Sectoral Debate Presentation by Hon. Julian Robinson, Minister of State, Ministry of Science, Technology, Energy and Mining (31 July 2012)

1. Sectoral Debate Presentation
Julian J. Robinson
Minister of State
Ministry of Science, Technology, Energy & Mining
July 31, 2012

2. } Differences in socio-economic levels
} Residential vs urban
◦ Challenges of development
} Commercial centres (New Kgn, Cross Roads,
Half Way Tree)
} Significant national institutions
} One size does not fit all
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3. } Focus on infrastructure
◦ JEEP Phase 1 – road repairs, gully
walls
} Educational support
3

4. Summer Reading Camps
} Hosted 900 students in 7 communities
(Nannyville, Swallowfield, Jacques Rd,
McGregor, Franklyn Town, Woodford Park, Slipe
Road)
} 4 categories of students
◦ Ages 4-6 – pre primary stage
◦ Ages 7-9 – preparing for the Grade 4 Tests
◦ Ages 10-12 – preparing for GSAT
◦ Ages 12 – 15 – young teenagers
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5. } Global BPO market – US$680 billion at end of 2011
} Growth rate of 9% annually
} Will reach US$1 trillion by 2014
} Latin American & Caribbean will be worth US$5 billion by
2013
Global Market ($BB) Offshore Market ($BB)
1200 140
Growth Rates (% CAGR)
120
1000 BPO-
9
IT Services-
7
Global Global
BPO- IT Services-
100
25 18
800 Offshore Offshore
80
600
60
400
40
200
20
0 0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Source: IDC
Global BPO Revenue Offshore BPO Revenue
Global IT Services Revenue Offshore IT Services Revenue
Source: IDC 5

6. } 11,000 jobs
} 26 companies
} Examples of services outsourced
◦ Technical help desk for consumer electronics from
Sharp
◦ Customer service support for Amazon.com
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7. 7

8. } Data entry – commoditised – moved to lower
cost countries
} Liberalisation of telecoms sector in 2001
} Data costs down
} Facilitate development of data enabled services
} Many start ups focused on telemarketing as
barriers to entry low
} Today – customer service support, technical
help desk, high level business processes
outsourced
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9. } Who is Vista Print (www.vistaprint.com)
◦ Offers online customised solutions for small businesses and
individuals – started with business card design
◦ Globally - US$2 billion in sales, 3,100 employees serving 50
million micro businesses
} Started in Jamaica in 2003 with 23 employees doing email
customer support
} Today handles over 3 million customer contacts per year via
phone, email, chat with 650 employees
} In 2008 outsourced graphic design function to Jamaica for 1st
time outside the US. Designs of Jamaican team are the best
sellers on their website
} In 2010 outsourced support for human resource software tools
for 1st time outside the US
} Opening global customer service centre in Montego Bay on
September 28, 2012
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10. } Additional 15,000 jobs over the next 4 years
10

11. } Quality of our human resource is the key
differentiator
◦ Must continue investment in education
◦ HEART is developing specialised BPO
training programs up to the equivalent of
Level 3 certification
◦ At secondary school level for the Career
Advancement Program (CAP), HEART will
include BPO training modules
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12. } Our main challenge is lack of commercially
available space in the right locations
} To create 15,000 new jobs requires approximately
750,000 sq ft of new space
} Space must range from 25,000 – 50,000 sq ft
} Must be close to labour pool and transport links
} GOJ through Factories Corp of Jamaica is building
out 100,000 sq ft by next year
12

13. } 71.7% of Jamaicans use the Internet for social
networking websites such as Facebook and Twitter
(Source: Hopeton Dunn Study 2011)
} 655,240 Jamaicans on Facebook and over 100,000 on
Twitter
} The Global Information Technology Report of
2010-2011 showed a decline in Internet penetration
and usage for productive enterprise in Jamaica
} That ranking places us among the top 10 worst
countries as it relates to access and use of the
Internet for business transactions
} This represents both a challenge and an opportunity
13

14. } Developing solutions to local problems and
then exporting them
} Young Jamaicans are exploiting the
opportunities
◦ Gordon Swaby – EduFocal
◦ Tyrone Wilson – emedia interactive
14

15. } “micro-work” – tasks broken into
component parts and outsourced online
} “e-lancing” – services are offered online via
portals
} “crowdsourcing” – identify collaborative
solutions for large projects online
15

16. } Objectives – to showcase the use of
technology, stimulate entrepreneurship and
broaden learning
} Entrants ranged from primary to tertiary
students
} The winning apps included:
◦ Identification of local flora and fauna
◦ Student monitoring app for parents
◦ GSAT math problem app
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17. } The “apps” economy is currently a US$20
billion market, employing approximately
500,000 in the US alone
} 78% of companies operating in the apps
economy are SMEs with large business apps
outsourced to small development companies
} Barriers to entry very low
} Challenge is converting ideas to viable business
solutions
17

18. Digital Jam demonstrated that Jamaican youth have the talent,
skills and expertise to develop commercially viable solutions
} An apps competition with 250 young developers submitting
over 60 solutions
} Training sessions on mobile phone software development
} Workshops to test the microwork platforms
} Sports Hackathon where 200 youth participated
Tangible Results
} 500 persons registered through Microworks platform over 4
day period. Target of 50,000 in 3 years
} 8 internships for developers at telecoms companies
} 2 full MA fellowships at Howard University to apps
competition winners
} Mentorship for successful application in Sports Hackathon
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19. } Access means broadband high speed
Internet access
} Access allows an individual to be in the
game
19

20. Digitization – To ensure that individuals, businesses, and governments
are making the best possible use of networks and applications
} GDP Growth
◦ A 10% increase in digitization results in a 0.60% increase in per
capita GDP
} Unemployment Rate
◦ A 10% increase in digitization reduces a nation’s unemployment
by 0.84%
} Innovation
◦ A 10% increase in digitization results in a 6% increase in a
country’s score on the Global Innovation Index
} Governance
◦ A 10% increase in digitization increases the Transparency
International Index by 1.2 points
Source: Global IT Report 2012
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21. 21

22. 22

23. PARISH
LIBRARY
SCHOOL
POST
OFFICE
St.
Thomas
Yallahs
Library
Morant
Bay
High
Yallahs
PO
Morant
Bay
Library
Morant
Bay
PO
St.
James
St.
James
Parish
Library
Irwin
High
Rose
Hall
PO
Anchovy
Library
Anchovy
High
Whitesand
PO
Montego
Bay
#1
PO
Reading
PO
Trelawny
Falmouth
Library
Holland
High
Falmouth
PO
Duncans
Library
Duncans
PO
St.
Ann
St.
Ann’s
Bay
Library
Steer
Town
Junior
High
Ocho
Rios
PO
Runaway
Library
St.
Anns’
Bay
PO
Runaway
PO
Discovery
Bay
PO
St.
Mary
Port
Maria
Library
Oracabessa
High
Tower
Isle
PO
AnnoKo
Bay
Library
Brimmer
Vale
High
Port
Maria
PO
St.
Mary
High
AnnoKo
Bay
PO
Islington
High
Highgate
PO
AnnoKo
Bay
High
Islington
PO
Hanover
Hopewell
Library
Hopewell
High
Lucea
PO
Green
Island
Library
Green
Island
High
Lucea
(Main)
Library
Rhodes
Hall
High
Westmoreland
LiKle
London
High
LiKle
London
PO
Mannings
High
Savanna-­‐la-­‐mar
PO
Llandilo
Special
School
Portland
Buff
Bay
Library
Buff
Bay
High
Buff
Bay
PO
St.
Catherine
Old
Harbour
Library
Old
Harbour
Hugh
Bushy
Park
PO
Waterford
Library
Waterford
High
Old
Harbour
PO
Spanish
Town
Library
Spanish
Town
PO
Portmore
Library
Bridgeport
PO
Waterford
PO
Kingston
Kingston
Main
Library
E-­‐Learning
of
Jamaica
Clarendon
May
Pen
Library
Spalding
Library
Manchester
Mandeville
library
ChrisVana
Library
St.
Elizabeth
Black
River
Library
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Santa
Cruz
Library

24. } Main users are students and young adults
with low disposable incomes
} Government facilitating competition in the
market
◦ Announcement of auction of 700 MHz frequency
spectrum
◦ New submarine fibre optic cable
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25. } Educating Jamaicans about the e-opportunities
◦ World Bank proposals for road show, Caribbean Digital
Jam
} Access to financing
◦ DBJ/PIOJ work on venture capital program
} Access to mentorship and business support
◦ Creating more incubators
} Resolving the issue of accepting payments
locally
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26. Promulgation of Data Protection Legislation
} Dangers – abuse of privacy, cyber piracy, copyright
infringement and hacking
} Electronic Transactions Act and Cybercrimes Act
currently exist
} There is a need for more uniform, robust and clear
mandate to protect privacy and personal
information
} A Bill will be tabled within this financial year
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27. Establishment of the single ICT regulator
} Rationale – currently 3 agencies (Office of Utilities Regulation
(OUR), Spectrum Mgmt Authority (SMA) and Broadcasting
Commission (BC) involved in ICT regulation
} Present situation results in overlapping jurisdiction which
impedes efficient regulation and increases regulatory costs
} Will be implemented in FY 2013/14
OUR
Telecoms regulatory functions
BC Single ICT Regulator
Radio spectrum technical functions
SMA
Spectrum management functions
27

28. Establishment of GovNet – a Government wide Network
} Objective - to harmonise and integrate Ministries, Departments
and Agencies (MDA) into one public sector communications
network
} Achieve cost savings by eliminating duplication
} Strengthen capacity of public institutions to deliver efficient and
effective goods and services
Current scenario – MDAs manage their own ICT network which
results in fragmentation in the delivery of public services utilising
ICT
Rationalisation of Government ICT agencies
} The boards of the Central Information Technology Office (CITO)
and Fiscal Services Ltd (FSL) have been mandated to develop a
plan for the merger of the entities within the next 12 months to
enable FSL to provide ICT services to all MDAs through specific
service level agreements
28

29. Establishment of the Cyber Emergency
Response Team (CERT)
} With Government establishing an island wide
broadband network and its own GovNet, it
will be more susceptible to cyber attacks
} CERT will protect our Internet infrastructure
and coordinate defenses against and
responses to cyber attacks
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30. } ICT has the potential to transform our
economy through job creation and as a
earner of foreign exchange
} The Government is committed to providing
the environment for Jamaicans to take full
advantage of the opportunities that exist
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