ICT Sector Assessment Presentation prepared by IESC's Mehdi Sif and delivered in a public workshop in 2004, middle east telecommunications sector assesment, Free Trade Agreement, IESC, USAID, International Executive Service Corps
1. ICT Sector Assessment
Proposed Strategies
For Moroccan ICT Companies
v3.5
Tuesday, January 13, 2004
Mehdi Sif, ICT Expert
smehdi@iesc.org
msif@monsoonconsultinggroup.com
2. Agenda
• Methodology, goals, non-goals
• A demand-side perspective: the U.S. market
• Understanding the Business of Outsourcing
• Morocco: Relative position in a global sourcing
context
• The Moroccan enterprise: empirical findings
• Identified opportunities for direct IESC
assistance
• Recommended strategies
3. Agenda
• Methodology, goals, non-goals
• A demand-side perspective: the U.S. market
• Understanding the Business of Outsourcing
• Morocco: Relative position in a global sourcing
context
• The Moroccan enterprise: empirical findings
• Identified opportunities for direct IESC
assistance
• Recommended strategies
4. Mission statement
• High-level assessment of the Moroccan ICT
sector
– Interviews with key influencers and decision makers
• Interviews with candidate companies
– Empirical approach – learn from real-life experience
– Provide an early evaluation of export potential
• Unique know-how, core competencies, differentiation
– Provide early recommendations on go to market
strategies
• Provide customized recommendations on type
of assistance IESC could provide to company
• Provide recommendation on assistance IESC
could provide across companies
5. Non-goals
• Limited focus on “Macro” factors
– Geopolitical risk
– Government policies
– Infrastructure & ICT penetration
• Tele-density, penetration of PCs
• Backbone infrastructure, international uplinks etc.
– Deregulation, liberalization
• e.g., 24/96, 55/01, role of ANRT etc.
– Legislation
• E-commerce: Encryption, privacy, content, technology
crimes, and monopolistic practices in order to
participate in e-commerce successfully
• Intellectual Property rights
– IT Labor Market
• Labor cost comparison, productivity etc.
6. Goal: Optimize Value Proposition at Time and Place of Outsourcing Transaction
Methodology – our approach
Macro
• Government policies
• Infrastructure
• Legislation
• Comparative advantage
Enterprise
Competitive advantage
Individual
•Education, culture
Individual
Enterprise
Global Environment
Vietnam Malaysia
Tunisia
Morocco
In the eyes of U.S.-based:
• Decision makers
• Influencers, recommenders
• Outsourcers
• Decision making process
• Selection criteria
• Success factors
• Cognitive assumptions
• Perceptual Map
• Personal experience
• “Networks/proximity”
China
India
Characteristics
7. The assessment – our approach
• Four week-effort
• Interviewed 21 companies, associations,
governmental agencies related to ICT
13%
16%
9%
9% 9% 9%
13%
9%9%
4%
Electronic Payment Systems
GIS
Content
Education
Gov. Agencies
Sys. Integrators
HW/SW Vendors
Associations
Consulting
Decision Support Systems
8. Agenda
• Methodology, goals, non-goals
• A demand-side perspective: the U.S. market
• Understanding the Business of Outsourcing
• Morocco: Relative position in a global sourcing
context
• The Moroccan enterprise: empirical findings
• Identified opportunities for direct IESC
assistance
• Recommended strategies
9. The U.S. market: an economy in transition
The U.S. Labor Market:
• Unemployed U.S. software engineers has more than
doubled, to 4.6%, in three years.
• The rate is 6.7% for electrical engineers and 7.7% for
network administrators.
• There are 234,000 unemployed IT professionals
(Source: U.S. Bureau of Labor Statistics, 2003)
• H-1Bs issued to workers in the high-tech industry
dropped 74.3% percent, from 105,692 in 2001 to
27,199 in 2002
(Source: department of Homeland Security’s Office of Immigration Statistics)
10. U.S. Market: Outsourcing Trends
• More then one-third of new IT development work for big U.S.
companies is done overseas, with India the biggest site.
•Offshore outsourcing will grow more than 20% annually to
become a $10 billion market by 2005
Source: Meta Group, 2003
11. Outsourcing: A heated debate in the U.S.
• Election - November 2004 approaching
• Outsourcing and impact on U.S. economy
– Protecting American Jobs
– Low dollar value and impact on foreign import/labor
market
• Real costs & risks vs. benefits of outsourcing
– Large PC manufacturer example in India
– Report by People 3, only 21.1 percent of companies
surveyed reported a cost savings of greater than 20
percent due to IT outsourcing, while 18.4 percent
did not achieve any cost reductions
– “Near–shoring” trend (Canada, Mexico)
12. Market Penetration by Geography
24%65%
11%
North America
Europe
Asia/Pacific
Offshore Outsourcing Market,
Penetration by Geography
Source: The Aberdeen Group: Best Practices in Offshore Software outsourcing
13. Agenda
• Methodology, goals, non-goals
• A demand-side perspective: the U.S. market
• Understanding the Business of Outsourcing
• Morocco: Relative position in a global sourcing
context
• The Moroccan enterprise: empirical findings
• Identified opportunities for direct IESC
assistance
• Recommended strategies
14. Why U.S. companies outsource (cont.)
1. Cost reduction (53%)
2. Resource constraint (22%)
3. Faster time-to-development (16%)
– 24x7 operations & added resources
4. Flexible access to critical technology skills (6%)
5. Other (3%)
Source: The Aberdeen Group, Best Practices in Offshore Software Outsourcing
53%
3%
22%
6%
16%
Cost reduction
Ressource Constraint
TTM
Access to skills
Other
15. Why U.S. companies outsource
1. Reduce & control
operating costs
2. Improve company
focus
3. Access world-class
capabilities
4. Free up internal
resource for higher
priority projects
5. Resources/talent
not available
internally
6. Accelerate re-
engineering benefits
7. Function difficult to
manage or out of
control
8. Make capital funds
available
9. Share risks
10. Cash infusion
Source: The Outsourcing Institute, 2003
16. Outsourcing: types of services
Source: The Aberdeen Group, Best Practices in Offshore Software outsourcing
Legacy ADM
Custom Apps.
Product Support
Design/Planning
Package Int.
QA & Testing
17. What: Project type and propensity to outsource
Required Level of Human Interaction
(Importance of cultural fit)
Know-how
Added Value
Requires high “proximity”
Importance of:
• Physical interaction/presence
• Cultural alignment
• Business practices alignment
•finance, accounting
• Language proficiency
Example:
Audit, Consulting
ERP
Management SW
Low-context projects
Importance of:
• Ease of integration into existing operations
• Clearly defined projects, self contained (MBO)
• Requires minimum cultural fit
• Interaction can be through well defined
processes / NPI documents:
•Functional, design spec etc.
Example:
Development of legacy protocols (X.25, FR, ATM, SDLC/SNA)
Custom-development of feature
Special projects (customer-specific)
Good Alignment
w/ Success Factors
18. How: the selection criteria for outsourcing
IT Expertise
Culture Fit
Relationship
Viability
References
Standards
Labor cost, productivity gains & low risk assumed equal
Source: The Aberdeen Group, Best Practices in Offshore Software outsourcing
19. Key success factor for outsourcing
• Start with self-contained
“test” project using
measurable goals and
objectives
– SLA: Delay, cost, quality,
process to follow, “owners”
• Ensure awareness and
internal buy-in across
functions
• Heavily use program
management and NPI
processes
– Review document all
internal; process,
information flow etc.
• Assign dedicated hand-
picked program manager
– Dual hat/ cross cultural
understanding
– Favor program manager with
personal ties to suppliers
• Ensure corporate culture fit
• Ensure cultural
understanding & training
both way
• Document everything
– MRD, functional, design specs
– Meeting minutes, action register,
milestones etc.
• Hold regular status
meetings
– Identify issues early & assess
impact
– Emphasize open and Immediate
resolution of issues
20. Key success factor for outsourcing
• Establish a highly-
available and secure
infrastructure
– Firewall, IDS, anti-virus
– Highly available
infrastructure, backup and
restoration procedures
(RAID)
• Heavily Leverage ICT
tools to enable logical
“proximity”
– QA automation
– Release management tools
(CVS, clarify)
– Audio, Video conferencing
• Allow for a 3-6 month ramp
up period
– On-site training of “core team”
• Tools, processes, code
review, building personal
ties
– “Core team” propagates know-
how in home country
• Heavily emphasize quality
– Importance of SLA
– US companies are accustomed
to leading quality services
– Importance of standards:
• Software Engineering
Institute (SEI) Software
Capability Maturity Model
(CMM)
• ISO 9000 certification
• TL9000 (ISO 9001 derived)
21. Who makes the outsourcing decisions
• Trigger
– CFO/COO: cost control, margin contribution
– Special or customized projects
• Decision makers & recommenders
– CTO/VP of Engineering/Director of Software
development/QA directors
• Influencers:
– Press and analysts, consultants
• Final endorsers
– The “Nixers”: CEO/CFO/COO
22. Agenda
• Methodology, goals, non-goals
• A demand-side perspective: the U.S. market
• Understanding the Business of Outsourcing
• Morocco: Relative position in a global sourcing
context
• The Moroccan enterprise: empirical findings
• Identified opportunities for direct IESC
assistance
• Recommended strategies
23. Morocco in a global context
Political/Regulatory environment
Country Score Rank (/102)
Finland 5.74 1/102
United States 5.20 8
Jordan 4.56 26
India 4.47 29
Malaysia 4.46 31
Tunisia 4.42 34
Mexico 3.84 59
Egypt 3.72 66
Morocco 3.68 69
Turkey 3.58 73
Vietnam 3.43 78
•Source: INSEAD (based on data from the World Bank) 2003/2004
•Measures impact of country's policies, laws & regulations and their implementation on use of ICT
24. Morocco in a global context
Infrastructure
Country Score Rank (/102)
United States 5.55 2
France 4.63 14
Jordan 3.35 48
Tunisia 3.31 52
Mexico 2.66 55
Turkey 2.64 57
Morocco 2.93 61
Egypt 2.76 65
India 2.65 67
Haiti 2.14 87
• Source: INSEAD (based on data from the World Bank) 2003/2004
• Level of availability, price and quality of key access infrastructure for ICT.
• A quality ICT infrastructure facilitates the adoption, usage and impact of these technologies
25. Morocco in a global context
Market Environment
Country Score Rank (/102)
United States 4.76 2/102
France 3.76 17
India 3.22 27
Tunisia 3.15 29
Vietnam 2.91 38
Egypt 2.77 49
Turkey 2.64 57
Mexico 2.66 55
Morocco 2.60 60
Haiti 1.61 102
•Source: INSEAD (based on data from the World Bank) 2003/2004
•Propensity for the market to support a knowledge-based society
•GDP, import/export metrics/availability of funding/skilled labor/development of corporate environment
26. Morocco in a global context
Business readiness index
Country Score Rank (/102)
Finland 6.49 1
United States 6.34 3
Tunisia 4.72 35
Jordan 4.62 42
Morocco 4.43 46
Mexico 4.38 50
Egypt 4.10 60
Turkey 4.25 56
Vietnam 3.85 74
•Source: INSEAD (based on data from the World Bank) 2003/2004
•Readiness of business to participate and benefit from ICT
• Focus on large corporation but also SME/SMB & measure willingness to use ICT
27. Morocco in a global context
Individual Readiness
Country Score Rank (/102)
Finland 5.98 4
United States 5.89 5
Jordan 4.21 54
Mexico 4.22 53
Tunisia 4.18 56
Egypt 3.91 72
Vietnam 3.90 73
Morocco 3.68 78
India 3.65 80
•Source: INSEAD (based on data from the World Bank) 2003/2004
•Readiness of Nation’s citizen to use and leverage ICT
•Literacy rate, mode and locus of access to internet, and degree of connectivity of individuals
28. Assessing potential of individuals for ICT
Source: National Center for
Education Statistics
29. Overall Relative Ranking vs. average
0
25
50
75
100
Market
Environment
Political&
Regulatory
Infrastructure
Individual
Readiness
Business
Readiness
Overall
Morocco Ranking, Network Readiness Index
30. Conclusions on Morocco’s positioning
• Purely from a “paper evaluation” perspective Morocco
is not well positioned comparatively in the area of ICT
– This is from the perspective of U.S.-based decision makers, even
when compared to regional players
• Moroccan companies need to learn from the French-
Morocco example and Indian Model in the U.S.:
– Understand and replicate conditions/success model
– Optimize value proposition with key audiences
• Companies need to proactively position themselves at
the place and time when decisions are made:
– Leverage “networks” and levers
– Reach Influencers and opinion leaders (awareness)
– Strike win-win partnership with established companies
– Leverage the FTA as “critical event”
• Need to identify & leverage competitive advantage at
the enterprise level
– Build and advertise positive experience
– Put Morocco on the outsourcing Map through success stories
31. Agenda
• Methodology, goals, non-goals
• A demand-side perspective: the U.S. market
• Understanding the Business of Outsourcing
• Morocco: Relative position in a global sourcing
context
• The Moroccan enterprise: empirical findings
• Identified opportunities for direct IESC
assistance
• Recommended strategies
32. Enterprise level, our observation
• Limited “proximity” with the U.S. (e.g. vs. France )
– Limited historical ties
– Lack of geographic proximity
– Cost of transportation to U.S.
– Cost of Telecommunications
– Lack of developed networks
• Alumni, associations, business communities etc.
– Different ways of doing business
• Accounting, finance, language, approach
– Morocco unknown in the U.S.: awareness issue
– Very different cultures
• Individual, corporate
• Very limited visibility into the U.S. market
33. Enterprise level – our observations (cont.)
• Most companies in “survival mode”
– Financial viability in question in the long run
– Minimize risk by spreading resources across applications
– Scope versus depth – companies do not develop in-depth know-how
• Small local market doesn't allow for companies to reach
“critical mass”
– Only larger companies who diversify can feed off cash cows
– Companies cannot invest at loss in value creation/innovation
– Companies may not be able to handle required scale of projects
(minimum 100-250 engineers)
• Resources, financial staying power
• Lack of easy access to capital
– Limited skills to assess intangible technological risk/potential
– …AND lack of company maturity doesn’t allow for funding
– Entrepreneurs forced to develop companies through private funds –
risk averseness
– Major issue in helping develop companies
34. Enterprise level – our observations (cont.)
• Limited experience in managing large scale projects
– Except in larger companies that have reached “ critical mass” in
Electronic Payment Systems for example
• Very limited functional specialization
– Characteristic of maturing companies
– Multi-hat employees
– Limited processes and organizational routines
– Some companies give very little weight to product
management/marketing: “One P” problem
• Limited use of automation tools
– Quality control
– Release management tools – even larger companies require
additional training
– This would pose problems in the long run for scaling the
organization
• Exponential cost structure
• Impact on quality
35. The Enterprise – our finding (cont.)
• We expect to see some consolidation in the long run
– We expect many smaller companies will not survive in the long
run
– Companies will merge and align around vertical specialization to
achieve economies of scope, scale and skill, and ensure stronger
financial staying power
– We expect the larger groups with strong cash cows diversify into
ICT and become local leaders in the long run
36. Enterprise level – our findings (cont.)
• Some areas where Morocco has developed core
competencies (product, operational, technical, managerial etc.)
• Electronic Payment Systems
• Geographical Information Systems
• Decision support systems
• Content development (Morocco-specific)
• Localization of content / SW translation in Arabic
• Real estate asset management
• Others…
• Need to ascertain competitiveness on U.S. market
– In a global sourcing context
• Need to develop U.S.-specific go to market strategies
– Move beyond prototype
– Customize pricing, distribution channels, joint ventures, partnerships
etc.
37. Feedback from the companies Interviewed
1. Access to capital
– Technological risk
management
2. Misunderstanding of
U.S. market
– Intimidated by size of
country – where to
start from ?
– Size of target market
– Competitive landscape
– Distribution channels
– Decision making
process?
3. Go to market strategy
– “1P” problem
– Productization
– Marketing strategy
– Strategic planning
4. Operational know-how
– NPI
– TQM
– Release management
– Technical support
– Automation tools
5. Language/cultural
barriers
38. Agenda
• Methodology, goals, non-goals
• A demand-side perspective: the U.S. market
• Understanding the Business of Outsourcing
• Morocco: Relative position in a global sourcing
context
• The Moroccan enterprise: empirical findings
• Identified opportunities for direct IESC
assistance
• Recommended strategies
39. Identified opportunities for IESC assistance
• Technical training:
– Training in high-availability: backup, storage, restoration
– Training in security best practices: firewall, IDS, etc.
– Training in automation tools
• Release management, testing, quality control, etc.
• Operations
– Expert training in “NPI” methodology/process
– Advanced program management training
– Operation and SW release management “best practices”
– Training in quality control for SW development - ISO, CMM, TL9000
methodology
• Business, marketing, product management
– Expert assistance to determine key go-to-market strategies for
specific verticals
– Business linkage
• Customers, partners, distribution channels, potential investors, venture
capitalists
– Marketing activities (trade shows, etc.)
• Other
– Intellectual Property Rights Expert, Lawyer (specialized in IT)
– Cross—cultural training for Moroccan executives
– Language training (business English)
40. Agenda
• Methodology, goals, non-goals
• A demand-side perspective: the U.S. market
• Understanding the Business of Outsourcing
• Morocco: Relative position in a global sourcing
context
• The Moroccan enterprise: empirical findings
• Identified opportunities for direct IESC
assistance
• Recommended strategies
41. Our recommendations - summary
1. Build basic enabling environment for nascent ICT sector
2. Articulate main lines of overall Moroccan policy to build a
comparative advantage (with appropriate investments)
1. Move away from “textile” model – a “cost only” strategy is short-lived
2. Invest in value creation/innovation through R&D, education in key areas
3. Facilitate technology transfer to Morocco in key areas
4. Proactively monitor & intersect innovation curves for the next 5-10 years
5. Proactively engage in technology and market monitoring & shape
standards
3. Learn from the Indian Model & French “proximity” model
– Identify, build and reinforce networks of insiders at critical decision
points
• Leverage influencers as levers and/multipliers
– Leverage and build direct AND indirect networks
– Leverage all institutions, including universities, schools and U.S.
companies/entities locally in Morocco
4. Put Morocco on the “outsourcing map”
– Heavily leverage the FTA announcement as critical event
– Focus and sell “key success” stories (initial failures are not an option)
– Develop and advertise (with main consultancies) case studies based on
key success stories
– Build and develop Morocco’s brand equity
42. Minimum conditions for ICT sector development
must be gathered, fast
• Access to capital/financing must be facilitated
– Including for key Moroccan expatriates & foreign investors
• Future-proof Telecommunication Infrastructure must
be built (Example: IP/MPLS OC-192 backbone)
• Basic market conditions must be gathered
– Deregulation, liberalization, increased competition
– Transparency, real competition
– Electronic Commerce legislation
– Intellectual Property rights
• Accelerate Internet diffusion/PC Phone line penetration
– Pricing, ubiquity
• Generation of content relevant to country/region must
be accelerated
– E-government, increase “usefulness” of internet access
43. Fundamental questions
• What is Morocco’s comparative advantage
– Language and proximity with France &
“Francophone Africa”
• Morocco competes with Canada, France, Vietnam*, Tunisia,
Madagascar?
– Language and proximity with Arab World
• Morocco competes with UAE, Jordan, Egypt
– Labor cost advantage – short-lived strategy?
• Morocco competes against Vietnam, Tunisia, India,
Madagascar, Philippines, Malaysia etc.
– Unique know-how and core competencies?
• There needs to be clear, well funded
development policies for key sectors and
technologies
• Companies will align with framework & policies
44. Moving beyond a “cost-only” framework
Country 2
Country 1
Time
Technology Transfer
•Obsolete Model: Textile
• Second but cheaper
• Follows Technology life cycle
• Follows Market Life Cycle
•Geography sensitive
•Delayed diffusion of know-how
LaborCost/GDPperCapita
•Go to the source of innovation
•Create value through R&D
•Shape standards – at the source
•“Change the rules”
• Schumpeterian market
•Technology leader, first-mover adv.
•knowledge-based competition
Country x
Trickle-down model Shower Model
Country y
Country z
Country n
Country x Country y Country z Country n
45. Move into the value creation business
• The key to breaking life-long dependencies
– Breaking the trickle-down model
• Move away from “labor-cost only” models
• Fund innovation / value creation
– Leverage/fund education sector on key projects
– Facilitate private sector/university symbiosis
– Shape standards before they become ones
• Focus on applied research
– Technology must solve business problems
– “Learning by doing” to develop key know-how
• Move up the value creation chain
– Leapfrogging – current technologies
– Intersect innovation curve
• Engage in knowledge-based competition
46. Examples of “hot” technologies
• Open source protocols
– Linux, OpenSSL,
OpenSSH
• Optical/Electrical
integration:
– CDWDM, DWDM,
GMPLS, OXC etc.
• Convergence:
– MPLS, traffic
engineering, Diffserv-TE
– Multiservice transit
• High-availability for IP
– 99.999%%% uptime
– MPLS fast reroute
– Non-stop operation for
routers
• VoIP
– See Vonage, Skype etc.
• Security
• VPN (SSL, IPSEC, AES,
MPLS-VPNs (L2, L3)
• Storage Networks
• Grid Computing
• Content delivery
– VOD, gaming online
• Wireless (2.5G, 3G,
OFDM, Wifi/802.11x)
• Metro Ethernet
(802.11x, 10GE, etc.)
• FTTP (Fiber to the
premise)
• Peer to Peer (P2P)
applications:
– Skype, etc.
47. Other possible strategic applications
• Search engines in Arabic
– Integration in key portals (importance of content)
– Key in “transaction” between subscribers and
content
– Strategic importance of footprint, brand awareness
for revenue from sponsored links/ads/referrals
• Context-specific security applications
– Passive, active monitoring
– Snooping, TCP splicing
– Pattern recognition
48. Identify & manage differences in technology
adoption rates
Importance of “technology monitoring”
• Identify areas where Europe has technological advances
vis-à-vis the U.S.
– Electronic Payment Systems
• EMV and evolution to “intelligent card” payment in U.S.
• Gained know-how and critical mass through key projects
(Interbank)
– Use of GSM in America
– Leverage know-how AND cost advantage
• Intersect innovation curves
Importance of monitoring business environments
• Importance of detecting “latent market” that align well
with key strengths
– E.g. computer science + mathematics + linguistics
– Security products (Arabic) for market in U.S.
– Portals & research tools
49. Monitoring and Shaping standards
Standard bodies and forums:
• Broadband Content Delivery Forum - www.bcdforum.org
• MPLS Forum - www.mplsforum.org
• MPLS Resource Center www.mplsrc.org
• IETF Working Groups at: www.ieft.org
• Mip6 Mobility for IPv6
• L2vpn Layer 2 Virtual Private Networks
• L3vpn Layer 3 Virtual Private Networks
• Ipv6 IP Version 6 Working Group
• Ccamp Common Control and Measurement Plane (GMPLS)
• Xmldsig XML Digital Signatures
• Idwg Intrusion Detection Exchange Format
• Ips IP Storage
• Iptel IP Telephony
• avt Audio/Video Transport
• Mpls Multiprotocol Label Switching (IETF)
• IEEE www.ieee.org (Ethernet, 802.11x (WiFi) – RPR, DPT etc.)
• OIF www.oif.org Optical Internet Forum
• ITU
50. Putting Morocco on the global sourcing Map
• Morocco has very limited brand equity
– Great opportunity/challenge
– Risk of initial experiences->taint perception
• Importance of maximizing chances of success
• Importance of articulating Morocco’s comparative
advantage
• Case studies/success stories & white papers
• Develop “sponsored” country-specific reports
• Go-to market strategy:
– Risk , business cases, case studies, on-line resource center
– Speaking engagements at key speaking events on outsourcing
(subject matter expert)
• Importance of intersecting decision “transaction”
• Leverage levers & multipliers
• Influencers, opinion and thought leaders
51. Putting Morocco on the Map
• Use FTA agreement as critical event
– Leverage press, media and analyst coverage for outreach
campaign within months of announcement
– Piggyback on existing initiatives (AmCham, USAID etc.)
– Partner with key stakeholders and lobby groups to create
events around the FTA
– Hire AR/PR agency & launch FTA Morocco event
– Organize road shows to reach relevant “networks”
• Target key opinion leaders, influencers, and decision
makers
– Develop direct and indirect networks of decision makers
– Target key analysts and press
– Develop success stories around successful cases: e.g.
Dell case study in Morocco
52. Target opinion leaders, influencers
• Target key recommenders in the Press and Analyst
communities
• Involve recommenders in developing the Morocco “brand”
– Message testing
– Develop case studies, business cases jointly
– Involve key analysts in key Morocco-sponsored events (e.g.
Marrakech Outsourcing World Congress)
• Example:
– Michael Doane, Vice President & Service Leader, META Group
– Julie Giera, VP and Research Fellow, Forrester Research
– Michel Jon Janssen, President of the Supplier Solutions division, Everest Group
– Martin J. McCaffrey, Executive Director software Outsourcing Research
– Mark Kobayashi-Hillary, Consultant, Author, Outsourcing to India
– Paul Gillin, Vice President of Editorial and Editor in Chief, TechTarget
– Stuart Robbins Founder and Executive Director, The CIO Collective
– Scott J. Nathan, Independent Outsourcing Expert/Attorney
– Jeffrey M. Kaplan, Managing Director, THINKstrategies
– Laurie McCabe, VP and Practice Director, Summit Strategies
– Other analysts: IDC, Gartner Group, Telechoice, Yankee Group etc.
– Other Press: www.lightreading.com, RedHErring, Fortune, Businessweek, the
Economist etc.
53. Leverage direct AND indirect networks
• Direct
– U.S. company->Moroccan Company
– U.S. company->Moroccan Company-> Arab World
– U.S. company->Moroccan Company-> Europe
• Indirect Model
– U.S. company->Indian company->Moroccan
company for “Francophone” Market
– Other indirect would leverage countries with strong
”networks” in the U.S.:
• Chinese, Canadian, Vietnamese , Israeli companies
– EMEA/MENA branch of U.S. companies in Europe
54. Building “proximity” through “networks”
• Moroccan consulates abroad
– Identify key executives in ICT abroad (technical directors,
venture capitalists, finance executives in American and
U.S.-based companies (vs. American companies)
– Leverage indirect networks as well:
• Moroccan in Indian, Chinese, Canadian companies
• Moroccans in companies in Europe where EMEA/MENA
decisions are decentralized in Europe
• Moroccan school Alumni in the U.S.
– AUI, Mohammedia School of Engineering, INPT etc.
• Moroccan Alumni and professors from top U.S. schools
– Important for technology transfer
• Last but not least, U.S. residents in Morocco
55. Consolidating “networks”
• Create permanent offices in key ICT locations
– Possibly resort to bi-cultural commission-based
“global sourcing” brokers/entities in:
• Silicon Valley: San Jose, Santa Clara Sunnyvale, Palo Alto
• Boston area: route 128
• Research Triangle Park (RTP) North Carolina
• Richardson, Dallas, Fort Worth Texas
• Create association peering across geographies
– APEBI, ASMEX, CGEM and counterparts in U.S.
• Events/Incentives:
– Road shows
– Outreach via discuss lists/newsletters
– Specialized loans for investment back in Morocco/tax
breaks for expatriates
56. Create virtual & physical presence in key forums
• Create Presence at key outsourcing venues
– Examples:
• Outsource World , UK
• Outsourcing Strategies 2004
www.outsourcingstrategies.biz
• Outsourcing in Telecoms
www.iir-conferences.com/telecomsoutsourcing
• IDC Outsourcing Forum: Improving Corporate
Effectiveness Through Results-Driven BPO
• Participate & contribute in key Forums
– Advertise on key outsourcing portals:
http://www.outsourcingcentral.com
57. Thanks & acknowledgements
• Key decision makers in the audience
– Insight provided during one-one interview
• The whole IESC team in Casablanca
– Special thanks to
• Mr. Elbouchikhi, ICT Program Director
• Mr. Bensouda, Executive Director
THANK YOU
59. Time,
Technology Life Cycle
(substitution etc.)
Technology
Adoption
Rates
per Geography
Innovation
(value creation)
Technology Advancement
Value
…and to whom?
What is “Value added” ?
60. Example: Cultural Proximity
Dimension U.S.A (ICT) Morocco
Culture - individual Low context - wysiwyg High context – gesture, body
language important
Culture Legalistic, SLA, contract Based on trust, reputation
Culture Individualistic Importance of group, family
,enterprise
Decision making process Rational, based on key metrics,
decentralized
Risk taking encouraged
Centralized (rank)
Risk averse/high cost of
failure
Time
Time horizon
Monochronic
Weeks/quarter
Polychronic
Days/weeks
Approach vis-à-vis
problem resolution
Tackle first – very pragmatic Emphasize analysis upfront
Approach vis-à-vis
strangers
Friend until proven otherwise Enemy until proven
otherwise
Business approach Spontaneous, direct Referral/go-between
important – reputation etc.
Communication style Straightforward, centered
around issues – “straight to the
point”
Context sensitive, centered
around people, harmony
Structure of
organizations
Flat, Matrixed Hierarchical, Pyramid
61. U.S. Market: Drop in Investments
• Venture Capital Investments dropped more then 50%
since Q2 2000
Source: Red Herring, Ernst&Young , VentureOne