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Thailand Country Profile
                   Business Process Outsourcing (BPO)
               Information Technology Outsourcing (ITO)
                                  for




                            Submission on
                      CBI KPO program 2014-2020
The Centre for the Promotion of Imports from developing countries (CBI)
                           The Netherlands




                            Conducted by
                       Software Park Thailand
                               under
    National Science and Technology Development Agency (NSTDA)
Table of Content

            Topics                                                        Page
                                                                           1
Introduction
Description of Characteristic of BPO                                       3
Description of Characteristic of ITO                                       3
Key Strength and Weakness                                                  7
Government support regarding to BPO and ITO                                9
IT and BPO industry development strategies and initiatives                11
Quality of certification and support for IT and BPO industry              13
Key Stakeholders of BPO and ITO industry                                  13
Key bottlenecks for export development of the BPO and ITO industry        16
The most important Export markets for ITO and BPO products and services   16
Number of exporting companies in the ITO and BPO industry                 16
Country Profile Thailand for CBI KPO services
1.Introduction
Today the economics crisis forces many business to seek the effective method to reduce cost and enhance the
internal operations. The concept of global Business Process Outsourcing (BPO) and Information Technology
Outsourcing (ITO) has been growing since decade. Many Business concerns the budget of IT investment in order
to reach cost optimization while delivering paradigm for the best services.

Over few years, Thailand has proven as the international reputation on BPO and ITO as the center of excellence
to conduct the world class software outsourcing. The software industry gains the strong complementary
elements: a centric manufacturing of international software leading companies that align the global market
leaders and numerously indigenous companies who achieve the significant global market success. Thai software
has been recognized internationally as being dynamic, highly innovative, technically expert and international
standard adept.
Since 2008 to 2010 Thailand has been ranked as the Top 30 global destination for IT outsourcing by Gartner. Thai
Software Industry today comprises over 1,900 companies, employing over 100,000 people, with combines sales
growth 17.2% The vast majority of software activities are exported, so that the number of software exporting
last year achieved USD 14 billion (2010). (annual report Ministry of ICT ,2011) 1
         The upcoming Asean Economic Community 2015 (AEC 2015) give the opportunity to trigger point of a
paradigm shift and integrated the economics in all Asean Regions. Thailand as the strategic location was proven
as the Hub of Asean Detroit export and manufacturing in automotive industry. Thailand is also location of hugh
foreign investment from Japan, USA, UK Germany and so on. Thailand has been recognized as one of 30 top
destination of global IT outsourcing ranked by Gartner. Some international leading software companies such as
Thomas Reuters and DSTi located the development center since 2001 to employ Thai IT professional more than
1,500 people and to deliberate quality software to global market place.
AEC 2015 will synergy platform to regional single market and production based which require removal of trade
barrier among countries (Asean + 3 countries; China, Japan and Korea) will deliver collaboration across business
sectors especially software concerned as the services will be key driver to shift the business model that
revolutionize the industrial sectors in the near future.


Why Thailand: Destination for BPO and ITO
Situated in the strategic location in Asia-Pacific region Thailand offers ranges of advantages to foreign business
firms. According to World Competitiveness Scorecared 2009 2 shows Thailand ICT statistics as 26th rank top in the
world on the domestic consumption in ICT sector represents 24 millions internet users, increasing number of 69
millions mobile users and augmented social network as a number of Facebook reached more than 13 million
users.
__________________________________________
1 The annual report Ministry of ICT Thailand ,2011
                                                                                                                1
2 The World Competitiveness Scorecared ,2009
Thailand IT market is the largest in South east Asia region and project to grow at CADR of 12% over 2010-1214,
while total value of domestic spending on IT products and services are more than USD 5.4 billion in 2010 and by
2014 at USD 8.7 billion.

As the crossroad of software development in South East Asia, Thailand has been envisaged as highly competitive
software development and centric distribution/delivery in the region. Thailand provides further impetus toward
domestic and regional strategic integration to be success to embrace the market liberalization by 2015. There are
some key critical factors such as Human Resource, Skill& expertise, infrastructure support, IT professional and
standardization measurement, government privilege, strong software clusters to drive successfully Thai ICT
market . The additional atmosphere to support the investors are in term of the initiatives , taxation, legal
framework, business support, and investment conditions.

Thailand Today: Moving forward for future




                                                                                                            2
From Kearney Global Service 3 Nowadays Thailand move to main contender of global software outsourcing
destination ranked on 7th Global service location on 2011. The attractive indicators are on the financial attraction,
people skill and business environment respectively.
    2. Characteristics of BPO and ITO Thailand services
2.1 Business Process Outsourcing (BPO)
The late 20th century and the beginning of the 2nd millennium saw a huge development in the BPO sector.
Owing to the dependence of the BPO industry on information technology, IT Jobs in BPO are generally divided
into two categories, back office outsourcing and front office outsourcing. There is a stark difference between
these two categories of BPO jobs.
BPO in Thailand is not outstanding compared to ITO , mostly BPO in Thailand is in term of internal BPO such as
Human Resource, Lawyer, Accounting, Call Center, Selling, Marketing. In Thailand there are oversea companies
who looking for outsourcing services. However there are very few BPO buyers to subcontract local outsourcing in
Thailand. This cause language capabilities in specific business area.

2.2 Information Technology Outsourcing (ITO)

Gartner accredited Thailand as “10 leading locations for offshore services in Asia Pacific 2007-2011”.These are
assets to Western and Japanese investors. Like most other manufacturing industries, Thailand is gaining its
acceptance in IT services outsourcing.
Over the past decade Thailand has gradually turned to be the destination for offshore outsourcing location. For
instance, Thomas Reuter has established the Software Center since 2001 after 18-months deliberation of global
development site.
From ITO and BPO table , we divided into three categories as following
     1. Financial Attractiveness
     2. People Skill and Availability
     3. Business Environment
___________________________________________
3 A.T Kearney Global Service Location Index 2011




                                                                                                                3
Categories               Subcategories                 Metric Description           Thailand Indicators
                                                                                              (proportion %)
                                                                                            BPO            ITO
Financial Attractiveness Cost Optimization             1.Average salaries
         (40%)                                         2.Compensation cost to positions
                                                       (call center, BPO analyst, IT
                                                       programmer and local operation
                                                       manager)
                           Infrastructure Cost         1.Rental space
                                                       2.International telecom cost
                                                       3.Traveling cost to clients
                           Tax and Regulation          1.Tax Burden
                                                       2.Corruption Perception
                                                       3.Currency Rate

    People Skill and       Remote services sector      1.Size of existing ITO and BPO
   Availability (30%)      experience and quality      sectors
                           rating                      2.Contact Center and IT center
                                                       quality certifications
                                                       3.Quality Rating of management
                                                       school and IT training
                           Labour Force availability   1.Total workforce
                                                       2University-educated workforce
                                                       3.Workforce Flexibility
                           Education and Language      Score on standardized education
                                                       and language test


                           Attrition Risk              Relative IT and BPO sector growth
                                                       and unemployment rates

 Business Environment      Country Environment         1.Factors on political and local
        (30%)                                          economics
                                                       2.FDI
                                                       3.Security Risk
                                                       4.Regulatory burden and
                                                       employment rigidity
                                                       5.Government support for ICT
                                                       sector
                           Infrastructure              1.Overall infrastructure quality
                                                       2.Quality of telecom, internet and
                                                       electricity infrastructure

                           Security of Intellectual 1.Investor rating of IP protection
                           Property (IP)            and ICT laws
                                                    2.Software Piracy rates                                       4
                                                    3.Information Security Certification
Remarks:


High activities:     Lower activity

Even top three location remains in India, China, and Malaysia are outstanding to provide the off shoring software
services activity, Thailand is rank as the significant player. One article from the Global Service location 4 (top 10
locations based on their capabilities as figure following

Thailand focus on niche quality of software services which produce output on the qualified graduates and
English capabilities moving up to value chain of BPO and ITO industries due to large workforce and cost
competitiveness.

Thailand skillful workforce:
The software sector in Thailand has been driven by the highly skilled and well educated workforce. Thailand
education system transforms the variety of IT professional courses set by the standard nationwide.
___________________________________________
4 A.T Kearney Global Service Location Index 2011




                                                                                                               5
Thailand development policy delegates the opportunity to the geographic clusters such as the IT valley in the
northern of Thailand and outsourcing cluster in Phuket.

The development of language skill in Thailand has been proven as the various interpretation skill. Thailand is
also the largest IS/ISV communities to do outsourcing in Southeast Asia region. Also now we have certified 47
companies CMMI appraisal and more than 70 certified PSP developers training and ranked at 3rd in the world.
The number of certified software professional in PM, Software Quality Assurance and software tester were
approved by Quality Assurance Institute (QAI) achieved 80 persons.
The industry development is underwritten by the continued state investment in education and research. The
information and communication technologies are the priority area supported by the government; therefore the
investment in R &D has also significantly risen. The Ministry of ICT has invested to initiative projects to
collaboration among academic, research and industries to ensure the optimum usage of resource and apply
successful commercialization. From INSEAD global IT report show the Quality of Education in country which
represented perception index 1-7. Thailand was ranked at 3.6 scale. There are more than 100 universities
produce more than 4,000 skill professional workers annually. Some institutions, for example Software Park
Thailand provided professional high skill enterprises training such as IT professional, project management, and
software process.
From figure about the population with English as the first and the second language (Cambridge Encyclopedia of
English language, KPMG analysis) 5 show 3% of 65 million people in country know english as second language
( 2.5 million). The multiple language skill rise the localization business opportunities because localization enabler
for international businesses. Adequate recruitment of the best skill and talent workforce are in various industrial
sectors. A case in point,ProZ.com, the largest online community of translators and the Localization Industry
Standards Association (LISA), the leading organization for companies involved in localization and globalization is
located in Bangkok to promote the localization and translation industry in domestic and global arena.

Case studies
The largest software development site globally. Asia Online, the machine translation company has also set up its
operational headquarters in Bangkok, from where it conducts R&D and daily business operations. Likewise Asia
Online currently employs more than 400 staffs and is in the process of being incorporated in other 10 Asian
countries.
One more interesting niche market in Thailand are animation, design and graphic development. With creativity,
Thai developers step forward from neighbor countries in term of character, design and emotion. The animation
industries USD 736,700 which categorized to animation industry USD 381,200 and Game industry reached USD
355,500 6




___________________________________________
5 KPMG Analysis, Cambridge Encyclopedia 2010
6 Thailand-Canadian Collaboration Forum 11-14 October 2011, Bangkok                                                6
3.SWOT Analysis

BPO
Strengths                                                Weakness
-Skill workforces                                        -Language-lacking in quality in english instruction
-Quality Assurance                                       -Lack of adequate infrastructure
-Business Environment                                    -Lack of adequate promotional support.




Opportunities                                            Threats
-Hugh hub of FDI                                         -Unstable political situations
-ASEAN AEC 2015




Positioning
Market of BPO in Thailand
Besides being a famous tourist destination and the auto making hub for Southeast Asia, Thailand is best known
as a tourist destination, the government of Thailand is attempting a lot to encourage business and make higher
investments in Business Process Outsourcing (BPO). The opportunities for global BPO in Thailand are obstructed
by lack of government support and vision, limited access to investment capital, and lack of regulations regarding
privacy or security, as per to research analysts. They also cited the adequate of infrastructure, ICT research
facilities, labor policies, etc. in the BPO market of Thailand.

For these reasons , Office of the Board of Investment (BOI) decided to encourage higher and better investments
in Business Process Outsourcing. It has expanded Activity 7.22 for including not only call centers, but also an
array of services under the new category of BPO. This activity will include finance and accounting services,
administrative services, sales and marketing services, human resources support, international call centers and
data processing, and customer services, just to name a few. Recently, the India-based company, Infosys, has
decided to put up its BPO in Thailand.( www.sitagita.com) 7
Case Studies

Infosys targets Thailand for banking solutions suite. Software major Infosys said on Wednesday that it had
identified Thailand as a key target market for its global banking solutions suite, Finacle, and entered into a
partnership with Datamat Public Company Ltd. and Yip in Tsoi & Co Ltd in that country to market the product in
the region.                                                                                               7
PRTRBPO.COM directly addresses the increasing need of our customers for value added business process
outsourcing services in Bangkok and Thailand. These requirements, to date, have been in the provision of PC /
Sales Team Management, Sales Outsourcing, Warranty Management, a number of retail related services and a
series of unusual management projects. PRTRBPO.COM is a relatively new business and was established to
ensure that PRTR is able to provide, as a separate resource, the business and project management skills that
address the increasing trend within Thailand’s business community for the outsourcing of many varied and
interesting areas of business. PRTR has looked to Europe and America in understanding the future trends that are
developing in Thailand and is ready and actively participating in providing interesting and original solutions to any
business process outsourcing requirement. (http://www.prtrbpo.com) 8

Best Practice
One of the successful BPO in Thailand according to human resource and payroll outsourcing to the oversea
clients who established own business in Thailand.

Humanica Thailand.

 Humanica provides a full range of human resource management services from payroll outsourcing to HR
intelligence and talent management . We are also the number one SAP B1 reseller in Thailand. Our team has
extensive experiences in implementing ERP solutions for many years. With our practical approach drawn from
ERP experts, we help you to implement the ERP project to serve your business requirements on time and cost
effective.

Furthermore, they have a Performance Management team can help to implement the business intelligence
capability

Their PMS experts can help to design, develop and deliver the business intelligence system to enhance ability
to manage performance effectively. (www.humanica.com) 9




___________________________________________
7 http://sitagita.com/bpo/different-countries/thailand.html
8 http://www.prtrbpo.com
9 http://www.humanica.com/index.html

                                                                                                                8
ITO

Strengths                                        Weakness
    • Vast pool of talent skill (Mix of multiple    • Marketplace to promote ICT/ market campaign
        capabilities)                               • Manpower on any type of offshore outsourcing
    • Human Capital on creativity                   • High Turn Over rate of new graduates
    • Business Environment                          • Educational system for deep technician
                                                    • English Languages


Opportunities                                      Threats
   • Thailand as Hub Center for AEC 2015              • Perception of oversee clients
       (automotive, healthcare, tourism, food&        • Unstable political situation
       agricultural, logistics, manufacturing etc)
   • Transmission for new era digital technology
   • Large investment from China, Japan, USA




Best Practice
The successful development of software industry in Thailand complied by the uniquely supportive ecosystem.
Almost all of the world’s leading software companies including IBM, Microsoft, Oracle have significant presence in
Thailand. Situated in the strategic location in Asia Pacific region, Thailand is accredited for leading destination of
IT outsourcing location, for instance Thomas Reuter has established the software center since 2001 and
deliberated the global development site. Currently the company employs more than 1,300 IT professional as the
largest software development site globally.
In addition, the DST international Bangkok centre was established in 1993 and has grown to over 800
professionals providing Consulting, Support and Development services to Clients and DST affiliates globally. In
Thailand, DSTi services more than 50% of Fund Management companies and more than 50% of Broker
companies.

4.Government Support
The National ICT Master Plan chaired by Prime Minister approved the National ICT Framework 2020 ,which
applied National Broadband Policy Force Task on 2010. The broadband infrastructure allows to access
information via broadband internet reached 95% of Thai population in 2020. The Master plan also intend to
                                                                                                          9
invest human capital and IT literacy, to apply ICT enabling value creation to others industries and to develop
  ICT for green economy and ICT for good governance. The government invests IT enabler services in the e-
government projects as well as offering the tax exemption privilege for 8 years for foreign start up companies,
also provides incentives for the working permission, equipment and machinery. The government offers the ICT
infrastructure to promote the development of 4G, Enterprise 2.0 and also security system in domestic and
international.

Linkage to AEC 2015: Single marketplace
With the paradigm of AEC 2015, the integration of ASEAN countries + 6 reach more than 50% of the world
population (3,284 millions) and consumed 22% world GDP which value USD 12,250 billion. The conceptional
framework of the ASEAN ICT Master plan will be enhance the human capital and apply the horizontal industries
the thematic track on digital economy, new media and social network. The community transform the mechanism
to pursue partnerships and collaboration with the regional counterpart and alliances. The vertical industries
which will comply the ICT enabler as the strategic STI keys such as Creative & Digital contents, Logistics ,
Toursim+ medical tourism , automotive parts, processed food and electronics etc. will be key drive to applied
ICT as engine to to raise competitiveness in AEC 2015. Complied to ASEAN ICT master plan, which use ICT as a
tool to rise the ASEAN Economic growth and also provide the linkage to integrate the infrastructure, Thailand
government has positioned Thai ICT industry as flagship on ASEAN strategic location.

Mapping Thailand as the strategic location of AEC 2015
Within 2012 telecommunication and ICT, one of four service industries that were stimulated to open free zone
market such as aero transportation, healthcare, tourism, will open 70% own foreign stakeholders. This is the
direction that Thailand has to open more Foreign Direct Investment (FDI) located in whole country. In the
meantime, Thai investor can run oversee business in ASEAN including the cross border Data Processing Services in
ASEAN members. More thai skilled workforce will work border less across the region. Some vertical industries
which effect by AEC 2015 and need software as an enabling platform to reinforce the value chain and operation
such as logistic and electronics assembly will invest more in order to get more competitiveness.

Case Studies: Logistic
In order to get cost optimization; Thailand positioned the strategic location on logistics. The government
agencies launched the Master Plan for Thailand Logistic by creating the awareness of using IT as enabling on
logistics or called “ E-logistics” implemented marketplace with AEC 2012. The main strategic plan in on “ the
national single window” which will be applied in the import-export on logistics methodology to linkage the
paperless that implement digital technologies to integrate E-transportation, e-custom, e-declaration, e-container,
e manifest, trading community, banking and insurance to single platform. This platform will penetrate to Asean
Single Window in 2012. This will drive Thailand as the center hub in logistics both ASEAN export and import
location.

Case Studies: Automotive
Thailand called ''Detroit of Asia,'' produces car plants over the past decade and initial vehicles manufacturers are
                                                                                                                  10
made for export to more than 200 countries. The strengths of Thailand core value in the supply chain for car
Assembly, skill & experience workforce and also has been invested infrastructure by the government. Under the
paradigm of AEC 2015, Thailand is positioned to be Diesel automotive part assembly integrated to the whole
supply chain of Automotive in ASEAN. The automotive industries promote to apply ICT as enabler for
manufacturing, cost optimization, especially transform to the clients' orientation The ICT will help the
production line and manage the core value chain of industries to get better services and get competitiveness in
the global marketplace.

Case Studies: Tablet and device investment from the government to primary school
Thailand's Cabinet has approved the purchase of 860,000 tablet computers from a little-known Chinese
company for students in the first year of primary school. The software developer will take this opportunities to
create any contents and application on the mobility devices. The education institutes in Thailand have more
than 60,000 around the countries and proportion of users would be more than 600,000 students. The projects
will take hugh auction and procurement in the long term.

5.Strategies and Initiatives
             Strategies                                                    Description
5.1 Positioning Thailand as -Increase more professional skills by improving the education system and provide
strategic software development in more multiple national training
ASEAN and Global                  -Determine the strategic industries direction that used value added ICT enabler such
                                       as tourism, medical healthcare, software application in mobile devices etc.
                                       -Set up the ICT integrated committee to push Thai ICT master plan.
                                       -Launch the Telecommunication policy to comply with the ASEAN digital broadcasting
                                       which will align with the 4G mobile service.
                                       -Promote the Market -Entry methodology through ASEAN by sharing information,
                                       looking for strategic partnership, exchange human resource, knowledge transfer etc.
                                       -Focus on the niche software development by using the N2N model to integrate
                                       potential small and medium software developers to bundle the selling services in
                                       specific industries such as tourism, healthcare, financial management, and logistics.


             Strategies                                                    Description
5.2 Partnership and Alliance with -Increase more software park in distance area that boost the domestic demand, also
domestic and regional             create the job for local people and get competitiveness.
                                       -Create the promoting program to transfer knowledge , skill and expertise among
                                       region such as Exchange technician programmer with japan companies
                                       -Make future collaboration program through the networking channels for example,
                                       exchange inbound-outbound delegation, infrastructure; business matching program,
                                       internship, rental office space, and so on.


                                                                                                                       11
Strategies                                                        Description
5.3.Benchmarking; identify; focus In order to sustain the ASEAN ICT competitiveness, Thai ICT industries must focus on
on a niche market (specific niche the software as a service application (Saas) in specific area such as our core value
                                  vertical industries such as tourism , food , digital media and animation, medical
in global competition)
                                           healthcare, automotive and logistics. These vertical industries align with the know-how
                                           and workforce skill.


              Strategies                                                        Description
5.4. Awareness Creation of IT Thailand is also focusing on the growth of the IT domestic demand especially high
enabler on the vertical industries software skill and expertise on the vertical software industry applications such as
in domestic market.                tourism, financial services, logistics, hospital, food, agriculture, manufacturing industries.
                                           In addition, hyper growth software services such as animation, mobile application,
                                           multimedia and graphic are being promoted. This is also a result from the
                                           government’s efforts on the development of 3G and Wimax, web 2.0 and security
                                           services.


              Strategies                                                        Description
5.5 Build Cluster and Platform for         Cloud Computing: The concept of IT usage with cost optimization make cloud
emerging technologies.                     computing as the one potential driver for any business sectors. Today many private
                                           applied cloud computing passed the software as a service (Saas) model by billing the
-Trends of technologies are
                                           monthly service instead of software licensing. These provide great opportunities for
change dramatically, Thai ICT              software developers to create various applications served on the cloud services. In
industries positioned on the new           case of cloud infrastructure, AEC 2015 will allocate the concept of data centre free
emerging technologies according            zone and and provide the backup side outside among borders.
to many research indicators to              Mobile Application: The Office of the National Broadcasting and Telecommunication
map with the potential local               Commission will comply with the ASEAN digital broadcasting. The government have
demand as following                        to provide the infrastructure and also extend the mobile broad width that will serve
                                           the 4G for mobile industries. This will reinforce new mobile application and build the
                                           mobile platform to serve the mobile communities and developers. Yet the mobile
                                           industries will grow but the mobility device such as tablet help and transform
                                           business methodology of many industries such as insurance, event organizer, printing
                                           etc. The demand of vertical industries will build new application and new experience
                                           for the end users.
                                           Digital technology: The Digital Technology covered Record binary code combination
                                           of digit (0,1) bits represent words / images and also Telecommunication (transmit
                                           messages) such as TV broadband,sound, media,music, images, phone, cable system,
                                           internet and social network (American encyclopedia) will be new trend for ASEAN ICT.
                                           The digital technology transform the traditional industries to be more effectiveness,
                                           reduce cost and increase customer satisfaction. For example Thailand logistic master
                                           plan will use the national single window that apply digital tool in order to integrate
                                           data, paperless and also certify the e signature or the printing industries which applied
                                           digital technology for e-book, e-magazine that transform business model and also
                                           revolutionize the whole industries.
                                                                                                                              12
Strategies                                                     Description
5.6 Build Manpower to meet ITO/ -Thailand education system transforms a various of IT professional nationwide that
BPO global standards.           produce more than 100,000 workforces. More than 100 universities produce more
                                       than 10,000 skill developers annually. The universities provide standard courses
                                       and workshop across the country. The IT workforce have dispersed and worked
                                       through Software Park Alliance in other regions such as E-Saan Software Park in
                                       KhonKhaen and Korat Software Park in the eastern and outsourcing pillar at Phuket,
                                       south of Thailand. Thailand was selected to be strategic location for global software
                                       development .
                                       -Thailand education system transforms variety of IT professional courses set by
                                       new education standards nationwide to uplift IT professional skill and experience.
                                       -University training courses are readily available in software development, localization,
                                       translation, internationalization and other specific fields. In AEC 2015 Thailand
                                       government 's policy insist to enhance the quality of manpower by means of
                                       increased skill workforce, multiple language skill and analytic skill.


Initiatives
Tax exemption and working permit for private to increase more professional skill workforce.

6.Quality Certifications and Support

- The Ministry Of ICT in cooperation with Ministry of Labor determine standard ICT professional will comply to
ASEAN cross border labor. This measurement will define the professional qualification, certificate and also
compensation to the single standardization such as System Analyst, Networking and system executives, ICT
Project management, organizational architecture and design software; network and ICT security, and software
developers. In addition, software testing and software certificate will be a must to Thai workforce to meet the
global standard.

-Government privilege will provide system for professional skill testing and certification and allocate the portion
of budget to make more ICT experts.

-Thailand will develop IT professional Repository dominated in the region and also establish institute of IT
professional measurement to produce more qualified IT professional since high school whole countries.

7. Key Stakeholders
Associations
1.The Association of Thai ICT Industry (ATCI),
Further information: www.atci.or.th
    1. Promoting Thai ICT industry through business collaboration and sustained growth.
    2. Focusing ICT human resource development.
                                                                                                                           13
3. Working with the government to formulate policy to stimulate ICT uses and technological advancement.
 4. Acting as a representative of Thailand in the international arena to enhance the country’s reputation and to
build relationships across the region.

2.The Association of Software Industry (ATSI)
Further information: www.atsi.or.th
1. Solve problem of Thai IT entrepreneurs to reinforce Thai software globally.
2. Promote software enabling to other industries efficiency.
3.Thai Software Export Promotion Association (TSEP)
www.tsep.or.th
1.To compete globally, TSEP companies must strive to be “Best in Class” in each areas of expertise
2.Focus & become niche ICT players in industries where Thai companies are well established
3.Organize & attend Buyers Meets Sellers Events & Trade Missions with emphasis on meeting corporate decision
makers, exploring their ICT needs and showcase our solutions and capabilities to domestic, regional & global
customers
4.Find new business partners to exchange market expertise, know-how on domestic & overseas business, co-
marketing activities.

Organizations
1.National Electronics and Computer Technology Center (NECTEC)
Further information: www.nectec.or.th
NECTEC was established on 16 September 1986, initially as a project under the Ministry of Science, Technology
and Energy (the former name of the Ministry of Science and Technology). In 1991, NECTEC was transformed into
a specialized national center under the National Science and Technology Development Agency (NSTDA), a new
agency following the enactment of the Science and Technology Development Act of 1991.
NECTEC contributes to the development of Thailand's capability in electronics and computer technologies
through:
I. Research, development, design and engineering
II. Technology transfer to industries and communities
III. Human resource development
IV. Policy research and industrial intelligence and knowledge infrastructure

2.The Software Industry Promotion Agency (SIPA)
Www.sipa.or.th
A public organization, established on September 24, 2003 under the administrative supervision of the Ministry of
Information and Communication Technology. SIPA acts as a lead agency that develops plans and policies to
advocate Thai software industry with a focus on promoting and developing software and digital content
entrepreneurs, improving human resource, supporting investments and market opportunities, boosting research
activities and technology instructions as well as supporting and developing measures to protect the Intellectual
Property Rights to software. The goal is to make Thai software industry domestically and internationally
                                                                                                            14
recognized. Thus, this is consistent with the Government Policy that defines a development of software industry
as a main strategy to build competitiveness of the country.

3.Software Park Thailand
Www.swpark.or.th
An organization under the National Science and Technology Development Agency (NSTDA). Our task is to support
and strengthen those in the Software industry by any means necessary, be it in procurement of human
resources, marketing, securing investment and even with the latest technology. Our aim is to help each and
every stakeholder in Thailand’s software industry from manufacturing industry to agriculture as well as the
service sector-Software can help all increase their efficiency and their potential. We aim to grow the domestic
software industry and instill confidence in this industry for overseas operators wishing to establish themselves in
Thailand.

Regional Software Park Around countries Alliance:Thailand Software Park Alliance (TSPA)
1.Software Park Thailand
2.Software Park Phuket
3.E-Saan Software Park
4.Korat Software Park
Software Park Thailand lead the regional alliances as the business model and share the infrastructure; facilities
and activities to promote the networking, marketing channels through software houses ' members. They signed
MOU among organizations on March 2012.

International development Program
1.The Asia Oceania Regional Software Park Alliance is an international collaboration among 22 software related
organizations from 13 economies such as Malaysia, Brunei, China, Hong Kong, Vietnam and Thailand etc. in the
Asia Oceania Region.
It was initiated during the Regional Software Park Forum 2007 in Bangkok, Thailand with the idea to create a
mutual collaborative linkage among Software Park operators and/or IT related organizations in this region which
can subsequently be extended to their tenants and members. A year later, the initiative has brought results with
the establishment of the Asia Oceania Regional Software Park Alliance where all alliance members signed the
official Memorandum of Understanding in Xiamen China on September 8, 2008 agreed to establish a network by
pooling resources among the members to assist local software/IT business in the region to go global and place
software/IT industry development in the Asia Oceania on the world scenario

2.The Asian-Oceanian Computing Industry Organization (ASOCIO) is a group of IT industry associations coming
from economies in the Asia and Oceania region. ASOCIO is established in 1984 with the objective is to promote,
encourage and foster relationships and trade between its members, and to develop the computing industry in
the region.
Presently, ASOCIO represents the interests of 29 economies, comprising 22 members from Australia, Bangladesh,
Brunei, Chinese Taipei, Hong Kong, India, Indonesia, Japan, Laos, Macao, Malaysia, Mongolia, Myanmar, Nepal,
                                                                                                             15
New Zealand, Pakistan, Philippines, Singapore, South Korea, Sri Lanka, Thailand, Vietnam and seven guest
members from USA, UK, Canada, Spain, Russia, France, and Kenya. Today, ASOCIOs members account for more
than 10,000 ICT companies and represent approximately US$350 billion of ICT revenue in the region.
ATCI is now leading the ASOCIO in Thailand and the next meeting will be held in Nepal.

3. CBI ITO Program 2009-2013
Software Park Thailand facilitated as counterpart to the Centre for the Promotion of Imports from developing
countries (CBI) is cordially inviting you to join with the CBI IT outsourcing Export Coaching Program (CBI ITO ECP)
2008-2010 from Netherlands. This program is selected developing countries with sake of delivering services to
provide assessment to EU market, offer business transfer and technology information, provide matchmaking and
promotion opportunities by the EU consultants.
Overview of program is to select 10-20 companies from developing countries through CBI counterpart and assist
them to enter the European market. During the program selected companies will be provided training, coaching,
and consulting and market entry assistant.

8.Best Practice
Emergence Technologies : Flagship for Thai ICT Ecosystem
Thai software Industry has adopted the software road map in order to reinforce the ICT industry ecosystem for
new market development and initiate the start up environment. Technologies have been changed dynamically
and made short computing cycle of products and turned on software as services. Thai ICT industry has to shift
spontaneously by following the technology trend and apply to global market orientation. There are some
emergence technologies that Thai ICT industry will focus on such as Mobile application, Cloud computing, Social
Analytics, and Social Networking.
The significant Enterprise 2.0 will lead the technology trend for mobile application technology especially on
mobile devices and smart phone. This will augment number of mobile content developers,mcommerce and
mpayment in the near future. Many Thai private and government organizations get recognition to apply
mobilizing application to execute value creation to their business performance and also embrace the platform to
support mobility. The emergence of cloud computing will support and manage remote cloud implementation to
the organizations both infrastructure and Saas delivery of cloud services. This technology will then become the
social media and turn on the cloud security concern in business sectors. Finally social networking will
collaborate the connection, networking, tools & services for the marketing and CSR activities for any
organizations. The enterprise 2.0 will create the new platform,communities and security serviced providers to
enhance and shift the business model of private sectors in order to adjust to any changes and survive in global
economic circumstance. These emergence technologies will support the industrial SMEs strategies and
performances to apply new business models in order to gain the competitiveness and work efficiency in the
global market. One successful story was applied Business Continuity for cloud computing and mobile
application in flood crisis in Thailand in 2011, the virtual technology can help SMEs and privates to access any
time, anywhere and any devices. This is helpful engine that can carry on the business efficiency even on the
crisis situations.

                                                                                                             16
9. Key Bottleneck
      •    Unstable Politics Situation
      •    Fostering Human capital: skill & expertise, languages, education system
      •    IP Rights/ security
      •    Infrastructure Investment
      •    Marketing skill promotion's activities
      •    Perception of oversea clients
      •    Business Environment : working permit, procedures,BOI
      •    Reform Government system
      •    Awareness of industries on the ICT enabling
      •    Ensure green technology and Green ICT
10.The most important Export markets for ITO and BPO products and services
According to Board of Investment Thailand, 2010. They divided ITO into categories as following
Outsource Categories                        Description                                     Outsourcing buyers
BPO                         Human Resource                                    Japan, UK, USA, Scandinavian,Germany
                            Purchase and accounting                           USA, France
                            Selling Department                                USA, UK
                            Back Office                                       Japan, UK


ITO                         Custom software development                       UK, Scandinavian
                            Analytics /Business Intelligence                  Germany
                            System Integration                                Swiss, UK, Germany
                            Database development                              Germany, the netherlands
                            Web development                                   Spain, Austria
Source: BOI Thailand (www.boi.go.th)
11. List of Potential BPO and ITO
          Company Name                                   Description                                          URL
Amber Advisory Ltd             E-learning, database system network system design, system www.umithai.com
                               analyst
Aware Corporation              Contract software development, Internet data center, PM, www.aware.co.th
                               Giftware
Digicraft Co.,Ltd              Develop digital content, animation, mobile content                www.digicrafts.com
Enspry Technology Co.,Ltd      Web application, testing, automated testing                       www.enspry.com
IT works Co.,Ltd               Mobile and biometrics application outsourcing                     www.itworks.co.th
Solubiz Co.,Ltd                MRP , artificial Intelligence, genetic algorithms                 www.solubiz.com      16
TNT Media and network Co.,Ltd Web application outsourcing, E-book, E-magazine                  www.tnt.co.th
Innova Software                E-commerce, mobile application, Transportation control system www.innovasoftware.com
MiracleNET group               Outsourcing Java and Opensource                                 www.miraclenet.net
Softsquare International       Software customization in retail, manufacturing and www.softsqauregroup.com
                               government
Verisette Co.,Ltd              IT banking outsourcing, testing integration.                    www.verisette.com
Suvitech co.Ltd                Telecommunication                                               www.suvitech.com
AI Soft Co.Ltd                 Traveling search engine                                         www.aisoftthailand.com
Readyplanet Co.,Ltd            Web solution , web development                                  www.grandplanet.com
Infotronics Co.,Ltd            Infotronics is a leading Software Development Services, www.infotronics.co.th
                               Consulting, Trading, System Integrator and IT Services for
                               ubiquitous city
Ubiz Solution Co,.Ltd          PM, Helpdesk support, software development                      www.ubizsolution.com
Good Job Multimedia.com        Mobile application, game and animation, visual effect, graphic www.goodjobmultimedia.com
                               design
YIP In TSOI Co.,Ltd            Total IT solution provider                                      www.yipinsoi.com
Longkong studio Co.,Ltd        Software for construction                                       www.longkongstudio.com
Touch Technology Co.,Ltd       Mobile application, monitoring solution, wireless network www.touchtechnologies.co.th
                               solution
Sun Systems Corporation        Solutions for VASs, enhanced / intelligent switching, call / www.sun-system.com
Co.,Ltd                        media processing, VoIP, unified messaging, wireless e-mail,
                               CallCenter, Helpdesk Applications, Thai Text to Speech, Thai
                               Automatic Speech Recognition and Value Added Services
                               Platform
Teletrol-One Co.,Ltd           Financial software                                              www.teletrol-one.co.th
Code Suite Co.,Ltd             Conference system,           web   application,   network   and www.codesuite.co.th
                               infrastructure
Advance Intelligence Modernity Wireless application, mobile internet, content aggregator , game www.aimadvance.com
Co.,Ltd
Asiabiz Networks Co.,Ltd       Call center, Sales and services, Process Management www.asiabiznetworks.com
                               customers,
Asia Medisoft Co.,Ltd          Web application for medical software, mobile application        www.asiamediasoft.com
Alterlas Co.,Ltd               Design and web application                                      www.alterlas.com
Chanwanich Co.,Ltd             BPO provider and IT security integrator                         www.chanwanich.com
ISLT Co.,Ltd                   Interactive digital media, web application                      www.figabyte.com
Anywhere to go Co.,Ltd         Mobility Enterprise Solution on cloud computing                 www.anywheretogo.com
Sense water Co.,Ltd            Water leakage management                                        www.sensewater.net
Humanica Co.,Ltd               Human Outsourcing, ERP                                          www.humanica.com
                                                                                                                        17
Bibliography

The annual report Ministry of ICT Thailand 2011, “ Thailand ICT Market 2011 and outlook 2012” , Software
Industry Promotion Agency (SIPA), page 54.

The IMD World Competitiveness Yearbook (WCY); The World Competitiveness Scorecared, page 19.

A.T Kearney ; A.T Kearney Global Service Location Index 2011; page 23

Cambridge Encyclopedia 2010 , “KPMG Landscape Report Analysis” , page 18

Thailand-Canadian Collaboration Forum 11-14 October 2011, Bangkok; page 32

http://sitagita.com, “ BPO Thailand”

http://www.prtrbpo.com, “company profile”

http://www.humanica.com; “company profile”

http://www.boi.or.th ; “Board of Investment Thailand ” (BOI), 2011

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Thailand Country Profile BPO & ITO

  • 1. Thailand Country Profile Business Process Outsourcing (BPO) Information Technology Outsourcing (ITO) for Submission on CBI KPO program 2014-2020 The Centre for the Promotion of Imports from developing countries (CBI) The Netherlands Conducted by Software Park Thailand under National Science and Technology Development Agency (NSTDA)
  • 2. Table of Content Topics Page 1 Introduction Description of Characteristic of BPO 3 Description of Characteristic of ITO 3 Key Strength and Weakness 7 Government support regarding to BPO and ITO 9 IT and BPO industry development strategies and initiatives 11 Quality of certification and support for IT and BPO industry 13 Key Stakeholders of BPO and ITO industry 13 Key bottlenecks for export development of the BPO and ITO industry 16 The most important Export markets for ITO and BPO products and services 16 Number of exporting companies in the ITO and BPO industry 16
  • 3. Country Profile Thailand for CBI KPO services 1.Introduction Today the economics crisis forces many business to seek the effective method to reduce cost and enhance the internal operations. The concept of global Business Process Outsourcing (BPO) and Information Technology Outsourcing (ITO) has been growing since decade. Many Business concerns the budget of IT investment in order to reach cost optimization while delivering paradigm for the best services. Over few years, Thailand has proven as the international reputation on BPO and ITO as the center of excellence to conduct the world class software outsourcing. The software industry gains the strong complementary elements: a centric manufacturing of international software leading companies that align the global market leaders and numerously indigenous companies who achieve the significant global market success. Thai software has been recognized internationally as being dynamic, highly innovative, technically expert and international standard adept. Since 2008 to 2010 Thailand has been ranked as the Top 30 global destination for IT outsourcing by Gartner. Thai Software Industry today comprises over 1,900 companies, employing over 100,000 people, with combines sales growth 17.2% The vast majority of software activities are exported, so that the number of software exporting last year achieved USD 14 billion (2010). (annual report Ministry of ICT ,2011) 1 The upcoming Asean Economic Community 2015 (AEC 2015) give the opportunity to trigger point of a paradigm shift and integrated the economics in all Asean Regions. Thailand as the strategic location was proven as the Hub of Asean Detroit export and manufacturing in automotive industry. Thailand is also location of hugh foreign investment from Japan, USA, UK Germany and so on. Thailand has been recognized as one of 30 top destination of global IT outsourcing ranked by Gartner. Some international leading software companies such as Thomas Reuters and DSTi located the development center since 2001 to employ Thai IT professional more than 1,500 people and to deliberate quality software to global market place. AEC 2015 will synergy platform to regional single market and production based which require removal of trade barrier among countries (Asean + 3 countries; China, Japan and Korea) will deliver collaboration across business sectors especially software concerned as the services will be key driver to shift the business model that revolutionize the industrial sectors in the near future. Why Thailand: Destination for BPO and ITO Situated in the strategic location in Asia-Pacific region Thailand offers ranges of advantages to foreign business firms. According to World Competitiveness Scorecared 2009 2 shows Thailand ICT statistics as 26th rank top in the world on the domestic consumption in ICT sector represents 24 millions internet users, increasing number of 69 millions mobile users and augmented social network as a number of Facebook reached more than 13 million users. __________________________________________ 1 The annual report Ministry of ICT Thailand ,2011 1 2 The World Competitiveness Scorecared ,2009
  • 4. Thailand IT market is the largest in South east Asia region and project to grow at CADR of 12% over 2010-1214, while total value of domestic spending on IT products and services are more than USD 5.4 billion in 2010 and by 2014 at USD 8.7 billion. As the crossroad of software development in South East Asia, Thailand has been envisaged as highly competitive software development and centric distribution/delivery in the region. Thailand provides further impetus toward domestic and regional strategic integration to be success to embrace the market liberalization by 2015. There are some key critical factors such as Human Resource, Skill& expertise, infrastructure support, IT professional and standardization measurement, government privilege, strong software clusters to drive successfully Thai ICT market . The additional atmosphere to support the investors are in term of the initiatives , taxation, legal framework, business support, and investment conditions. Thailand Today: Moving forward for future 2
  • 5. From Kearney Global Service 3 Nowadays Thailand move to main contender of global software outsourcing destination ranked on 7th Global service location on 2011. The attractive indicators are on the financial attraction, people skill and business environment respectively. 2. Characteristics of BPO and ITO Thailand services 2.1 Business Process Outsourcing (BPO) The late 20th century and the beginning of the 2nd millennium saw a huge development in the BPO sector. Owing to the dependence of the BPO industry on information technology, IT Jobs in BPO are generally divided into two categories, back office outsourcing and front office outsourcing. There is a stark difference between these two categories of BPO jobs. BPO in Thailand is not outstanding compared to ITO , mostly BPO in Thailand is in term of internal BPO such as Human Resource, Lawyer, Accounting, Call Center, Selling, Marketing. In Thailand there are oversea companies who looking for outsourcing services. However there are very few BPO buyers to subcontract local outsourcing in Thailand. This cause language capabilities in specific business area. 2.2 Information Technology Outsourcing (ITO) Gartner accredited Thailand as “10 leading locations for offshore services in Asia Pacific 2007-2011”.These are assets to Western and Japanese investors. Like most other manufacturing industries, Thailand is gaining its acceptance in IT services outsourcing. Over the past decade Thailand has gradually turned to be the destination for offshore outsourcing location. For instance, Thomas Reuter has established the Software Center since 2001 after 18-months deliberation of global development site. From ITO and BPO table , we divided into three categories as following 1. Financial Attractiveness 2. People Skill and Availability 3. Business Environment ___________________________________________ 3 A.T Kearney Global Service Location Index 2011 3
  • 6. Categories Subcategories Metric Description Thailand Indicators (proportion %) BPO ITO Financial Attractiveness Cost Optimization 1.Average salaries (40%) 2.Compensation cost to positions (call center, BPO analyst, IT programmer and local operation manager) Infrastructure Cost 1.Rental space 2.International telecom cost 3.Traveling cost to clients Tax and Regulation 1.Tax Burden 2.Corruption Perception 3.Currency Rate People Skill and Remote services sector 1.Size of existing ITO and BPO Availability (30%) experience and quality sectors rating 2.Contact Center and IT center quality certifications 3.Quality Rating of management school and IT training Labour Force availability 1.Total workforce 2University-educated workforce 3.Workforce Flexibility Education and Language Score on standardized education and language test Attrition Risk Relative IT and BPO sector growth and unemployment rates Business Environment Country Environment 1.Factors on political and local (30%) economics 2.FDI 3.Security Risk 4.Regulatory burden and employment rigidity 5.Government support for ICT sector Infrastructure 1.Overall infrastructure quality 2.Quality of telecom, internet and electricity infrastructure Security of Intellectual 1.Investor rating of IP protection Property (IP) and ICT laws 2.Software Piracy rates 4 3.Information Security Certification
  • 7. Remarks: High activities: Lower activity Even top three location remains in India, China, and Malaysia are outstanding to provide the off shoring software services activity, Thailand is rank as the significant player. One article from the Global Service location 4 (top 10 locations based on their capabilities as figure following Thailand focus on niche quality of software services which produce output on the qualified graduates and English capabilities moving up to value chain of BPO and ITO industries due to large workforce and cost competitiveness. Thailand skillful workforce: The software sector in Thailand has been driven by the highly skilled and well educated workforce. Thailand education system transforms the variety of IT professional courses set by the standard nationwide. ___________________________________________ 4 A.T Kearney Global Service Location Index 2011 5
  • 8. Thailand development policy delegates the opportunity to the geographic clusters such as the IT valley in the northern of Thailand and outsourcing cluster in Phuket. The development of language skill in Thailand has been proven as the various interpretation skill. Thailand is also the largest IS/ISV communities to do outsourcing in Southeast Asia region. Also now we have certified 47 companies CMMI appraisal and more than 70 certified PSP developers training and ranked at 3rd in the world. The number of certified software professional in PM, Software Quality Assurance and software tester were approved by Quality Assurance Institute (QAI) achieved 80 persons. The industry development is underwritten by the continued state investment in education and research. The information and communication technologies are the priority area supported by the government; therefore the investment in R &D has also significantly risen. The Ministry of ICT has invested to initiative projects to collaboration among academic, research and industries to ensure the optimum usage of resource and apply successful commercialization. From INSEAD global IT report show the Quality of Education in country which represented perception index 1-7. Thailand was ranked at 3.6 scale. There are more than 100 universities produce more than 4,000 skill professional workers annually. Some institutions, for example Software Park Thailand provided professional high skill enterprises training such as IT professional, project management, and software process. From figure about the population with English as the first and the second language (Cambridge Encyclopedia of English language, KPMG analysis) 5 show 3% of 65 million people in country know english as second language ( 2.5 million). The multiple language skill rise the localization business opportunities because localization enabler for international businesses. Adequate recruitment of the best skill and talent workforce are in various industrial sectors. A case in point,ProZ.com, the largest online community of translators and the Localization Industry Standards Association (LISA), the leading organization for companies involved in localization and globalization is located in Bangkok to promote the localization and translation industry in domestic and global arena. Case studies The largest software development site globally. Asia Online, the machine translation company has also set up its operational headquarters in Bangkok, from where it conducts R&D and daily business operations. Likewise Asia Online currently employs more than 400 staffs and is in the process of being incorporated in other 10 Asian countries. One more interesting niche market in Thailand are animation, design and graphic development. With creativity, Thai developers step forward from neighbor countries in term of character, design and emotion. The animation industries USD 736,700 which categorized to animation industry USD 381,200 and Game industry reached USD 355,500 6 ___________________________________________ 5 KPMG Analysis, Cambridge Encyclopedia 2010 6 Thailand-Canadian Collaboration Forum 11-14 October 2011, Bangkok 6
  • 9. 3.SWOT Analysis BPO Strengths Weakness -Skill workforces -Language-lacking in quality in english instruction -Quality Assurance -Lack of adequate infrastructure -Business Environment -Lack of adequate promotional support. Opportunities Threats -Hugh hub of FDI -Unstable political situations -ASEAN AEC 2015 Positioning Market of BPO in Thailand Besides being a famous tourist destination and the auto making hub for Southeast Asia, Thailand is best known as a tourist destination, the government of Thailand is attempting a lot to encourage business and make higher investments in Business Process Outsourcing (BPO). The opportunities for global BPO in Thailand are obstructed by lack of government support and vision, limited access to investment capital, and lack of regulations regarding privacy or security, as per to research analysts. They also cited the adequate of infrastructure, ICT research facilities, labor policies, etc. in the BPO market of Thailand. For these reasons , Office of the Board of Investment (BOI) decided to encourage higher and better investments in Business Process Outsourcing. It has expanded Activity 7.22 for including not only call centers, but also an array of services under the new category of BPO. This activity will include finance and accounting services, administrative services, sales and marketing services, human resources support, international call centers and data processing, and customer services, just to name a few. Recently, the India-based company, Infosys, has decided to put up its BPO in Thailand.( www.sitagita.com) 7 Case Studies Infosys targets Thailand for banking solutions suite. Software major Infosys said on Wednesday that it had identified Thailand as a key target market for its global banking solutions suite, Finacle, and entered into a partnership with Datamat Public Company Ltd. and Yip in Tsoi & Co Ltd in that country to market the product in the region. 7
  • 10. PRTRBPO.COM directly addresses the increasing need of our customers for value added business process outsourcing services in Bangkok and Thailand. These requirements, to date, have been in the provision of PC / Sales Team Management, Sales Outsourcing, Warranty Management, a number of retail related services and a series of unusual management projects. PRTRBPO.COM is a relatively new business and was established to ensure that PRTR is able to provide, as a separate resource, the business and project management skills that address the increasing trend within Thailand’s business community for the outsourcing of many varied and interesting areas of business. PRTR has looked to Europe and America in understanding the future trends that are developing in Thailand and is ready and actively participating in providing interesting and original solutions to any business process outsourcing requirement. (http://www.prtrbpo.com) 8 Best Practice One of the successful BPO in Thailand according to human resource and payroll outsourcing to the oversea clients who established own business in Thailand. Humanica Thailand. Humanica provides a full range of human resource management services from payroll outsourcing to HR intelligence and talent management . We are also the number one SAP B1 reseller in Thailand. Our team has extensive experiences in implementing ERP solutions for many years. With our practical approach drawn from ERP experts, we help you to implement the ERP project to serve your business requirements on time and cost effective. Furthermore, they have a Performance Management team can help to implement the business intelligence capability Their PMS experts can help to design, develop and deliver the business intelligence system to enhance ability to manage performance effectively. (www.humanica.com) 9 ___________________________________________ 7 http://sitagita.com/bpo/different-countries/thailand.html 8 http://www.prtrbpo.com 9 http://www.humanica.com/index.html 8
  • 11. ITO Strengths Weakness • Vast pool of talent skill (Mix of multiple • Marketplace to promote ICT/ market campaign capabilities) • Manpower on any type of offshore outsourcing • Human Capital on creativity • High Turn Over rate of new graduates • Business Environment • Educational system for deep technician • English Languages Opportunities Threats • Thailand as Hub Center for AEC 2015 • Perception of oversee clients (automotive, healthcare, tourism, food& • Unstable political situation agricultural, logistics, manufacturing etc) • Transmission for new era digital technology • Large investment from China, Japan, USA Best Practice The successful development of software industry in Thailand complied by the uniquely supportive ecosystem. Almost all of the world’s leading software companies including IBM, Microsoft, Oracle have significant presence in Thailand. Situated in the strategic location in Asia Pacific region, Thailand is accredited for leading destination of IT outsourcing location, for instance Thomas Reuter has established the software center since 2001 and deliberated the global development site. Currently the company employs more than 1,300 IT professional as the largest software development site globally. In addition, the DST international Bangkok centre was established in 1993 and has grown to over 800 professionals providing Consulting, Support and Development services to Clients and DST affiliates globally. In Thailand, DSTi services more than 50% of Fund Management companies and more than 50% of Broker companies. 4.Government Support The National ICT Master Plan chaired by Prime Minister approved the National ICT Framework 2020 ,which applied National Broadband Policy Force Task on 2010. The broadband infrastructure allows to access information via broadband internet reached 95% of Thai population in 2020. The Master plan also intend to 9
  • 12. invest human capital and IT literacy, to apply ICT enabling value creation to others industries and to develop ICT for green economy and ICT for good governance. The government invests IT enabler services in the e- government projects as well as offering the tax exemption privilege for 8 years for foreign start up companies, also provides incentives for the working permission, equipment and machinery. The government offers the ICT infrastructure to promote the development of 4G, Enterprise 2.0 and also security system in domestic and international. Linkage to AEC 2015: Single marketplace With the paradigm of AEC 2015, the integration of ASEAN countries + 6 reach more than 50% of the world population (3,284 millions) and consumed 22% world GDP which value USD 12,250 billion. The conceptional framework of the ASEAN ICT Master plan will be enhance the human capital and apply the horizontal industries the thematic track on digital economy, new media and social network. The community transform the mechanism to pursue partnerships and collaboration with the regional counterpart and alliances. The vertical industries which will comply the ICT enabler as the strategic STI keys such as Creative & Digital contents, Logistics , Toursim+ medical tourism , automotive parts, processed food and electronics etc. will be key drive to applied ICT as engine to to raise competitiveness in AEC 2015. Complied to ASEAN ICT master plan, which use ICT as a tool to rise the ASEAN Economic growth and also provide the linkage to integrate the infrastructure, Thailand government has positioned Thai ICT industry as flagship on ASEAN strategic location. Mapping Thailand as the strategic location of AEC 2015 Within 2012 telecommunication and ICT, one of four service industries that were stimulated to open free zone market such as aero transportation, healthcare, tourism, will open 70% own foreign stakeholders. This is the direction that Thailand has to open more Foreign Direct Investment (FDI) located in whole country. In the meantime, Thai investor can run oversee business in ASEAN including the cross border Data Processing Services in ASEAN members. More thai skilled workforce will work border less across the region. Some vertical industries which effect by AEC 2015 and need software as an enabling platform to reinforce the value chain and operation such as logistic and electronics assembly will invest more in order to get more competitiveness. Case Studies: Logistic In order to get cost optimization; Thailand positioned the strategic location on logistics. The government agencies launched the Master Plan for Thailand Logistic by creating the awareness of using IT as enabling on logistics or called “ E-logistics” implemented marketplace with AEC 2012. The main strategic plan in on “ the national single window” which will be applied in the import-export on logistics methodology to linkage the paperless that implement digital technologies to integrate E-transportation, e-custom, e-declaration, e-container, e manifest, trading community, banking and insurance to single platform. This platform will penetrate to Asean Single Window in 2012. This will drive Thailand as the center hub in logistics both ASEAN export and import location. Case Studies: Automotive Thailand called ''Detroit of Asia,'' produces car plants over the past decade and initial vehicles manufacturers are 10
  • 13. made for export to more than 200 countries. The strengths of Thailand core value in the supply chain for car Assembly, skill & experience workforce and also has been invested infrastructure by the government. Under the paradigm of AEC 2015, Thailand is positioned to be Diesel automotive part assembly integrated to the whole supply chain of Automotive in ASEAN. The automotive industries promote to apply ICT as enabler for manufacturing, cost optimization, especially transform to the clients' orientation The ICT will help the production line and manage the core value chain of industries to get better services and get competitiveness in the global marketplace. Case Studies: Tablet and device investment from the government to primary school Thailand's Cabinet has approved the purchase of 860,000 tablet computers from a little-known Chinese company for students in the first year of primary school. The software developer will take this opportunities to create any contents and application on the mobility devices. The education institutes in Thailand have more than 60,000 around the countries and proportion of users would be more than 600,000 students. The projects will take hugh auction and procurement in the long term. 5.Strategies and Initiatives Strategies Description 5.1 Positioning Thailand as -Increase more professional skills by improving the education system and provide strategic software development in more multiple national training ASEAN and Global -Determine the strategic industries direction that used value added ICT enabler such as tourism, medical healthcare, software application in mobile devices etc. -Set up the ICT integrated committee to push Thai ICT master plan. -Launch the Telecommunication policy to comply with the ASEAN digital broadcasting which will align with the 4G mobile service. -Promote the Market -Entry methodology through ASEAN by sharing information, looking for strategic partnership, exchange human resource, knowledge transfer etc. -Focus on the niche software development by using the N2N model to integrate potential small and medium software developers to bundle the selling services in specific industries such as tourism, healthcare, financial management, and logistics. Strategies Description 5.2 Partnership and Alliance with -Increase more software park in distance area that boost the domestic demand, also domestic and regional create the job for local people and get competitiveness. -Create the promoting program to transfer knowledge , skill and expertise among region such as Exchange technician programmer with japan companies -Make future collaboration program through the networking channels for example, exchange inbound-outbound delegation, infrastructure; business matching program, internship, rental office space, and so on. 11
  • 14. Strategies Description 5.3.Benchmarking; identify; focus In order to sustain the ASEAN ICT competitiveness, Thai ICT industries must focus on on a niche market (specific niche the software as a service application (Saas) in specific area such as our core value vertical industries such as tourism , food , digital media and animation, medical in global competition) healthcare, automotive and logistics. These vertical industries align with the know-how and workforce skill. Strategies Description 5.4. Awareness Creation of IT Thailand is also focusing on the growth of the IT domestic demand especially high enabler on the vertical industries software skill and expertise on the vertical software industry applications such as in domestic market. tourism, financial services, logistics, hospital, food, agriculture, manufacturing industries. In addition, hyper growth software services such as animation, mobile application, multimedia and graphic are being promoted. This is also a result from the government’s efforts on the development of 3G and Wimax, web 2.0 and security services. Strategies Description 5.5 Build Cluster and Platform for Cloud Computing: The concept of IT usage with cost optimization make cloud emerging technologies. computing as the one potential driver for any business sectors. Today many private applied cloud computing passed the software as a service (Saas) model by billing the -Trends of technologies are monthly service instead of software licensing. These provide great opportunities for change dramatically, Thai ICT software developers to create various applications served on the cloud services. In industries positioned on the new case of cloud infrastructure, AEC 2015 will allocate the concept of data centre free emerging technologies according zone and and provide the backup side outside among borders. to many research indicators to Mobile Application: The Office of the National Broadcasting and Telecommunication map with the potential local Commission will comply with the ASEAN digital broadcasting. The government have demand as following to provide the infrastructure and also extend the mobile broad width that will serve the 4G for mobile industries. This will reinforce new mobile application and build the mobile platform to serve the mobile communities and developers. Yet the mobile industries will grow but the mobility device such as tablet help and transform business methodology of many industries such as insurance, event organizer, printing etc. The demand of vertical industries will build new application and new experience for the end users. Digital technology: The Digital Technology covered Record binary code combination of digit (0,1) bits represent words / images and also Telecommunication (transmit messages) such as TV broadband,sound, media,music, images, phone, cable system, internet and social network (American encyclopedia) will be new trend for ASEAN ICT. The digital technology transform the traditional industries to be more effectiveness, reduce cost and increase customer satisfaction. For example Thailand logistic master plan will use the national single window that apply digital tool in order to integrate data, paperless and also certify the e signature or the printing industries which applied digital technology for e-book, e-magazine that transform business model and also revolutionize the whole industries. 12
  • 15. Strategies Description 5.6 Build Manpower to meet ITO/ -Thailand education system transforms a various of IT professional nationwide that BPO global standards. produce more than 100,000 workforces. More than 100 universities produce more than 10,000 skill developers annually. The universities provide standard courses and workshop across the country. The IT workforce have dispersed and worked through Software Park Alliance in other regions such as E-Saan Software Park in KhonKhaen and Korat Software Park in the eastern and outsourcing pillar at Phuket, south of Thailand. Thailand was selected to be strategic location for global software development . -Thailand education system transforms variety of IT professional courses set by new education standards nationwide to uplift IT professional skill and experience. -University training courses are readily available in software development, localization, translation, internationalization and other specific fields. In AEC 2015 Thailand government 's policy insist to enhance the quality of manpower by means of increased skill workforce, multiple language skill and analytic skill. Initiatives Tax exemption and working permit for private to increase more professional skill workforce. 6.Quality Certifications and Support - The Ministry Of ICT in cooperation with Ministry of Labor determine standard ICT professional will comply to ASEAN cross border labor. This measurement will define the professional qualification, certificate and also compensation to the single standardization such as System Analyst, Networking and system executives, ICT Project management, organizational architecture and design software; network and ICT security, and software developers. In addition, software testing and software certificate will be a must to Thai workforce to meet the global standard. -Government privilege will provide system for professional skill testing and certification and allocate the portion of budget to make more ICT experts. -Thailand will develop IT professional Repository dominated in the region and also establish institute of IT professional measurement to produce more qualified IT professional since high school whole countries. 7. Key Stakeholders Associations 1.The Association of Thai ICT Industry (ATCI), Further information: www.atci.or.th 1. Promoting Thai ICT industry through business collaboration and sustained growth. 2. Focusing ICT human resource development. 13
  • 16. 3. Working with the government to formulate policy to stimulate ICT uses and technological advancement. 4. Acting as a representative of Thailand in the international arena to enhance the country’s reputation and to build relationships across the region. 2.The Association of Software Industry (ATSI) Further information: www.atsi.or.th 1. Solve problem of Thai IT entrepreneurs to reinforce Thai software globally. 2. Promote software enabling to other industries efficiency. 3.Thai Software Export Promotion Association (TSEP) www.tsep.or.th 1.To compete globally, TSEP companies must strive to be “Best in Class” in each areas of expertise 2.Focus & become niche ICT players in industries where Thai companies are well established 3.Organize & attend Buyers Meets Sellers Events & Trade Missions with emphasis on meeting corporate decision makers, exploring their ICT needs and showcase our solutions and capabilities to domestic, regional & global customers 4.Find new business partners to exchange market expertise, know-how on domestic & overseas business, co- marketing activities. Organizations 1.National Electronics and Computer Technology Center (NECTEC) Further information: www.nectec.or.th NECTEC was established on 16 September 1986, initially as a project under the Ministry of Science, Technology and Energy (the former name of the Ministry of Science and Technology). In 1991, NECTEC was transformed into a specialized national center under the National Science and Technology Development Agency (NSTDA), a new agency following the enactment of the Science and Technology Development Act of 1991. NECTEC contributes to the development of Thailand's capability in electronics and computer technologies through: I. Research, development, design and engineering II. Technology transfer to industries and communities III. Human resource development IV. Policy research and industrial intelligence and knowledge infrastructure 2.The Software Industry Promotion Agency (SIPA) Www.sipa.or.th A public organization, established on September 24, 2003 under the administrative supervision of the Ministry of Information and Communication Technology. SIPA acts as a lead agency that develops plans and policies to advocate Thai software industry with a focus on promoting and developing software and digital content entrepreneurs, improving human resource, supporting investments and market opportunities, boosting research activities and technology instructions as well as supporting and developing measures to protect the Intellectual Property Rights to software. The goal is to make Thai software industry domestically and internationally 14
  • 17. recognized. Thus, this is consistent with the Government Policy that defines a development of software industry as a main strategy to build competitiveness of the country. 3.Software Park Thailand Www.swpark.or.th An organization under the National Science and Technology Development Agency (NSTDA). Our task is to support and strengthen those in the Software industry by any means necessary, be it in procurement of human resources, marketing, securing investment and even with the latest technology. Our aim is to help each and every stakeholder in Thailand’s software industry from manufacturing industry to agriculture as well as the service sector-Software can help all increase their efficiency and their potential. We aim to grow the domestic software industry and instill confidence in this industry for overseas operators wishing to establish themselves in Thailand. Regional Software Park Around countries Alliance:Thailand Software Park Alliance (TSPA) 1.Software Park Thailand 2.Software Park Phuket 3.E-Saan Software Park 4.Korat Software Park Software Park Thailand lead the regional alliances as the business model and share the infrastructure; facilities and activities to promote the networking, marketing channels through software houses ' members. They signed MOU among organizations on March 2012. International development Program 1.The Asia Oceania Regional Software Park Alliance is an international collaboration among 22 software related organizations from 13 economies such as Malaysia, Brunei, China, Hong Kong, Vietnam and Thailand etc. in the Asia Oceania Region. It was initiated during the Regional Software Park Forum 2007 in Bangkok, Thailand with the idea to create a mutual collaborative linkage among Software Park operators and/or IT related organizations in this region which can subsequently be extended to their tenants and members. A year later, the initiative has brought results with the establishment of the Asia Oceania Regional Software Park Alliance where all alliance members signed the official Memorandum of Understanding in Xiamen China on September 8, 2008 agreed to establish a network by pooling resources among the members to assist local software/IT business in the region to go global and place software/IT industry development in the Asia Oceania on the world scenario 2.The Asian-Oceanian Computing Industry Organization (ASOCIO) is a group of IT industry associations coming from economies in the Asia and Oceania region. ASOCIO is established in 1984 with the objective is to promote, encourage and foster relationships and trade between its members, and to develop the computing industry in the region. Presently, ASOCIO represents the interests of 29 economies, comprising 22 members from Australia, Bangladesh, Brunei, Chinese Taipei, Hong Kong, India, Indonesia, Japan, Laos, Macao, Malaysia, Mongolia, Myanmar, Nepal, 15
  • 18. New Zealand, Pakistan, Philippines, Singapore, South Korea, Sri Lanka, Thailand, Vietnam and seven guest members from USA, UK, Canada, Spain, Russia, France, and Kenya. Today, ASOCIOs members account for more than 10,000 ICT companies and represent approximately US$350 billion of ICT revenue in the region. ATCI is now leading the ASOCIO in Thailand and the next meeting will be held in Nepal. 3. CBI ITO Program 2009-2013 Software Park Thailand facilitated as counterpart to the Centre for the Promotion of Imports from developing countries (CBI) is cordially inviting you to join with the CBI IT outsourcing Export Coaching Program (CBI ITO ECP) 2008-2010 from Netherlands. This program is selected developing countries with sake of delivering services to provide assessment to EU market, offer business transfer and technology information, provide matchmaking and promotion opportunities by the EU consultants. Overview of program is to select 10-20 companies from developing countries through CBI counterpart and assist them to enter the European market. During the program selected companies will be provided training, coaching, and consulting and market entry assistant. 8.Best Practice Emergence Technologies : Flagship for Thai ICT Ecosystem Thai software Industry has adopted the software road map in order to reinforce the ICT industry ecosystem for new market development and initiate the start up environment. Technologies have been changed dynamically and made short computing cycle of products and turned on software as services. Thai ICT industry has to shift spontaneously by following the technology trend and apply to global market orientation. There are some emergence technologies that Thai ICT industry will focus on such as Mobile application, Cloud computing, Social Analytics, and Social Networking. The significant Enterprise 2.0 will lead the technology trend for mobile application technology especially on mobile devices and smart phone. This will augment number of mobile content developers,mcommerce and mpayment in the near future. Many Thai private and government organizations get recognition to apply mobilizing application to execute value creation to their business performance and also embrace the platform to support mobility. The emergence of cloud computing will support and manage remote cloud implementation to the organizations both infrastructure and Saas delivery of cloud services. This technology will then become the social media and turn on the cloud security concern in business sectors. Finally social networking will collaborate the connection, networking, tools & services for the marketing and CSR activities for any organizations. The enterprise 2.0 will create the new platform,communities and security serviced providers to enhance and shift the business model of private sectors in order to adjust to any changes and survive in global economic circumstance. These emergence technologies will support the industrial SMEs strategies and performances to apply new business models in order to gain the competitiveness and work efficiency in the global market. One successful story was applied Business Continuity for cloud computing and mobile application in flood crisis in Thailand in 2011, the virtual technology can help SMEs and privates to access any time, anywhere and any devices. This is helpful engine that can carry on the business efficiency even on the crisis situations. 16
  • 19. 9. Key Bottleneck • Unstable Politics Situation • Fostering Human capital: skill & expertise, languages, education system • IP Rights/ security • Infrastructure Investment • Marketing skill promotion's activities • Perception of oversea clients • Business Environment : working permit, procedures,BOI • Reform Government system • Awareness of industries on the ICT enabling • Ensure green technology and Green ICT 10.The most important Export markets for ITO and BPO products and services According to Board of Investment Thailand, 2010. They divided ITO into categories as following Outsource Categories Description Outsourcing buyers BPO Human Resource Japan, UK, USA, Scandinavian,Germany Purchase and accounting USA, France Selling Department USA, UK Back Office Japan, UK ITO Custom software development UK, Scandinavian Analytics /Business Intelligence Germany System Integration Swiss, UK, Germany Database development Germany, the netherlands Web development Spain, Austria Source: BOI Thailand (www.boi.go.th) 11. List of Potential BPO and ITO Company Name Description URL Amber Advisory Ltd E-learning, database system network system design, system www.umithai.com analyst Aware Corporation Contract software development, Internet data center, PM, www.aware.co.th Giftware Digicraft Co.,Ltd Develop digital content, animation, mobile content www.digicrafts.com Enspry Technology Co.,Ltd Web application, testing, automated testing www.enspry.com IT works Co.,Ltd Mobile and biometrics application outsourcing www.itworks.co.th Solubiz Co.,Ltd MRP , artificial Intelligence, genetic algorithms www.solubiz.com 16
  • 20. TNT Media and network Co.,Ltd Web application outsourcing, E-book, E-magazine www.tnt.co.th Innova Software E-commerce, mobile application, Transportation control system www.innovasoftware.com MiracleNET group Outsourcing Java and Opensource www.miraclenet.net Softsquare International Software customization in retail, manufacturing and www.softsqauregroup.com government Verisette Co.,Ltd IT banking outsourcing, testing integration. www.verisette.com Suvitech co.Ltd Telecommunication www.suvitech.com AI Soft Co.Ltd Traveling search engine www.aisoftthailand.com Readyplanet Co.,Ltd Web solution , web development www.grandplanet.com Infotronics Co.,Ltd Infotronics is a leading Software Development Services, www.infotronics.co.th Consulting, Trading, System Integrator and IT Services for ubiquitous city Ubiz Solution Co,.Ltd PM, Helpdesk support, software development www.ubizsolution.com Good Job Multimedia.com Mobile application, game and animation, visual effect, graphic www.goodjobmultimedia.com design YIP In TSOI Co.,Ltd Total IT solution provider www.yipinsoi.com Longkong studio Co.,Ltd Software for construction www.longkongstudio.com Touch Technology Co.,Ltd Mobile application, monitoring solution, wireless network www.touchtechnologies.co.th solution Sun Systems Corporation Solutions for VASs, enhanced / intelligent switching, call / www.sun-system.com Co.,Ltd media processing, VoIP, unified messaging, wireless e-mail, CallCenter, Helpdesk Applications, Thai Text to Speech, Thai Automatic Speech Recognition and Value Added Services Platform Teletrol-One Co.,Ltd Financial software www.teletrol-one.co.th Code Suite Co.,Ltd Conference system, web application, network and www.codesuite.co.th infrastructure Advance Intelligence Modernity Wireless application, mobile internet, content aggregator , game www.aimadvance.com Co.,Ltd Asiabiz Networks Co.,Ltd Call center, Sales and services, Process Management www.asiabiznetworks.com customers, Asia Medisoft Co.,Ltd Web application for medical software, mobile application www.asiamediasoft.com Alterlas Co.,Ltd Design and web application www.alterlas.com Chanwanich Co.,Ltd BPO provider and IT security integrator www.chanwanich.com ISLT Co.,Ltd Interactive digital media, web application www.figabyte.com Anywhere to go Co.,Ltd Mobility Enterprise Solution on cloud computing www.anywheretogo.com Sense water Co.,Ltd Water leakage management www.sensewater.net Humanica Co.,Ltd Human Outsourcing, ERP www.humanica.com 17
  • 21. Bibliography The annual report Ministry of ICT Thailand 2011, “ Thailand ICT Market 2011 and outlook 2012” , Software Industry Promotion Agency (SIPA), page 54. The IMD World Competitiveness Yearbook (WCY); The World Competitiveness Scorecared, page 19. A.T Kearney ; A.T Kearney Global Service Location Index 2011; page 23 Cambridge Encyclopedia 2010 , “KPMG Landscape Report Analysis” , page 18 Thailand-Canadian Collaboration Forum 11-14 October 2011, Bangkok; page 32 http://sitagita.com, “ BPO Thailand” http://www.prtrbpo.com, “company profile” http://www.humanica.com; “company profile” http://www.boi.or.th ; “Board of Investment Thailand ” (BOI), 2011