Transcript Document

The 3rd Annual EAC SG Forum
Integrating ICT, BPO and Mobile Platforms in the regio
n: Opportunities, Challenges.
Jean Pierre NIYITEGEKA / GOR
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Contents
1.
2.
3.
4.
Introduction (ICT, BPO)
Trends in ICT, BPO & Mobile technologies
Opportunities & Challenges
Towards integration
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Highlights on ICT
• The EA countries have strong will to position ICT as a key
enabler for social economic transformation.
• Several key developments in ICT have been realised by
each member states, however, there is to further leverage
on ICT capabilities to accelerate regional integration.
• The integration has to be aligned from strategic
positioning, projects and at operational level.
• Infrastructure, Application Systems, Policy formulation,
* EA Citizens should benefit from the same user
experiences among all the member states *
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Highlights of Rwandan’s best practices
As of today:
• 20% Internet penetration
• 65% phone penetration in population
• 4G coverage of 75% Kigali
95% 4G Country wide coverage by
2017
• Country wide coverage of ICT infrastructures
• Smart Rwanda Master Plan
Clear Strategy with concrete actions
• All Govt Services to be served online.
Started with 100 common services
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Potential areas of intergration/Harmonization
Integrated Broadband
Strategies
Harmonized
Services/E-Gov
Strategies
Harmonization of
Policies
(Smart Rwanda)
Financial Services
East Africa
Integration
Harmonization of
Telecom Tariffs
Citizens Registry
Centralization
EA exchange point
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EA wide Cyber
Security
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Business Process Outsourcing (BPO)
Some Definition of BPO:
 Outsourcing is when a company contracts with an outside provider
for services or other business processes, rather than employing staff
to do these services in-house.
 Typically outsourcing is done with an eye toward efficiency and costsaving for the company.
 Typically, the BPO services are provided in the area of logistics,
Sales and Marketing, Customer Care, Finance, Human Resources
but many other traditional business processes are being converted
into BPO.
 BPO is now global with the advent of ICT. Taking advantage of
various different factors (e.g.; time difference, skill sets, languages,
prices, etc.), many private sectors and public institutions are utilizing
services which do not conform to traditional market pattern.
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Advantages of BPO for organizations
Competitive positioning
Companies
see productivity as a key benefit while cost savings are less important
Advantages
of BPO:
Targeted approach to meet the needs of demanding customers.
[
of benefits
outsourcing
% respondents
Average (scale 1–5)
FigureBenefits
7: The key
of outsourcing
Improve
productivity
6% 11%
Stronger
capabilities
6%
12%
Core focus
14%
Cost
reduction
In selling outsourcing
4.18
services, Rwandan
providers must highlight
how they will improve
3.98
the productivity of a
company, by leveraging
a stronger skill set and
3.88
allowing
the outsourcer
to focus on their core
competency.
77%
16%
72%
20%
19%
0%
[1]
17%
Facilitate
innovation
4.31
83%
66%
25%
3.66
56%
20%
40%
60%
Unimportant
Neutral
80%
Important
100%
Source: OTF Group BPO market survey, 2010: n=136
Source: OTF Group BPO market survey, 2010: n=136
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Copyright © 2010 OTF Group – 14
BPO Clus
7 Business Process Outsourcing (BPO)
Current Status of BPO Market and Opportunities:
• Global BPO market is forecast to increase at a 5.7 % annum (CAGR) to
$209.4 billion by 2017 (IDC 2013)
• Logistics, Sales and Marketing, Customer Care, Finance, Human Resources
represent 98% of the BPO Services (IDC 2007)
• EA BPO market is expected to grow from $485 million to $1.9 billion with an
annual growth of 25 percent from 2010-2015 (OTF 2010).
• Rwanda estimates that the current domestic demand for BPO services is $50
million, with a target to increase to approx. $274 million in 2020 (OTF 2010)
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8 Key highlights
• This growth of BPO is driven by an overall change to business
models worldwide. BPO has a limited presence in East Africa;
however, the growth forecast suggest to surpass the global growth
rate
• In the recent survey conducted by OTC, 70 of the respondents are
based in Rwanda, 43 in the East African Community (EAC) and
outside of Rwanda, and 23 are international firms. The median
company size was twenty-four employees and the average size
was 282 employees. This difference was due to several large
companies that participated in the survey.
• Gross Domestic Product (GDP) growth in East Africa led African
growth in 2008, with an average of over 7%, according to African
Economic Outlook. As East Africa swiftly expands and enters the
global marketplace, corporations are outsourcing more of their
business.
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Business Process Outsourcing (BPO)
BPO Challenges for the region: .
•
Workforce skills: Low skill levels among professionals
•
Infrastructure: High energy cost, telecommunication costs, low band-width
•
Funding: Difficulty in accessing working capital/funding for growth
•
Procurement Policies: Government tenders do not promote competition
•
Marketing outreach: EA still lags behind marketing itself as a destination for
BPO
•
Management skills: management lacks globally competitive operational
experience
•
Investment: Additional targeted investment required for sustained industry
growth
•
Lack of distinct services: Inability to pursue services that are unique but at
the same time very standardized and high in demand globally.
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10 BPO Enabling factors
•
Skills Development
 Address the Academia – Private Sector disconnect
 Reduce the cost of existing ICT certification courses that is prohibitive to
students
 Reduce the prohibitive cost of training Rwandan employees
•
Infrastructure
 Create reasonable energy and telecommunication costs
 Access state of the art labs/ cutting edge information
•
Increase access to finance
 Create working capital
 Increase start-up funding
•
Increase access to public and donor procurement
•
Language training initiatives
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Management training initiatives
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Attracting the expertise and investment necessary to create anchor
firms
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11 BPO Suggested EA Position for discussion
Suggested EA position to take advantages of BPO: .
• Need to create distinctive yet highly sought after services to be globally
competitive
• Avoid price competition (move existing BPOs to higher valued services)
• Create regional market for the BPO sector to be competitive (e.g.; South
Africa)
• Create appropriate skills in the region to enable distinctive BPO services from
EA
• Take advantage of members such as Rwanda and Brundi to connect West
African Market and EA (especially in the linguistic advantages – French,
Lingara, etc.)
• Create regional BPO Strategy to include above points which will be coherent
and take advantage of regional integration
Etc.
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12 Mobile Applications/Services
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13 Definition of Mobile Services (m-Services/applications)
Sample definition of Mobile Services and Mobile Applications:
Any services which are intended and created for, distributed and
disseminated by, transacted and consumed through various different
devices which are transportable in nature.
With the advent of ubiquitous mobile devices and interconnections,
Mobile Services are quickly becoming mainstreamed in both
developed and developing countries as most efficient ways of
providing and consuming services between the service providers and
the consumers.
Mobile Applications are tools (often software based) which enable
mobile services to be delivered through devices which are
transportable in nature.
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14 Why Mobile Services?
Current outreach of Mobile Services:
• Portio Research (March 2013) estimates: 1.2 billion people
worldwide were using mobile apps at the end of 2012. This forecast
is to grow at a 29.8% per annum and reach 4.4 billion users by the
end of 2017
• Huge mobile penetration in Africa (253million unique mobile
subscribers), Annual growth rate of 18% CAGR-2007~2012 (GSMA
2013)
• Nearly 94% of the users access Internet via Mobile devices in
Middle East and Africa (eMarketer 2014)
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15 Why Mobile Services/Applications?
Some Advantages:
• Huge subscriber base (nearly all Internet based services are accessed
through mobile devices)
• Cost effective to both develop and provide services through Mobile
based applications
• Transactions are less prone to corruptions and other hindrances
• Monetary transactions can be performed with relative ease with mobile
banking and mobile payment systems (e.g.; m-Pesa)
Etc.
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16 Why Mobile Services?
Some Challenges hindering m-services/applications penetration:
• Stagnant Mind set from traditional service delivery and consumption
• Cost of accessing Internet and SMS
• Existing policies/laws/regulations do not support mobile
services/applications
• Low penetration of Internet and mobile devices in rural areas
• Low skills in development mobile applications
Etc.
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17 How could we encourage growth of m-services/app
How to encourage growth of m-services/applications:
• Change of mind set for the service providers (e.g.; Government institutions)
Low skills development
• Outsource various different Government services to private sectors
• Reduce Internet and SMS costs and encourage penetration of low cost smart
mobile devices
• Provide capital for investment in mobile application development (e.g.;
contests, loan scheme, etc.)
• Create EA framework for m-services (for seamless transactions)
• Encourage skills development in the area through targeted approach
• Facilitate legal frameworks which are conducive to m-services/applications
Etc.
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Asante……Discussions !
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