English-speaking.ppt

1、,OUTSOURCING Accessing Developing Countries Knowledge Pool and Creating a Global Thinking System Mina Mashayekhi Head, Trade Negotiations and Commercial Diplomacy Branch UNCTAD Geneva, 28-29 April 2005,The Data,A new way to leverage skills and markets Win-win situation: for DCs and ICs: productivity

2、, competitiveness, higher employment, faster economic growth every dollar of outsourcing creates $1-45-1-47 of value of which the US captures $1.12-1.15 while India gets only 33 cents Outsourcing industry: to exceed $1 trillion by 2006 Total savings from global outsourcing: to grow from $6.7 bn (200

3、3) to $20.9 bn (2008) Developing countries gains: $60 billion in ITES by 2008,The Data,Outsourcing: North-South issue? Hardly More North-North trade-68% of trade North America, largest market: 60% of total Canada, largest exporter of private services to US Job displacement, unfounded: Net creation o

4、f 22 million new jobs in the US (from 2000-2010); shortage of 10 million in 2010 Estimates for outsourcing: job creation: 317,000 net new jobs by 2008 in the US 2003: 98% of total contract value for outsourced business process service delivery in the US is done domestically (only 2% off-shored) Indi

5、a accounted for only 1% of total US imports of private services (of which, 2% - business services),Worldwide ITES-BPO Spending by region 2002-2006,The Benefits,Contributes to the MDGs: gender empowerment, poverty reduction, access to technology Has positive spill-over effects: gains from additional

6、consumption, skills and technology transfer, secondary employment Strengthens local capacity: through ToT and technological developments could assist DCs in building their own industries Indian example: TCS, Infosys, Wipro Technologies Expands markets: through inter-modal linkages, especially with M

7、ode 4 could benefit late entrants, esp. if trend continues,Gains for Outsourcing Companies,Strategic decision / competitive necessity Lower labor costs Economies of scale Round the clock operations / time zone Access to skills (including language skills) Legal and regulatory framework Quality Struct

8、ure of existing corporate network Global R US$ 148 bn by 2012 Employment to rise from 110,000 (2003) to 2.7 mn by 2012 Philippines, China, Malaysia, Vietnam, Bangladesh, S.Africa, Ghana, Senegal, Kenya, Jamaica, Mauritius, Nicaragua, Barbados, Mexico, Brazil. Others: Hungary, Czech Rep.,Programmers

9、Wages(Average Wage/year (US$000),Vietnam Experience,Nortel, Cisco, IBM, Hewlett-Packard, British Petroleum, Sony, Fuji, TCS, now in Vietnam IT training specialists (NIIT, Aptech, Oracle) and Royal Melbourne Institute of Technology, providing training Attractions: cost advantage strong mathematical s

10、kills ( focus of educational system) knowledge of French and English Government: providing incentives to IT sector (tax holidays, infrastructure development, education) Vietnamese diaspora: key driver of IT industry,Ghana Experience,Government: pro-active role: campaign, promotion for major US BPO p

11、layers to set-up presence Attractions: stable political environment english-speaking workforce; high literacy Role of diaspora population: setting-up their own companies in Ghana; some in partnership with foreign investors knowledge of foreign culture and their networks,Success Stories: Summary,Comp

12、etitive cost Language, education, skills also enables moving up the value chain Ability to develop global networks Adequate and reliable infrastructure Government role: infrastructure, education, various incentives, marketing, political stability, regulatory framework (e.g., security of data and IPR

13、 protection) relates to long-term prospects of doing business Role of diaspora population Cultural and relational proximity and trust,The Challenges to Overcome,Lack: infrastructure, trained HR, local market- base Difficulty in gaining confidence of outsourcing companies: regulatory framework still

14、under development political instability and governance issues Lack of coverage for liability and risk putting in place a strong risk-control framework Potential erosion of competitive advantage through new laws and regulations (e.g., restrictions on transfer of personal data) Growing protectionism i

15、n outsourcing countries,Intermodal Linkages,Mode 1-Mode 4: need for professionals to travel for negotiating contracts, trouble shooting, maintenance, training, supervision, monitoring etc. Mode 1-Mode 3: Indian companies benefiting from outsourcing now have established their own commercial presence

16、in major markets: 480 Indian companies in UK; India, now 8th largest investor in the UK; have also established operations in China, Philippines, etc. to leverage specific skills and take advantage of lower costs.,Liberalization: The Targeted Approach,Full MA and NT commitments on positive list of se

17、rvice sectors at aggregate (2 digit) level: ensures a reasonable degree of coverage to include large part of current IT ,Liberalization: The Horizontal Approach,Full MA and NT to ALL services supplied on a cross-border basis (excl. certain financial and certain transport services): includes also tho

18、se services not listed in schedule, and any new service that will be traded in the future; reduces negotiating capital; more accelerated market opening. But: creates challenges for the basic structure and approach of the GATS (bottom-up); does not allow for targeted and focused liberalization; does

19、not easily account for development flexibilities; makes it hard to anticipate impact.,Domestic Regulation,Specific commitments: can potentially be undermined through protectionist domestic regulations. Challenges developing countries are still experimenting with their regulatory systems; cross borde

20、r delivery through new technological means gives rise to new regulatory issues (liability; consumer protection etc.); new governance and institutional frameworks for cross-border delivery and outsourcing services are required.,UNCTAD Expert MeetingProfessional Services Identifying best practices to

21、strengthen domestic capacity and increase participation in international trade; Exploiting existing frameworks for cooperation and coordination among international organisations; For UNCTAD, to intensify its capacity-building efforts for developing countries, esp. LDCs; For developing countries, to

22、build necessary infrastructure and domestic capacity; Effective implementation of Article IV, Telecom Annex; For WTO Members, to address issues of market access in the ongoing GATS negotiations; Cooperative measures through RTAs.,Way Forward,Proactive role for DC governments: Identifying their natural advantage and taping/developing it to boost competitiveness Building and maintaining appropriate infrastructure Setting up appropriate regulatory frameworks, maintaining political stability Becoming responsive to private sector needs Tapping diaspora support to build domesti