Jordan ICT Sector Apr 2011

Jordan’s ICT Industry

ICT Association of Jordan – int@j

April 2011

int@j Background

Driven by His Majesty’s vision for a strong private ICT Sector

Established in 2000 as the ICT industry-support association under the REACH Initiative

Lead the implementation of the REACH Initiative (2000-2006) and the National ICT Strategy (2007-2011) in partnership with MoICT

• Includes 200 companies in IT, Telecom, Outsourcing, Internet and

Mobile businesses, membership is open for all ICT companies

• int@j focuses on advocacy, promotion and marketing, capacity

building, research and publications.

int@j Vision

To be the primary and exclusive

private sector representative of ICT and ITES- enabled services

companies in Jordan representing the entire sector

int@j Mission To provide members with a platform of

products & services that support their continuous growth, expansion, and

prosperity toward a mature sector that substantially contributes to the national economy and provides quality jobs for

Jordanians

int@j Services

Services Activities

Advocacy • Position papers studies

• Legal lobbying awareness

Marketing and Networking

• Trade missions

• ICT Connect

• Business linkages

Publications

• Quarterly ICT magazine (going Online)

• e-Communication (RFP’s, Announcements…)

• Annual industry statistics

Capacity Building • Professional training and certification

programs

Corporate services • Corporate health insurance

• Other corporate deals

2010 Highlights

2010 Activities

Advocacy

• ICT Advisory Council • ICT Export Exemption • Government Procurement Procedures • Reviewed Laws (e-Transactions, Labor, Cyber

Crimes, IP)

Promotion

• MENA ICT Forum 10-10-10 • Arab Outsourcing Conference 2010 • ICT Connect/Power Breakfast • Investment and Business Development • Trade Missions to India, Palestine, and Oman

Research & Publications

• Salary Scale • ISIC Classification/Statistics • ICT Magazine

2010 Highlights

2010 Activities

Capacity Building

• Graduates Internship Program • Microsoft Training Program • Mobile Apps Development(iPhone/Blackberry) • CMMI for IT Companies • SPOT for Call Centers • Higher Education Portal • ICT Academy

Sector Segmentation

• BPO IAOP Chapter • Internet Content Council • Jordan Games Development Task Force

Sector Vision

Jordan to become a major regional

ICT leader and an internationally recognized exporter of ICT products & services, capitalizing on its core

human capital advantage

Jordan’s ICT Sector

• Fastest growing sector in Jordan's economy (Avg. 25% growth)

• More than 80,000 jobs in total (direct/indirect/induced)

• Contribution of 14% to GDP (10% direct, 4% indirect)

• On the ground international companies (Cisco, Microsoft,

Oracle, HP, Yahoo, Intel, Motorola, Ericsson)

• Average annual telecom local spending of more than USD

500m into the economy (Orange, Zain, Umniah, …)

• More than USD 500m contribution to treasury

IT ExportRevenue

IT DomesticRevenue

IT TotalRevenue

TelecomRevenue

ICT TotalRevenue

$12m $48m $60m

$500m $560m

$210m

$685m

$895m

$1.3b

$ 2.2b

2000 2009

Source:

- Telecom: Arab Advisors Group

- IT: int@j Industry Classification and Statistics 2009

ICT Sector Landscape

Contribution to Jordanian Economy

Manufacturing Tourism ICT Construction Agriculture

17.70%

14.30% 14.10%

4.30%

2.30%

10.60%

3.28%

1.23%

4.50%

2.80%

GDP Contribution Direct Employment

Source:

- Manufacturing, Construction, and Agriculture GDP and Employment: Department of Statistics

- ICT: int@j Industry Classification and Statistics 2009

- Tourism: Ministry of Tourism

• Exporting to more than 45 countries

• Major Export Markets

– USA $48m (22%)

– Saudi Arabia $47m (21%)

– Iraq $29m (13%)

– UAE $16m (7%)

– Palestine $9m (4%)

Regional Opportunities

– Saudi Arabia (Over $4b total IT spending in 2009) 50% of GCC Spending

– UAE (Over $1b IT spending projected in 2010)

– Kuwait (Over $700mn IT spending in 2008)

– Qatar (Over $400mn IT spending in 2009)

ICT Sector Exports

ICT Impact on Jordan Overall Economy

• ICT Impact on Employment is 84,000 Jobs • ICT Impact on GDP is 14.1%

9.5%

0.1% 0.7%

0.1% 0.8%

0.3%

2.7%

ICT Sector EducationSector

ManufactringSector

Health Sector FinancialServicesSector

Wholesaleand Trade

Sector

Other Sectors

Source: 2009/2010 ICT Economic Impact Assessment - MoICT

GDP Contribution from ICT in other sectors: 4.6%

Opportunities

Opportunities

E-Learning:

Jordan Education Initiative

ICT as a tool in education reform

Local firms delivering world-class products

– ITG - EduWave Platform, World Summit Award Winner

– Rubicon, Math Curricula with Cisco

– Menhaj, IT Curricula with Microsoft

Model to be replicated

Opportunities

E-Health:

Electronic Health Solutions Royal Initiative

Based on VistA

In partnership with Dell/Perot Systems

Pilot in 3 Public Hospitals

Model to build on and replicate in other countries

Opportunities

Telecommunications:

Liberalized Telecom Sector

– Liberalized mobile telephone subsector

– Liberalized fixed line subsector

Independent regulator – TRC

Licensed WiMAX & 3G Infrastructure

More than 6 million mobile phone subscribers

Opportunities

Business Process Outsourcing:

9th globally in AT. Kearny Global Services Location Index (2009)

Availability of necessary ingredients

– Manpower and human talent

– The “right” Arabic and English dialect

– An alternative destination

– The right telecom infrastructure

– The investment climate

– The political and economic stability

Online Content and Gaming

1% Arabic content in the world – Jordan is the largest contributor

Neutral Arabic speaking community

Mobile:

– Applications, Games, and Content

• Multiplatform applications, content, and games (including iPhone and Blackberry)

Online

– Applications and Gaming Solutions (example online payment)

– Communities (example web forums, football sites)

– Media and Content (example Online Newspapers, social media, and directories)

Thank You