Governments pave way forward with digital growth and ICT

Thursday, 14 November 2013 00:53 - - {{hitsCtrl.values.hits}}

By Cheranka Mendis The ICT industry has taken the world by storm, creating opportunities for investment across a cross-section of industries and sectors. While it is private sector’s contribution towards IT that has largely driven the growth of the industry in the Asian region as well as the Commonwealth, governments too have a role to play. Sharing the experiences of Sri Lanka, Pakistan and Bangladesh at the forum on digital growth chaired by Simba Tel Uganda Chairman Patrick Bitature at the Commonwealth Business Forum yesterday, the representatives noted the potential for cooperation as well as investment in the countries. Sri Lankan story Science and Technology Minister Prof. Tissa Vitharana pointed out that the ICT industry within Sri Lanka has grown through joint efforts by the Government, private sector, academia and industry. A number of capacity building programs have been set up to promote international standards in the local system, while the Government has made an enabling legal environment, protecting integrated circuits, software etc. under the Intellectual Property Act, in addition to other acts. The IT/BPO industry is progressing and is the sixth largest export revenue earner, catering mainly to the US and EU. “With the aim of reaching US$1 billion by 2016 and creating job opportunities for 100,000 people, and achieving US$5 billion by 2022 with 20,000 direct employment opportunities and 1,000 start-ups, Sri Lanka is growing as a knowledge service industry country,” Vitharana said. Within the industry, 60% of the companies are fully owned by Sri Lankans and 11% are joint ventures, while the others are funded through FDIs. “We have created a niche centre of excellence in the financial sector as well,” he said. Opportunities for investment exist in the ICT and mobile industries as Sri Lanka offers low costs, a highly skilled English-literate workforce with good business skills and infrastructure superior to other developing countries. “Sri Lanka is among the lowest risk emerging markets in terms of business security and personal safety.” Opportunities in Pakistan Pakistani Information Technology Minister Anushka Rehman emphasised that Pakistan looks at ICT in the context of equitable growth. The new government, which came to power in June this year, is setting up an agenda for the country in which IT has been listed as a key focus area. IT is looked not only as an enabler but also as contributor to the country’s GDP. “We seek accelerated digitisation. We believe that we need a knowledge sector which calls for ICT infrastructure among others,” Rehman said. She noted that Pakistan has one of the most liberal investment policies in the region, especially in the telecom sector, where FDIs have grown by US$ 7 billion over the last eight years. E-commerce has been introduced to the government sector as well. “We encourage foreign investment in technology projects and our government is keen on building technology parks to help this process,” Rehman said. Impacting thousands Expressing that technology adoption rate is growing in the region as well as in the world, BT India Managing Director Sudhir Narang assured that this would put pressure on governments to develop further infrastructure in this regard. Currently, ICT acts as an enabler in the Commonwealth, helping sectors across the economies, impacting millions in the cluster. “What the Commonwealth countries offer the world economy is skills, a young force, and low cost options.” Narang noted that under his company, three factors are considered prior to considering investment in counties – a cost innovation model, domestic market, and global platforms. “We need to look at new areas of growth. Internet users in these countries are still lower than in developed countries but there is potential. Children get used to internet in four hours,” he said. “ICT is here to be part of our lives.” IT development in Bangladesh DCCI President and Daffodil Computers Ltd. Bangladesh Managing Director Sabur Khan announced that the Bangladeshi Government has declared a ‘Vision 2021’ through which they hope to reach digitalisation. One of the key issues in the country is the slow implementation of e-governance, he said. However, the private sector is well developed and acts as the engine of growth. Last year DCCI, of which he is the President, turned all operations online, becoming the first institution in the country to do so. Investment opportunities exist in mobile and telecommunication, PPPs for which the Government recently passed an approval bill, outsourcing in which they hold the third ranking in individual outsourcing in the world, and in IT parks for which various tax concessions and holidays are given. “Mobile penetration of 100 million subscribers and a number of international mobile companies are looking at the country. Even the illiterate use smart phones.” Facing competition Lycamobile CEO and Co-Founder Milind Kangle added: “We are living in an increasingly personalised world and consumer’s will power is the new order and they demand greater quality of services and products.” Large corporations now have to work harder than ever to retain consumers in the face of fierce competition from smaller, nimbler options. The telecom industry is faced by challenges from those “who have come out of nowhere such as apple, Google, Facebook, etc.” For the Commonwealth, opportunities exist in creating a virtual mobile operator.