ICC says IT global sourcing promotes innovation and competition
The phenomenal growth of information technology enabled services (ITES) sourcing globally is closely scrutinized by the International Chamber of Commerce (ICC) in a policy paper issued today. The statement, prepared by ICC’s Commission on E-Business, IT and Telecoms (EBITT), said business is firmly in favour of ITES sourcing and strongly opposes any measures by governments to restrict its growth.
Sourcing, the process by which companies procure goods or services from around the world, is now well established in many industries. ITES, a relative newcomer to sourcing, covers such activities as call centres and software programming, as well as IT itself.
The ICC statement notes that ITES sourcing is expected to be worth US$24.3 billion by 2007 (up from US$1.3 billion in 2002), amounting by then to some 14% of the market in ITES.
Allen Miller, Chair of the EBITT Commission’s Task Force on Internet and IT Services said: “Encouraging the diffusion of ITES into a wide range of industry sectors, such as financial services, manufacturing, transportation and healthcare, makes local firms more efficient, helping the entire economy of a country.”
India has been a leader for sourcing and many developing countries are seeking to match its success, among them Vietnam, Malaysia and the Philippines. It is reckoned that by 2006, Asia-Pacific will be the largest growth market for ITES, though there is considerable interest from other areas of the world as well.
ICC makes two recommendations designed to promote this development:
- companies should maintain flexibility when sourcing their needs globally; and
- governments should embrace global sourcing as a means to improve their economies and encourage innovation. Creating an enabling business environment to include an educated and skilled workforce will facilitate investment through ITES.
ICC is the world business organization, the only representative body that speaks with authority on behalf of enterprises from all sectors in every part of the world. Representing business in both developed and developing countries, ICC is well placed to provide constructive input to the debate on sourcing.
