The document discusses how Thailand's software industry needs to prepare for the implementation of the ASEAN Economic Community (AEC) in 2015. Key points: 1) The AEC will create a single market of over 500 million people, presenting both opportunities and threats for Thai software companies depending on their level of preparation. 2) Those who are aware of the changes and prepare themselves, such as strengthening their skills and positioning themselves in niche markets, will benefit from the larger market. Those who do not prepare risk being overwhelmed by foreign competition. 3) The government and industry associations are working to increase awareness and help local software firms prepare, including upgrading skills and developing human resources to international standards.

1. Vol.2/2011
Readiness of THAI Software
Industry for AEC 2015

2. Editorial
The game is about to change
It is said that only a few things are certain in this world, Thai software industries should set their positioning
and they are death, taxes and change. through SWOT (strengths, weaknesses, opportunities
As modern business people operating in a dynamic and threats) analyses and identify niche or un-served
environment, we should be inured to the need for agility, areas in which to concentrate future business. Apart from
enabling us to not only foresee and accept change, but to gathering new technical knowledge, software companies
use change for our own benefit. also need to upgrade the skills of their human resources,
In three years’ time, Thailand will undergo a with emphasis on language and analytic capabilities.
fundamental economic change. On January 1, 2015, the Ready support and advice can be found in local
10 member countries of the Association of Southeast industry organisations such as the Association of Thai
Asian Nations (Asean) will be integrated into a single ICT Industry (ATCI), which is working to reinforce the
market and production base called the Asean Economic industry’s readiness in close cooperation with the
Community. There will no longer be barriers to trade; Asian-Oceanian Computing Industry Organization
there will be nothing but the creativity and competence of (ASOCIO).
Thai business people to stand against a tide of new and The Thai Software Export Promotion Association
powerful competition. (TSEP) is also working to help local software exporters to
We must be ready not only to compete, but to take the prepare for the Asean Economic Community, especially
lead in what will be a vastly bigger market, with with regard to the legal aspects of doing business in
challenges, opportunities, and bigger profits to be made. member countries.
The software industry is being seen as one of this Local software and ICT-industry companies that do
country’s flagship industries in the coming bid to take nothing to prepare for implementation of the Asean
advantage of expanded opportunities in the new Economic Community run the risk of being overwhelmed
economic community. Our “domestic” market will by strong cross-border and overseas competition. All
effectively leap to a population of 583 million, or 9 per relevant private-sector and government organizations
cent of the world’s people, with a gross domestic product must be alerted to the urgent need for wider awareness of
(GDP) of US$1,275 billion – only 2 per cent of world GDP. the looming economic change, so that Thai industries can
The opportunities for enterprising Thai software be encouraged to bolster their capabilities and face 2015
companies are huge. as competent, innovative and competitive organizations,
However, it seems that awareness has not yet soaked eager to reap the benefits of the Asean Economic
in, that the entire game is about to change, and many of Community.
our software businesses are not ready to compete on the
new international stage.
The government, as the maker of policy, should make
Table of Contents
urgent additional efforts to build awareness of the new
3-6
Gearing up for AEC 2015:
business environment that is just around the corner. Software industry prepares for
Across all Thai industries, it should be actively new business environment
encouraging readiness and a capacity to compete. The
government’s second ICT master plan, which sets the
national agenda for the software and information and 7-8 In the run-up to AEC 2015…ICT
Ministry sets the stage
communications technology industries under the theme
Smart Thailand, runs only until 2013.
Countdown to AEC:
Some government organisations, including Software
Park Thailand, have adopted the role of building 9-10 Opportunities outweigh threats,
but much remains to be done
awareness of the changes ahead and helping local
MFEC Group seeks partnerships to
software businesses to prepare for the onslaught of
unfettered competition from the other nine countries of
Asean.
11 bolster regional role Group plans full
range of information technology
services, first in Thailand,
then across Asean
SSC IT Group heads in to AEC with
12 three new subsidiaries Focus on Thai
leadership of regional IT Services
Software Park Thailand Newsletter is produced by Software Park Thailand under the National Scienceand Technology Development Agency,
Address: 99/31 Software Park Building, ChaengwattanaRd., Pakkred, Nonthaburi 11120, Thailand. Tel. +662 583 9992 Fax: +662 583 2884
www.swpark.or.th; www.facebook.com/softwareparkthailand

3. Gearing up for
AEC 2015
Software industry prepares
for new business environment
Bigger market:
More opportunities,
The Asean Economic Community will be
More competitors
implemented in 2015, integrating the 10 member nations
of the Association of Southeast Asian Nations into a
single market and production base. Software Park Thailand’s director Thanachart
AEC 2015 will bring both opportunities and threats Numnonda says that AEC 2015 represents both an
for Thailand’s software industry, depending on the opportunity and a threat for the Thai software industry.
preparation and readiness of individual software The park’s role is to build awareness among local
businesses. software businesses of the changes ahead and to help
For those companies that are aware of AEC 2015 them to prepare for the onslaught of unfettered
and are well prepared to meet its challenges, the new competition from the other nine countries of Asean.
economic community will bring big opportunities in the Thailand’s ICT market is the largest in Southeast
form of a hugely expanded market for their products or Asia, and it is projected to grow at a compound annual
services. On the other hand, local software companies growth rate of 12 percent up to 2014. Total domestic IT
that are not alert to the changes that will come with a spending, included IT products and services, is expected
single open market, and do nothing to prepare for AEC to reach US$8.7 billion (Bt269.78 billion) by 2014.
2015, run the risk of being overwhelmed by strong Thanachart says the important aspects of the AEC
cross-border and overseas competition. are the hugely bigger market it will offer – and hence
This risk is particularly acute in light of the fact that opportunities for local software firms – and the
foreign companies will be able to enjoy all the freedoms of competition it will bring to local players. In its efforts to
trading within the open market if they register their educate the software industry and prepare local
business in any one of the Asean nations. businesses for the new open market, the park is focusing
The establishment of the AEC as a single market on software development, ICT project management,
and production base will of course encompass the enterprise architecture design, network and system
technology sector, including software. The development administration, information systems and network security.
goals associated with the economic community will While AEC 2015 will mean a larger ICT market and
include enhanced infrastructure and communications more opportunities, it will also bring a free flow of human
connectivity across the region, development of electronic resources across the Asean region. Therefore,
transactions through e-Asean and integrating industries Thanachart says Thailand’s software industry will need to
across the region to promote regional sourcing. The develop and upgrade the quality of its human resources
economic community will transform Asean into a region with international certifications and specialized education
with a free flow of goods, services, investments and about emerging technologies such as mobile applications
skilled labor, as well as free movement of capital. and cloud computing.
3

4. Be prepared by
positioning and
training
Thaicom’s chief executive Suphajee Suthampun, who has long
experience in technology businesses in the Asean region, says ICT is
one of the priorities in creating the economic community because of its
role as an “enabler.”
Moreover, the AEC is not only about the 10 Asean nations, but also the regional grouping’s dialogue partners –
China, Japan, Korea, Australia, New Zealand and India (Asean +3 and Asean + 6).
She says Asean’s 10 countries have 583 million people, or 9 per cent of the world’s population, but its gross
domestic product (GDP) is US$1,275 billion, or only 2 per cent of world GDP. However, Asean +3 (including China,
Japan, and Korea) has 2.06 billion people, or about 31 per cent of the world’s population and its GDP is US$ 9,901
billion, or about 18 per cent of the world’s GDP. Asean + 6 (adding Australia, New Zealand, and India) has a
population of 3.28 billion people – half of all the people in the world – with a GDP of US$12,250 billion, or about 22
per cent of world GDP.
Suphajee says the 21st-century economic landscape – in a flat world – is going to feature global resources,
production and infrastructure in an open business environment with economic and expertise value. Therefore, the
local software industry should prepare the competitiveness of its businesses by firstly positioning them through
SWOT (Strengths, Weaknesses, Opportunities and Threats) analyses and then identifying niche or un-served areas.
Apart from technical knowledge, software companies need to upgrade the skills of their human resources, with
emphasis on language and analytic capabilities, and then provide them with training through collaboration with
vendors, universities and associations, she says.
However, to be successful within the AEC, global industry standards such as IEEE, service-oriented
architecture (SOA) and compliances are required as a key factor.
Suphajee says government-incentive schemes are required, such as tax incentives and programs for
development of skills and tools.
ICT professionals
must prepare:
ICT Ministry
The second ICT master plan, which has the theme:
Smart Thailand (2009-2013), aims to develop
AEC 2015 will allow a free and highly-skilled ICT professionals to comply with Asean
seamless flow of skilled labor and regional standards. The master plan also aims to make
professionals throughout the 10 countries of ICT accessible to at least 50 per cent of the population and
Asean. to generate about 15 per cent of GDP.
An inspector with the Information and To achieve these goals, the plan aims to promote the
Communications Technology Ministry, networking of ICT-skills development, including
Methinee Thepmanee, says that to cope with cyber-security skills, and to facilitate the establishment of a
the challenges of AEC 2015, Thailand has to regional mechanism to promote ICT-certification programs
focus on developing both the quality and and the cross-certification of these programs by ICT-skills
quantity of local ICT professionals. competency centers or agencies.
4

5. The ICT Ministry has promoted two sets of ICT
standards in Thailand. The first comprises core standards
initiatives covering such areas as project management,
systems analysis and security specialists. The second
comprises professional certifications, with special
certifications for competence in selected areas. These
include regional ICT professional standards such as those
of the Asian-Oceanian Computing Industry Organization –
a grouping of ICT industry associations representing the
Asia-Oceania region – and Thailand’s industry standard
certifications.
Methinee says Asean should unify ICT standards
and establish professional standards for the region, to set
Moreover, it aims to facilitate mutual-recognition ICT competency levels. Moreover, Asean should establish
arrangements for qualifications in IT professional skills, its own professional certification for special competence in
and plans to conduct a workshop on standards selected areas, such as standards for network and
development for Asean ICT skills. computer-security specialists, as a first priority.
Industry must be
aware of
AEC 2015’s impact He says the business area with big potential for Thai
software companies is applications for mobile devices
and for cloud computing.
“The past 10 to 15 years has been about
Internet-based technology, but from now on, for the next
10 to 15 years, it will be about cloud-computing
technology. So, local software companies should learn
the new technology, as well as the new business models,”
Adirek says.
The association plans to work with local partners to
develop skilled workers for the ICT industry and to
approach the government, as the biggest local customer
and the best reference site, to give preference to local
The local software industry is both aware of and software. It will also ask the government to offer tax
preparing for the chances and challenges that will arrive incentives to local companies that invest in IT systems by
with the AEC’s single ICT market in 2015, according to purchasing local software products and services
the Association of Thai ICT Industry (ATCI).
The association’s president Adirek Patithat says the “If we are strong in our own market, we will be ready
AEC should bring more opportunities than threats to both welcome newcomers to the local market and to
because Thailand’s ICT and software industries are in the compete with the others in overseas markets,” Adirek
middle range when compared to the other Asean says.
countries. Meanwhile, the Thai Software Export Promotion
Local software associations will work closely Association (TSEP) says it will concentrate on
together to test conditions in cross-border and overseas persuading the local software industry not only to be
markets. ATCI will play an important role as a link aware of the impact of AEC 2015, but also to study the
between these local associations and the laws and regulations of other Asean countries,
Asian-Oceanian Computing Industry Organization particularly those related to investment, labor and capital
(ASOCIO), of which ATCI is a member. flow.
5

6. It offers maximum tax incentives for investment of more
than US$1 million (Bt31.22 million) in high-technology
projects where products are made in Thailand, and
exemption from import duties on raw materials and
components used in producing electronic goods.
Moreover, the BoI’s regional operating and headquarters
incentive offers an excellent opportunity for setting up ICT
service and software headquarters, competency centers
and shared services.
TSEP president Pirason Punyagupta says these
legal aspects of doing business will change from country
to country, so the software private sector needs to learn
more about them.
“For the local software industry, AEC 2015 will be
both an opportunity and a threat. But for [members of]
TSEP – most of us have been preparing ourselves for a
couple of years. We have experience in doing software
business in other countries. For us, there will be more
opportunities than threats. But we have to prepare in such
areas as laws and regulations, which might be different in
each country,” he says.
Currently, most of the 30 software companies that
make up TSEP’s total membership are aiming to sell their
software services abroad. Some are now concentrating The Association of Thai Software Industry (ATSI)
on the domestic market, but they will be ready to compete believes local software companies are ready to do
with others throughout the Asean region by 2015. business both within Thailand and the region. Its
Pirason says the local software industry must also president Somporn Maneeratanakul says ATSI is playing
rapidly increase the numbers of qualified human a role in securing the place of the main local software
resources. If Thailand is to become the “hot base” for businesses in the domestic market, so they will be ready
software development in Asean, then it must have in 2015 to welcome competitors from other Asean
massive numbers of qualified people. countries.
“People are the key, and the most important factor ATSI plans to establish local standards for each
for software companies to succeed in large markets like kind of software, such as enterprise-resource planning
the AEC. Software companies need to develop skilled (ERP) and finance and accounting, in order to help both
workers, as well as lifting their software-development software developers and users. With the standard
processes to comply with global standards. Software established, local software companies will find more
companies must make themselves strong in those areas domestic-market opportunities, while users will feel more
in which they specialize,” Pirason says. “Members of comfortable with software products and services made
TSEP are willing to partner with software companies and locally and certified as measuring up to a benchmark.
other associations to approach Asean markets together.” “Around 95 per cent of local software companies in
Pirason says the industry also needs to prepare Thailand are small- and medium-sized companies that
local infrastructure, including telecom infrastructure such focus on both the government and private sectors. If we
as broadband and 3G networks, and soft infrastructure have a mechanism to help certify their products, it will
such as incentives and facilities. help to create confidence when users are buying local
Related to Pirason’s comments about incentives, software,” Somporn says.
the Thailand Board of Investment (BoI) already offers He says ATSI is planning to help to educate its 300
inducements for investment in information and member companies so that they can deal successfully
communications technology (ICT) and software projects. with the changes that will come with AEC 2015.
6

7. In the run-up to
AEC 2015
ICT Ministry sets the stage
The Information and Communications Technology
(ICT) Ministry is playing a major role in preparing
Thailand’s business community for the changes that will
come with implementation of the Asean Economic
Community (AEC).
The biggest concern is that Thai companies will be
able to compete in the new regional market and will
transform smoothly to participate in the changed trading
environment.
The Executive Director of the Ministry’s Policy and
Strategy Bureau, Areewan Haorangsi, says committees
with representation from both government agencies and
the private sector have been set up to initiate activities upgrading the competitive capacity of the ICT industry to
related to the economic transformation, people add value and increase earnings, promoting the use of
empowerment and engagement, innovation, ICT as a means of building sustainable competitiveness
infrastructure development, human capital development for Thai industries and developing human resources for
and bridging the digital divide. the ICT industry – a task that will be aided by increasing
Importantly, the Ministry is also working with ICT literacy in Thailand.
regional and international partners to develop standard The development and management of ICT
definitions and certifications for ICT skills within Asean. infrastructure in Thailand sets out to provide universal
These will apply to software development, ICT project broadband access to all businesses and ordinary citizens
management, enterprise architecture design, network around the country, including the disadvantaged and
and system administration and information system and people with disabilities, via secure information systems
network security. The aim is to develop a system of and networks. This strategy aims, among other things, at
standards across Asean that will enhance the status and reducing the “digital divide” – the gap between access for
recognition of the region’s ICT professionals to well-off urban dwellers and that for remote and
international levels. underprivileged people.
The Ministry is also developing an Intra-Asean Businesses and service providers are expected to
Secure Transactions Framework and an Asean ensure that their infrastructure is capable of keeping up
e-Government Development Action Plan to support with technological evolution, in order to meet increasing
e-government services among member countries of the consumer demand. Their infrastructure should support
Asean Economic Community. multimedia services, electronic transactions and other
Areewan says that by using the government’s major services that are useful to people enjoying modern
development strategies, the ICT Ministry has formulated lifestyles in a knowledge-based society.
plans to prepare for implementation of the AEC. The The Ministry’s target is a high-speed broadband
government strategies include the Second Thailand network with minimum speed of 4 Mbps at a fair price for
Information and Communications Technology Master the service rendered. It wants at least 50 per cent of
Plan 2009- 2013, The National ICT Policy Framework households and businesses in the Muang districts of all
2011-2020 and National Broadband. The Ministry’s plans provinces to have access to the high-speed broadband
include developing and managing ICT infrastructure, network.
7

8. Moreover, the Ministry plans to set up 1,000 ICT Areewan says the Ministry’s goals for laying down
Community Centers around the country that will provide the country-wide high-speed network infrastructure
e-learning facilities in order to create ICT literacy in local include covering 80 per cent of Thailand’s population by
communities, Areewan says. 2015 and 95 per cent by 2020. This will enable the
Meanwhile, in its efforts to upgrade the competitive widespread use of ICT to create competitiveness for the
capacity of the ICT industry – to add to the industry’s country’s businesses, improve the country’s productivity
value and increase its earnings – the Ministry says it will and support medicines and medical services for longer
drive though research and development and domestic life.
innovation by the public, academic and private sectors. Among its other goals, the ICT Ministry wants 95 per
This is expected to lift the annual value of the domestic cent of Thailand’s total workforce to be ICT literate; it aims
software market to more than Bt100 billion, and more for ICT industries to generate 18 per cent of Thailand’s
than half of this market will be taken by local software gross domestic product (GDP); and it wants at least half
companies. of the Thai people to be aware of the important role ICT
Areewan says this will increase and enhance the has in supporting economic growth and achieving a green
national standard of products and services, create market environment.
opportunities and lift competitiveness. It will also promote All along, it will encourage government and
the local ICT industry both domestically and overseas. private-sector organizations to support small- and
Thai manufacturers of all kinds will be encouraged medium-sized enterprises by consuming their goods and
to access and use ICT to help them make and trade services.
products and services that are knowledge-based, use "I think that the AEC will create economic strength
innovation, and are environmentally friendly. This will be and efficiency among Asean countries in global markets,
aimed at developing the competitive capacity of which will create competitiveness, productivity and
businesses by creating and adding value domestically. It competitive advantage for Thailand as well," Areewan
will also create confidence among both businesses and says.
consumers to buy and sell goods and services via the
Internet, and will enhance the productivity and efficiency
of small- and medium-sized enterprises (SMEs), by
preparing them to compete in the future free-trade
environment.
Areewan says the Ministry will work to develop ICT
literacy in Thai society. This will provide a basis from
which to develop human resources to support the Thai
ICT industry as it enters the AEC.
However, it will also support cooperation between
Thailand and other Asean countries in the establishment
of an Asean Center of Excellence. This center will host
regional cooperation in research and development as
well as innovation among Asean countries.
8

9. 3
1
Countdown
5 to AEC
4 2 Opportunities outweigh
threats, but much
remains to be done
Over the coming three years, excitement and
anticipation will build as implementation of the Asean
Economic Community draws closer.
It will be a time of intensive rethinking and
adjustment by all of Thailand’s industries, preparing them
for the totally free flow of goods, services, investment,
skilled labor, and capital that the hugely expanded market
place will bring.
For many years, Thailand’s software industry has
been eager to find prosperity by approaching lucrative
foreign markets. In 2015, the foreign markets will,
instead, come to them. The Asean Economic Community
(AEC) will bring about the economic integration of
Thailand, Malaysia, Singapore, Indonesia, the All of these changes, due to occur simultaneously in
Philippines, Brunei, Laos, Cambodia, Vietnam and 2015, will bring big opportunities and serious challenges
Burma (Myanmar). Together, they have a gross domestic to Thailand’s software industry. The market will be vastly
product of US$1.5 trillion (Bt46.8 trillion). larger, but there will be much more competition. While the
Along with economic integration will come quick AEC may appear to be overwhelmingly threatening, there
changes in corporate regulations, including ceilings on are plans afoot to take advantage of the open regional
ownership, changes to tax regulations, and an expected market by leading Thailand’s software industry into an era
increase in the movement of investment funds. of expanded overseas trading.
One of these changes will be the lifting of the The Chairman of Software Park Thailand’s board,
foreign-ownership ceiling in service businesses – Manoo Ordeedolchest, says ICT will be a key enabler for
including software businesses – to 70 per cent. the social and economic integration of the Asean region.
According to Siam Commercial Bank’s Economic By developing next-generation ICT infrastructures
Intelligence Center, the information and communications and skilled human capital, promoting content and
technology sector, including the software industry, is innovative industries, and establishing an enabling policy
scheduled for priority liberalization of equity participation, and regulatory environment, Asean will employ ICT to
allowing up to 70 per cent of foreign ownership. The transform the region into a single market.
current rate of foreign ownership in Thailand’s IT-services Manoo says software is now emerging as a
industry is only 7 per cent, while the current ceiling is set potential area in which Thailand will be able to compete
at 49 percent. when the open regional market begins, rather than
The Asean Economic Community will also bring telecom services or hardware.
other changes to the Thai software industry, including However, while the process of software
collaboration between domestic and multinational ICT development has changed, many local software
businesses, universities and technical researchers, the developers remain “stuck in the mindset of the last
movement of skilled labor, and salaries for ICT century”. The new era of software development is
professionals. focused first on the needs of end-users. Software
services in the era of cloud computing and social
networking have the characteristics of no time, no space
and no matter. This means users can perform business
transactions, empowered by software, anytime,
anywhere and on any device.
9

10. “Instead of developing software to serve
businesses’ back-office systems, with the aim of helping
organizations to increase their efficiency, software
development is now aimed at helping organizations to
increase their productivity and competitiveness, and that
means helping them to minimize the ‘transaction costs’ of
any service,” Manoo says.
He warns that if Thai software companies remain
stuck with an “expired mindset” they will lose in the new
business-software game – especially in the single market
of AEC 2015.
The government should be helping to create
awareness of the new software-development mindset
and also providing support to encourage change in the
local software industry, which is made up mostly of small-
and medium-sized enterprises.
“Understanding the process of any business “To improve their ICT competencies, they can bring
transaction is powerful knowledge that can help SMEs together to cooperate and synergize with local and
developers to successfully create software and international partners. They should perceive themselves
applications to serve users’ needs,” he says. as being part of an Asean regional and global partnership,
Moreover, the government should set up a social rather than doing business alone. In this way, they can
network to conduct crowdsourcing in the software learn from the successes of others and take short cuts,”
industry and to develop human-resources management. Pirasan says.
This will help to integrate the strength of local software Federation of Thai Industries Vice Chairman Tanit
companies, so that together, they can compete with Sorat says Thailand will take advantage of the single
software developers from overseas. Asean market to become a regional industrial and service
“Social networking is now playing an important role hub, including IT and software-service centers.
on the business bandwagon. Software developers need To achieve this goal, priority must be given to
to understand this first, and then they have to embed a creating skilled ICT human resources at all levels of
social-network philosophy into their software services education, starting in the universities. There must also be
and applications,” Manoo says. a parallel effort within the industry to develop a skilled ICT
Cloud computing is another key factor steering the labor force. The government is required to play a key role
new direction of software development. Developers by integrating policies and support to turn the
should focus on software design and development to human-development plan into reality. Importantly, it has
serve this new environment. Operating from a to be done in a timely fashion.
cloud-computing platform, software-as-a-service is a “The government is also expected to play a key role
crucial model for software service providers. Additionally, by supporting the development of competency standards
software developers should think of developing software and local software park facilities and services, as well as
and applications to serve mobile devices, Manoo says. developing the country’s ICT specialist database,
Meanwhile, Thai Software Export Promotion establishing a regional data center and an ICT regional
Association President Pirasan Punyagupta says that for network and so on,” Tanit says.
the ICT industry, especially the software sector, the
biggest threat is a creative brain drain and a consequent
shortage of ICT and software professionals.
To face the challenge successfully, the Thai
software industry should be asking itself what areas of
ICT and software development it should focus on. It
should then establish Thailand as a hotspot for that kind
of business, he says.
Thai software businesses should concentrate on
coming opportunities, rather than quailing at the threats,
and should prepare their ability to compete with regional
rivals. They should improve their ICT competencies by
introducing training, coaching and certification for ICT
personnel, while at the same time improving their ICT and
software work standards and processes.
10

11. MFEC Group seeks partnerships to
bolster regional role Group plans full range of
information technology services,
first in Thailand, then across Asean
Bangkok-based information-technology services
company MFEC Group regards the approaching Asean
Economic Community as a huge opportunity, not only to
expand its business, but also to find international partners
with whom to build up the strength of the ICT industry in
the Asean region to serve its population of 600 million.
The president of the SET-listed group, Siriwat
Vongjarukorn, says that in preparation for the open
regional market, MFEC has acquired local companies as
its subsidiaries, including Soft Square 1999, Motif
Technology, Business Application and A-Host.
The group will provide a range of
information-technology services, such as end-to-end
applications on mobile devices and support for customers
ranging from individuals to large enterprises, as well as
outsourcing services.
"I believe the acquisitions will create synergy,
blending and combining the strong points of each
business, as well as transferring knowledge between the
businesses, before we enter the market. The acquisitions
will also help to reduce operating costs and enhance the The group is not only building its business strength
productivity of our business,” he says. “The group aims to as 2015 approaches, but is also planning to take an
support its customers as full implementation of the Asean active hand in building up the local ICT industry’s human
Economic Community approaches in 2015. But at this resources and technical skills. MFEC is planning to
stage, I think we will focus our business domestically, so cooperate with 28 universities in the training of about
that we can create opportunities in the local market." 5,000 skilled IT graduates capable of meeting local
Siriwat says MFEC Group is still looking for local demand over the next five years. It will link up with Mae
partners to form joint ventures, to grow in incubation, or Fah Luang University and Khon Kaen University as the
as candidates for merger or acquisition. It seeks by these first institutions in this program. The group currently has
means to build the strength of local operations so they are about 1,500 employees.
capable of competing with international IT services and “I think the AEC market is important for us in the
ICT companies that will enter the Thai market or the near future because the ICT market and industry will no
Asean common market after 2015, when will no longer be longer be limited to Thailand, but will cover all countries in
barriers to trade. the Asean region. On the other hand, there will be heavy
“I think we need to prepare ourselves, so that we will competition because international companies will enter
be able to cope with both domestic and international the Thai market as a new opportunity for them. Therefore,
competitors. Those businesses that do not prepare we are preparing our business and are ready to create
themselves might lose the opportunity to compete and partnerships with local and international companies to
brave conditions in the new market,” Siriwat says. enter the new AEC market,” Siriwat says.
11

12. SSC IT Group heads into
AEC with three new subsidiaries
Focus on Thai leadership of
regional IT services
As the Asean Economic Community looms, one
well-known Thai IT company, SSC Solutions, has
undergone a complete restructuring and has spun off its
business units to become subsidiary companies.
The firm will enter the Asian Economy Community in
2015 as SSC IT Group, heading up three new and
single-minded subsidiaries: Sense Water, Thai Software
Outsourcing and Anise Asian Thailand. SSC Solutions
has, itself, become a member of the group.
Chief Executive Trirat Chatkaew says Sense Water
is expected to be the group's flagship company, since it
has a strong track record in providing water-management Anise Asian Thailand is SSC IT Group’s most recent
software, not only in the local market, but also overseas. operation, aimed at providing cloud-computing services
It aims to be the leading source of water-management to small- and medium-sized enterprises (SMEs).
software in the Asean region – making Thailand the In a first step, the firm will provide private cloud
leader of this field – by 2015. services by using a platform from Canadian
"This company has registered capital of Bt60 cloud-computing vendor Joyent. Later, it will join with
million. It is a global independent software vendor (ISV) Internet Data Center to provide a public-cloud service
partner of IBM's Smarter Planet-Smarter Water," Trirat brand named Star Anise. Its services will include
says. solutions and software related to accounting, payroll and
Currently, Sense Water provides enterprise resource planning (ERP) for SMEs.
water-management solutions for water operators in Moreover, the firm will join Anise Asian Indonesia
Malaysia, and is looking for customers in Taiwan, and Anise Asian Philippines to provide both private and
Australia, the Philippines, Finland and Indonesia. public cloud-computing services across the Asean
Meanwhile, Thai Software Outsourcing is involved market.
in business matching and creating portfolios with local “I think there is a continuing growth market for
partners to help them build the standards of Thai software information-technology services in Thailand. Meanwhile,
developers so they will be able to make the transition to accessing IT services by using software-as-a-service
the wider market and find work from other Asean (SaaS), via cloud computing, is helping businesses and
countries. customers to reduce their investment costs. Therefore,
Trirat says the new company will look for there is an opportunity for Thai software businesses to
opportunities in this market and will not only seek jobs as provide their solutions and develop software to serve the
an outsourcer, but will also outsource those jobs to local Asian Economy Community in the near future,” Trirat
software companies or freelancers. says.
"We will match customers and developers, and will SSC IT Group's preparations aim not only to
also play the role of an outsourcer in big jobs where prepare for the Asean Common Market, but also to drive
customers require a project manager. In this business we Thailand to become the leader in the Asean market for
will work closely with the Software Industry Promotion water-management solutions, software outsourcing and
Agency and Software Park Thailand," he says. knowledge management, he says.
12