SlideShare a Scribd company logo
III SALIENT                                              III.2 ESTABLISHED PLAYERS

FEATURES OF THE                                          India
                                                         Over the last two decades, India has become a world
ICT/ICTE INDUSTRY                                        leader in the ICT/ICTE industry. Multi-national
                                                         corporations spearheaded the process, by establish-
                                                         ing ‘captive’ operations in the early 1990s. This was
                                                         quickly followed by the emergence of a vibrant
III. INTRODUCTION                                       domestic industry. Today, the Indian ICT industry
                                                         can compete with the world giants, and Indian high
There are major variations in the size, composition,     tech clusters are home to advanced RD centers
dynamism and market orientation of the ICT/              serving several global industry leaders. In 2006, total
ICTE industries in the ten countries surveyed.           sales reached US$37.4 billion, which represented a
Therefore, for analytical purposes, it is useful to      31% growth over the previous year—total employ-
group these countries along a few key dimensions,        ment was in the order of 1.3 million. The software
such as the size, diversification and innovativeness     development and IT services segment dominate the
of ICT/ICTE activities. In terms of turnover,            Indian ICT industry. In 2006 there were about
exports and employment, India is in a league apart,      US$17 billion worth of exports, mostly to the US
followed at considerable distance by Brazil. The         and other western countries. The 4,000–5,000
least developed economies, such as Senegal and           companies active in this segment are mostly SME,
Kenya, display a concentration on a few, basic lines     but they also include world leaders such as HCL,
of business. In the more advanced countries,             Infosys, TCS and Wipro, all of which are in the
virtually all ICT/ICTE activities are present. There     billion-dollar club. India is also home of a powerful
is often a strong correlation between diversification    ICTE sector. This includes a number of captive
and innovativeness. In India, and to a lesser extent     operations, resulting from the relocation of labor
Brazil, the ICT/ICTE industry is characterized by        and skill intensive activities from Western countries,
the massive presence of knowledge-intensive              as well as no less than 200 medium-sized Indian-
activities, which often go beyond the outsourcing        owned companies, active in the provision of
logic that initially triggered the growth of the ICT     customer care, account management, and financial
industry. By contrast, in countries with an infant       processing for international clients. The manufacture
ICT/ICTE sector, the bulk of activities are of a         and assembling of hardware is comparatively less
relatively simple nature, such as sales and mainte-      developed. MnC investments tended to privilege
nance, IT consultancy, basic Internet services, basic    other Asian countries, and the bulk of production is
software customization, and sometimes telemarket-        destined to the growing internal market. An
ing services. Based on the above factors, the ten        estimated 150 Internet service providers and
countries surveyed can be grouped into three             100,000 public internet points (cybercafés) provide
categories. The first category is established players,   connectivity services.
and includes India and Brazil. The second is
emerging players, and includes the Philippines,          Brazil
Morocco, Argentina, Vietnam, Ukraine and Peru.           Brazil is the leading player in Latin America, with a
The third is marginal players, and includes Kenya        large domestic market, good research facilities and
and Senegal.                                             manufacturing capabilities. The leading hardware
                                                         producers started operating in the 1980s. This
                                                         acted as a catalyst for further investments and
                                                         nurtured the start-up of new suppliers of compo-
                                                         nents, distributors and service providers. The birth



                                                                      Salient Features of the ICT/ICTE Industry
of the software development segment is a more             Argentina
    recent phenomenon, mainly linked to the diffusion         In Argentina, the ICT/ICTE industry was severely
    of the Internet. In 2005, the Brazilian ICT/ICTE          hit by the financial crisis of 2001 and by the end of
    industry reached a total turnover of some US$15.5         ‘dot com’ bubble, but it is now showing encouraging
    billion—this included US$5.7 billion for hard-            signs of recovery. At present, the industry includes
    ware, US$7.4 billion for software and ICT services,       some 700 companies. The majority are micro and
    and US$2.4 for ICTE activities. Total employment          small businesses, many of which have been recently
    is estimated at about 900,000. The software and IT        established. The main lines of business are the
    services segment encompasses some 3,500 enter-            distribution of IT equipment and the provision of
    prises, including a dozen large payers. Foreign-          ‘basic’ IT services, but software development and
    developed applications still account for the bulk of      value-added services are gaining ground. In 2005,
    sales, but domestic products are progressively            the overall turnover was around US$2.5 billion, of
    gaining ground. The ICTE sector includes about            which around US$1.3 billion related to software
    1,000 call centers, and a few hundred other BPO           development and ICT/ICTE activities. Sales are
    operations. They mostly serve the domestic market.        predominantly in the domestic market, where the
    Less than 10% of turnover is generated by overseas        devaluation triggered a major trend towards import
    contracts, mostly with US clients. Sizeable agglom-       substitution. However, recently there has been an
    erations have emerged, such as the Sao Paulo/             increasing trend toward exports of ICT applications.
    Campinas cluster, which combines hardware                 The ICTE industry is also in a growing phase. It has
    manufacturing and software development, and the           been estimated that call centers have reached a total
    Recife cluster, which specializes in ICT/ICTE             capacity of some 40,000 seats, and that total
    services.                                                 employment is 160,000–190,000.

                                                              morocco
                                                              Morocco has a relatively small but lively ICT sector,
    III. EMERGING PLAYERS                                    comprised of about 200 société de services d’ingénierie
                                                              en informatique. Most Moroccan ICT firms are
    The Philippines                                           involved in the provision of relatively basic services,
    The importance of the Philippines’ ICT/ICTE               such as customized software and web applications,
    industry on a regional and global scale is rapidly        but in certain segments they have reached a
    growing. In fact, the country offers a unique             remarkable position and gained a good international
    business environment, combining cost-efficiency           reputation. This is especially true of payment
    with a good quality infrastructure and, most              solutions and ERP systems, where Moroccan
    notably, excellent linguistic capabilities. The           companies have won important contracts in other
    Philippines are primarily a manufacturing base for        francophone countries. Morocco also boasts a fast
    large producers of hardware and components. In            growing ICTE sector, including about 150 call
    2005, exports of semiconductors were around               centers and other BPO companies, which employ
    US$15 billion. Gradually, the country has also            no less than 25,000 people. These include foreign as
    become an important competitor in the field of            well as locally-owned firms, which serve the French
    outsourced ICT and ICTE services. In 2005, total          and, to a lesser extent, Spanish markets.
    turnover (excluding hardware) was in the order of         Connectivity services are provided by a few ISP and
    US$3.5–4 billion, while employment was about              by a network of more than 10,000 cybercafés, which
    200,000. The ICT/ICTE industry includes about             employ about 15,000–20,000 workers. In 2006, the
    1,000 enterprises, including the following: (i) 300       Moroccan ICT/ICTE industry reached a total
    ISP and value-added providers; (ii) 300 software          turnover of US$700–900 million, with an employ-
    developers; (iii) 100 call centers; (iv) 70 transcrip-    ment in excess of 50,000.
    tion services providers: (v) 60 BPO operations;
    (vi) 40 animation and 3D graphics studios; and            Ukraine
    (vi) 100 firms involved in the sale and installation of   Ukraine is becoming an increasingly important
    IT equipment and software. The vast majority of           player in the ICT/ICTE industry. Over the past few
    Filipino ICT/ICTE enterprises have fewer than 50          years, Ukrainian ICT/ICTE firms have been able to
    employees.                                                acquire important clients in the international



20 Financing Technology Entrepreneurs  SmEs in Developing Countries: Challenges and Opportunities
outsourcing market for advanced RD and software          and (iii) the provision of fairly basic IT consulting
engineering, thanks to the availability of a large pool   services. There are also a handful of companies
of highly qualified people. The manufacturing/            involved in the assembly of PC. Total turnover is
assembling of hardware is also expanding, but in this     around US$1 billion, including about US$50
case, most sales are in the domestic market. Total        million for locally developed software solutions,
turnover is in the order of US$2 billion, of which        and US$300 million for IT services. The level of
some US$500–600 million relate to IT outsourcing          employment in the ICT/ICTE sector is unknown,
activities. It is estimated that employment is around     but it is unlikely to exceed the 10,000 benchmark.
40,000–50,000. The industry includes an estimated
2,000 firms, with a number of foreign-owned
operations, about 50 medium-sized locally-owned
companies, and a plethora of small and micro              III. MARGINAL PLAYERS
enterprises. It is estimated that the number of ISP in
operation is 250–400. The subsidiaries of the main        Senegal
telecom operators are in a dominant position. There       Senegal’s ICT/ICTE sector is very small and has
are also about 3,000 small cyber cafés.                   little diversity. It includes about 50 software
                                                          developers and IT service providers, a dozen call
Vietnam                                                   centers, and a handful of BPO service providers. In
The core of Vietnam’s ICT industry is represented         addition, there are an estimated 200 small retailers
by the manufacture and assembling of hardware,            and installers of IT equipment. Connectivity
which accounts for an estimated 85% of the total          services are provided by a couple of main ISP and
ICT/ICTE turnover of US$1.8–2.0 billion. This is          by about 400 cybercafés, mainly based in Dakar.
due to the presence of manufacturing plants               Total turnover is not known, but it is unlikely to
operated by multinational companies, such as Intel,       exceed US$150–200 million. Total employment is
Fujitsu and Canon. Software and ICT/ICTE services         probably in the order of 6,000–8,000, of which
generate more modest revenues—about US$250–               2,000 work in the call centers sub-sector. This
300 million. Total employment is grossly estimated        appears to be the most promising line of business in
to be about 40,000–60,000, with the hardware              the near future, thanks to the availability of good
industry accounting for most. The Vietnamese ICT/         international broadband connections and of a well-
ICTE industry consists of about 1,400 enterprises.        educated, French-speaking, and cost-effective
These include the following: (i) a few subsidiaries of    workforce.
foreign IT equipment manufacturers; (ii) a dozen
medium-sized to large state-owned companies; and          Kenya
(iii) a large number of small and micro enterprises,      Kenya’s ICT/ICTE sector is extremely modest. It
whose activities range from simple ‘sale  mainte-        consists mostly of vendors and installers of hardware
nance’ to more sophisticated processes in the field of    and software, with only a few firms involved in the
software development and IT services. The develop-        provision of basic IT services (web designing,
ment of BPO services is constrained by linguistic         development of customized solutions, and transla-
barriers, and existing operations are limited to          tion of standard packages in Swahili). The develop-
testing and transcription services. Internet access is    ment of call centers and other BPO activities is
provided by 15 ISP, but the share’s lion is controlled    hampered by the lack of adequate infrastructure.
by three state-owned operators.                           Recently, a handful of assembling operations were
                                                          established, following the removal of import duties
Peru                                                      on components. The Kenyan ICT/ICTE industry
In Peru, the ICT/ICTE industry is still in the early      includes about 300 small and micro enterprises, of
stages of development. The sector is dominated            which less than 50 are involved in software develop-
by small and micro enterprises, mostly established        ment and IT services. There are also a handful of
in the 2000s. The approximately 300 enterprises           BPO providers and call centers. Connectivity
in operation are mainly active in the following           services are provided by 16 ISP and about 500
activities: (i) the sale and maintenance of IT            cybercafés. Total turnover is unknown, but probably
equipment and imported software; (ii) the                 in the range of US$150–200 million. Employment
development of customized software applications;          is in the order of 5,000.



                                                                      Salient Features of the ICT/ICTE Industry 2

More Related Content

What's hot

Day1 Bernard Ewah
Day1 Bernard EwahDay1 Bernard Ewah
Day1 Bernard EwahUS-Ignite
 
Mc pita palestinian-ict_sector_2_0_report (5)
Mc pita palestinian-ict_sector_2_0_report (5)Mc pita palestinian-ict_sector_2_0_report (5)
Mc pita palestinian-ict_sector_2_0_report (5)Ahmad Shalabi
 
Philippine digital strategy 2011-2016
Philippine digital strategy 2011-2016Philippine digital strategy 2011-2016
Philippine digital strategy 2011-2016Tonyo Cruz
 
ASEAN E-Commerce Database Project 2010 Report
ASEAN E-Commerce Database Project 2010 ReportASEAN E-Commerce Database Project 2010 Report
ASEAN E-Commerce Database Project 2010 ReportJanette Toral
 
Top billioaires list
Top billioaires list Top billioaires list
Top billioaires list stavejohn
 
Market Mapping report
Market Mapping reportMarket Mapping report
Market Mapping reportZiad Jaser
 
Africa innovatio
Africa innovatioAfrica innovatio
Africa innovatioAli Seidu
 
Millennial and digital consumer behavior
Millennial and digital consumer behaviorMillennial and digital consumer behavior
Millennial and digital consumer behaviorFaza Faikar Cordova
 
Lido Company Presentation
Lido Company PresentationLido Company Presentation
Lido Company Presentationviraj_atre
 
Day 1 C2C - CAICT: China Strategy and Internet Development
Day 1 C2C - CAICT: China Strategy and Internet Development Day 1 C2C - CAICT: China Strategy and Internet Development
Day 1 C2C - CAICT: China Strategy and Internet Development Myles Freedman
 
Indian IT BPM sector in India 2013 - A Summary
Indian IT BPM sector in India   2013 - A SummaryIndian IT BPM sector in India   2013 - A Summary
Indian IT BPM sector in India 2013 - A Summarysneha_kapoor
 
ICT Export Directory - Egypt by Eitesal ver01
ICT Export Directory - Egypt by Eitesal ver01ICT Export Directory - Egypt by Eitesal ver01
ICT Export Directory - Egypt by Eitesal ver01Hossam Elgamal
 
Growing the Digital Economy from a National Perspective
Growing the Digital Economy from a National PerspectiveGrowing the Digital Economy from a National Perspective
Growing the Digital Economy from a National PerspectiveSyahida Ismail
 
Philippine Digital Strategy 2011-2016
Philippine Digital Strategy 2011-2016Philippine Digital Strategy 2011-2016
Philippine Digital Strategy 2011-2016Jim Ayson
 

What's hot (20)

Day1 Bernard Ewah
Day1 Bernard EwahDay1 Bernard Ewah
Day1 Bernard Ewah
 
Mc pita palestinian-ict_sector_2_0_report (5)
Mc pita palestinian-ict_sector_2_0_report (5)Mc pita palestinian-ict_sector_2_0_report (5)
Mc pita palestinian-ict_sector_2_0_report (5)
 
It ites
It itesIt ites
It ites
 
Philippine digital strategy 2011-2016
Philippine digital strategy 2011-2016Philippine digital strategy 2011-2016
Philippine digital strategy 2011-2016
 
ASEAN E-Commerce Database Project 2010 Report
ASEAN E-Commerce Database Project 2010 ReportASEAN E-Commerce Database Project 2010 Report
ASEAN E-Commerce Database Project 2010 Report
 
Top billioaires list
Top billioaires list Top billioaires list
Top billioaires list
 
Market Mapping report
Market Mapping reportMarket Mapping report
Market Mapping report
 
Mex Prosoft
Mex ProsoftMex Prosoft
Mex Prosoft
 
Africa innovatio
Africa innovatioAfrica innovatio
Africa innovatio
 
The 10 fastest growing telecom solution providers to watch 2018
The 10 fastest growing telecom solution providers to watch 2018The 10 fastest growing telecom solution providers to watch 2018
The 10 fastest growing telecom solution providers to watch 2018
 
Millennial and digital consumer behavior
Millennial and digital consumer behaviorMillennial and digital consumer behavior
Millennial and digital consumer behavior
 
Lido Company Presentation
Lido Company PresentationLido Company Presentation
Lido Company Presentation
 
Finpro report south africa
Finpro report south africaFinpro report south africa
Finpro report south africa
 
20th Anniversary of Internet in the Philippines
20th Anniversary of Internet in the Philippines20th Anniversary of Internet in the Philippines
20th Anniversary of Internet in the Philippines
 
Day 1 C2C - CAICT: China Strategy and Internet Development
Day 1 C2C - CAICT: China Strategy and Internet Development Day 1 C2C - CAICT: China Strategy and Internet Development
Day 1 C2C - CAICT: China Strategy and Internet Development
 
Indian IT BPM sector in India 2013 - A Summary
Indian IT BPM sector in India   2013 - A SummaryIndian IT BPM sector in India   2013 - A Summary
Indian IT BPM sector in India 2013 - A Summary
 
Toronto ICT Profile
Toronto ICT ProfileToronto ICT Profile
Toronto ICT Profile
 
ICT Export Directory - Egypt by Eitesal ver01
ICT Export Directory - Egypt by Eitesal ver01ICT Export Directory - Egypt by Eitesal ver01
ICT Export Directory - Egypt by Eitesal ver01
 
Growing the Digital Economy from a National Perspective
Growing the Digital Economy from a National PerspectiveGrowing the Digital Economy from a National Perspective
Growing the Digital Economy from a National Perspective
 
Philippine Digital Strategy 2011-2016
Philippine Digital Strategy 2011-2016Philippine Digital Strategy 2011-2016
Philippine Digital Strategy 2011-2016
 

Viewers also liked

Ict adoption and sme growth in new zealand
Ict adoption and sme growth in new zealandIct adoption and sme growth in new zealand
Ict adoption and sme growth in new zealandFelipe Schmidt
 
Startzondag - ZIN
Startzondag - ZINStartzondag - ZIN
Startzondag - ZINsilkink
 
Purdue's Neil Armstrong Building
Purdue's Neil Armstrong BuildingPurdue's Neil Armstrong Building
Purdue's Neil Armstrong BuildingSam Niesen
 
Presentazione Giulia's Hub 30 giugno
Presentazione Giulia's Hub 30 giugnoPresentazione Giulia's Hub 30 giugno
Presentazione Giulia's Hub 30 giugnogiuliashub
 
Ook zo'n ZIN in de startzondag
Ook zo'n ZIN in de startzondagOok zo'n ZIN in de startzondag
Ook zo'n ZIN in de startzondagsilkink
 
Ict opportunity profiler
Ict opportunity profilerIct opportunity profiler
Ict opportunity profilerFelipe Schmidt
 
La mediazione civile e commerciale evento 20 gennaio 2011
La mediazione civile e commerciale evento 20 gennaio 2011La mediazione civile e commerciale evento 20 gennaio 2011
La mediazione civile e commerciale evento 20 gennaio 2011giuliashub
 
Ppt 20 dicembre
Ppt 20 dicembrePpt 20 dicembre
Ppt 20 dicembregiuliashub
 
The effect of ict and e business on eu trade
The effect of ict and e business on eu tradeThe effect of ict and e business on eu trade
The effect of ict and e business on eu tradeFelipe Schmidt
 
Presentazione Giulia's Hub sul coworking
Presentazione  Giulia's Hub sul coworking Presentazione  Giulia's Hub sul coworking
Presentazione Giulia's Hub sul coworking giuliashub
 
Productivity effects of ict in the german service sector
Productivity effects of ict in the german service sectorProductivity effects of ict in the german service sector
Productivity effects of ict in the german service sectorFelipe Schmidt
 
JOHNSON LILLY PRESS RELEASE (Approved)
JOHNSON LILLY PRESS RELEASE (Approved)JOHNSON LILLY PRESS RELEASE (Approved)
JOHNSON LILLY PRESS RELEASE (Approved)garydstratton
 
Th sounds-pronunciation-091006165657-phpapp01
Th sounds-pronunciation-091006165657-phpapp01Th sounds-pronunciation-091006165657-phpapp01
Th sounds-pronunciation-091006165657-phpapp01letlady
 

Viewers also liked (16)

Ict adoption and sme growth in new zealand
Ict adoption and sme growth in new zealandIct adoption and sme growth in new zealand
Ict adoption and sme growth in new zealand
 
Startzondag - ZIN
Startzondag - ZINStartzondag - ZIN
Startzondag - ZIN
 
Purdue's Neil Armstrong Building
Purdue's Neil Armstrong BuildingPurdue's Neil Armstrong Building
Purdue's Neil Armstrong Building
 
Presentazione Giulia's Hub 30 giugno
Presentazione Giulia's Hub 30 giugnoPresentazione Giulia's Hub 30 giugno
Presentazione Giulia's Hub 30 giugno
 
Ook zo'n ZIN in de startzondag
Ook zo'n ZIN in de startzondagOok zo'n ZIN in de startzondag
Ook zo'n ZIN in de startzondag
 
Cintasa's introduction
Cintasa's introductionCintasa's introduction
Cintasa's introduction
 
Ict opportunity profiler
Ict opportunity profilerIct opportunity profiler
Ict opportunity profiler
 
La mediazione civile e commerciale evento 20 gennaio 2011
La mediazione civile e commerciale evento 20 gennaio 2011La mediazione civile e commerciale evento 20 gennaio 2011
La mediazione civile e commerciale evento 20 gennaio 2011
 
Ppt 20 dicembre
Ppt 20 dicembrePpt 20 dicembre
Ppt 20 dicembre
 
The effect of ict and e business on eu trade
The effect of ict and e business on eu tradeThe effect of ict and e business on eu trade
The effect of ict and e business on eu trade
 
Presentazione Giulia's Hub sul coworking
Presentazione  Giulia's Hub sul coworking Presentazione  Giulia's Hub sul coworking
Presentazione Giulia's Hub sul coworking
 
Portugal ict sector
Portugal ict sectorPortugal ict sector
Portugal ict sector
 
Productivity effects of ict in the german service sector
Productivity effects of ict in the german service sectorProductivity effects of ict in the german service sector
Productivity effects of ict in the german service sector
 
JOHNSON LILLY PRESS RELEASE (Approved)
JOHNSON LILLY PRESS RELEASE (Approved)JOHNSON LILLY PRESS RELEASE (Approved)
JOHNSON LILLY PRESS RELEASE (Approved)
 
Th sounds-pronunciation-091006165657-phpapp01
Th sounds-pronunciation-091006165657-phpapp01Th sounds-pronunciation-091006165657-phpapp01
Th sounds-pronunciation-091006165657-phpapp01
 
Introduction and Brief History of Computers
Introduction and Brief History of ComputersIntroduction and Brief History of Computers
Introduction and Brief History of Computers
 

Similar to Salient

recruitment and selection
recruitment and selectionrecruitment and selection
recruitment and selectionyathish nj
 
Information technology industry
Information technology industryInformation technology industry
Information technology industryShivani Sharma
 
Exdir presentation on ict for everyone at bandung ind
Exdir presentation on ict for everyone at bandung indExdir presentation on ict for everyone at bandung ind
Exdir presentation on ict for everyone at bandung indrr_almario
 
Investment in Software and IT Services
Investment in Software and IT ServicesInvestment in Software and IT Services
Investment in Software and IT ServicesProColombia
 
Investment in software and IT services
Investment in software and IT servicesInvestment in software and IT services
Investment in software and IT servicesProColombia
 
ppt IT industry
ppt IT industryppt IT industry
ppt IT industryYash Joshi
 
Industrial Psychology: Information Technology
Industrial Psychology: Information TechnologyIndustrial Psychology: Information Technology
Industrial Psychology: Information TechnologyIsha Chaudhary
 
Report on analysis of indian (ict)
Report on analysis of indian (ict)Report on analysis of indian (ict)
Report on analysis of indian (ict)ajay bodake
 
The Global ICT 50: The Supply Side of Digitization
The Global ICT 50: The Supply Side of DigitizationThe Global ICT 50: The Supply Side of Digitization
The Global ICT 50: The Supply Side of DigitizationFlorian Gröne
 
Information And Communication Technology (Toronto)
Information And Communication Technology (Toronto)Information And Communication Technology (Toronto)
Information And Communication Technology (Toronto)kevinfernandez
 
Software and it services sector 2016
Software and it services sector 2016Software and it services sector 2016
Software and it services sector 2016ProColombia
 
Term paper presentation on it products
Term paper presentation on it productsTerm paper presentation on it products
Term paper presentation on it productsTaruna Gulati
 

Similar to Salient (20)

recruitment and selection
recruitment and selectionrecruitment and selection
recruitment and selection
 
Information technology industry
Information technology industryInformation technology industry
Information technology industry
 
Exdir presentation on ict for everyone at bandung ind
Exdir presentation on ict for everyone at bandung indExdir presentation on ict for everyone at bandung ind
Exdir presentation on ict for everyone at bandung ind
 
Product Market Study of ICT Industry in South Africa
Product Market Study of ICT Industry in South AfricaProduct Market Study of ICT Industry in South Africa
Product Market Study of ICT Industry in South Africa
 
Eae 100
Eae 100Eae 100
Eae 100
 
Investment in Software and IT Services
Investment in Software and IT ServicesInvestment in Software and IT Services
Investment in Software and IT Services
 
Investment in software and IT services
Investment in software and IT servicesInvestment in software and IT services
Investment in software and IT services
 
Software & It Services in Argentina
Software & It Services in ArgentinaSoftware & It Services in Argentina
Software & It Services in Argentina
 
Product Market Study - Thailand’s Market for ICT (March 2011)
Product Market Study - Thailand’s Market for ICT (March 2011)Product Market Study - Thailand’s Market for ICT (March 2011)
Product Market Study - Thailand’s Market for ICT (March 2011)
 
Primus project report
Primus project reportPrimus project report
Primus project report
 
ppt IT industry
ppt IT industryppt IT industry
ppt IT industry
 
Industrial Psychology: Information Technology
Industrial Psychology: Information TechnologyIndustrial Psychology: Information Technology
Industrial Psychology: Information Technology
 
BIDHANNAGAR COLLEGE
BIDHANNAGAR COLLEGEBIDHANNAGAR COLLEGE
BIDHANNAGAR COLLEGE
 
Report on analysis of indian (ict)
Report on analysis of indian (ict)Report on analysis of indian (ict)
Report on analysis of indian (ict)
 
Product Market Study - ICT Market in Thailand (2012)
Product Market Study - ICT Market in Thailand (2012)Product Market Study - ICT Market in Thailand (2012)
Product Market Study - ICT Market in Thailand (2012)
 
The Global ICT 50: The Supply Side of Digitization
The Global ICT 50: The Supply Side of DigitizationThe Global ICT 50: The Supply Side of Digitization
The Global ICT 50: The Supply Side of Digitization
 
Information And Communication Technology (Toronto)
Information And Communication Technology (Toronto)Information And Communication Technology (Toronto)
Information And Communication Technology (Toronto)
 
Software and it services sector 2016
Software and it services sector 2016Software and it services sector 2016
Software and it services sector 2016
 
Term paper presentation on it products
Term paper presentation on it productsTerm paper presentation on it products
Term paper presentation on it products
 
Bp new1 ppt
Bp new1 pptBp new1 ppt
Bp new1 ppt
 

More from Felipe Schmidt

More from Felipe Schmidt (9)

Influencias de las TIC's
Influencias de las TIC'sInfluencias de las TIC's
Influencias de las TIC's
 
Sql
SqlSql
Sql
 
Paper
PaperPaper
Paper
 
Modelo tres capas
Modelo tres capasModelo tres capas
Modelo tres capas
 
Laboratorios
LaboratoriosLaboratorios
Laboratorios
 
Ensayo de sistemas de información en ciencias empresariales
Ensayo de sistemas de información en ciencias empresarialesEnsayo de sistemas de información en ciencias empresariales
Ensayo de sistemas de información en ciencias empresariales
 
Data ware house
Data ware houseData ware house
Data ware house
 
Conceptos
ConceptosConceptos
Conceptos
 
¿Qué es el Modelo Tres Capas?
¿Qué es el Modelo Tres Capas?¿Qué es el Modelo Tres Capas?
¿Qué es el Modelo Tres Capas?
 

Recently uploaded

Hyundai capital 2024 1quarter Earnings release
Hyundai capital 2024 1quarter Earnings releaseHyundai capital 2024 1quarter Earnings release
Hyundai capital 2024 1quarter Earnings releaseirhcs
 
Creative Ideas for Interactive Team Presentations
Creative Ideas for Interactive Team PresentationsCreative Ideas for Interactive Team Presentations
Creative Ideas for Interactive Team PresentationsSlidesAI
 
India’s Recommended Women Surgeons to Watch in 2024.pdf
India’s Recommended Women Surgeons to Watch in 2024.pdfIndia’s Recommended Women Surgeons to Watch in 2024.pdf
India’s Recommended Women Surgeons to Watch in 2024.pdfCIOLOOKIndia
 
New Product Development.kjiy7ggbfdsddggo9lo
New Product Development.kjiy7ggbfdsddggo9loNew Product Development.kjiy7ggbfdsddggo9lo
New Product Development.kjiy7ggbfdsddggo9logalbokkahewagenitash
 
The Inspiring Personality To Watch In 2024.pdf
The Inspiring Personality To Watch In 2024.pdfThe Inspiring Personality To Watch In 2024.pdf
The Inspiring Personality To Watch In 2024.pdfinsightssuccess2
 
What Does A 3-Band Wedding Band Mean?
What Does A 3-Band Wedding Band Mean?What Does A 3-Band Wedding Band Mean?
What Does A 3-Band Wedding Band Mean?Pristine Rings
 
Future of Trade 2024 - Decoupled and Reconfigured - Snapshot Report
Future of Trade 2024 - Decoupled and Reconfigured - Snapshot ReportFuture of Trade 2024 - Decoupled and Reconfigured - Snapshot Report
Future of Trade 2024 - Decoupled and Reconfigured - Snapshot ReportDubai Multi Commodity Centre
 
Did Paul Haggis Ever Win an Oscar for Best Filmmaker
Did Paul Haggis Ever Win an Oscar for Best FilmmakerDid Paul Haggis Ever Win an Oscar for Best Filmmaker
Did Paul Haggis Ever Win an Oscar for Best Filmmakerstajohn447
 
FEXLE- Salesforce Field Service Lightning
FEXLE- Salesforce Field Service LightningFEXLE- Salesforce Field Service Lightning
FEXLE- Salesforce Field Service LightningFEXLE
 
Byrd & Chen’s Canadian Tax Principles 2023-2024 Edition 1st edition Volumes I...
Byrd & Chen’s Canadian Tax Principles 2023-2024 Edition 1st edition Volumes I...Byrd & Chen’s Canadian Tax Principles 2023-2024 Edition 1st edition Volumes I...
Byrd & Chen’s Canadian Tax Principles 2023-2024 Edition 1st edition Volumes I...ssuserf63bd7
 
Potato Flakes Manufacturing Plant Project Report.pdf
Potato Flakes Manufacturing Plant Project Report.pdfPotato Flakes Manufacturing Plant Project Report.pdf
Potato Flakes Manufacturing Plant Project Report.pdfhostl9518
 
State of D2C in India: A Logistics Update
State of D2C in India: A Logistics UpdateState of D2C in India: A Logistics Update
State of D2C in India: A Logistics UpdateRedSeer
 
How to Maintain Healthy Life style.pptx
How to Maintain  Healthy Life style.pptxHow to Maintain  Healthy Life style.pptx
How to Maintain Healthy Life style.pptxrdishurana
 
Vendors of country report usefull datass
Vendors of country report usefull datassVendors of country report usefull datass
Vendors of country report usefull datassDilipParmar63
 
Matt Conway - Attorney - A Knowledgeable Professional - Kentucky.pdf
Matt Conway - Attorney - A Knowledgeable Professional - Kentucky.pdfMatt Conway - Attorney - A Knowledgeable Professional - Kentucky.pdf
Matt Conway - Attorney - A Knowledgeable Professional - Kentucky.pdfMatt Conway - Attorney
 
The Ultimate Guide to IPTV App Development Process_ Step-By-Step Instructions
The Ultimate Guide to IPTV App Development Process_ Step-By-Step InstructionsThe Ultimate Guide to IPTV App Development Process_ Step-By-Step Instructions
The Ultimate Guide to IPTV App Development Process_ Step-By-Step InstructionsWHMCS Smarters
 
NewBase 24 May 2024 Energy News issue - 1727 by Khaled Al Awadi_compresse...
NewBase   24 May  2024  Energy News issue - 1727 by Khaled Al Awadi_compresse...NewBase   24 May  2024  Energy News issue - 1727 by Khaled Al Awadi_compresse...
NewBase 24 May 2024 Energy News issue - 1727 by Khaled Al Awadi_compresse...Khaled Al Awadi
 
Understanding UAE Labour Law: Key Points for Employers and Employees
Understanding UAE Labour Law: Key Points for Employers and EmployeesUnderstanding UAE Labour Law: Key Points for Employers and Employees
Understanding UAE Labour Law: Key Points for Employers and EmployeesDragon Dream Bar
 
Pitch Deck Teardown: Terra One's $7.5m Seed deck
Pitch Deck Teardown: Terra One's $7.5m Seed deckPitch Deck Teardown: Terra One's $7.5m Seed deck
Pitch Deck Teardown: Terra One's $7.5m Seed deckHajeJanKamps
 
LinkedIn Masterclass Techweek 2024 v4.1.pptx
LinkedIn Masterclass Techweek 2024 v4.1.pptxLinkedIn Masterclass Techweek 2024 v4.1.pptx
LinkedIn Masterclass Techweek 2024 v4.1.pptxSymbio Agency Ltd
 

Recently uploaded (20)

Hyundai capital 2024 1quarter Earnings release
Hyundai capital 2024 1quarter Earnings releaseHyundai capital 2024 1quarter Earnings release
Hyundai capital 2024 1quarter Earnings release
 
Creative Ideas for Interactive Team Presentations
Creative Ideas for Interactive Team PresentationsCreative Ideas for Interactive Team Presentations
Creative Ideas for Interactive Team Presentations
 
India’s Recommended Women Surgeons to Watch in 2024.pdf
India’s Recommended Women Surgeons to Watch in 2024.pdfIndia’s Recommended Women Surgeons to Watch in 2024.pdf
India’s Recommended Women Surgeons to Watch in 2024.pdf
 
New Product Development.kjiy7ggbfdsddggo9lo
New Product Development.kjiy7ggbfdsddggo9loNew Product Development.kjiy7ggbfdsddggo9lo
New Product Development.kjiy7ggbfdsddggo9lo
 
The Inspiring Personality To Watch In 2024.pdf
The Inspiring Personality To Watch In 2024.pdfThe Inspiring Personality To Watch In 2024.pdf
The Inspiring Personality To Watch In 2024.pdf
 
What Does A 3-Band Wedding Band Mean?
What Does A 3-Band Wedding Band Mean?What Does A 3-Band Wedding Band Mean?
What Does A 3-Band Wedding Band Mean?
 
Future of Trade 2024 - Decoupled and Reconfigured - Snapshot Report
Future of Trade 2024 - Decoupled and Reconfigured - Snapshot ReportFuture of Trade 2024 - Decoupled and Reconfigured - Snapshot Report
Future of Trade 2024 - Decoupled and Reconfigured - Snapshot Report
 
Did Paul Haggis Ever Win an Oscar for Best Filmmaker
Did Paul Haggis Ever Win an Oscar for Best FilmmakerDid Paul Haggis Ever Win an Oscar for Best Filmmaker
Did Paul Haggis Ever Win an Oscar for Best Filmmaker
 
FEXLE- Salesforce Field Service Lightning
FEXLE- Salesforce Field Service LightningFEXLE- Salesforce Field Service Lightning
FEXLE- Salesforce Field Service Lightning
 
Byrd & Chen’s Canadian Tax Principles 2023-2024 Edition 1st edition Volumes I...
Byrd & Chen’s Canadian Tax Principles 2023-2024 Edition 1st edition Volumes I...Byrd & Chen’s Canadian Tax Principles 2023-2024 Edition 1st edition Volumes I...
Byrd & Chen’s Canadian Tax Principles 2023-2024 Edition 1st edition Volumes I...
 
Potato Flakes Manufacturing Plant Project Report.pdf
Potato Flakes Manufacturing Plant Project Report.pdfPotato Flakes Manufacturing Plant Project Report.pdf
Potato Flakes Manufacturing Plant Project Report.pdf
 
State of D2C in India: A Logistics Update
State of D2C in India: A Logistics UpdateState of D2C in India: A Logistics Update
State of D2C in India: A Logistics Update
 
How to Maintain Healthy Life style.pptx
How to Maintain  Healthy Life style.pptxHow to Maintain  Healthy Life style.pptx
How to Maintain Healthy Life style.pptx
 
Vendors of country report usefull datass
Vendors of country report usefull datassVendors of country report usefull datass
Vendors of country report usefull datass
 
Matt Conway - Attorney - A Knowledgeable Professional - Kentucky.pdf
Matt Conway - Attorney - A Knowledgeable Professional - Kentucky.pdfMatt Conway - Attorney - A Knowledgeable Professional - Kentucky.pdf
Matt Conway - Attorney - A Knowledgeable Professional - Kentucky.pdf
 
The Ultimate Guide to IPTV App Development Process_ Step-By-Step Instructions
The Ultimate Guide to IPTV App Development Process_ Step-By-Step InstructionsThe Ultimate Guide to IPTV App Development Process_ Step-By-Step Instructions
The Ultimate Guide to IPTV App Development Process_ Step-By-Step Instructions
 
NewBase 24 May 2024 Energy News issue - 1727 by Khaled Al Awadi_compresse...
NewBase   24 May  2024  Energy News issue - 1727 by Khaled Al Awadi_compresse...NewBase   24 May  2024  Energy News issue - 1727 by Khaled Al Awadi_compresse...
NewBase 24 May 2024 Energy News issue - 1727 by Khaled Al Awadi_compresse...
 
Understanding UAE Labour Law: Key Points for Employers and Employees
Understanding UAE Labour Law: Key Points for Employers and EmployeesUnderstanding UAE Labour Law: Key Points for Employers and Employees
Understanding UAE Labour Law: Key Points for Employers and Employees
 
Pitch Deck Teardown: Terra One's $7.5m Seed deck
Pitch Deck Teardown: Terra One's $7.5m Seed deckPitch Deck Teardown: Terra One's $7.5m Seed deck
Pitch Deck Teardown: Terra One's $7.5m Seed deck
 
LinkedIn Masterclass Techweek 2024 v4.1.pptx
LinkedIn Masterclass Techweek 2024 v4.1.pptxLinkedIn Masterclass Techweek 2024 v4.1.pptx
LinkedIn Masterclass Techweek 2024 v4.1.pptx
 

Salient

  • 1. III SALIENT III.2 ESTABLISHED PLAYERS FEATURES OF THE India Over the last two decades, India has become a world ICT/ICTE INDUSTRY leader in the ICT/ICTE industry. Multi-national corporations spearheaded the process, by establish- ing ‘captive’ operations in the early 1990s. This was quickly followed by the emergence of a vibrant III. INTRODUCTION domestic industry. Today, the Indian ICT industry can compete with the world giants, and Indian high There are major variations in the size, composition, tech clusters are home to advanced RD centers dynamism and market orientation of the ICT/ serving several global industry leaders. In 2006, total ICTE industries in the ten countries surveyed. sales reached US$37.4 billion, which represented a Therefore, for analytical purposes, it is useful to 31% growth over the previous year—total employ- group these countries along a few key dimensions, ment was in the order of 1.3 million. The software such as the size, diversification and innovativeness development and IT services segment dominate the of ICT/ICTE activities. In terms of turnover, Indian ICT industry. In 2006 there were about exports and employment, India is in a league apart, US$17 billion worth of exports, mostly to the US followed at considerable distance by Brazil. The and other western countries. The 4,000–5,000 least developed economies, such as Senegal and companies active in this segment are mostly SME, Kenya, display a concentration on a few, basic lines but they also include world leaders such as HCL, of business. In the more advanced countries, Infosys, TCS and Wipro, all of which are in the virtually all ICT/ICTE activities are present. There billion-dollar club. India is also home of a powerful is often a strong correlation between diversification ICTE sector. This includes a number of captive and innovativeness. In India, and to a lesser extent operations, resulting from the relocation of labor Brazil, the ICT/ICTE industry is characterized by and skill intensive activities from Western countries, the massive presence of knowledge-intensive as well as no less than 200 medium-sized Indian- activities, which often go beyond the outsourcing owned companies, active in the provision of logic that initially triggered the growth of the ICT customer care, account management, and financial industry. By contrast, in countries with an infant processing for international clients. The manufacture ICT/ICTE sector, the bulk of activities are of a and assembling of hardware is comparatively less relatively simple nature, such as sales and mainte- developed. MnC investments tended to privilege nance, IT consultancy, basic Internet services, basic other Asian countries, and the bulk of production is software customization, and sometimes telemarket- destined to the growing internal market. An ing services. Based on the above factors, the ten estimated 150 Internet service providers and countries surveyed can be grouped into three 100,000 public internet points (cybercafés) provide categories. The first category is established players, connectivity services. and includes India and Brazil. The second is emerging players, and includes the Philippines, Brazil Morocco, Argentina, Vietnam, Ukraine and Peru. Brazil is the leading player in Latin America, with a The third is marginal players, and includes Kenya large domestic market, good research facilities and and Senegal. manufacturing capabilities. The leading hardware producers started operating in the 1980s. This acted as a catalyst for further investments and nurtured the start-up of new suppliers of compo- nents, distributors and service providers. The birth Salient Features of the ICT/ICTE Industry
  • 2. of the software development segment is a more Argentina recent phenomenon, mainly linked to the diffusion In Argentina, the ICT/ICTE industry was severely of the Internet. In 2005, the Brazilian ICT/ICTE hit by the financial crisis of 2001 and by the end of industry reached a total turnover of some US$15.5 ‘dot com’ bubble, but it is now showing encouraging billion—this included US$5.7 billion for hard- signs of recovery. At present, the industry includes ware, US$7.4 billion for software and ICT services, some 700 companies. The majority are micro and and US$2.4 for ICTE activities. Total employment small businesses, many of which have been recently is estimated at about 900,000. The software and IT established. The main lines of business are the services segment encompasses some 3,500 enter- distribution of IT equipment and the provision of prises, including a dozen large payers. Foreign- ‘basic’ IT services, but software development and developed applications still account for the bulk of value-added services are gaining ground. In 2005, sales, but domestic products are progressively the overall turnover was around US$2.5 billion, of gaining ground. The ICTE sector includes about which around US$1.3 billion related to software 1,000 call centers, and a few hundred other BPO development and ICT/ICTE activities. Sales are operations. They mostly serve the domestic market. predominantly in the domestic market, where the Less than 10% of turnover is generated by overseas devaluation triggered a major trend towards import contracts, mostly with US clients. Sizeable agglom- substitution. However, recently there has been an erations have emerged, such as the Sao Paulo/ increasing trend toward exports of ICT applications. Campinas cluster, which combines hardware The ICTE industry is also in a growing phase. It has manufacturing and software development, and the been estimated that call centers have reached a total Recife cluster, which specializes in ICT/ICTE capacity of some 40,000 seats, and that total services. employment is 160,000–190,000. morocco Morocco has a relatively small but lively ICT sector, III. EMERGING PLAYERS comprised of about 200 société de services d’ingénierie en informatique. Most Moroccan ICT firms are The Philippines involved in the provision of relatively basic services, The importance of the Philippines’ ICT/ICTE such as customized software and web applications, industry on a regional and global scale is rapidly but in certain segments they have reached a growing. In fact, the country offers a unique remarkable position and gained a good international business environment, combining cost-efficiency reputation. This is especially true of payment with a good quality infrastructure and, most solutions and ERP systems, where Moroccan notably, excellent linguistic capabilities. The companies have won important contracts in other Philippines are primarily a manufacturing base for francophone countries. Morocco also boasts a fast large producers of hardware and components. In growing ICTE sector, including about 150 call 2005, exports of semiconductors were around centers and other BPO companies, which employ US$15 billion. Gradually, the country has also no less than 25,000 people. These include foreign as become an important competitor in the field of well as locally-owned firms, which serve the French outsourced ICT and ICTE services. In 2005, total and, to a lesser extent, Spanish markets. turnover (excluding hardware) was in the order of Connectivity services are provided by a few ISP and US$3.5–4 billion, while employment was about by a network of more than 10,000 cybercafés, which 200,000. The ICT/ICTE industry includes about employ about 15,000–20,000 workers. In 2006, the 1,000 enterprises, including the following: (i) 300 Moroccan ICT/ICTE industry reached a total ISP and value-added providers; (ii) 300 software turnover of US$700–900 million, with an employ- developers; (iii) 100 call centers; (iv) 70 transcrip- ment in excess of 50,000. tion services providers: (v) 60 BPO operations; (vi) 40 animation and 3D graphics studios; and Ukraine (vi) 100 firms involved in the sale and installation of Ukraine is becoming an increasingly important IT equipment and software. The vast majority of player in the ICT/ICTE industry. Over the past few Filipino ICT/ICTE enterprises have fewer than 50 years, Ukrainian ICT/ICTE firms have been able to employees. acquire important clients in the international 20 Financing Technology Entrepreneurs SmEs in Developing Countries: Challenges and Opportunities
  • 3. outsourcing market for advanced RD and software and (iii) the provision of fairly basic IT consulting engineering, thanks to the availability of a large pool services. There are also a handful of companies of highly qualified people. The manufacturing/ involved in the assembly of PC. Total turnover is assembling of hardware is also expanding, but in this around US$1 billion, including about US$50 case, most sales are in the domestic market. Total million for locally developed software solutions, turnover is in the order of US$2 billion, of which and US$300 million for IT services. The level of some US$500–600 million relate to IT outsourcing employment in the ICT/ICTE sector is unknown, activities. It is estimated that employment is around but it is unlikely to exceed the 10,000 benchmark. 40,000–50,000. The industry includes an estimated 2,000 firms, with a number of foreign-owned operations, about 50 medium-sized locally-owned companies, and a plethora of small and micro III. MARGINAL PLAYERS enterprises. It is estimated that the number of ISP in operation is 250–400. The subsidiaries of the main Senegal telecom operators are in a dominant position. There Senegal’s ICT/ICTE sector is very small and has are also about 3,000 small cyber cafés. little diversity. It includes about 50 software developers and IT service providers, a dozen call Vietnam centers, and a handful of BPO service providers. In The core of Vietnam’s ICT industry is represented addition, there are an estimated 200 small retailers by the manufacture and assembling of hardware, and installers of IT equipment. Connectivity which accounts for an estimated 85% of the total services are provided by a couple of main ISP and ICT/ICTE turnover of US$1.8–2.0 billion. This is by about 400 cybercafés, mainly based in Dakar. due to the presence of manufacturing plants Total turnover is not known, but it is unlikely to operated by multinational companies, such as Intel, exceed US$150–200 million. Total employment is Fujitsu and Canon. Software and ICT/ICTE services probably in the order of 6,000–8,000, of which generate more modest revenues—about US$250– 2,000 work in the call centers sub-sector. This 300 million. Total employment is grossly estimated appears to be the most promising line of business in to be about 40,000–60,000, with the hardware the near future, thanks to the availability of good industry accounting for most. The Vietnamese ICT/ international broadband connections and of a well- ICTE industry consists of about 1,400 enterprises. educated, French-speaking, and cost-effective These include the following: (i) a few subsidiaries of workforce. foreign IT equipment manufacturers; (ii) a dozen medium-sized to large state-owned companies; and Kenya (iii) a large number of small and micro enterprises, Kenya’s ICT/ICTE sector is extremely modest. It whose activities range from simple ‘sale mainte- consists mostly of vendors and installers of hardware nance’ to more sophisticated processes in the field of and software, with only a few firms involved in the software development and IT services. The develop- provision of basic IT services (web designing, ment of BPO services is constrained by linguistic development of customized solutions, and transla- barriers, and existing operations are limited to tion of standard packages in Swahili). The develop- testing and transcription services. Internet access is ment of call centers and other BPO activities is provided by 15 ISP, but the share’s lion is controlled hampered by the lack of adequate infrastructure. by three state-owned operators. Recently, a handful of assembling operations were established, following the removal of import duties Peru on components. The Kenyan ICT/ICTE industry In Peru, the ICT/ICTE industry is still in the early includes about 300 small and micro enterprises, of stages of development. The sector is dominated which less than 50 are involved in software develop- by small and micro enterprises, mostly established ment and IT services. There are also a handful of in the 2000s. The approximately 300 enterprises BPO providers and call centers. Connectivity in operation are mainly active in the following services are provided by 16 ISP and about 500 activities: (i) the sale and maintenance of IT cybercafés. Total turnover is unknown, but probably equipment and imported software; (ii) the in the range of US$150–200 million. Employment development of customized software applications; is in the order of 5,000. Salient Features of the ICT/ICTE Industry 2