ict opportunity in the emerging regions

FOCUSING FORWARD

OPPORTUNITY IN THE EMERGING REGION

Madu Ratnayake

NSF National Committee on ICT & Electronics

What is the state of IT/BPO industry in

Sri Lanka?

2

“

2009 2010 2011 2012 2013 2014 2015

210

310

387

484

605

750

946

IT/BPO Export Revenue in mill USD

Actual Estimated

IT/BPO Industry to become 1 Billion USD in Export Revenue and create 100,000 Jobs

Source: ICT Survey 2010

15,871 17,827

21,914 23,318

8,634

11,384 13,701

17,197

24,505

29,211

35,615

40,515

2008 2009 2010 2011

IT Sector

BPO Sector

Total

Employees over 40,000 people

Approach (Mid Term – 2015)

Build niche focus Global Center of Excellence

in

Financial Services, Mobile and Telco, Software Testing, Travel and

Aviation, Legal Process & Product innovation

for

Mid market (SME) companies and niche captives

with a USP of

Niche talent, lower attrition, lower operating cost

Ranked among Top 25 in the AT Kearney Global Services Location Index (GSLI) in 2011Ranked number 5 in financial attractiveness, ahead of India, China and all of CEE

Gartner's 30 Leading Locations for Offshore Services (2010-2011). Included among the Top 10 in Asia pacific.

12th in the top ranking destinations in IBM Global Location Trends Report

Ranked among the top 10 emerging global destinations by Global Services Magazine.

Sri Lanka is clearly emerging as a global IT sourcing destination

North America, Europe and Australia is

large part of our market today

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UK & Europe20%

USA16%

Canada4%Japan

3%

Australia9%Africa

3%

China2%

India9%

Sri Lanka17%

Asia (except India & Sri

Lanka)

15%

South America2%

What is happening in the Emerging

Regions?

8

ICT adoption in the emerging regions is

exploding…

• Internet (> 1b 2012) and Telephone/Mobile usage is

growing exponentially

• PC sales of 352.4 million units growing 10% YoY

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Significant growth in

emerging regions…

Rank Country

Number of

Facebook

users Dec

2008

Number of

Facebook

users Dec

2009

Number of

Facebook

users Dec

2010

Number of

Facebook

users Dec

2011

12 month

growth %

1 USA 42,078,960 101,303,240 145,749,580 157,418,920 8.01%

2 Indonesia 897,040 14,681,580 32,129,460 41,768,340 30%

3 India 1,071,280 5,397,480 17,288,900 41,399,720 139.5%

4 Brazil 209,460 2,413,900 8,821,880 35,157,560 298.5%

5 Mexico 1,440,640 6,505,040 18,488,700 30,985,340 67.6%

6 Turkey 7,934,340 16,943,780 24,163,600 30,963,100 28.1%

7 UK 14,937,180 22,625,300 28,661,600 30,469,920 6.3%

8 Philippines 390,700 8,387,560 18,901,900 27,033,680 43.0%

9 France 6,587,240 14,290,700 20,469,420 23,544,460 15.0%

10 Germany 1,255,480 5,799,520 13,678,200 22,123,660 61.7%

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What is happening in Sri Lanka with

ICT?

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•Internet - 2.5m (11.8%)

•Facebook - 1.1m

•Literacy - 35%

•Mobile – 16m (>80%)

•PC Penetration?

12

Rapid increase in ICT adoption in the

emerging regions is creating a significant

opportunity

13

“Emerging region” ICT opportunity is

growing

14

…who can creates solutions for the

emerging regions?

15

Innovation happens at the periphery of

consumption

One has to be there to see the opportunities

16

…who can creates ICT solutions for the

emerging regions?

17

Why we think emerging region make

sense?

• Rapidly growing market

• Real opportunity to innovate

• Competitive position

• Address local opportunities and problems

• Build local entrepreneurs/exit with

acquisitions

18

We have fair opportunity to create truly innovative

solutions, improve national productivity and generate

wealth and export revenue

Possible areas of innovation

• Health Care

• Education

• Agriculture

• Water/Sanitation

• Rural BPOs

• …

• …

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Strategy: How do we create an eco system that would

create leadership in ICT for Emerging Regions for Sri

Lanka

Create Awareness and

Excitement

Encourage Entrepreneurs

Support Research & Innovation

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Strategy: Some initial ideas for Execution

• Create Awareness and Excitement

• Maker Fair in each region – engage the young

• Establish and award for ICT in ER

• Encourage Entrepreneurs

• Emerging Region Business Idea Competition

• Seed funding

• Connecting researchers and businesses

• Support Research and Innovation

• Research grants for identified areas of innovation

• Incubation centers in Universities

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NSF National Committee on ICT &

Electronics – ICT Track

• Chair Person Prof. Dileeka Dias (dileeka@ent.mrt.ac.lk)

• Madu Ratnayake (madu@virtusa.com)

• Dr. Koliya Pulasinghe (koliya.p@sliit.lk)

• Dr. Ruwan Weerasinghe (arw@ucsc.cmb.ac.lk)

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