Sectoral Debate PresentationJulian J. Robinson

Minister of State Ministry of Science, Technology, Energy & Mining

July 31, 2012

}  Differences in socio-economic levels }  Residential vs urban ◦  Challenges of development

}  Commercial centres (New Kgn, Cross Roads, Half Way Tree)

}  Significant national institutions }  One size does not fit all

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} Focus on infrastructure ◦ JEEP Phase 1 – road repairs, gully walls

} Educational support

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Summer Reading Camps }  Hosted 900 students in 7 communities

(Nannyvi l le, Swallowfield, Jacques Rd, McGregor, Franklyn Town, Woodford Park, Slipe Road)

}  4 categories of students ◦ Ages 4-6 – pre primary stage ◦ Ages 7-9 – preparing for the Grade 4 Tests ◦ Ages 10-12 – preparing for GSAT ◦ Ages 12 – 15 – young teenagers

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}  Global BPO market – US$680 billion at end of 2011 }  Growth rate of 9% annually }  Will reach US$1 trillion by 2014 }  Latin American & Caribbean will be worth US$5 billion by

2013

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2004 2005 2006 2007 2008 2009 2010 2011 20142012 2013

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Global Market ($BB)

Growth Rates (% CAGR)

18IT Services-Offshore25BPO-

Offshore

7IT Services-Global9BPO-

Global

Growth Rates (% CAGR)

18IT Services-Offshore25BPO-

Offshore

7IT Services-Global9BPO-

Global

Source: IDC

Offshore Market ($BB)

Global BPO RevenueGlobal IT Services Revenue

Offshore BPO RevenueOffshore IT Services Revenue

Source: IDC

}  11,000 jobs }  26 companies

}  Examples of services outsourced ◦  Technical help desk for consumer electronics from

Sharp ◦  Customer service support for Amazon.com

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}  Data entry – commoditised – moved to lower cost countries

}  Liberalisation of telecoms sector in 2001 }  Data costs down }  Facilitate development of data enabled services }  Many start ups focused on telemarketing as

barriers to entry low }  Today – customer service support, technical

help desk, high level business processes outsourced

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}  Who is Vista Print (www.vistaprint.com) ◦  Offers online customised solutions for small businesses and

individuals – started with business card design ◦  Globally - US$2 billion in sales, 3,100 employees serving 50

million micro businesses }  Started in Jamaica in 2003 with 23 employees doing email

customer support }  Today handles over 3 million customer contacts per year via

phone, email, chat with 650 employees }  In 2008 outsourced graphic design function to Jamaica for 1st

time outside the US. Designs of Jamaican team are the best sellers on their website

}  In 2010 outsourced support for human resource software tools for 1st time outside the US

}  Opening global customer service centre in Montego Bay on September 28, 2012

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}  Additional 15,000 jobs over the next 4 years

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}  Quality of our human resource is the key differentiator

◦ Must continue investment in education ◦ HEART is developing specialised BPO

training programs up to the equivalent of Level 3 certification

◦ At secondary school level for the Career

Advancement Program (CAP), HEART will include BPO training modules

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}  Our main challenge is lack of commercially available space in the right locations

}  To create 15,000 new jobs requires approximately

750,000 sq ft of new space

}  Space must range from 25,000 – 50,000 sq ft

}  Must be close to labour pool and transport links }  GOJ through Factories Corp of Jamaica is building

out 100,000 sq ft by next year

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}  71.7% of Jamaicans use the Internet for social networking websites such as Facebook and Twitter (Source: Hopeton Dunn Study 2011)

}  655,240 Jamaicans on Facebook and over 100,000 on Twitter

}  The Global Information Technology Report of 2010-2011 showed a decline in Internet penetration and usage for productive enterprise in Jamaica

}  That ranking places us among the top 10 worst countries as it relates to access and use of the Internet for business transactions

}  This represents both a challenge and an opportunity

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}  Developing solutions to local problems and then exporting them

}  Young Jamaicans are exploit ing the

opportunities ◦  Gordon Swaby – EduFocal ◦  Tyrone Wilson – emedia interactive

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}  “micro-work” – tasks broken into component parts and outsourced online

}  “e-lancing” – services are offered online via portals

}  “crowdsourcing” – identify collaborative

solutions for large projects online

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}  Objectives – to showcase the use of technology, stimulate entrepreneurship and broaden learning

}  Entrants ranged from primary to tertiary

students }  The winning apps included: ◦  Identification of local flora and fauna ◦  Student monitoring app for parents ◦  GSAT math problem app

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}  The “apps” economy is currently a US$20 billion market, employing approximately 500,000 in the US alone

}  78% of companies operating in the apps

economy are SMEs with large business apps outsourced to small development companies

}  Barriers to entry very low }  Challenge is converting ideas to viable business

solutions

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Digital Jam demonstrated that Jamaican youth have the talent, skills and expertise to develop commercially viable solutions }  An apps competition with 250 young developers submitting

over 60 solutions }  Training sessions on mobile phone software development }  Workshops to test the microwork platforms }  Sports Hackathon where 200 youth participated Tangible Results }  500 persons registered through Microworks platform over 4

day period. Target of 50,000 in 3 years }  8 internships for developers at telecoms companies }  2 full MA fellowships at Howard University to apps

competition winners }  Mentorship for successful application in Sports Hackathon

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}  Access means broadband high speed Internet access

}  Access allows an individual to be in the

game

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Digitization – To ensure that individuals, businesses, and governments are making the best possible use of networks and applications }  GDP Growth ◦  A 10% increase in digitization results in a 0.60% increase in per

capita GDP

}  Unemployment Rate ◦  A 10% increase in digitization reduces a nation’s unemployment

by 0.84%

}  Innovation ◦  A 10% increase in digitization results in a 6% increase in a

country’s score on the Global Innovation Index

}  Governance ◦  A 10% increase in digitization increases the Transparency

International Index by 1.2 points

Source: Global IT Report 2012

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PARISH   LIBRARY   SCHOOL   POST  OFFICE  St.  Thomas   Yallahs  Library   Morant  Bay  High   Yallahs  PO  

Morant  Bay  Library   Morant  Bay  PO  St.  James   St.  James  Parish  Library   Irwin  High   Rose  Hall  PO  

Anchovy  Library   Anchovy  High   Whitesand  PO  Montego  Bay  #1  PO  Reading  PO  

Trelawny   Falmouth  Library   Holland  High   Falmouth  PO  Duncans  Library   Duncans  PO  

St.  Ann   St.  Ann’s  Bay  Library   Steer  Town  Junior  High   Ocho  Rios  PO  Runaway  Library   St.  Anns’  Bay  PO  

Runaway  PO  Discovery  Bay  PO  

St.  Mary   Port  Maria  Library   Oracabessa  High   Tower  Isle  PO  AnnoKo  Bay  Library   Brimmer  Vale  High   Port  Maria  PO  

St.  Mary  High   AnnoKo  Bay  PO  Islington  High   Highgate  PO  AnnoKo  Bay  High   Islington  PO  

Hanover   Hopewell  Library   Hopewell  High   Lucea  PO  Green  Island  Library   Green  Island  High  Lucea  (Main)  Library   Rhodes  Hall  High  

Westmoreland   LiKle  London  High   LiKle  London  PO  Mannings  High   Savanna-­‐la-­‐mar  PO  Llandilo  Special  School  

Portland   Buff  Bay  Library   Buff  Bay  High   Buff  Bay  PO  St.  Catherine   Old  Harbour  Library   Old  Harbour  Hugh   Bushy  Park  PO  

Waterford  Library   Waterford  High   Old  Harbour  PO  Spanish  Town  Library   Spanish  Town  PO  Portmore  Library   Bridgeport  PO  

Waterford  PO  Kingston   Kingston  Main  Library   E-­‐Learning  of  Jamaica  Clarendon   May  Pen  Library  

Spalding  Library  Manchester   Mandeville  library  

ChrisVana  Library  St.  Elizabeth   Black  River  Library  

Santa  Cruz  Library    23

}  Main users are students and young adults with low disposable incomes

}  Government facilitating competition in the

market ◦  Announcement of auction of 700 MHz frequency

spectrum ◦  New submarine fibre optic cable

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}  Educating Jamaicans about the e-opportunities ◦  World Bank proposals for road show, Caribbean Digital

Jam

}  Access to financing ◦  DBJ/PIOJ work on venture capital program

}  Access to mentorship and business support ◦  Creating more incubators

}  Resolving the issue of accepting payments locally

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Promulgation of Data Protection Legislation }  Dangers – abuse of privacy, cyber piracy, copyright

infringement and hacking

}  Electronic Transactions Act and Cybercrimes Act currently exist

}  There is a need for more uniform, robust and clear mandate to protect privacy and personal information

}  A Bill will be tabled within this financial year

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Establishment of the single ICT regulator }  Rationale – currently 3 agencies (Office of Utilities Regulation

(OUR), Spectrum Mgmt Authority (SMA) and Broadcasting Commission (BC) involved in ICT regulation

}  Present situation results in overlapping jurisdiction which impedes efficient regulation and increases regulatory costs

}  Will be implemented in FY 2013/14

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Radio spectrum technical functions

Telecoms regulatory functions

Spectrum management functions

OUR

BC

SMA

Single ICT Regulator

Establishment of GovNet – a Government wide Network }  Objective - to harmonise and integrate Ministries, Departments

and Agencies (MDA) into one public sector communications network

}  Achieve cost savings by eliminating duplication }  Strengthen capacity of public institutions to deliver efficient and

effective goods and services Current scenario – MDAs manage their own ICT network which results in fragmentation in the delivery of public services utilising ICT Rationalisation of Government ICT agencies }  The boards of the Central Information Technology Office (CITO)

and Fiscal Services Ltd (FSL) have been mandated to develop a plan for the merger of the entities within the next 12 months to enable FSL to provide ICT services to all MDAs through specific service level agreements

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Establishment of the Cyber Emergency Response Team (CERT) }  With Government establishing an island wide

broadband network and its own GovNet, it will be more susceptible to cyber attacks

}  CERT will protect our Internet infrastructure

and coordinate defenses against and responses to cyber attacks

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}  ICT has the potential to transform our economy through job creation and as a earner of foreign exchange

}  The Government is committed to providing

the environment for Jamaicans to take full advantage of the opportunities that exist

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