Thailand Country Profile BPO & ITO


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Information submit to the CBI KPO program 2014-2020 The Centre for the Promotion of Imports from developing countries (CBI)
The Netherlands, by Software Park Thailand

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Thailand Country Profile BPO & ITO

  1. 1. Thailand Country Profile Business Process Outsourcing (BPO) Information Technology Outsourcing (ITO) for Submission on CBI KPO program 2014-2020The 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. 2. Table of Content Topics Page 1IntroductionDescription of Characteristic of BPO 3Description of Characteristic of ITO 3Key Strength and Weakness 7Government support regarding to BPO and ITO 9IT and BPO industry development strategies and initiatives 11Quality of certification and support for IT and BPO industry 13Key Stakeholders of BPO and ITO industry 13Key bottlenecks for export development of the BPO and ITO industry 16The most important Export markets for ITO and BPO products and services 16Number of exporting companies in the ITO and BPO industry 16
  3. 3. Country Profile Thailand for CBI KPO services1.IntroductionToday the economics crisis forces many business to seek the effective method to reduce cost and enhance theinternal operations. The concept of global Business Process Outsourcing (BPO) and Information TechnologyOutsourcing (ITO) has been growing since decade. Many Business concerns the budget of IT investment in orderto 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 excellenceto conduct the world class software outsourcing. The software industry gains the strong complementaryelements: a centric manufacturing of international software leading companies that align the global marketleaders and numerously indigenous companies who achieve the significant global market success. Thai softwarehas been recognized internationally as being dynamic, highly innovative, technically expert and internationalstandard adept.Since 2008 to 2010 Thailand has been ranked as the Top 30 global destination for IT outsourcing by Gartner. ThaiSoftware Industry today comprises over 1,900 companies, employing over 100,000 people, with combines salesgrowth 17.2% The vast majority of software activities are exported, so that the number of software exportinglast 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 aparadigm shift and integrated the economics in all Asean Regions. Thailand as the strategic location was provenas the Hub of Asean Detroit export and manufacturing in automotive industry. Thailand is also location of hughforeign investment from Japan, USA, UK Germany and so on. Thailand has been recognized as one of 30 topdestination of global IT outsourcing ranked by Gartner. Some international leading software companies such asThomas Reuters and DSTi located the development center since 2001 to employ Thai IT professional more than1,500 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 tradebarrier among countries (Asean + 3 countries; China, Japan and Korea) will deliver collaboration across businesssectors especially software concerned as the services will be key driver to shift the business model thatrevolutionize the industrial sectors in the near future.Why Thailand: Destination for BPO and ITOSituated in the strategic location in Asia-Pacific region Thailand offers ranges of advantages to foreign businessfirms. According to World Competitiveness Scorecared 2009 2 shows Thailand ICT statistics as 26th rank top in theworld on the domestic consumption in ICT sector represents 24 millions internet users, increasing number of 69millions mobile users and augmented social network as a number of Facebook reached more than 13 millionusers.__________________________________________1 The annual report Ministry of ICT Thailand ,2011 12 The World Competitiveness Scorecared ,2009
  4. 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 by2014 at USD 8.7 billion.As the crossroad of software development in South East Asia, Thailand has been envisaged as highly competitivesoftware development and centric distribution/delivery in the region. Thailand provides further impetus towarddomestic and regional strategic integration to be success to embrace the market liberalization by 2015. There aresome key critical factors such as Human Resource, Skill& expertise, infrastructure support, IT professional andstandardization measurement, government privilege, strong software clusters to drive successfully Thai ICTmarket . The additional atmosphere to support the investors are in term of the initiatives , taxation, legalframework, business support, and investment conditions.Thailand Today: Moving forward for future 2
  5. 5. From Kearney Global Service 3 Nowadays Thailand move to main contender of global software outsourcingdestination 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 services2.1 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 dividedinto two categories, back office outsourcing and front office outsourcing. There is a stark difference betweenthese 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 asHuman Resource, Lawyer, Accounting, Call Center, Selling, Marketing. In Thailand there are oversea companieswho looking for outsourcing services. However there are very few BPO buyers to subcontract local outsourcing inThailand. 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 areassets to Western and Japanese investors. Like most other manufacturing industries, Thailand is gaining itsacceptance in IT services outsourcing.Over the past decade Thailand has gradually turned to be the destination for offshore outsourcing location. Forinstance, Thomas Reuter has established the Software Center since 2001 after 18-months deliberation of globaldevelopment 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. 6. Categories Subcategories Metric Description Thailand Indicators (proportion %) BPO ITOFinancial 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. 7. Remarks:High activities: Lower activityEven top three location remains in India, China, and Malaysia are outstanding to provide the off shoring softwareservices activity, Thailand is rank as the significant player. One article from the Global Service location 4 (top 10locations based on their capabilities as figure followingThailand focus on niche quality of software services which produce output on the qualified graduates andEnglish capabilities moving up to value chain of BPO and ITO industries due to large workforce and costcompetitiveness.Thailand skillful workforce:The software sector in Thailand has been driven by the highly skilled and well educated workforce. Thailandeducation system transforms the variety of IT professional courses set by the standard nationwide.___________________________________________4 A.T Kearney Global Service Location Index 2011 5
  8. 8. Thailand development policy delegates the opportunity to the geographic clusters such as the IT valley in thenorthern of Thailand and outsourcing cluster in Phuket.The development of language skill in Thailand has been proven as the various interpretation skill. Thailand isalso the largest IS/ISV communities to do outsourcing in Southeast Asia region. Also now we have certified 47companies 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 wereapproved by Quality Assurance Institute (QAI) achieved 80 persons.The industry development is underwritten by the continued state investment in education and research. Theinformation and communication technologies are the priority area supported by the government; therefore theinvestment in R &D has also significantly risen. The Ministry of ICT has invested to initiative projects tocollaboration among academic, research and industries to ensure the optimum usage of resource and applysuccessful commercialization. From INSEAD global IT report show the Quality of Education in country whichrepresented perception index 1-7. Thailand was ranked at 3.6 scale. There are more than 100 universitiesproduce more than 4,000 skill professional workers annually. Some institutions, for example Software ParkThailand provided professional high skill enterprises training such as IT professional, project management, andsoftware process.From figure about the population with English as the first and the second language (Cambridge Encyclopedia ofEnglish 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 enablerfor international businesses. Adequate recruitment of the best skill and talent workforce are in various industrialsectors. A case in point,, the largest online community of translators and the Localization IndustryStandards Association (LISA), the leading organization for companies involved in localization and globalization islocated in Bangkok to promote the localization and translation industry in domestic and global arena.Case studiesThe largest software development site globally. Asia Online, the machine translation company has also set up itsoperational headquarters in Bangkok, from where it conducts R&D and daily business operations. Likewise AsiaOnline currently employs more than 400 staffs and is in the process of being incorporated in other 10 Asiancountries.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 animationindustries USD 736,700 which categorized to animation industry USD 381,200 and Game industry reached USD355,500 6___________________________________________5 KPMG Analysis, Cambridge Encyclopedia 20106 Thailand-Canadian Collaboration Forum 11-14 October 2011, Bangkok 6
  9. 9. 3.SWOT AnalysisBPOStrengths 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 2015PositioningMarket of BPO in ThailandBesides being a famous tourist destination and the auto making hub for Southeast Asia, Thailand is best knownas a tourist destination, the government of Thailand is attempting a lot to encourage business and make higherinvestments in Business Process Outsourcing (BPO). The opportunities for global BPO in Thailand are obstructedby lack of government support and vision, limited access to investment capital, and lack of regulations regardingprivacy or security, as per to research analysts. They also cited the adequate of infrastructure, ICT researchfacilities, 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 investmentsin Business Process Outsourcing. It has expanded Activity 7.22 for including not only call centers, but also anarray 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 anddata processing, and customer services, just to name a few. Recently, the India-based company, Infosys, hasdecided to put up its BPO in Thailand.( 7Case StudiesInfosys targets Thailand for banking solutions suite. Software major Infosys said on Wednesday that it hadidentified Thailand as a key target market for its global banking solutions suite, Finacle, and entered into apartnership with Datamat Public Company Ltd. and Yip in Tsoi & Co Ltd in that country to market the product inthe region. 7
  10. 10. PRTRBPO.COM directly addresses the increasing need of our customers for value added business processoutsourcing 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 aseries of unusual management projects. PRTRBPO.COM is a relatively new business and was established toensure that PRTR is able to provide, as a separate resource, the business and project management skills thataddress the increasing trend within Thailand’s business community for the outsourcing of many varied andinteresting areas of business. PRTR has looked to Europe and America in understanding the future trends that aredeveloping in Thailand and is ready and actively participating in providing interesting and original solutions to anybusiness process outsourcing requirement. ( 8Best PracticeOne of the successful BPO in Thailand according to human resource and payroll outsourcing to the overseaclients who established own business in Thailand.Humanica Thailand. Humanica provides a full range of human resource management services from payroll outsourcing to HRintelligence and talent management . We are also the number one SAP B1 reseller in Thailand. Our team hasextensive experiences in implementing ERP solutions for many years. With our practical approach drawn fromERP experts, we help you to implement the ERP project to serve your business requirements on time and costeffective.Furthermore, they have a Performance Management team can help to implement the business intelligencecapabilityTheir PMS experts can help to design, develop and deliver the business intelligence system to enhance abilityto manage performance effectively. ( 9___________________________________________7 http://www.prtrbpo.com9 8
  11. 11. ITOStrengths 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 LanguagesOpportunities 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, USABest PracticeThe 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 inThailand. Situated in the strategic location in Asia Pacific region, Thailand is accredited for leading destination ofIT outsourcing location, for instance Thomas Reuter has established the software center since 2001 anddeliberated the global development site. Currently the company employs more than 1,300 IT professional as thelargest software development site globally.In addition, the DST international Bangkok centre was established in 1993 and has grown to over 800professionals providing Consulting, Support and Development services to Clients and DST affiliates globally. InThailand, DSTi services more than 50% of Fund Management companies and more than 50% of Brokercompanies.4.Government SupportThe National ICT Master Plan chaired by Prime Minister approved the National ICT Framework 2020 ,whichapplied National Broadband Policy Force Task on 2010. The broadband infrastructure allows to accessinformation via broadband internet reached 95% of Thai population in 2020. The Master plan also intend to 9
  12. 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 ICTinfrastructure to promote the development of 4G, Enterprise 2.0 and also security system in domestic andinternational.Linkage to AEC 2015: Single marketplaceWith the paradigm of AEC 2015, the integration of ASEAN countries + 6 reach more than 50% of the worldpopulation (3,284 millions) and consumed 22% world GDP which value USD 12,250 billion. The conceptionalframework of the ASEAN ICT Master plan will be enhance the human capital and apply the horizontal industriesthe thematic track on digital economy, new media and social network. The community transform the mechanismto pursue partnerships and collaboration with the regional counterpart and alliances. The vertical industrieswhich 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 appliedICT as engine to to raise competitiveness in AEC 2015. Complied to ASEAN ICT master plan, which use ICT as atool to rise the ASEAN Economic growth and also provide the linkage to integrate the infrastructure, Thailandgovernment has positioned Thai ICT industry as flagship on ASEAN strategic location.Mapping Thailand as the strategic location of AEC 2015Within 2012 telecommunication and ICT, one of four service industries that were stimulated to open free zonemarket such as aero transportation, healthcare, tourism, will open 70% own foreign stakeholders. This is thedirection that Thailand has to open more Foreign Direct Investment (FDI) located in whole country. In themeantime, Thai investor can run oversee business in ASEAN including the cross border Data Processing Services inASEAN members. More thai skilled workforce will work border less across the region. Some vertical industrieswhich effect by AEC 2015 and need software as an enabling platform to reinforce the value chain and operationsuch as logistic and electronics assembly will invest more in order to get more competitiveness.Case Studies: LogisticIn order to get cost optimization; Thailand positioned the strategic location on logistics. The governmentagencies launched the Master Plan for Thailand Logistic by creating the awareness of using IT as enabling onlogistics or called “ E-logistics” implemented marketplace with AEC 2012. The main strategic plan in on “ thenational single window” which will be applied in the import-export on logistics methodology to linkage thepaperless 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 AseanSingle Window in 2012. This will drive Thailand as the center hub in logistics both ASEAN export and importlocation.Case Studies: AutomotiveThailand called Detroit of Asia, produces car plants over the past decade and initial vehicles manufacturers are 10
  13. 13. made for export to more than 200 countries. The strengths of Thailand core value in the supply chain for carAssembly, skill & experience workforce and also has been invested infrastructure by the government. Under theparadigm of AEC 2015, Thailand is positioned to be Diesel automotive part assembly integrated to the wholesupply chain of Automotive in ASEAN. The automotive industries promote to apply ICT as enabler formanufacturing, cost optimization, especially transform to the clients orientation The ICT will help theproduction line and manage the core value chain of industries to get better services and get competitiveness inthe global marketplace.Case Studies: Tablet and device investment from the government to primary schoolThailands Cabinet has approved the purchase of 860,000 tablet computers from a little-known Chinesecompany for students in the first year of primary school. The software developer will take this opportunities tocreate any contents and application on the mobility devices. The education institutes in Thailand have morethan 60,000 around the countries and proportion of users would be more than 600,000 students. The projectswill take hugh auction and procurement in the long term.5.Strategies and Initiatives Strategies Description5.1 Positioning Thailand as -Increase more professional skills by improving the education system and providestrategic software development in more multiple national trainingASEAN 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 Description5.2 Partnership and Alliance with -Increase more software park in distance area that boost the domestic demand, alsodomestic 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. 14. Strategies Description5.3.Benchmarking; identify; focus In order to sustain the ASEAN ICT competitiveness, Thai ICT industries must focus onon 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, medicalin global competition) healthcare, automotive and logistics. These vertical industries align with the know-how and workforce skill. Strategies Description5.4. Awareness Creation of IT Thailand is also focusing on the growth of the IT domestic demand especially highenabler on the vertical industries software skill and expertise on the vertical software industry applications such asin 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 Description5.5 Build Cluster and Platform for Cloud Computing: The concept of IT usage with cost optimization make cloudemerging 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 forchange dramatically, Thai ICT software developers to create various applications served on the cloud services. Inindustries positioned on the new case of cloud infrastructure, AEC 2015 will allocate the concept of data centre freeemerging technologies according zone and and provide the backup side outside among many research indicators to Mobile Application: The Office of the National Broadcasting and Telecommunicationmap with the potential local Commission will comply with the ASEAN digital broadcasting. The government havedemand 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. 15. Strategies Description5.6 Build Manpower to meet ITO/ -Thailand education system transforms a various of IT professional nationwide thatBPO 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.InitiativesTax 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 toASEAN cross border labor. This measurement will define the professional qualification, certificate and alsocompensation to the single standardization such as System Analyst, Networking and system executives, ICTProject management, organizational architecture and design software; network and ICT security, and softwaredevelopers. In addition, software testing and software certificate will be a must to Thai workforce to meet theglobal standard.-Government privilege will provide system for professional skill testing and certification and allocate the portionof budget to make more ICT experts.-Thailand will develop IT professional Repository dominated in the region and also establish institute of ITprofessional measurement to produce more qualified IT professional since high school whole countries.7. Key StakeholdersAssociations1.The Association of Thai ICT Industry (ATCI),Further information: 1. Promoting Thai ICT industry through business collaboration and sustained growth. 2. Focusing ICT human resource development. 13
  16. 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 tobuild relationships across the region.2.The Association of Software Industry (ATSI)Further information: www.atsi.or.th1. 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.th1.To compete globally, TSEP companies must strive to be “Best in Class” in each areas of expertise2.Focus & become niche ICT players in industries where Thai companies are well established3.Organize & attend Buyers Meets Sellers Events & Trade Missions with emphasis on meeting corporate decisionmakers, exploring their ICT needs and showcase our solutions and capabilities to domestic, regional & globalcustomers4.Find new business partners to exchange market expertise, know-how on domestic & overseas business, co-marketing activities.Organizations1.National Electronics and Computer Technology Center (NECTEC)Further information: www.nectec.or.thNECTEC was established on 16 September 1986, initially as a project under the Ministry of Science, Technologyand Energy (the former name of the Ministry of Science and Technology). In 1991, NECTEC was transformed intoa specialized national center under the National Science and Technology Development Agency (NSTDA), a newagency following the enactment of the Science and Technology Development Act of 1991.NECTEC contributes to the development of Thailands capability in electronics and computer technologiesthrough:I. Research, development, design and engineeringII. Technology transfer to industries and communitiesIII. Human resource developmentIV. Policy research and industrial intelligence and knowledge infrastructure2.The Software Industry Promotion Agency (SIPA)Www.sipa.or.thA public organization, established on September 24, 2003 under the administrative supervision of the Ministry ofInformation and Communication Technology. SIPA acts as a lead agency that develops plans and policies toadvocate Thai software industry with a focus on promoting and developing software and digital contententrepreneurs, improving human resource, supporting investments and market opportunities, boosting researchactivities and technology instructions as well as supporting and developing measures to protect the IntellectualProperty Rights to software. The goal is to make Thai software industry domestically and internationally 14
  17. 17. recognized. Thus, this is consistent with the Government Policy that defines a development of software industryas a main strategy to build competitiveness of the country.3.Software Park ThailandWww.swpark.or.thAn organization under the National Science and Technology Development Agency (NSTDA). Our task is to supportand strengthen those in the Software industry by any means necessary, be it in procurement of humanresources, marketing, securing investment and even with the latest technology. Our aim is to help each andevery stakeholder in Thailand’s software industry from manufacturing industry to agriculture as well as theservice sector-Software can help all increase their efficiency and their potential. We aim to grow the domesticsoftware industry and instill confidence in this industry for overseas operators wishing to establish themselves inThailand.Regional Software Park Around countries Alliance:Thailand Software Park Alliance (TSPA)1.Software Park Thailand2.Software Park Phuket3.E-Saan Software Park4.Korat Software ParkSoftware Park Thailand lead the regional alliances as the business model and share the infrastructure; facilitiesand activities to promote the networking, marketing channels through software houses members. They signedMOU among organizations on March 2012.International development Program1.The Asia Oceania Regional Software Park Alliance is an international collaboration among 22 software relatedorganizations from 13 economies such as Malaysia, Brunei, China, Hong Kong, Vietnam and Thailand etc. in theAsia Oceania Region.It was initiated during the Regional Software Park Forum 2007 in Bangkok, Thailand with the idea to create amutual collaborative linkage among Software Park operators and/or IT related organizations in this region whichcan subsequently be extended to their tenants and members. A year later, the initiative has brought results withthe establishment of the Asia Oceania Regional Software Park Alliance where all alliance members signed theofficial Memorandum of Understanding in Xiamen China on September 8, 2008 agreed to establish a network bypooling resources among the members to assist local software/IT business in the region to go global and placesoftware/IT industry development in the Asia Oceania on the world scenario2.The Asian-Oceanian Computing Industry Organization (ASOCIO) is a group of IT industry associations comingfrom 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 inthe 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. 18. New Zealand, Pakistan, Philippines, Singapore, South Korea, Sri Lanka, Thailand, Vietnam and seven guestmembers from USA, UK, Canada, Spain, Russia, France, and Kenya. Today, ASOCIOs members account for morethan 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 2009-2013Software Park Thailand facilitated as counterpart to the Centre for the Promotion of Imports from developingcountries (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 toprovide assessment to EU market, offer business transfer and technology information, provide matchmaking andpromotion opportunities by the EU consultants.Overview of program is to select 10-20 companies from developing countries through CBI counterpart and assistthem to enter the European market. During the program selected companies will be provided training, coaching,and consulting and market entry assistant.8.Best PracticeEmergence Technologies : Flagship for Thai ICT EcosystemThai software Industry has adopted the software road map in order to reinforce the ICT industry ecosystem fornew market development and initiate the start up environment. Technologies have been changed dynamicallyand made short computing cycle of products and turned on software as services. Thai ICT industry has to shiftspontaneously by following the technology trend and apply to global market orientation. There are someemergence technologies that Thai ICT industry will focus on such as Mobile application, Cloud computing, SocialAnalytics, and Social Networking.The significant Enterprise 2.0 will lead the technology trend for mobile application technology especially onmobile devices and smart phone. This will augment number of mobile content developers,mcommerce andmpayment in the near future. Many Thai private and government organizations get recognition to applymobilizing application to execute value creation to their business performance and also embrace the platform tosupport mobility. The emergence of cloud computing will support and manage remote cloud implementation tothe organizations both infrastructure and Saas delivery of cloud services. This technology will then become thesocial media and turn on the cloud security concern in business sectors. Finally social networking willcollaborate the connection, networking, tools & services for the marketing and CSR activities for anyorganizations. The enterprise 2.0 will create the new platform,communities and security serviced providers toenhance and shift the business model of private sectors in order to adjust to any changes and survive in globaleconomic circumstance. These emergence technologies will support the industrial SMEs strategies andperformances to apply new business models in order to gain the competitiveness and work efficiency in theglobal market. One successful story was applied Business Continuity for cloud computing and mobileapplication in flood crisis in Thailand in 2011, the virtual technology can help SMEs and privates to access anytime, anywhere and any devices. This is helpful engine that can carry on the business efficiency even on thecrisis situations. 16
  19. 19. 9. Key Bottleneck • Unstable Politics Situation • Fostering Human capital: skill & expertise, languages, education system • IP Rights/ security • Infrastructure Investment • Marketing skill promotions 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 ICT10.The most important Export markets for ITO and BPO products and servicesAccording to Board of Investment Thailand, 2010. They divided ITO into categories as followingOutsource Categories Description Outsourcing buyersBPO Human Resource Japan, UK, USA, Scandinavian,Germany Purchase and accounting USA, France Selling Department USA, UK Back Office Japan, UKITO Custom software development UK, Scandinavian Analytics /Business Intelligence Germany System Integration Swiss, UK, Germany Database development Germany, the netherlands Web development Spain, AustriaSource: BOI Thailand ( List of Potential BPO and ITO Company Name Description URLAmber Advisory Ltd E-learning, database system network system design, system analystAware Corporation Contract software development, Internet data center, PM, GiftwareDigicraft Co.,Ltd Develop digital content, animation, mobile content www.digicrafts.comEnspry Technology Co.,Ltd Web application, testing, automated testing www.enspry.comIT works Co.,Ltd Mobile and biometrics application outsourcing Co.,Ltd MRP , artificial Intelligence, genetic algorithms 16
  20. 20. TNT Media and network Co.,Ltd Web application outsourcing, E-book, E-magazine Software E-commerce, mobile application, Transportation control system www.innovasoftware.comMiracleNET group Outsourcing Java and Opensource www.miraclenet.netSoftsquare International Software customization in retail, manufacturing and governmentVerisette Co.,Ltd IT banking outsourcing, testing integration. www.verisette.comSuvitech co.Ltd Telecommunication www.suvitech.comAI Soft Co.Ltd Traveling search engine www.aisoftthailand.comReadyplanet Co.,Ltd Web solution , web development www.grandplanet.comInfotronics Co.,Ltd Infotronics is a leading Software Development Services, Consulting, Trading, System Integrator and IT Services for ubiquitous cityUbiz Solution Co,.Ltd PM, Helpdesk support, software development www.ubizsolution.comGood Job Mobile application, game and animation, visual effect, graphic designYIP In TSOI Co.,Ltd Total IT solution provider www.yipinsoi.comLongkong studio Co.,Ltd Software for construction www.longkongstudio.comTouch Technology Co.,Ltd Mobile application, monitoring solution, wireless network solutionSun Systems Corporation Solutions for VASs, enhanced / intelligent switching, call / www.sun-system.comCo.,Ltd media processing, VoIP, unified messaging, wireless e-mail, CallCenter, Helpdesk Applications, Thai Text to Speech, Thai Automatic Speech Recognition and Value Added Services PlatformTeletrol-One Co.,Ltd Financial software Suite Co.,Ltd Conference system, web application, network and infrastructureAdvance Intelligence Modernity Wireless application, mobile internet, content aggregator , game www.aimadvance.comCo.,LtdAsiabiz Networks Co.,Ltd Call center, Sales and services, Process Management customers,Asia Medisoft Co.,Ltd Web application for medical software, mobile application www.asiamediasoft.comAlterlas Co.,Ltd Design and web application www.alterlas.comChanwanich Co.,Ltd BPO provider and IT security integrator www.chanwanich.comISLT Co.,Ltd Interactive digital media, web application www.figabyte.comAnywhere to go Co.,Ltd Mobility Enterprise Solution on cloud computing www.anywheretogo.comSense water Co.,Ltd Water leakage management www.sensewater.netHumanica Co.,Ltd Human Outsourcing, ERP 17
  21. 21. BibliographyThe annual report Ministry of ICT Thailand 2011, “ Thailand ICT Market 2011 and outlook 2012” , SoftwareIndustry 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 23Cambridge Encyclopedia 2010 , “KPMG Landscape Report Analysis” , page 18Thailand-Canadian Collaboration Forum 11-14 October 2011, Bangkok; page 32, “ BPO Thailand”, “company profile”; “company profile” ; “Board of Investment Thailand ” (BOI), 2011