1. Information Technology Association of Canada - Page 1 ICT and Global Supply Chains Bernard A. Courtois President and CEO, Information Technology Association of Canada Presented at the Symposium on Cross-Border Supply of Services Geneva – April 28-29, 2005

2. Information Technology Association of Canada - Page 2 from Product to Services Economy Design DevelopmentManufacturing Marketing Sales Support Human ResourcesIT & Support Integrated Product Product Economy Not Service Service Economy Manufacturing Services Consulting Services Development Services Marketing Services HR Services Investment Services Support Services Sales Services IT Services Design Services Specialized Services Economy “Office” Services Legal Services This is aboutservice cost minimization Network Services © Orbit IQ 2005

3. Information Technology Association of Canada - Page 3 United Nations Conference on Trade and Development (UNCTAD, September 2005) “While the offshoring of services is still in its infancy, the tipping point may be approaching rapidly. Offshoring represents the cutting edge of the global shift in production activity, giving rise to a new international division of labour in the production of services.”

4. Information Technology Association of Canada - Page 4 ICT and Global Supply Chains  ICT enables outsourcing of business processes  ICT enables global supply chains Telecom, digitization and consulting  ICT a lead user of both, e.g. Computers, telecom, software, semiconductors, R&D

5. Information Technology Association of Canada - Page 5 Global Supply Chains: Win-Win?  Improve quality and cost  Stimulate economic growth and control inflation  Require adaptation  Growing importance not reflected in trade agreements