English, French (both official), Creole, Indian English, French (both official), Creole, Indian

languages languages •• Major religions: Major religions: Hinduism, Christianity, Islam Hinduism, Christianity, Islam •• Life expectancy: Life expectancy: 69 years (men), 76 years (women) 69 years (men), 76 years (women) •• Monetary unit: Monetary unit: 1 Mauritian rupee=100 cents (1USD = 28MUR)1 Mauritian rupee=100 cents (1USD = 28MUR)•• Main exports: Main exports: Sugar, clothing, tea, Sugar, clothing, tea, jewelleryjewellery•• GNI per capita:GNI per capita: US $5,450 (2007)US $5,450 (2007)•• Internet domain: Internet domain: ..mumu•• International International diallingdialling code: code: +230+230


GATS commitment of MauritiusGATS commitment of Mauritius

•• Voice telephone servicesVoice telephone services•• PacketPacket--switched data transmission servicesswitched data transmission services•• Circuit switched data transmission services Circuit switched data transmission services •• Telex services Telex services •• Telegraph servicesTelegraph services•• Facsimile servicesFacsimile services•• Private based circuit servicesPrivate based circuit services•• Electronic mailElectronic mail•• Voice mailVoice mail


December 1997 December 1997 –– White paper in White paper in TelecomTelecom

•• Government expressed its determination Government expressed its determination to ensure the widest participation in the to ensure the widest participation in the formulation of any policy bearing in mind formulation of any policy bearing in mind the nation’s interest and the will to push the nation’s interest and the will to push Mauritius forward as an infoMauritius forward as an info--communications hub in the region. communications hub in the region.


Principles Principles -- 11•• RegulationRegulation

–– responsibility of the regulator is therefore to responsibility of the regulator is therefore to ensure that operators feel the pressure to ensure that operators feel the pressure to meet the needs of users (e.g., affordability, meet the needs of users (e.g., affordability, interconnection, availability and quality of interconnection, availability and quality of service)service)

•• Private Sector ParticipationPrivate Sector Participation–– Local EntrepreneursLocal Entrepreneurs–– Strategic Equity PartnersStrategic Equity Partners–– Financial (or Portfolio) InvestorsFinancial (or Portfolio) Investors


Principles Principles -- 22

•• Market Entry and CompetitionMarket Entry and Competition

•• Information Sector PromotionInformation Sector Promotion

–– Falling costs to make remoteness less important.Falling costs to make remoteness less important.

–– ICT as a sectorICT as a sector

–– ICT as an enabler ITES (banking and financial ICT as an enabler ITES (banking and financial

services)services)

–– Outsourcing Outsourcing


LIBERALISATION PROCESS LIBERALISATION PROCESS -- 11

•• Phase IPhase I–– 1998 1998 -- Completion of initial phase of privatisation of Completion of initial phase of privatisation of

Mauritius TelecomMauritius Telecom

•• Phase IIPhase II•• From 1997 through yearFrom 1997 through year--end 1998end 1998

–– new legislationnew legislation–– establishment of the new Mauritius Telecommunications establishment of the new Mauritius Telecommunications

AuthorityAuthority–– establishment of the new Telecommunications Advisory Councilestablishment of the new Telecommunications Advisory Council–– intensive initial policy and regulatory decisionintensive initial policy and regulatory decision--makingmaking–– intensive activity toward the initial partial privatisation of intensive activity toward the initial partial privatisation of

Mauritius Telecom.Mauritius Telecom.–– opening up of some additional services to competition;opening up of some additional services to competition;


LIBERALISATION PROCESS LIBERALISATION PROCESS -- 22

•• Phase III Phase III –– From 1999 to 2004From 1999 to 2004

•• gradual sector liberalisationgradual sector liberalisation•• the advent of competition across other market the advent of competition across other market

segmentssegments

•• Phase IV Phase IV –– From 2005 and beyondFrom 2005 and beyond

•• full compliance with WTO obligations.full compliance with WTO obligations.


ICT facts ICT facts –– Dec 2007Dec 2007•• Indicators:Indicators:

–– Fixed density = 28.4% (2 ops)Fixed density = 28.4% (2 ops)

–– MobidensityMobidensity = 65.3% (3 ops)= 65.3% (3 ops)

–– Broadband = 11%Broadband = 11%

•• Services:Services:

–– Triple play since Nov 2005Triple play since Nov 2005

–– MM--banking Dec 2006banking Dec 2006


ICT sector turnoverICT sector turnover

Source: derived from CSO and ICTA basic data


Policy ReviewPolicy Review

•• The characteristics of the telecommunications The characteristics of the telecommunications

sector make it imperative for relevant policies sector make it imperative for relevant policies

to be reviewed regularly thus making the to be reviewed regularly thus making the

process of policy making exercise a dynamic process of policy making exercise a dynamic

one.one.


The reviewsThe reviews•• 2001 2001 –– replacement of the TA 98 by the replacement of the TA 98 by the

ICT Act 2001 to bring in convergence ICT Act 2001 to bring in convergence issuesissues

•• 2003 2003 –– bringing forward the liberalisation bringing forward the liberalisation datedate

•• 2004 2004 –– NTP 2004 to revise previously set NTP 2004 to revise previously set targetstargets

•• 2007 2007 –– Elaboration of the NICTSP: new Elaboration of the NICTSP: new orientation orientation


3.22.9

2.83.2

2.63.3

2.73.3

3.22.6

1.72.8

3.23.1

2.42.4

2.62.6

3.32.7

0.53.02.9

2.52.8

2.32.3

1.31.21.8

1.51.2

1.21.0

1.51.5

1.01.1

1.01.01.10.9

1.21.0

0.92.7

1.01.3

1.01.0

1.41.4

2.01.6

1.51.11.91.31.61.62.5

1.81.31.52.22.12.01.81.21.92.31.51.32.01.6

IndiaChina

MalaysiaThailand

BrazilIndonesia

ChilePhilippines

BulgariaMexico

SingaporeSlovakia

EgyptJordanEstonia

CzechLatvia

PolandVietnam

UAEUSA (Tier II)

UruguayArgentinaHungaryMauritius

EnvironmentFinancial PeopleCountry score: Source: A.T. Kearney Global Services Location Index 2007

Outsourcing: Global Services Location Index 2007


Costs are low, but by no means close to

lowest cost

Language capabilities are a trump card

Favorable business environment among emerging markets

Small size of labor force defines

competitive position

Mauritius is a mid rank

country in the index

Source: BOI Mauritius


BPO reality for Mauritius BPO reality for Mauritius


E1 full circuit IPLC MU-UK

4011

223

338

1360

013

600

1360

011

500

8900

6900

01000020000300004000050000

2001 2002 2003 2004 2005 Feb-06

Jul-06

Sep-07

year

US$


Value chainValue chain•• Basic call centreBasic call centre•• BPOBPO

–– Finance & Accounting (Finance & Accounting (AccentureAccenture, Deloitte consulting), Deloitte consulting)–– Travel & Hospitality (Travel & Hospitality (QuatrroQuatrro) ) –– Insurance (Momentum)Insurance (Momentum)

•• KPOKPO–– data gathering and validation (ASSET4)data gathering and validation (ASSET4)

•• LPOLPO–– LALIVE, SwitzerlandLALIVE, Switzerland

•• HRO (Ceridian)HRO (Ceridian)


Source: BOI

21 February 200821 February 2008 Symposium on Telecom Symposium on Telecom -- GenevaGeneva 2222Source: BOI


Source: BOI


Key drivers for sector development Key drivers for sector development

•• Political willPolitical will

•• Clearly defined policyClearly defined policy

•• The Regulatory environment which should The Regulatory environment which should be compliant with the Regulatory state be compliant with the Regulatory state model (stability, continuity, perpetual and model (stability, continuity, perpetual and adaptive nature)adaptive nature)

•• The PR The PR


Way forwardWay forward• Growth Areas

–– Architectural Outsourcing (Architectural Outsourcing (MahindraMahindra))– Pharmaceutical– Biotechnology– R & D

•• Regulatory reform in line with the ‘Reform Regulatory reform in line with the ‘Reform Continuum Model’ Continuum Model’ –– evolving business model of evolving business model of ICT regulators towards achieving deregulation of ICT regulators towards achieving deregulation of the sectorthe sector

Thank You very much for Thank You very much for

your kind attentionyour kind attention

Dr M K Dr M K OolunOolunExecutive Director Executive Director –– ICTA MauritiusICTA Mauritius

Contact: Contact: [email protected]@icta.mu

Outsourcing in Mauritius€¦ · Outsourcing: Global Services Location Index 2007. 21 February 2008...

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