Paul<br><br>As you work to develop the sector further ... can we split the BPO Operators(Call Center) and IT/Software ?<br><br>While we may not create as many jobs, there is a case to be made for IT/Software based on the fact that we are still in operation even bila government subsidies etc etc<br>
<br>When we split, I would also ask that we do a local working group and not focus on getting advice from the McKinseys of this world. Your local operators understand and would advice the government better on how to grow the space<br>
<br>Thanks<br><br><br><br><div class="gmail_quote">On Tue, Nov 9, 2010 at 9:07 AM, Harry Delano <span dir="ltr"><<a href="mailto:harry@comtelsys.co.ke">harry@comtelsys.co.ke</a>></span> wrote:<br><blockquote class="gmail_quote" style="margin: 0pt 0pt 0pt 0.8ex; border-left: 1px solid rgb(204, 204, 204); padding-left: 1ex;">
<div bgcolor="#ffffff">
<div dir="ltr" align="left"><font color="#0000ff" face="Arial" size="2"></font> </div>
<div dir="ltr" align="left"><span><font color="#0000ff" face="Arial" size="2">Hey Paul,</font></span></div>
<div dir="ltr" align="left"><span><font color="#0000ff" face="Arial" size="2"></font></span> </div>
<div dir="ltr" align="left"><span><font color="#0000ff" face="Arial" size="2">Thanks for highlighting this. A very important case study
component, for our huge talent pool</font></span></div>
<div dir="ltr" align="left"><span><font color="#0000ff" face="Arial" size="2">available currently in this country..</font></span></div>
<div dir="ltr" align="left"><span><font color="#0000ff" face="Arial" size="2"></font></span> </div>
<div dir="ltr" align="left"><span><font color="#0000ff" face="Arial" size="2">Harry</font></span></div><br>
<div dir="ltr" align="left" lang="en-us">
<hr>
<font face="Tahoma" size="2"><b>From:</b>
kictanet-bounces+harry=<a href="http://comtelsys.co.ke" target="_blank">comtelsys.co.ke</a>@<a href="http://lists.kictanet.or.ke" target="_blank">lists.kictanet.or.ke</a>
[mailto:<a href="mailto:kictanet-bounces%2Bharry" target="_blank">kictanet-bounces+harry</a>=<a href="http://comtelsys.co.ke" target="_blank">comtelsys.co.ke</a>@<a href="http://lists.kictanet.or.ke" target="_blank">lists.kictanet.or.ke</a>] <b>On
Behalf Of </b>Paul Kukubo ICT Board<br><b>Sent:</b> Monday, November 08, 2010
3:22 PM<br><b>To:</b> <a href="mailto:harry@comtelsys.co.ke" target="_blank">harry@comtelsys.co.ke</a><br><b>Cc:</b> KICTAnet ICT Policy
Discussions<br><b>Subject:</b> [kictanet] Outsourcing, a perspective following
Obama's India visit<br></font><br></div><div><div></div><div class="h5">
<div></div>
<div></div>
<div><span style="line-height: 10px; font-family: Arial,Helvetica,sans-serif; font-size: 10px;">
<div style="padding: 0px 15px; margin: 0px; font-size: 1em;">
<div style="padding: 20px 0px 8px; margin: 0px; width: 563px; float: left; font-size: 1em;">
<h1 style="padding: 0px; line-height: 1.1em; margin: 0px; width: auto; font-family: Georgia,'Century Schoolbook','Times New Roman',Times,serif; font-size: 2.8em; font-weight: normal;">Listers</h1>
<h1 style="padding: 0px; line-height: 1.1em; margin: 0px; width: auto; font-family: Georgia,'Century Schoolbook','Times New Roman',Times,serif; font-size: 2.8em; font-weight: normal;"><br></h1>
<h1 style="padding: 0px; line-height: 1.1em; margin: 0px; width: auto; font-family: Georgia,'Century Schoolbook','Times New Roman',Times,serif; font-size: 2.8em; font-weight: normal;">The
following article appears in the Wall Street Journal. Two points of note for our
reflection upon as Kenya. </h1>
<h1 style="padding: 0px; line-height: 1.1em; margin: 0px; width: auto; font-family: Georgia,'Century Schoolbook','Times New Roman',Times,serif; font-size: 2.8em; font-weight: normal;"><br></h1>
<h1 style="padding: 0px; line-height: 1.1em; margin: 0px; width: auto; font-family: Georgia,'Century Schoolbook','Times New Roman',Times,serif; font-size: 2.8em; font-weight: normal;">1.
Labour supply shifting to small and medium sized businesses globally. <span>Kenyan talent providers can enhance their participation
in talent websites like <a href="http://freelancer.com" target="_blank">freelancer.com</a> to
promote and sell their services directly.</span></h1>
<h1 style="padding: 0px; line-height: 1.1em; margin: 0px; width: auto; font-family: Georgia,'Century Schoolbook','Times New Roman',Times,serif; font-size: 2.8em; font-weight: normal;"><span>2. On some services, India can deliver the project at a
10th of US prices for the same quality. The India US dependency is very high
even among small businesses in the US which depend on Indian labour to provide
basic IT services. This is an opportunity for Kenya.</span></h1>
<h1 style="padding: 0px; line-height: 1.1em; margin: 0px; width: auto; font-family: Georgia,'Century Schoolbook','Times New Roman',Times,serif; font-size: 2.8em; font-weight: normal;"><br></h1>
<h1 style="padding: 0px; line-height: 1.1em; margin: 0px; width: auto; font-family: Georgia,'Century Schoolbook','Times New Roman',Times,serif; font-size: 2.8em; font-weight: normal;"><span>Enjoy the read... <span> </span></span></h1>
<h1 style="padding: 0px; line-height: 1.1em; margin: 0px; width: auto; font-family: Georgia,'Century Schoolbook','Times New Roman',Times,serif; font-size: 2.8em; font-weight: normal;"><br></h1>
<h1 style="padding: 0px; line-height: 1.1em; margin: 0px; width: auto; font-family: Georgia,'Century Schoolbook','Times New Roman',Times,serif; font-size: 2.8em; font-weight: normal;">The
Obama Visit: An Outsourcer’s Perspective</h1></div>
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<h3 style="padding: 0px 0px 0px 8px; line-height: 1.3em; margin: 0px 0px 0.58em; font-family: Arial,Helvetica,sans-serif; color: rgb(51, 51, 51); font-size: 1.2em; font-weight: normal;">By Arlene Chang</h3>
<p style="padding: 0px; line-height: 1.5em; margin: 0px 8px 1em; display: block; font-family: Arial,Helvetica,sans-serif; font-size: 1.3em;">Outsourcing
has been a major political whipping boy between the U.S. and India in recent
months but U.S. President<b style="font-style: normal; font-weight: bold;"> Barack
Obama</b> and Indian Prime Minister <b style="font-style: normal; font-weight: bold;">Manmohan Singh</b> both
tried to quell the controversy in remarks before the press Monday. Mr. Obama
said outsourcing was the subject of stereotyping in the U.S. which has to be
updated and Mr. Singh said India was not in the business of stealing American
jobs.</p>
<p style="padding: 0px; line-height: 1.5em; margin: 0px 8px 1em; display: block; font-family: Arial,Helvetica,sans-serif; font-size: 1.3em;">Matt
Barrie is chief executive of <a href="http://Freelancer.com" target="_blank">Freelancer.com</a>,
an online marketplace that connects businesses looking to outsource work with
service providers, many of them in India. The site has 1.9 million members. He
talked to India Real Time’s <b style="font-style: normal; font-weight: bold;"><i style="font-style: italic; font-weight: bold;">Arlene
Chang</i></b> about his view of the U.S., India and outsourcing. Here
are edited excerpts.</p>
<p style="padding: 0px; line-height: 1.5em; margin: 0px 8px 1em; display: block; font-family: Arial,Helvetica,sans-serif; font-size: 1.3em;"><b style="font-style: normal; font-weight: bold;"></b></p>
<div style="text-align: left; padding: 0px; margin: 0px; font-size: 1em;">
<dl style="padding: 0px; margin: 0px 27px 12px 8px; width: 262px; float: left;">
<dt style="padding: 0px; margin: 0px;"><b style="font-style: normal; font-weight: bold;"><b style="font-style: normal; font-weight: bold;"><img src="" style="border-width: 0px; margin: 8px 0px 0px;" alt="" width="262" height="174"></b></b>
</dt><dd style="text-align: right; padding: 2px 0px 0px; margin: 2px 0px; font: 1em Arial,Helvetica,sans-serif; color: rgb(102, 102, 102);"><b style="font-style: normal; font-weight: bold;"><b style="font-style: normal; font-weight: bold;"><a href="http://Freelancer.com" target="_blank">Freelancer.com</a></b></b>
</dd><dd style="text-align: left; padding: 2px 0px 0px; margin: 0px; font: 1.1em Arial,Helvetica,sans-serif; color: rgb(51, 51, 51);"><b style="font-style: normal; font-weight: bold;"><b style="font-style: normal; font-weight: bold;">Matt Barrie, chief executive <a href="http://Freelancer.com" target="_blank"></a><a href="http://Freelancer.com" target="_blank">Freelancer.com</a></b></b></dd>
</dl></div>
<p style="padding: 0px; line-height: 1.5em; margin: 0px 8px 1em; display: block; font-family: Arial,Helvetica,sans-serif; font-size: 1.3em;"><b style="font-style: normal; font-weight: bold;">IRT: As head of one of the largest
outsourcing websites, you must have a view on outsourcing of jobs?</b></p>
<p style="padding: 0px; line-height: 1.5em; margin: 0px 8px 1em; display: block; font-family: Arial,Helvetica,sans-serif; font-size: 1.3em;"><b style="font-style: normal; font-weight: bold;">Mr. Barrie:</b> We were
founded in 2004 and since then, our two primary markets have been the U.S. and
India – expectedly. Of the employers posting jobs, 90% of those jobs come from
the U.S. and of the jobs being completed 90% are done by Indians.</p>
<p style="padding: 0px; line-height: 1.5em; margin: 0px 8px 1em; display: block; font-family: Arial,Helvetica,sans-serif; font-size: 1.3em;">I
do not see this as Indians taking away jobs from the Americans or outsourcing as
being a bad thing.</p>
<p style="padding: 0px; line-height: 1.5em; margin: 0px 8px 1em; display: block; font-family: Arial,Helvetica,sans-serif; font-size: 1.3em;">If
anything, this has been a tremendously good exchange. You have about 25 million
small businesses in the U.S. and each of them needs people to help run and
sustain their businesses. But they may not necessarily have the money or budget
to do it through normal channels. Here, the service providers, a majority of
which in the case of <a href="http://freelancer.com" target="_blank">freelancer.com</a> are
Indians, are providing those businesses with the services they want within their
desired cost.</p>
<p style="padding: 0px; line-height: 1.5em; margin: 0px 8px 1em; display: block; font-family: Arial,Helvetica,sans-serif; font-size: 1.3em;"><b style="font-style: normal; font-weight: bold;">IRT: Is it a stereotype in the
U.S. that India takes away American jobs?</b></p>
<p style="padding: 0px; line-height: 1.5em; margin: 0px 8px 1em; display: block; font-family: Arial,Helvetica,sans-serif; font-size: 1.3em;"><b style="font-style: normal; font-weight: bold;">Mr. Barrie:</b> It is a
stereotype but the stereotype is actually contradictory. Most of our members
seeking services are small and medium-sized businesses and each one of them
needs to, for example, get itself a website and maintain it. This need is not
necessarily met by the supply available within the U.S.</p>
<p style="padding: 0px; line-height: 1.5em; margin: 0px 8px 1em; display: block; font-family: Arial,Helvetica,sans-serif; font-size: 1.3em;">Small
businesses are always thinking of getting their things done for a lesser cost,
they need to be constantly cost effective. The service providers on our website
provide those services to them at a fraction of the cost. This enables small and
medium-sized companies to cut costs, become more competitive, and thus helps
them grow their business – all of which in turn helps the U.S. economy. As we
talk, there are a tremendous number of jobs being created in the U.S. just, say,
in internet businesses, whose back-office operations are being supported by
outsourced hires.</p>
<p style="padding: 0px; line-height: 1.5em; margin: 0px 8px 1em; display: block; font-family: Arial,Helvetica,sans-serif; font-size: 1.3em;"><b style="font-style: normal; font-weight: bold;">IRT: What are the statistics for
the outsourcing exchange on your website?</b></p>
<p style="padding: 0px; line-height: 1.5em; margin: 0px 8px 1em; display: block; font-family: Arial,Helvetica,sans-serif; font-size: 1.3em;"><b style="font-style: normal; font-weight: bold;">Mr. Barrie:</b> Since we
started in 2004, we have completed around 850,000 projects and seen $67.41
million traded. Of the 1.9 million users we have, 400,000 of them are from India
and are service providers. A similar number are service seekers from the U.S.
The average cost of a job through our website is less than $200. So, as an
example, if someone wants to build a website for their business they would
normally have to pay about $2,000 in the U.S. to get that job done. On <a href="http://freelancer.com" target="_blank">freelancer.com</a>, we have people who do the job
for $200. That’s one tenth of the actual cost. The U.S. is the largest poster of
jobs for us and India has the largest pool of service providers, but India is
also a significant employer. After the U.S., U.K., Australia and Canada, it is
India that posts the highest number of jobs that need to be done.</p>
<p style="padding: 0px; line-height: 1.5em; margin: 0px 8px 1em; display: block; font-family: Arial,Helvetica,sans-serif; font-size: 1.3em;"><b style="font-style: normal; font-weight: bold;">IRT: What is the future of the
outsourcing industry globally?</b></p>
<p style="padding: 0px; line-height: 1.5em; margin: 0px 8px 1em; display: block; font-family: Arial,Helvetica,sans-serif; font-size: 1.3em;"><b style="font-style: normal; font-weight: bold;">Mr. Barrie: </b>I think
the next five years are going to be extremely interesting. Labor markets are
always in flux and while the big businesses are doing the bulk of trade, there
is already a fundamental shift in the amount and direction of labor supply.
A huge amount of that labor supply is shifting to small and medium-sized
businesses globally and as that happens there is going to be a revolution in
places like India.</p>
<p style="padding: 0px; line-height: 1.5em; margin: 0px 8px 1em; display: block; font-family: Arial,Helvetica,sans-serif; font-size: 1.3em;">If
a person wants to start their own small business, all they have to do is go
online and get someone who can get up a website for them and manage it – all
this done on a shoestring budget.</p>
<p style="padding: 0px; line-height: 1.5em; margin: 0px 8px 1em; display: block; font-family: Arial,Helvetica,sans-serif; font-size: 1.3em;">With
more such businesses coming into being, there will be more work and the jobs not
available previously will be out there. I think the off-shoring of the work of
small and medium-sized businesses is going to provide an unparalleled
opportunity for the U.S. and India, helping U.S. businesses in being more
competitive and helping Indians get jobs that were not previously available.</p>
<p style="padding: 0px; line-height: 1.5em; margin: 0px 8px 1em; display: block; font-family: Arial,Helvetica,sans-serif; font-size: 1.3em;"><b style="font-style: normal; font-weight: bold;">IRT: What do you make of President
Obama’s statement in Mumbai Saturday on there being a stereotype in the U.S.
about outsourcing to India?</b></p>
<p style="padding: 0px; line-height: 1.5em; margin: 0px 8px 1em; display: block; font-family: Arial,Helvetica,sans-serif; font-size: 1.3em;"><b style="font-style: normal; font-weight: bold;">Mr. Barrie:</b> I think
a lot of what he said is rhetoric. He is in a politically different situation
now after having lost the mid-term elections back home. I think he is pandering
to the Indian-American vote bank back home when he said that, when he goes back
to the U.S., he wants to be able to tell his countrymen that India has in fact
created 50,000 jobs for America.</p>
<p style="padding: 0px; line-height: 1.5em; margin: 0px 8px 1em; display: block; font-family: Arial,Helvetica,sans-serif; font-size: 1.3em;"><br></p>
<p style="padding: 0px; line-height: 1.5em; margin: 0px 8px 1em; display: block; font-family: Arial,Helvetica,sans-serif; font-size: 1.3em;">Ends</p>
<p style="padding: 0px; line-height: 1.5em; margin: 0px 8px 1em; display: block; font-family: Arial,Helvetica,sans-serif; font-size: 1.3em;"><br></p>
<p style="padding: 0px; line-height: 1.5em; margin: 0px 8px 1em; display: block; font-family: Arial,Helvetica,sans-serif; font-size: 1.3em;"><br></p>
<p style="padding: 0px; line-height: 1.5em; margin: 0px 8px 1em; display: block; font-family: Arial,Helvetica,sans-serif; font-size: 1.3em;">Paul
Kukubo</p>
<p style="padding: 0px; line-height: 1.5em; margin: 0px 8px 1em; display: block; font-family: Arial,Helvetica,sans-serif; font-size: 1.3em;">CEO,
Kenya ICT Board</p>
<p style="padding: 0px; line-height: 1.5em; margin: 0px 8px 1em; display: block; font-family: Arial,Helvetica,sans-serif; font-size: 1.3em;"><font face="Helvetica, Helvetica, sans-serif" size="5"><span style="line-height: normal; font-size: 17px;"><br>
</span></font></p>
<p style="padding: 0px; line-height: 1.5em; margin: 0px 8px 1em; display: block; font-family: Arial,Helvetica,sans-serif; font-size: 1.3em;"><span style="line-height: normal; font-family: Helvetica; font-size: 17px;">Sent from my
iPad</span></p></div></div></div></div></div></span></div></div></div></div>
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