ICT-BPO sector: Dawn of a new era?

Charles Cartier, President of OTAM

ICT-BPO-Sector

The ICT-BPO sector is set to confirm its position as one of the main pillars of the Mauritian economy, especially with the number of projects in the pipeline. The goal of measures announced by the government and the private sector is not only to create wealth but also to generate around 15,000 jobs by 2020. The growth rate of the Information and Communications Technology sector (ICT) has been steadily declining over the past few years, reaching in 2015 nearly half of what it was in 2008. This is indeed a matter of concern for operators, as they are confronted by a number of obstacles which are preventing the ICT sector from confirming itself as one of the main pillars of the economy. However, even though the growth of ICT is at an all-time low, the sector managed to churn out Rs 24 billion in 2015, up 10.4% compared to 2014, which is indeed a remarkable feat since the ICT sector generated only around Rs 13 billion in 2008 in terms of value added. According to a major player in the BPO sector, one of the main problems for the sector is finding employees. “In order for firms to expand their business activities, access to labour is critical. However, limiting the number of foreign workers harms the growth of the sector. We also have to better market ourselves on the world market, since the Mauritian economy is too small. The good thing is that with better communication tools, it is possible to work in realtime with firms around the world. An economy which operates 24/7 is also not a possibility that should be put aside. We have the capacity to do so, and measures should be taken in order to achieve further growth of the sector,” states our speaker.

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Charles Cartier, President of OTAM: “Access to labour is crucial for the sector”

According to Charles Cartier, president of the Outsourcing and Telecommunication Association of Mauritius (OTAM), 2015 has not encountered major developments in the ICT/BPO sector. However, he qualifies the meeting with the Minister of ICT, Roshi Bhadain, and the Minister of Labour, Soodesh Callichurn, which he qualifies as a fruitful one. “The meeting was to address the employment problems in the ICT sector, and a formula was brought forward by the Government. The lack of employees is pulling ICT firms back, especially those in BPO. It is as a fact that the key factor which influences investment in the sector and motivates international firms to move here in the country,” states the latter. He adds that more meetings are to come in this regard. “Foreign workers are essential to fill in the gaps where Mauritians cannot operate. In BPO, it can be people who can speak several foreign languages which we do not master here in Mauritius. Moreover, training of Mauritians in the emerging jobs in the ICT industry, such as IT engineers or software developers, is necessary to increase value added, and importing labour from abroad is crucial for us to become more competitive on the world market,” explains Charles Cartier. He concludes by stating that reducing internet prices for firms has sent a positive signal in the industry in 2015, and he hopes that such initiatives keep coming to further motivate existing firms to expand and encourage new ones to set up shop in Mauritius.

Moreover, according to figures from the National Computer Board, the number of companies operating in the ICT sector has nearly tripled from 2008 to 2013, rising from 258 ICT-BPO companies to reach 631. According to the founder of the Mauritius Software Craftsmanship Community, Jochen Kirstätter, Mauritians are today embracing new technologies, whether at the individual level or business-wise. “3-D printing is now becoming popular, the number of software and app developers is on the rise and the bandwidth is gradually increasing. However, we have to lay more emphasis on the speed of our internet connection, since it is the key to international connectivity and increases our competitiveness. Projects such as Smart Cities are not possible without a higher bandwidth, and countries such as Singapore and Zambia already have the upper hand,” says our speaker. He adds that there is a need for our IT infrastructures to be constantly upgraded and improved to compete more efficiently in the global market. “It is only now that we are showing a growing interest in the sector and how it can consolidate its place as a pillar of the Mauritian economy. The settings for a conducive environment to attract investors is already there with low tax rates and it is time to look at the other small factors that will influence such investments. Another problem is the lack of availability of new technologies, and the exposure of Mauritians to it. It is time for us to be game changers and make our mark on the global ICT-BPO market. The Government has shown commitment by providing incentives to develop the sector, and it is high time to act upon those measures,” concludes Jochen Kirstätter. Therefore, a number of obstacles still obstruct the good development of the sector and hopefully, collaboration between ICT-BPO firms and the Government will contribute to bettering the state of affairs. As for 2016, a number of projects are expected to be launched, such as the setting up of around 250 free wifi zones across the island. In the words of the Minister of ICT, Roshi Bhadain, the sector is expected to generate around 15,000 jobs by 2020 and he has recently met with various key players of the industry to discuss on the formula to adopt concerning foreign workers. Mauritius will also soon be host to Techno parks and the ICT Ministry is currently working on an Incubator-Accelerator for the industry, which is set to launch soon. Therefore, a lot is being invested for the development of the sector and hopefully, Mauritius will manage to catch up with its competitors before it is too late.

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