Baltic IS Cluster Market Promotion Dr Valery Virkovski Board Member Association of IT-developers “National INFOPARK” (Belarus) INFOBALT Information Society

Baltic IS Cluster Market Baltic IS Cluster Market PromotionPromotion

Dr Valery VirkovskiDr Valery Virkovski Board Member Board Member Association of IT-developers “National INFOPARK” Association of IT-developers “National INFOPARK” (Belarus)(Belarus)

INFOBALT Information Society Forum, Vilnius, 19INFOBALT Information Society Forum, Vilnius, 19thth November 2004 November 2004

INFOBALT Information Society Forum, Vilnius, 19th November 2004INFOBALT Information Society Forum, Vilnius, 19th November 2004

Expert opinionExpert opinion – To cope – To cope ««…with challenges of “now …with challenges of “now economy” it iseconomy” it is increasingly essential to sustain and increasingly essential to sustain and manage themanage the right mix of internal and external IT and right mix of internal and external IT and business business process capabilities process capabilities»»and moreoverand moreover « « Failure to use a global sourcing and Failure to use a global sourcing and delivery delivery approach can result in loss of competitive approach can result in loss of competitive advantage advantage»» G. Tramacere – GARTNER Analyst, Research G. Tramacere – GARTNER Analyst, Research __________________________________________________________________________________________________________

IT Services market goes for Global Delivery IT Services market goes for Global Delivery ModelModel

Where does the Market Demand in IT-Where does the Market Demand in IT-Services Go ?Services Go ?

What does the Global Delivery Model What does the Global Delivery Model

Go for?Go for?


2nd message2nd message – – «« The most-successful organizations will The most-successful organizations will become become niche service providers or niche service providers or large large AggregatorsAggregators with with end-to-end capabilities. Some of them end-to-end capabilities. Some of them will focus will focus on on Transformational Outsourcing (TRO)Transformational Outsourcing (TRO)»»

1st1st message message – – «« IT outsourcing mega deals reflected a IT outsourcing mega deals reflected a growing growing emergence of the “best-of-bread emergence of the “best-of-bread consortia” in consortia” in which enterprises (such as prime which enterprises (such as prime contractors) or contractors) or third parties (alliance leaders) manage third parties (alliance leaders) manage to to aggregate pool of service providersaggregate pool of service providers that that specialize in IT infrastructure, specialize in IT infrastructure, applications or applications or business processes (so called end-to-end business processes (so called end-to-end

capabilities) capabilities)»» - - Typical IS Cluster model Typical IS Cluster model !!!!!!

TRO – Transformational Outsourcing,TRO – Transformational Outsourcing,

What is it about ?What is it about ?


Transformation = Business Process + IT RevolutionTransformation = Business Process + IT RevolutionIT Migration = Adventure crusade to the new IT IT Migration = Adventure crusade to the new IT platformsplatformsIT Transition = Step-by-step move to the new solutionsIT Transition = Step-by-step move to the new solutions““Serving somebody’s Business Transformation looks Serving somebody’s Business Transformation looks like surgery of the running sprinter”like surgery of the running sprinter” (Not famous Expert (Not famous Expert opinion)opinion)

Who could do this ?Who could do this ?

Transformation Management - On-site Business & IT expert Transformation Management - On-site Business & IT expert teams teams IT Migration - Near shore Aggregators IT Migration - Near shore Aggregators IT Transition Services - Offshore niche Service IT Transition Services - Offshore niche Service Providers Providers

Where could Baltic IS Cluster Go Where could Baltic IS Cluster Go Business Wise?Business Wise?


“ “ The service value chain will continue to emerge as IT The service value chain will continue to emerge as IT Service Aggregators establish strategic relationships Service Aggregators establish strategic relationships with with niche Service Providers, and smaller players form niche Service Providers, and smaller players form alliances alliances (read clusters)(read clusters) to handle large projects and deals” to handle large projects and deals” GARTNER GARTNER Research Research

National InfoparkNational Infopark proposal: proposal:

Baltic IS Cluster is to be marketed as Regional/CEE Baltic IS Cluster is to be marketed as Regional/CEE Alliance ofAlliance ofIT companies to aggregate their services and unite IT companies to aggregate their services and unite resources in order to win and to handle large projects resources in order to win and to handle large projects and deals and deals

Few Practical ProposalsFew Practical Proposals


-- Development of joint portal as the integrated information Development of joint portal as the integrated information resource of Cluster participants proving the Baltic IS Cluster to resource of Cluster participants proving the Baltic IS Cluster to be be considered as the competitive offshore outsourcing centre at considered as the competitive offshore outsourcing centre at thethe Global Market; Global Market;

- Creation of Virtual Exchange for subcontracting services;- Creation of Virtual Exchange for subcontracting services;

- Joint application and participation in European IT - Joint application and participation in European IT programs/projects: programs/projects: EU, TACIS, EBRD etc.; EU, TACIS, EBRD etc.;

- Joint marketing activities and participation in the leading IT and - Joint marketing activities and participation in the leading IT and outsourcing events: CeBIT, OutsourceWorld etc. outsourcing events: CeBIT, OutsourceWorld etc.


ConclusionConclusion

««The important thing is not to stop questioningThe important thing is not to stop questioning»»

Albert EinsteinAlbert Einstein

LET US THINK WHAT OTHER QUESTIONS LET US THINK WHAT OTHER QUESTIONS SHOULD BE ANSWERED TO GET BENEFIT SHOULD BE ANSWERED TO GET BENEFIT

OF CLUSTER MARKETABLE IDEA !OF CLUSTER MARKETABLE IDEA !

P.S. P.S. « « The ability to ask the right question is more than half the The ability to ask the right question is more than half the

battle of finding the right answerbattle of finding the right answer»»

Thomas J. Thomas J. Watson Watson

Belarus Association of IT-developers “National Infopark”Belarus Association of IT-developers “National Infopark”

Thanks a lot for your patient attentionThanks a lot for your patient attention!!

Dr Valery VirkovskiDr Valery VirkovskiNational Infopark Board MemberNational Infopark Board Member

(Business Development and International (Business Development and International Cooperation)Cooperation)

12 Komsomolskaya Str., Minsk, 220030, Belarus12 Komsomolskaya Str., Minsk, 220030, Belarus

phone: +375 17 211 03 69, mob: +375 29 636 97 35phone: +375 17 211 03 69, mob: +375 29 636 97 35

E-mail: [email protected]: [email protected]

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Baltic IS Cluster Market Promotion Dr Valery Virkovski Board Member Association of IT-developers “National INFOPARK” (Belarus) INFOBALT Information Society