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Leveraging Digital Platforms for SME Exports of IT and IT-enabled Services from LDCs: Opportunities and Challenges


18 April 2018
13:30 - 03:00 hrs. Room XXV
Geneva
, Switzerland

Digital platforms will be part of the future of work – actually, they are already part of its present, especially for the workforce in developing countries. And not only there: according to a recent study by McKinsey, “20 to 30 percent of the working-age population in the United States and the EU-15, or up to 162 million individuals, engage in independent work”. What does it mean for IT companies, especially SMEs, for instance in Senegal and Uganda?

Since the emergence and growth of the global sourcing market for IT and Business Process Management services in the early 2000s, companies of all sizes have been taking advantage of the related opportunities as “offshore” providers. While the demand has been expanding, the competition has grown rapidly as well amongst developing and emerging economies. New challenges are emerging – cloud-based platforms in particular are perceived by smaller suppliers with limited marketing resources, especially in developing countries, as challenging them on their entry-level deals (small-scale transcription, digitization, web site, app development).

Indeed, digital platforms such as Upwork, Cloudfactory, Applause or 99Designs are connecting individual and SME clients with mostly independent workers from around the world for assignment opportunities in the IT and ITES sector. SMEs are few on the supply side.

And only 15% of independent workers have used digital platforms so far (McKinsey). In fact, this new working model raises many challenges in terms of social protection, regulation and income stability (ILO), but also the competitive disadvantage for SMEs, which have to finance a work force and the related taxes.  At the same time, the platforms offer real opportunities to agile SMEs that have been able to adapt their business environment to the new marketplace.

The panel will discuss challenges and opportunities, and address the following questions:
• How is the “gig economy” impacting IT & ITES suppliers in developing countries?
• How do platforms see the role of these suppliers?
• How does digital work fit the economic and social context in developing countries?
• How can we make digital platforms more sustainable and inclusive?
• What are the business opportunities for both companies and individuals in developing countries?

Moderator: Mr Martin Labbé, NTF IV programme manager, IT & ITES sector development, International Trade Centre

Speakers:
Ms Uma Rani Amara, Senior Economist at the Research Department, International Labour Office (ILO)
Ms Lauren Procter, Head of Marketing, Jobbatical
Mr Boubacar Sow, CEO, Qualshore Senegal
Mr Ferdinand Kjærulff, CEO, CodersTrust

Mr David Avery, Head of the Cleantech department, Switzerland Global Enterprise

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Co-organizer(s):
International Trade Centre (ITC)

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