Growing ICT Sector Employment

Dr. Tony MurphyVice President

Gartner

Information And Communications Technologyfor Sustainable Development

Dec. 12/13 2004, Abu Dhabi

$40 billion ICT exports 2003

World’s second largest software exporter

World ranking #3 per capita GDP

World’s most globalised country last 3 yearsForeign Policy Journal

World’s most desirable place to live and workEconomist Journal

Ireland’s Achievements

World’s #1foreign affiliates conducting R&DNational Science Foundation Washington

Population3.5 million

Legislative Support

HighValueRD&C

Man

ager

ial

Skill

s

BasicRequirements

CompetitiveDifferentiators

CommsInfrastructure

CostEffectiveness

World-class

FDI a

nd/o

rV

C F

undi

ngC

ultu

ral

Com

patib

ility

BasicSkills

Com

preh

ensi

ve

Co-

ordi

natio

n

World-Class ICT Achievement

Internationalgaps widening

Developing Indigenous Software Enterprises

VC

Stock Listing

Local Sales

Services

Low Margins

International Sales

Products

ValueTime

Success storiesCheaper labor

Inhibitors

AcceleratorsGeopolitical risk

Process quality

Need for speed

Unknown countries

Lack of infrastructure

3-shift work day — follow the sun

Xenophobia

Skills shortage

Losecontrol

Spread risk across geographies

Offshore/FDI Accelerators and Inhibitors

Specific Challenges for the Arab Region

“Mr. 10% syndrome”Undermines risk-taking and innovation

Slow and bureaucratic approval processes

Weak teamwork ethic

Bad policies and decisions implemented by default

Undermines competitiveness, deters external investors

Team synergies not realised

Authority figures unquestioned

Symptom Impact

Specific Opportunities for the Arab Region

Arab IT activities have a national rather than regional focus

Economies of scale and feasibilityof new forms of ICT initiatives

Contact and support centres forArab customers located externally

Local/regional centres which cansupport other ICT opportunities

Arabisation of software packagesundertaken largely in Europe

Special requirements for Islamicbanking inadequately addressed

Development/conversion of Arabic/Islamic content

Establish localisation skills and reputation

Move to modular and services-oriented international packages

Tiny proportion of Web content isArabic/Islamic

Drivers Opportunity

Closing Thoughts

• The ICT sector remains among the faster growing sectors globally

• “Bust a gut” to get a flagship project (major MNC)

• A policy of low wages and high financial inducements will not succeed long-term

• Success calls for planning, co-ordination between many stakeholders, and a target of continually rising up the value chain

• Other countries have shown what can be achieved in a short time - be positive and proactive