1. Asian-Oceanian Computing Industry Organization Strategic Roadmap for Enhancing Bangladesh's Unique Position as Leading Outsourcing and Freelancing Destination LOOI Kien Leong ASOCIO Chairman

2. About ASOCIO  A grouping of ICT associations representing the Asian-Oceanian region.  Established in 1984.

3. ASOCIO Today  22 Member Economies  Represents more than 10,000 ICT companies in the region with ICT revenues of approx US$200 billion.

4. Objective  Mission: To be globally recognized as the champion for Asia Oceania in the promotion and facilitation of ICT trade and development for ASOCIO members.  Goals: To create and facilitate frameworks and processes for ICT trade To engage and influence Asia Oceania’s governments to reduce and remove global trade barriers, and develop the ICT industry To assist member economies to build globally competitive ICT industry To be the voice of ICT industry at international trade and technology fora

5. Brunei

6. ASOCIO Members MCF Myanmar Computer Federation P@SHA MIDAS/MONITA  Australia – AIIA  Bangladesh – BCS  Brunei – Infocomm Federation of Brunei  Chinese Taipei – CISA  Hongkong – ISIA  India – NASSCOM  Indonesia - ASPILUKI  Japan – JISA  Korea – FKII  Laos - LICA  Macao - CCM  Malaysia – PIKOM  Mongolia – MIDAS/MONITA  Myanmar – MCF  Nepal – CAN  New Zealand – ITANZ  Pakistan – PASHA  Philippines – BPA/P  Singapore – SiTF  Sri Lanka – FITIS  Thailand - ATCI  Vietnam - VINASA ICT CAMBODIA

7. Activities  Multilateral Trade Visits  Plenary Meetings  General Assemblies  Annual ICT Summits  Regional ICT Minister-ASOCIO Dialogues  Ambassador Program  Public Policy Initiatives

8. Services  Trade Leads  Company Listings – ASOCIO Business Directory  Industry Profile  Statistics  Government Policies and Programs  Event support  Information support

9.  Global services, excluding BPO, R&D and Engineering outsourcing market worth U$770B, CAGR 8%  IDC estimates that the global BPO market will grow at a five-year CAGR of 5.8%, reaching US$193 billion by 2014. 9 Outsourcing At a Glance 3 most strongly adopt Outsourcing: Web/e-commerce systems Application development Application maintenance As companies face shortages of e-business application development skills and narrowing of time-to-delivery requirement

10. What is Outsourcing 10 Total Available Market - All services rendered by 3 rd Party IT providers in the areas of Business & IT Outsourcing. Include areas of work for vendor who choose to expand their businesses geographically to deliver services from where the demand stems Total Addressable Market - Is a sub-set of the available market and represents the export of the aforementioned services to a country other than where the services demand originates

11. 2012 Trends & Opportunities  The global IT outsourcing market traditionally outpaced the BPO market growth, but that’s changing  Gartner expects higher demand from services related to customer management, HR outsourcing, banking, financial, billing BPO services and supply management through 2015 11

12. Outlook on 2012 Outsourcing 12 Tight Budgets Minimal discretionary spending Approvals require rigorous ROI explanations Operating Model Clients frustrated with suppliers ‘ raising cost, governance challenges & uneven performances Pricing & Wages Weak exchange rates and weakness on USD place pressure on suppliers Higher inflation anticipated 10-15% in APAC & 8% in Us & Europe Hiring Supplier will hire more new-graduates resulted from market growth and need to reduce cost Risk Management Proactive risk management is important the continued growth of outsourcing industry Geographic location Increase demand on suppliers’ global delivery models with 24/7 coverage

13. Outsourcing Challenge # 1 13 Offshore outsourcing has propelled several countries to prominence in the global business map. At the same time, it has also worked against the offshoring-worthiness of some destinations due to increasing wages. In Moscow, IT wages have increased by 50 percent in the past three years. Banking industry IT turnover in some cities of India has exceeded 30 percent. Hiring talented IT professionals is seen as one of the biggest challenges for firms. Gartner’s ranking of offshore outsourcing ‘hot spots’ Competition amongst other countries / region

14. Outsourcing Challenge # 2 Reason Companies outsource  Reduction of Cost or Internal headcount  Constrained by increase Capacity & market demand  Internal service performance does not meet requirement 14 Outsourcer need to sustain by being cost competitive while meeting service performance

15. Outsourcing Challenge # 3 15 While Organization looking at improvement of business operations, Outsourcer will have to  Manage Cost while maintained being competitive  Operational efficiencies by retaining talent  Transformation

16. Malaysia: A Case Study  A.T. Kearney Global Service Location Index 2011, India remains the global leader in Outsourcing followed by China and Malaysia.  Ranks countries based on their attractiveness across IT, BPO & Voice Work and survey selected based on corporate input, current remote service, government initiatives to promote the sector. 16

17. What is ETP? 17 Economic Transformation Program (ETP) A comprehensive effort that will transform Malaysia into a high-income nation by 2020. Main Objective To lift Malaysia’s gross national income (GNI) per capita from USD6,700 or RM23,700 in 2009 to more than USD15,000 or RM48,000 in 2020

18. WHAT IS EPP?  Entry Point Projects is a growth catalyst Part of the Economic Transformation Program (ETP) Are clearly defined initiatives With implementation plans and funding requirements clearly articulated.  Entry Point Project 2? Positioned under Business Services EPP Aspiration to create at least 2 globally recognized outsourcing champions. Put in place policy incentives and marketing initiatives to allow smaller companies to flourish. 18

19. What Can Bangladesh Do? Invest in people. Abundant English Speaking Human Resource Develop Infrastructure Government Support Market Strengths Identify Champions Strengthen Overall Macro Economic Environment 19

20. For more information, please contact ASOCIO Sec-Gen, Dr Wong Say Ho at dwong@asocio.org Thank You