MAURITIUS...Government of Mauritius. The NES was developed on the basis of the process, methodology and technical assistance of the International Trade Centre (ITC ) within the framework

Republic of Mauritius

MAURITIUSNATIONAL EXPORT STRATEGYSOFTWARE DEVELOPMENT SECTOR 2017-2021

The International Trade Centre ( ITC )

Street address: ITC 54-56, rue de Montbrillant 1202 Geneva, Switzerland

Postal address: ITC Palais des Nations 1211 Geneva 10, Switzerland

Telephone: +41 - 22 730 0111

Fax: +41 - 22 733 4439

E-mail: itcreg @ intracen.org

Internet: http : / / www.intracen.org

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This National Export Strategy ( NES ) is an official document of the Government of Mauritius. The NES was developed on the basis of the process, methodology and technical assistance of the International Trade Centre ( ITC ) within the framework of its Trade Development Strategy programme.

ITC is the joint agency of the World Trade Organization and the United Nations. As part of the ITC mandate of fostering sustainable development through increased trade opportunities, the Export Strategy section offers a suite of trade-related strategy solutions to maximize the development payoffs from trade. ITC-facilitated trade development strategies and road maps are ori-ented to the trade objectives of a country or region and can be tailored to high-level economic goals, specific development targets or particular sec-tors, allowing policymakers to choose their preferred level of engagement.

The views expressed herein do not reflect the official opinion of ITC. Mention of firms, products and product brands does not imply the endorsement of ITC. This document has not been formally edited by ITC.

mailto:[email protected]

http://www.intracen.org

MAURITIUS NATIONAL EXPORT STRATEGY SOFTWARE DEVELOPMENT SECTOR 2017-2021


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INTERNATIONAL TRADE CENTRE III

ACKNOWLEDGEMENTS

Technical facilitation, guidance and support for the process were provided by the project team of the International Trade Centre ( ITC ).

Name Function Organization

Ms. Marion Jansen Chief, Office of the Chief Economist and Export Strategy ITC

Mr. Anton Said Head, Trade Strategy Development Programme ITC

Mr. Darius Kurek Project manager ITC

Mr. Rahul Bhatnagar Project lead technical adviser ITC

Ms. Claude Manguila Project technical adviser ITC

Mr. Reg Ponniah Technical editor ITC

Name Organization

Mr. Peter Neubert Cisolve Ltd

Mr. Z. Noormohamed Central Informatics Bureau

Mr. Vivagen Amoomoogum Mauritius Chamber of Commerce and Industry

Mr. Raj Lalji State Informatics Ltd

Mr. Chamroo Abedeen A. Chamroo Ltd

Mr. Mario Gastaldi Across Digital

M. Hugues Sauzier Agileum

Ms. Pratima Sewpal Board of Investment

Dr. Mahen Soobron Central Informatics Bureau

Mrs. Kavita Ramdhary Ceridien Ltd

Mrs. Rooma Narrainen MCCI

Mr. Sobratee Aslam Ministry of Education and Human Resources, Tertiary Education and Scientific Research

Mr. Y. Cader Ministry Of Industry & Commerce

Mr. Ismael Limalia National Computer Board

Mr. Kisen Daworaz SMEDA

Ms. Rachna Dabeedial State Informatics Ltd

Mrs. Stephanie Hoelzl Tylers

The National Export Strategy ( NES ) was developed under the aegis of the Government of the Republic of Mauritius, the political leadership of the Ministry of Industry, Commerce and Consumer Protection ( MICCP ) and with the operational support of the Enterprise Mauritius ( EM ). This document benefited particularly from the inputs and guidance provided by the members of the sector team.

INTERNATIONAL TRADE CENTREIV

ACRONYMS

BRIC Brazil, Russia, India, China

BPO Business Process Outsourcing

COMESA Common Market for Eastern and Southern

Africa

EU European Union

GTES Graduate Training for Employment Scheme

HRDC Human Resource Development Council

ICT Information and communication technologies

IPR Intellectual Property Rights

ITC International Trade Centre

MCE Mauritian Cooperative Enterprise

MITIA Mauritius IT Industry Association

MoC Ministry of Commerce

MQA Mauritius Qualifications Authority

NES National export Strategy

OTAM Outsourcing and Telecommunications

Association of Mauritius

POA Plan of Actions

PPA Public Procurement Act

SADC Southern African Development Community

SES Sector Export Strategy

SME small and medium-sized enterprises

UNCTAD United Nations Conference on Trade

and Development

WITSA World Information Technology and Services

Alliance

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INTERNATIONAL TRADE CENTRE V

ACKNOWLEDGEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . III

ACRONYMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IV

EXECUTIVE SUMMARY 1

GLOBAL TRADE OF SOFTWARE AND SOFTWARE SERVICES 5

THE MAURITIAN SOFTWARE DEVELOPMENT VALUE CHAIN 9

ENTERPRISE BASE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

MARKETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

TRADE SUPPORT INSTITUTIONS AND INSTITUTIONAL ASSESSMENT . . 9

INSTITUTIONAL ASSESSMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

ECONOMIC CONTRIBUTIONS OF THE SECTOR . . . . . . . . . . . . . . . . . . . . . . . . 10

COMPETITIVE CONSTRAINTS AFFECTING THE VALUE CHAIN . . . . . . . . . 13

THE WAY FORWARD 19

VISION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

STRUCTURAL ADJUSTMENTS TO THE VALUE CHAIN . . . . . . . . . . . . . . . . . . 20

MARKETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

THE FUTURE VALUE CHAIN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

STRATEGIC OBJECTIVES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

CRITICAL CONDITIONS FOR STRATEGY SUCCESS . . . . . . . . . . . . . . . . . . 26

CONCLUSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

STRATEGY PLAN OF ACTION 27

ANNEX 1 37

REFERENCES 46

CONTENTS

INTERNATIONAL TRADE CENTREVI

FIGURES

Figure 1 : Distribution of software products and services spending . . . . . . . . . . . . . . . . . 5

Figure 2 : Export Trends for Computer and Information services exports . . . . . . . . . . . 6

Figure 3 : Number of young people ( aged 15-24 ) in Sub-Saharan Africa in near future . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Figure 4 : Contribution of the software development sub-sector to the overall ICT sector in Mauritius . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Figure 5 : Current Value Chain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Figure 6 : Future Value Chain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

BOXES

Box 1 : Typical evolution path of a software-development sector . . . . . . . . . . . . . . . . . . . 22

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1EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

Mauritius is on the cusp of a software industry revolu-tion. Spurred by increased focus at the policy level of the segment, and robust initiatives at the enterprise level aimed at harnessing the collective strength of the sector, the sector is aiming high to become a reference point for software development services in the Africa region and beyond. The sector possesses an array of comparative advantages stemming from its intrinsic characteristics and recent developments : A trainable, bilingual, compe-tent workforce including Mauritian youth available to boost the sector’s human capital base if properly harnessed; A robust national business environment, coupled with a cognizance at the policy level that more needs to be done for the software development sector leads to an even greater enabling environment; Recent government-led investment initiatives in the African market such as Ghana, which enterprises can leverage for market pen-etration and business development; The highly relevant and timely establishment of the Mauritian Cooperative Enterprise ( MCE ), which involves several product and services sectors ( including software development ) com-ing together to form a multi-disciplinary consortium that can offer a strong value proposition to international clients and aiming to form a presence in 20+ African markets in the next two-three years; Mauritius’s strategic location ( and strategic involvement in trading blocs such as the Southern African Development Community ( SADC ) and the Common Market for Eastern and Southern Africa ( COMESA ) offering options for firms to become reliable partners in Africa.

These and many other factors make it feasible for the sector to realize its long-term vision. However, there are significant constraints to overcome as well, as indicated in the following sections.

Mauritius : a small player in a fast growing sector globally

The total estimated spending on Computer Software and Services1 was estimated at $ 1.2 trillion2 in 2011. The com-bined proportion of Software Products and Services ( the scope of this strategy ) has hovered around 30 % of overall spending. The software segment has proved to be more resilient than other ICT sectors such as computer hard-ware and communications.

In terms of consumption base, developed countries un-surprisingly account for the lion’s share of expenditure, although the developing countries are quickly gathering steam. The software markets grew >more than 40 % in India, China, Russia, and Latin America between 2008- and 2012 in contrast with developed markets which grew by 15 %. Africa in particular shows promising growth.

In terms of exports, the sector has seen a rebound since the last 10 years and export levels stood at $ 215 billion in 2010. Ireland led the pack followed by India, Germany and the USA. Ireland is the leader both in absolute terms as well as in terms of exports relative to GDP ( Israel, Costa Rica and India being the other leaders ). In terms of im-porters, UNCTAD reports that the A, EU and Japan consti-tute the top three while the BRIC countries ( Brazil, Russia, India and China ) are in the top 10.3

1. The information in this section is based on the classification 62 : computer programming, consultancy and related activities; division 63 : information service activities, derived from ISIC Rev 4. These classifications do not include Business Process Outsourcing ( BPO ).2. Information Economy Report 2012 : The Software Industry and Developing Countries. United Nations publication. Sales no. ( forthcoming ). New York and Geneva.3. Information Economy Report 2012 : The Software Industry and Developing Countries. United Nations publication. Sales no. ( forthcoming ). New York and Geneva.

2 MAURITIUS NATIONAL EXPORT STRATEGY – SOFTWARE DEVELOPMENT SECTOR• 2017 – 2021

The value chain for the Mauritian software development sector comprises primarily small and medium-sized enterprises ( SMEs ) with a select few large firms. This relatively small sector employs between 3,000-5,000 employees ( 20,000-25,000 when the larger Business Process Outsourcing sector is considered ).

Sector firms mainly deliver technology services only in Mauritius and are not well integrated within the export value chain with fewer than 10 firms estimated to be exporting members. Current exports focus on custom development and Oracle solutions-based work. Public procurement – government-led procurement initiatives such as e-government and workflow design – can be a significant market for firms, however, the sector has found it hard to compete with international firms that are better resourced and experienced.

In terms of business development, contracts have mate-rialized mainly through adhoc, opportunity-driven initia-tives on the part of companies rather than the deliberate result emanating from a long -term strategy. In a sense, the sector is rather starved for work as the larger client ( potential ) base prefers to procure established and off-the-shelf imported software and contract expertise from outside the country.

The key trends for this overall ICT sector ( including BPO ) are as follows :

1. The overall ICT sector contributed 6.4 % to the GDP in 2014, up from 4.7 % in 2002.4 Much of this growth can be attributed to the BPO segment as opposed to the software development segment.

2. Total turnover generated for the ICT sector was MUR 33 billion in 2014, f which MUR 21 billion represents value added.5 The contribution of the software devel-

4. National Computer Board. ( n.d. ). Making of Mauritius a Regional Hub and a Gateway to Africa.5. Ibid

opment sector to this, while not calculated separately, is expected to be significantly less than the contribu-tion by the BPO sector.

3. There is significant stagnation now in the sector and the indicators have dropped. Growth rates of the over-all sector have dropped from 22 % in 2004 to 6.6 % in 2014.6

Many constraints impacting the sector

The Mauritius software development sector can best be characterized as currently existing in a survival-state, but not thriving. While a number of factors contribute to the general malaise, there are select root-causes including supply side constraints, key business environment con-straints, market-side constraints and development-side constraints that have resulted in the sector retaining its small size and exhibiting low levels of growth, innovation, human capital and share in target markets.

At this critical juncture, the sector is faced with the follow-ing strategic questions :

1. How can Mauritian companies increase penetration in key markets ( including African markets )?

2. How can linkages be formed with important sectors such as financial services and tourism?

3. How to spur the domestic markets and build confi-dence among the potential client base?

4. What kind of institutional support is required?

Vision

Reinventing the mauritius software development industry.

The following vision has been selected for the strategy :

6. ibid

“A highly competitive sector driven by innovation

and excellence, renowned as a reference point for quality software products and services ”

3EXECUTIVE SUMMARY

VisionA highly competitive sector driven

by innovation and excellence,renowed as a reference pointfor quality software products

and services

Strategic objective 2:Enhance the operating business

ans policy environmentfor the Mauritian software

development sector

Strategic objective 3:Develop capabilities for

penetrating and expandingin national and international

markets

Strategic objective 1:Improve trust, maturityand innovation levels

in the sector

To achieve the vision, a strategic plan of action has been defined for the sector. The POA consists of three high-level strategic objectives that contain multiple operation-al-objectives. Operational-objectives in turn contain sets of activities which will be implemented. For each activity, key indicators in the form of priority level, implementa-tion period, beneficiary information, targets, implementa-tion partners ( lead and supporting ) and funding source ( where applicable ) are also indicated.

Strategic objective 1 : Improve trust, maturity and innovation levels in the sector

The activities contained in this strategic objective are grouped under four operational objectives : Improve insti-tutional collaboration and trust levels, Spur business incu-bation and entrepreneurship in the sector, Spur Investment promotion in the sector, Improve human capital and talent retention in the sector

Strategic objective 2 : Enhance the operating business and policy environment for the Mauritian software development sector

The activities contained in this strategic objective are grouped under three operational objectives : Rationalize policy and regulations in order to spur sector to align with international best practices, Develop innovative financial products meeting needs of sector operators, and improve Institutional Coordination in the sector and ensure that structures are in place for efficient strategy implementation.

Strategic objective 3 : Develop capabilities for penetrating and expanding in national and international markets

The operational objectives falling under this strategic ob-jective are : Develop the domestic market as a driver of competitiveness, Develop strong enterprise level busi-ness development capabilities, and improve the brand for the sector in order to develop market awareness and make buyers trust the Mauritian value proposition.

The following are necessary conditions for the strat-egy implementation to succeed :

1. Consistent focus and support by the government : Unquestionably, the government will need to play an important and consistent role in two aspects – facilitat-ing an enabling business and policy environment for software firms, and leveraging official procurement for developing a functioning market for Mauritian firms.

2. Robust Implementation management framework in place :A robust implementation management framework will be essential for sustainability of strategy imple-mentation, not only for this sector but the entire NES portfolio. This would include a public-private steering committee that meets regularly to discuss progress of the strategy implementation.


3. Improved Enterprise trust levels leading to fruitful collaboration : Enterprises will find it difficult to ‘go-it-alone’. In the future, this status-quo will need to change and levels of trust and collaboration will need to improve. To a large extent, MCE activities will lead to increased col-laborative activity out of necessity as firms will need to subcontract and work with each other to complete their components. Mauritius IT Industry Association ( MITIA ) will also need to play a stronger role in foster-ing improved collaboration among firms.

4. Steady pipeline of candidates seeking to pursue the IT profession :The IT sector does not attract sufficient talent and there is a high degree of brain drain stemming from trained professionals leaving the country. In the medi-um-long term, these trends will need to be reversed. As an intellectually driven skills-intensive sector, soft-ware development field will require adequate numbers of professionals trained in a variety of software skills to be available. This will ensure competitiveness and innovation.

5. Political and Economic stability in key markets :Stability in key target markets is an obvious prereq-uisite for maintaining client relationships, whether in developing countries which face both economic and political risk factors, as well as developed countries where recent economic downturns have led to disrup-tions. Iterative growth – building on and strengthening existing relationships – will be an essential model for software firms and this can happen only when markets are stable and growing.

The Mauritian software development sector will need to embrace significant challenges, in a quickly evolv-ing operating environment both within target client countries as well as within competitor economies that are strong in the sector. Strong implementation management of the strategy over the five-year time-frame coupled with improvements across the supply-side, business-environment and market-development dimensions will serve to ensure that the sector can maintain strong rates of growth. The future is bright and definitely achievable.

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5GLOBAL TRADE OF SOFTWARE AND SOFTWARE SERVICES

GLOBAL TRADE OF SOFTWARE AND SOFTWARE SERVICES7

7. Information in this section is based on analyses contained in UNCTAD. ( 2012 ). Information Economy Report 2012 : The Software Industry and Developing Countries. . New York and Geneva. : United Nations publication.

The total estimated spending on Computer Software and Services8 was estimated at US $ 1.2 trillion9 in 2011. The combined proportion of Software Products and Services ( the scope of this strategy ) has hovered around 30 % of overall spending. The software segment has proved to be more resilient than other ICT sectors such as computer hardware and communications.

In terms of consumption base, developed countries un-surprisingly account for the lion’s share of expenditure,

8. The information in this section is based on the classification 62 : computer programming, consultancy and related activities; division 63 : information service activities, derived from ISIC Rev 4. These classifications do not include Business Process Outsourcing ( BPO ).9. Information Economy Report 2012 : The Software Industry and Developing Countries. United Nations publication. Sales no. ( forthcoming ). New York and Geneva.

although the developing countries are quickly gathering steam. The software markets grew >more than 40 % in India, China, Russia, and Latin America between 2008- and 2012 in contrast with developed markets which grew by 15 %. Africa in particular shows promising growth.

In terms of exports, the sector has seen a rebound since the last 10 years and export levels stood at US $ 215 billion in 2010. Ireland led the pack followed by India, Germany and the USA. Ireland is the leader both in absolute terms as well as in exports relative to GDP ( Israel, Costa Rica and India being the other leaders ). On imports, UNCTAD reports that the USA, EU and Japan are the top three im-porters while the BRIC countries are in the top 10.10

10. Information Economy Report 2012 : The Software Industry and Developing Countries. United Nations publication. Sales no. ( forthcoming ). New York and Geneva.

Figure 1 : Distribution of software products and services spending

Source : ( UNCTAD, 2012 )


Figure 2 : Export Trends for Computer and Information services exports

Source : ( UNCTAD, 2012 )

Technical areas of growth in the sector

1. Cloud computing and online storage continues to be a major driver in the sector fueled by growth and inno-vation in BRIC countries, especially Brazil and China. UNCTAD reports that future growth will be fueled by firms moving data centres to hybrid public and private cloud infrastructure which will create further a market for application and infrastructure development. In Africa, there is a rising trend in the use of cloud computing for email, servers and networks in the retail, telecom and media sectors. High degree of mobile penetration and poor broadband connections are driving this trend.

2. Local Content is a significant driver considering that the proportion of non-English native speakers on the internet is rising fast and in line with the proliferation of internet access to rural and non-capital areas of

countries where English may not be widely spoken. In line with rising economic opportunities in these areas, the demand for customized local content will increase as well. This holds significant potential for a multilin-gual country such as Mauritius that can cater to the fast growing African French, English market through localization and other value added services.

3. Mobile Applications accounted for a US $ 15-20 billion industry in 2012, driven by the high mobile penetration levels, expansion of broadband mobile networks, and increasing usage of smartphone devices on which a variety of mobile applications can be deployed. According to UNCTAD, there were more than 1 million apps in the market in April 2012 including 600,000 for Apple, 400,000 for Android and about 70,000 of win-dows phones. This number will continue to increase in the future.

7GLOBAL TRADE OF SOFTWARE AND SOFTWARE SERVICES

4. The freelancing segment in the software-consulting sub-sector has grown more than 100 % since 2010 and constituted a $ 1BillionUS b industry in 2012. A number of avenues such as odesk and edesk facilitate freelancers to bid for projects and secure work. This segment offers a high potential for young profession-als and recent graduates to gain experience as well as potentially thrive as an entrepreneur.

5. The rise in social networking – comprising 1.2 billion users in 2012 – and high penetration levels among a diversity of consumer groups across the developed and developing world bode well for both companies wishing to push their services to consumers as well as software firms who can assist these companies in tar-geted advertisements, apps, games and other means.

6. Borderless trade is a much-vaunted positive when dealing with software exports. The related logistical challenges that physical goods face during distribu-tion do not account for significant barriers to trade in the case of the software development sector. Economies such as State of Palestine which face tre-mendous border and trade facilitation challenges have been able to carve a niche in software development and export precisely because of two key success fac-tors – good broadband connections and a relatively well-trained workforce. The borderless model is es-pecially relevant for small firms and consultants who can potentially offer services as subcontractors and link up through the national value chain to the global value chain for this sector.

7. The world is experiencing a youth dividend, and this is especially true for Africa. In 1950, Africa held 9 % of all young people in the world and it is estimated

that in 2050, approximately 29 % of them ( 350 million young people ) will be Africans.11The youth population in Africa is growing faster than in other regions of the world. Whereas the number of youth ( 15-24 ) on the continent was 294 million in 2000, by 2030, it is ex-pected to be 750 million, which means that Africa will have a youthful workforce that surpasses China and India. Even now, more than 600 million people are under the age of 25, and 72 % of the youth population lives on less than $ 2 per day.12 More impact for youth is critical to achieving overall development aims. National governments are therefore seeking tangible ways to increase youth employment in this productive sector that will boost contributions to the economy as well.

8. The rise of vocational technical training institutes of-fer job-seekers avenues other than 4-year bachelors and 1 and 2-year Masters programmes for pursuing options in Software Development. This has especially contributed to the growth and steady pipeline of quali-fied talent in success stories like India. These options also involve lower costs for the skills-seekers which is an important consideration for lower-income groups. The segment of technical training institutes itself can function as a profitable business space.

9. The role of government in facilitating a good regulatory and business environment, and in acting as a market through e-government and procurement initiatives is also important.

11. Erhardt, E. ( 2013 ). Youth in developing countries : A generation looking for work. KFW Development Research ( 4 ).12. Africa Leadership Network. ( 2012, August 13 ). Lifting up Africa by Empowering its Youth. Retrieved from http ://www.africanleadershipnetwork.com/our-perspectives/lifting-africa-up-by-empowering-its-youth/

Figure 3 : Number of young people ( aged 15-24 ) in Sub-Saharan Africa in near future

Source : OECD ( 2012 ) based on UN ( 2011 )


Recognizing the value and potential of the software sec-tor, governments have stepped through development of multi-year ICT specific strategies and policies that are aimed at enabling a conductive business environment − including investments. Governments have also acted as drivers of Intellectual property rights and regulation in their countries.

Additionally, governments have also launched e-govern-ment initiatives aimed at streamlining business process-es of ministries, parastatals and other public agencies. Fostering Software Demand – through public sector ICT procurement helps domestic firms gain access to a signif-icant market, gain experience and develop partnerships ( because smaller firms often have to combine forces with each other or a bigger national/international firm to win contracts ).

The public sector has also led establishment of incuba-tors, technology parks and innovation hubs which can be replicated by the private sector.

Key barriers to development of the Software Development sector – global survey

The following are the main results from a global survey conducted by UNCTAD and World Information Technology and Services Alliance ( WITSA ) of ITC / Software Associations in 2012. The survey aims to identify the main barriers to development that different regions face.

� Across all regions, a key challenge cited was the limit-ed access to venture capital. This is unsurprising given that this is the case even in developed economies. Competition for venture capital is intense, and inves-tors have their own strict criteria based on which they choose to invest their capital.

� In the Middle-East and Africa region, the lack of gov-ernment procurement of software and IT services is a concern. In developed economies, this form of market development is well established. It should be noted that the challenge can take a dual shape – either gov-ernment procurement of such initiatives ( such as e-government etc ) has not been prioritized and therefore does not take place, or it is a case where domestic firms are unable to compete with larger international firms that are awarded contracts and there is limited form of partnership between the international awar-dees and smaller local firms that could partner up as subcontractors.

� Another frequently cited challenge is that of human capital. Here countries with mature and maturing soft-ware sectors have diverging challenges ending with the same goal. Where the former may face challenges in competition from peer companies that attract talent away from them ( such as the case in India ), the latter may face challenges owing to still-developing educa-tional and training institutions or because of a strong skills-mismatch between the private sector and institu-tions mandated with churning out trained workers.

9THE MAURITIAN SOFTWARE DEVELOPMENT VALUE CHAIN

THE MAURITIAN SOFTWARE DEVELOPMENT VALUE CHAIN

ENTERPRISE BASEThe value chain for the Mauritian software development sector comprises primarily SMEs with a select few large firms. This relatively small sector employs approximately between 3,000- and 5,000 employees ( 20,000-25,000 when the larger BPO sector is considered ).

MARKETSSector firms mainly deliver technology services only in Mauritius and are not well integrated within the export value chain, with fewer than 10 firms estimated to be exporting members. Current exports focus on custom development and Oracle solutions-based work. Public procurement – government-led procurement initiatives such as e-government and workflow design – can be a significant market for firms. However, the sector has found it hard to compete with international firms that are better resourced and experienced.

In terms of business development, contracts have mate-rialized mainly through ad hoc, opportunity-driven initia-tives on the part of companies rather than the deliberate result emanating from a long term strategy. In a sense, the sector is rather starved for work as the larger client ( potential ) base prefers to procure established and off-the-shelf imported software and contract expertise from outside the country.

TRADE SUPPORT INSTITUTIONS AND INSTITUTIONAL ASSESSMENT

The overall trade support network for Mauritius software development sector is considered for the Strategy as the aggregate institutional framework in the country, bringing together those trade and investment support institutions that have an interest in, or a bearing on, the development and competitiveness of the sector. Broadly, the trade and investment support institutions providing services to the sector can be categorized in the following support areas :

� Policy support network � Trade services network � Business services network � Civil society network.

The policy support network comprises ministries and competent authorities responsible for influencing and im-plementing policies at the national level. These include the Ministry of TCI which is the umbrella policy setting body for the overall ICT sector.

Trade support institutions are technical agencies that pro-vide a range of technical services to software firms across the value chain. These include banks, board of invest-ment, Incubators and Accelerators and also the NCB. The NCB is a parastatal operating under the auspices of the Ministry of TCI and is mandated with spearheading development initiatives in the sector. The NCB provides guidance, entrepreneurship programmes ( also related to incubators and accelerators ), and other initiatives that are aimed at spurring development and innovation in the sector besides executing the policies set by the Ministry of TCI. The NCB operates with the vision : ‘To e-power


people, businesses and the public sector by developing and promoting ICT and ICT-related services in Mauritius’.13

Business services associations include professional as-sociations constituted of sector enterprises. For the soft-ware development sector, this primarily includes MITIA, founded by leading industry members and represent-ing the interests of the sector. MITIA is also responsi-ble for leading the conceptualization and development of the MCE.

Civil society organizations include the universities and training institutions that provide IT-based certificate and degree courses in the country.

INSTITUTIONAL ASSESSMENTIn terms of a qualitative assessment of the trade support network for the sector, the results are mixed.

� Individually, the support institutions are generally competent and provide reasonably good services, .However it is in the area of coordination and linkages with actors beyond the national component of the value chain ( such as potential clients, associations overseas ) that the supporting institutions are weak..

� There is a strong need to offset the skills mismatch issue existing in the sector. In this regard, MITIA and the industry in general should work with institutions that provide skills training with certificate and degree level education in the software sector to ensure that the industry and academia are in sync with each other.

� Another challenge ( delineated in detail in the 4-four gears section ) is that the software development sec-tor has hitherto not been considered or emerged as a sector in its own right. Support instruments, whether policy or technical, are provided for the overall ICT sec-tor which includes the larger BPO sector and this has to some extent overshadowed the software development segment in recent years.

13. NCB. ( n.d. ). Vision and Mission. Retrieved from National Computer Board : http ://www.ncb.mu/English/AboutUs/Pages/Vision-and-Mission.aspx

ECONOMIC CONTRIBUTIONS OF THE SECTORAs indicated in the four gears/competitiveness constraints section, there is a significant challenge associated with the lack of available disaggregated data for the software development sector. What is measured is the aggregate ICT sector that also includes the larger BPO voice and non-voice segment.

Overall, there has been a gradual increase in the abso-lute value and percentage of the contribution of the soft-ware development segment to the ICT sector, reflecting modest gains but there are reported slumps in the sector since 2011.

The key trends for this overall ICT sector ( including BPO ) are as follows :

1. The overall ICT sector contributed 6.4 % to the GDP in 2014, up from 4.7 % in 2002.14 Much of this growth can be attributed to the BPO segment as opposed to the software development segment.

2. Total turnover generated for the ICT sector was MUR 33 billion in 2014, of which MUR 21 billion represents value added.15 The contribution of the software devel-opment sector to this while not calculated separately is expected to be significantly less than the contribu-tion by the BPO sector.

3. There is significant stagnation presently in the sector and the indicators have dropped. Growth rates of the overall sector have dropped from 22 % in 2004 to 6.6 in 2014.16

14. National Computer Board. ( n.d. ). Making of Mauritius a Regional Hub and a Gateway to Africa.15. Ibid16. ibid

Figure 4 : Contribution of the software development sub-sector to the overall ICT sector in Mauritius

2007 2008 2009 2010 2011

Contribution of the software sub-sector to the overall ICT sector ( Rs Million ) 1,350 1,800 2,400 3,275 3,290

% contribution to the ICT sector 12 14 16 19 21

Source : ( National Computer Board, 2013 )


The comparative advantage of the software development sector lies in Mauritius’ stable busi-ness and investment environment, strategic location in the Indian ocean area, strategic involve-ment in trading blocs such as SADC and COMESA, reliable telecommunications infrastructure, bilingual population, and proximity to a robustly growing market in Africa etc. If cultivated and nurtured properly, the sector can indeed flourish. However, as indicated in the 4-four gears sec-tion, there are significant challenges and threats to the sector as well.

At this juncture, the sector is faced with the following strategic questions :

1. How can Mauritian companies increase penetration in key markets ( including African markets )?

2. How can linkages be formed with important sectors such as financial services and tourism?3. How to spur the domestic markets and build confidence among the potential client base?4. What kind of institutional support is required?

Photo: (cc) pixabay


Figure 5 : Current Value Chain


COMPETITIVE CONSTRAINTS AFFECTING THE VALUE CHAIN

Border IssuesBorder-In Issues

Border-Out IssuesDevelopment Issues

CapacityDevelopment

Cost ofDoing Business

Developinig skills

and Entrepreneurship

Capac

ity

Diversi

ficati

on

Infrastructure and

Regulatory Reform

Trad

eFa

cilita

tion

Market Accessand Policy Reform

National Promotion

and Branding Trad

e Su

ppor

t

Serv

ices

Poverty Alleviationand Gender Issues

Regional Development

and Integration

Envir

onm

enta

l

Sust

aina

bilit

y and

Clim

ate

Chan

ge

Traditionally, the scope of trade strategies has been de-fined in terms of market entry, such as market access, trade promotion and export development. This ignores several important factors in a country’s competitiveness. For an export strategy to be effective it must address a wider set of constraints, including any factor that limits

the ability of firms to supply export goods and services, the quality of the business environment, and the develop-ment impact of the country’s trade, which is important to its sustainability. This integrated approach is illustrated by the four gears framework schematic on the right.

Supply-side constraints

Supply-side issues impact production capacity and include challenges in areas such as availability of ap-propriate skills and competencies, diversification ca-pacity, technology and low value addition in the sector’s products.

Business environment constraints

Business environment constraints are those that influence transaction costs, such as regulatory environment, admin-istrative procedures and documentation, infrastructure bottlenecks, certification costs, Internet access and cost of support services.

Market access constraints

Market entry constraints include issues such as market access, market development, market diversification and export promotion.

Social and environmental constraints

Social constraints include issues related to poverty reduc-tion, gender equity, youth development, environmental sustainability and regional integration.

SUPPLY SIDE CONSTRAINTS

The key supply-side constraints include the following :

1. Small per capita size of firms results in low absorptive capacity for the overall sector, resulting in an increased need for collaboration between sector enterprises

2. The sector faces significant shortage of quality and quantity of talent3. Capacity diversification is stemmed owing to the small size of the domestic market4. Strategic focus has been largely lacking in the sector5. Existing skills gap is exacerbated by the lack of continuous feedback and exchange

between the private sector, and institutions imparting training in software development


1. Small per capita size of firms and lack of trust result in low absorptive capacity for the overall sector, leading to an increased need for collaboration between sector enterprises

The Mauritian software development sector is mainly con-stituted of SMEs that cannot absorb a large project on their own owing to the inherent low absorptive capacities. This is leading to high opportunity costs in terms of both domestic and international projects on which Mauritian firms do not bid. The sector can benefit from increased collaboration between enterprises joining forces and bid-ding for larger projects together.

Trust between enterprises will also need to be strength-ened if collaboration levels are to improve. Currently, sec-tor firms see each other primarily as competitors rather than partners, operating independently in an already crowded market. There have been no successful exam-ples of clustering in the past ( although this may change now with the establishment of the MCE ). Increased trust and collaboration will eventually be required for penetrat-ing into larger markets.

� Severity : ● ● ● ● ○ � Value chain segment : Business Environment � PoA reference : Activity 1.1.1

The sector faces significant shortage of quality and quantity of talent

The software sector is currently facing human capital chal-lenges from a variety of angles. First, the sector does not attract the top-talent in the country and this starts early at the school level. Programming and other software seg-ments are perceived by students as less attractive than fields such as finance and therefore they do not gener-ally gravitate towards academic paths involving the soft-ware sector. There is also an expectation of high salaries among newcomers right from the start and Mauritian firms are unable to meet this expectation because of the re-alities on the ground. Owing to the aggregation of the software and BPO segments, there is also a significant perception among young Mauritians that the ICT sector consists only of the larger BPO segment.

Overall, there is a paucity of qualified human resources in the sector, exacerbated by the skills mismatch existing be-tween academia and industry. As a result, there is a gap existing in what is taught in universities and the require-ments of the firms as dictated by their current projects and trends in the marketplace. For instance, companies often have to find their own trainers to deliver training on specific software that are not being offered on the marketplace.

The sector also experiences a significant level of migra-tion of qualified professionals from the country to other locations.

� Severity : ● ● ● ● ○ � Value chain segment : � PoA reference : Activity 1.2.2, 1.2.3, 1.4.5, 1.4.6, 2.1.2

Capacity diversification is stemmed owing to the small size of the domestic market

Currently, the sector focuses primarily on the domestic market. The small size of this market has dictated the slow pace of capacity diversification in the sector i.e. firms struggle to meet operational costs and goals, and do not have the luxury ( owing to low business volumes ) to think strategically about diversification.

� Severity : ● ● ● ○ � Value chain segment : � PoA reference : 1.1.1

Strategic focus has been largely lacking in the sector

Until now, there has been a marked lack of strategic focus in the sector. Firms are small, competing in a crowded domestic market and therefore their portfolio of projects are quite diversified rather than specialised and focused. While diversification is good, the trend for an average firm is to complete a particular project on a one-time basis and shifting to another technological area, which also serves to hinder firms to develop deep specialization in one particular area.

� Severity : ● ● ● ○ ○ � Value chain segment : � PoA reference : 1.1.1, 1.3.2, 3.3.1, 3.2.7

Existing skills gap is exacerbated by the lack of continuous feedback and exchange between the private sector, and institutions imparting training in software development

Consultations are ongoing between academia and indus-try associations specifically to discuss the software de-velopment sector in recognition of the steep gap between the private sector ( demand side ) and the academia ( sup-ply side ). The recognized challenge is that the curriculum tends to be more academic-oriented rather than practical and skills providers are slow to adapt to the needs of the private sector. There is also a requirement to establish a ‘feedback loop’ between the private sector and skills pro-viders in order to maintain alignment of curriculums with the up-to-date needs of software firms.

� Severity : ● ● ● ● ○ � Value chain segment : Input � PoA reference : 1.4.1, 1.4.6, 1.4.7, 2.3.1


BUSINESS ENVIRONMENT CONSTRAINTS

The key Business environment constraints include the following :

1. Clear institutional delineation of roles on promotion of Software Development is required2. ICT Infrastructure requires to be upgraded3. Internships and co-op programme should be focused on projects that are beneficial to

both students and companies, and this is currently not the case4. Additional impetus is required to raise awareness in schools on the software develop-

ment area as a viable career choice5. E-government initiatives – a potentially lucrative market for Mauritian firms – have been

slow to get commissioned6. Software development is not treated as a separate growth pillar on the economy and

is instead aggregated together with BPO7. Conversion programme designed to allow non-IT based individuals interested in tran-

sitioning to the software development sector need to be promoted better8. Alternative models for skills development such as on-the-job training programme need

to be employed9. MITIA’s visibility and portfolio of service offerings need of improved10. Access to finance is a significant impediment for sector enterprises

Clear institutional delineation of roles on promotion of Software Development is required

There is an important need to define clearly the roles rel-evant to sector development, investment promotion, and exports promotion between entities such as Ministry of TCI, NCB, EM and BOI. This is also the case generally with other service sectors, but particularly detrimental to the software development sector because of the exist-ing overarching aggregation in terms of policy, and ex-ports/investment promotion with the BPO sector. There is a perception that there are too many institutional entities involved without clear delineation of mandates.

� Severity : ● ● ● ○ ○ � Value chain segment : Input � PoA reference : Activity 1.3.2, 1.3.3

ICT Infrastructure requires to be upgraded

Internet services available to firms are currently unreli-able ( in upload and download speeds ) and largely un-competitive in terms of prices. The cost, reliability and speed of the internet connection have been called into question. This has affected the competitiveness of IT firms specifically in areas like cloud computing where connectivity has to be increased dramatically to provide quality service to data centres. There is con-sensus that the weak bandwidth may have already ren-dered Mauritius uncompetitive in the cloud business.

It has also been reported that costs of telecommunica-tion ( internet and phone ) are burdensome as well. This may be owing to the lack of sufficient competition in the sector, which has prevented costs from becoming com-petitive. This poses challenges not only to the ICT sector but other sectors as well.

� Severity : ● ● ○ ○ ○ � Value chain segment : Input � PoA reference : Aligned with existing government

initiatives occurring in parallel

Internships and co-op programme should be focused on projects that are beneficial to both students and companies, and this is currently not the case

Sector stakeholders recognize that internships are valu-able to both companies and job-seekers only if structured properly. Currently, internships tend to be too academic and relatively short ( i.e. fewer than six weeks ). Ensuring an internship’s alignment with the company’s core focus areas and a sufficient duration for the internship will con-tribute to the translation of internships into tangible work opportunities, and potentially also to the IP development of software firms.



Additional impetus is required to raise awareness in schools on the software development area as a viable career choice

There exists an important need to create awareness among students on the software development sector as a career choice. This can be done through national career guidance from form 3 or earlier, so students can access ample information to choose the field in which they want to specialise ( science, accounting, computer, art, etc. )

Also, there is a need for career guidance sessions to tar-get the parents as well as they are big influencers when it comes to decide the field in which they want their chil-dren to pursue.

� Severity : ● ● ● ● ○ � Value chain segment : Input � PoA reference : Activity 1.4.3

E-government initiatives – a potentially lucrative market for Mauritian firms – have been slow to get commissioned

E-government initiatives offer a significant market op-portunity for Mauritian software development firms. In re-cent years, select initiatives have been implemented in this area, and others including payment of traffic fines, car registration, etc. can follow. To translate this into ac-tion, a strong vision from the government is required. Additionally, inter-ministerial collaboration is essential since such initiatives typically involve workflow processes such as bi-directional information sharing and sequenc-ing of activities. Therefore it is important to getting the green light quickly on such initiatives.

� Severity : ● ● ● ● ○ � Value chain segment : Market side � PoA reference : Activity 1.3.1, 3.1.3

Software development is not treated as a separate growth pillar on the economy and is instead aggregated together with BPO

There are no separate statistics collected for software development, which hinders decision making for the sub-sector as well as points to the high degree of aggregation of the overall ICT sector. The sector is also not as visible compared with the BPO sector owing to its small size and overall aggregation with other segments of the ICT sec-tor. Software development sector firms have expressed an interest in a separation in terms of information collec-tion as well as policy development, so that the sector can develop in its own right. With separation in terms of policy, information and other dimensions, focused interventions can be developed for the subsectors.

� Severity : ● ● ● ● ○ � Value chain segment : Business Environment � PoA reference : Activity 1.2.1, 2.3.2, 2.3.3, 2.3.4

Conversion programme designed to allow non-IT based individuals interested in transitioning to the software development sector need to be promoted better

Better coordination with industry associations and the private sector is required so training is aligned better with the requirements.

Communication about the conversion programme is needed both from NCB and other institutions so it can be provided to interested candidates. NCB has already signed an agreement with the MCB to diffuse information about the various IT-conversion programmes available. The problem is that this medium may not be effective as many youngsters do not watch national television. As a solution, this information needs to be communicated through a variety of channels including social media.

Additionally, there is a need to review the tenets of the Graduate Training for Employment Scheme ( GTES ) pro-gramme ( http ://gtes.hrdc.mu/ ). Training institutions par-ticipating in this scheme are required to sign on under the condition that they do not make any profits, which render the scheme untenable for private training centres.

� Severity : ● ● ● ○ ○ � Value chain segment : Business Environment � PoA reference : Activity 1.4.2

Alternative models for skills development such as on-the-job training programme need to be employed

While the skills mismatch issue is real and will take time to resolve, other avenues for skills development need to be employed as well. For instance, there is the need for com-panies to invest in the training of their own staff and not rely only on academic institutions to churn out trainees. As the capabilities in the sector grow, on-the-job training programmes would need to gain prominence especially given that the alignment between training institutions and the private sector will materialize only in the medium-long term.

� Severity : ● ● ● ○ ○ � Value chain segment : Business Environment � PoA reference : All activities in ○perational ○bjective

1.2

http://gtes.hrdc.mu/


MITIA’s visibility and portfolio of service offerings need to be improved

There is an important need for raising visibility of MITIA as the key representative body for the sector. Alongside, a set of robust and value-added services for members must be developed. Currently, the association is well-regarded but services are underdeveloped owing to financial con-straints and dedicated support. MITIA is driven by volun-teers and not structured through a dedicated secretariat. The role of MITIA as the normative representative body for the sector must be strengthened and made more visible.

� Severity : ● ● ● ● ○ � Value chain segment : Business Environment � PoA reference : Activity 1.1.2

Access to finance is a significant impediment for sector enterprises

Access to finance is a challenge for the small-sized en-terprises, which, apart from struggling to close business deals, are not in a good position to provide adequate physical collateral to banks. Enterprises also note that the financial instruments available are inadequate for the requirements of the sector.

� Severity : ● ● ● ● ○ � Value chain segment : Business Environment � PoA reference : Activity 2.2.1, 2.2.2, 2.2.3, 2.2.4, 2.2.5

MARKET-SIDE CONSTRAINTS

The key market-side constraints include the following :

1. The domestic market needs to be developed further and made accessible for Mauritian Software firms

2. Poor use of market intelligence and research for opportunities in target markets is a significant gap

3. Productivity and marketing skills of enterprises are weak4. Increase in market guidance and support required for SMEs

The domestic market needs to be developed further and made accessible for Mauritian Software firms

The domestic market offers significant potential for soft-ware firms in terms of developing customized software and tailored solutions. This potential is currently under-used. For instance, the financial industry alone could serve as a strong market where, instead of each financial firm buying their own software from an international pro-vider, the same software can be built in Mauritius itself and tailored to their needs. This can be applied to other sectors as well, e.g. government, retail, tourism, etc. The public, tourism, finance, manufacturing, and medical de-vices sectors have been identified as having special po-tential. These sectors are relatively unaware of the benefit of tying up with the local IT sector and the developed ca-pabilities in the sector.

The government needs to ensure that local firms are pro-vided adequate stimulus through government tenders where a mix of incentives and regulations promote part-nership between international firms that can win bids and subcontract certain project components to local firms.

� Severity :● ● ● ● ● � Value chain segment : Market Side � PoA reference : Activity 1.1.1, 1.1.3, 1.3.1, 3.1.1, 3.1.2,

3.1.3, 3.1.4, 3.1.5

Poor use of market intelligence and research for opportunities in target markets is a significant gap

The majority of Mauritian software firms do not have the expertise, or made the required investments in research-ing international markets. As a result, they lose out on potential bids and opportunities to expand their geo-graphical reach. The root cause is owing to the focus on the domestic market and the capacity gap for conducting continuous market research.


Weak market intelligence and in-market support in target markets is an important obstacle to overcome. Lack of market information and market surveys makes it chal-lenging for exporters to increase penetration in these mar-kets. Although Mauritius has a relatively robust institutional presence in regional trading blocs such as SADC and COMESA, there is significant scope to improve on this for the software sector.

� Severity : ● ● ● ● ○ � Value chain segment : Input � PoA reference : Activity 1.1.1, 3.2.2, 3.2.6, 3.2.6

Productizing and marketing skills of enterprises are weak

Mauritian software firms are good at developing software but are not good at productizing/standardizing/market-ing the offer to clients. Different sets of competencies are needed. For a software solution to become ready to be marketed and distributed more generally it requires a different level of completion of the solution in terms of documentation, finishing and testing as well as real mar-keting materials and a proper distribution channel of sorts.

These things are out of reach of most SME software de-veloped in the market currently.

� Severity : ● ● ● ○ ○ � Value chain segment : Input � PoA reference : Activity 1.1.1, 2.1.3, 3.2.4, 3.3.2

Increase in market guidance and support required for SMEs

As the supply capacities of the sector enterprises in-crease, the market side will also need to be proportion-ately improved. There exists an important requirement for SMEs to get more in-market support and business-development exposure in key international markets. The guided in-market support would need to take the shape of facilitated B2B sessions, increased participation in trade shows, and increased assistance by Mauritian consular and trade representations.

� Severity : ● ● ● ● ● � Value chain segment : Input � PoA reference : Activity 1.1.1, 1.3.1, 2.2.4, 1.3.3, 2.1.3,

3.2.1, 3.2.2, 3.2.3, 3.2.5, 3.2.6

DEVELOPMENT-SIDE CONSTRAINTS

The key development-side constraints include the following :

1. Young Mauritians are not keen to pursue a career in software development 2. Gender disparity exists in the Mauritian labour market and extend to the IT sector

Young Mauritians are not keen to pursue a career in software development

A perception of limited job opportunities in the software development space has contributed to a limited num-ber of graduates opting for software engineering techni-cal area. Also, given the relatively significant presence of BPO activities in Mauritius, the software development and BPO subsectors are frequently lumped together de-creasing the visibility for the software development space. Thus, to get more young Mauritians interested in software development, there is a need to inform and educate job and degree seekers on the opportunities and potential in this sector.

� Severity : ● ● ● ● ○ � Value chain segment : Input � PoA reference : Activity 1.2.2, 1.2.3

Gender disparity exists in the Mauritian labour market and extend to the IT sector

Gender disparities are prevalent in the Mauritian labour market evidenced through indicators such as the unem-ployment rates ( female unemployment at 12.2 % in 2013 compared with 5.3 % for males ) and activity rates ( 45.5 % for women vs. 75.1 % for men ). Anecdotal evidence also suggests that a significant percentage of qualified female professionals ( with a secondary or tertiary education do not seek employment ). As a services sector which typi-cally enjoys high level employment of both male and fe-male across the world, the software development field in Mauritius will need to spur employment opportunities for women and in doing so offset the skills gap in the sector.


19THE WAY FORWARD

THE WAY FORWARD

VISION

Reinventing the mauritius software-development indus-try implied the following vision has been selected for the strategy :

To achieve the vision, a strategic plan of action has been defined for the sector. The PoA consists of three high-level strategic objectives that contain multiple operation-al-objectives. Operational-objectives in turn contain sets of activities which will be implemented. For each activity, key indicators in the form of priority level, implementa-tion period, beneficiary information, targets, implementa-tion partners ( lead and supporting ) and funding source ( where applicable ) are also indicated.

VisionA highly competitive sector driven

by innovation and excellence,renowed as a reference pointfor quality software products

and services

Strategic objective 2:

Enhance the operating businessans policy environment

for the Mauritian softwaredevelopment sector

Strategic objective 3:Develop capabilities for

penetrating and expandingin national and international

markets

Strategic objective 1:

Improve trust, maturityand innovation levels

in the sector


STRUCTURAL ADJUSTMENTS TO THE VALUE CHAINThe following key changes are expected in terms of struc-tural adjustments in the form of new, adjusted, or strength-ened linkages in the value chain :

key changes in terms of structural adjustments

1. Well-aligned academia and industry resulting in strong technical competencies in the sector

2. IT awareness training integrated across the school infrastructure

3. Increased number of high-quality training providers

4. Highly organized enterprises stewarded by a strong sector association ( MITIA )

5. Strong collaborative relationships of Mauritian subcontractors with international software firms

6. Increased awareness and interest cultivated among young Mauritians regarding the sector.

7. Comprehensive conversion programs support available for non-IT professionals to transition to the IT sector

8. Enhanced incubation and accelerator support for enterprises

9. Products are well-aligned and tailored to the current trends and requirements in select target markets

10. Increase in firms with internationally recognized certifications and compliance with standards

11. Increased diversity in the type of products offered12. Strong linkages and business relationships cultivated with

other economic sectors – particularly financial services, Tourism, and other MCE sub-sectors.

13. Strong consortium led ( MCE ) business-development and successful project delivery in target markets

14. Enhanced in-market support facilitated through government led Africa investments, B2B trade missions organized, and consulates and trade representation support

15. Robust branding and marketing for the software development sector

16. Disaggregated data collection for the software development sector conducted on a regular basis as a policy and information tool.

17. Improved access to finance through tailored financial solutions developed for the sector

18. Clear delineation established between BPO and software development segments regarding provision of services by public sector aimed at investment and trade promotion.

19. Policies and regulations in line with best-in-class examples in other countries

20. Robust institutional structures established for managing strategy implementation over the five-year timeframe

MARKETSThe sector’s market reach is expected to expand in line with growth in capabilities over time as sector firms gain increased experience and expertise. It is expected that market penetration – the mode where increased business development and existing client relationships lead to ex-pansion in existing markets − and product development – introduction of new products and services in existing markets − will be the key modes employed by firms to grow their businesses.

Over the medium-long term, it is expected that market-de-velopment ( where firms sell existing products and servic-es to new markets ) and full-diversification ( new products and services to new markets ) will increasingly take place. These two modes are understandably more difficult to navigate through, and require significant levels of exper-tise, effort and resources. With ramping-up operations by the MCE, and support by the government in areas such as the cyber city initiative in Ghana, it is expected that firms will have a supporting framework in place to use these modes.

An important pre-condition and success factor is that the strategy implementation takes place as planned and the policy support framework remains conducive to progress.

Short-term ( 0-2 years )

Domestic Market : The Mauritian market offers potential for companies, especially if they can develop relationships successfully with sectors including Tourism, Financial Services, manufacturing and others. The sector has re-cently gained cognizance on the need to combine forces through development of consortiums that would bid to-gether for projects. A key success factor will be marketing and fostering a willingness from companies to buy from the local software development firms. The financial ser-vices industry has an ingrained tendency to look overseas for solutions without considering local players and if a strong value proposition is offered – backed by solid de-livery − this sector alone could offer strong potential. For instance, the few wealth management software systems available globally are expensive and Mauritian firms have proposed the development of a local version that could be proposed to clients in Mauritius.

21THE WAY FORWARD

Aside from the private sector, the government is also expected to ramp up procurement services for e-gov-ernment services, workflow ( information flow ) between ministries and other aspects. The e-government initiative has been stalled to some extent and a restart of procure-ment activities is expected in the near future.

Africa à Ghana : Mauritius has followed the Singapore model of government-led investments in countries which in turn can lead to business opportunities for national firms in a variety of sectors, organized as a consortium/clustering set up. Through a recent initiative in Mauritius, a number of sub-clusters have been organized along prod-uct and services clusters aggregated to the MCE. ICT is one of the services clusters and through the govern-ment’s decision to invest in Ghana, the software industry will follow in a clustering setup to bid for projects related to the development of a cyber city and other initiatives in the government’s portfolio. Firms within the cluster will organize sub-contracting, project management and other necessary roles. To realize these opportunities, it will be essential to ensure good coverage, build a proper sales pipeline and channel and ensure correct delivery of services and projects so that a robust track record can be generated.

Medium-Long term ( 2-5 + years )

Africa : Africa holds great potential for Mauritian software firms in view of the rate of growth of the market as well as alignment with Mauritius’ stated ambition of becoming the Gateway to Africa for investment and business. Mauritian firms can cater to both French-speaking and English-speaking Africa, thus having a comparative advantage.

Oracle-based public sector solutions, ranging from ERP, public administration tools, work-process automations, crime occurrence Tracking System, software for registering companies et care , gaining speed in the African market.

Project services – involving a gamut of services including niche packaged products, data capture tools and custom developed software – is an attractive tender-based seg-ment with potential for both the public and private sector. Mobile applications are also a rising segment owing to the high level of smart-phone proliferation. Accounting software also has increasing potential.

According to an assessment conducted by NCB, Ethiopia and Rwanda are target countries holding potential in the immediate term, while medium-term candidates include Uganda, Tanzania, Zambia, Angola, Malawi, Lesotho and Zimbabwe. These target markets need to be investigated further and explored on a case-by-case basis.

In the French speaking part of Africa, mainly on the west coast, Senegal and Ivory Coast also hold potential for Mauritian firms in the medium-long term. Mozambique is especially relevant considering the close economic ties with Mauritius, although the language barrier is expected to pose challenges.

Developed Economies : In the long term, Mauritian firms are expected to be able to penetrate the USA and European markets ( in particular the United Kingdom and France ) among developed economies. The main route to market is expected to be IT outsourcing through ABAP, JAVA programming, as well as potentially mobile phone applications development. Outsourcing is gaining pace in most developed economies and offers a significant opportunity for business.

Photo: (cc) pixabay


Box 1 : Typical evolution path of a software-development sector

The figure below indicates the typical evolution path of the software development sec-tor along the twin dimensions of Value-addition ( Y axis ) and time ( X axis ). The level of value addition is usually directly proportional to the maturity level of the sector. Typically, operators start out with low value added ( and lower revenue generating ) services such as Data Entry services followed by Software / IT services for the domestic and then inter-national markets in line with increasing competencies and experience levels. The growth path then extends to products – first for the domestic market, and thereafter for exports.

This is the case exemplified in leading countries in the sector such as India. This growth trajectory may somewhat be different for SIDS such as Mauritius where domestic and international market penetration may occur in parallel to some extent owing to the small domestic market size and a high degree of cognizance among companies on the need to expand to bigger markets.

Source : adapted based on image in ( UNCTAD, 2012 )

THE FUTURE VALUE CHAINThe future value chain reflects the expected impact stem-ming from implementation of the PoA activities over the next five years. The implementation of these activities will lead to a future state that is characterized by greater com-petitiveness across the value chain. As indicated in figure 6, the targeted efforts detailed in the PoA address the constraints identified in the four gears analysis as well as specific opportunities in target markets and product diversification.

A diverse range of actors and enabling conditions con-stitute the national software ecosystem in a successful sector. The broad range of actors included in such an ecosystem includes individual firms, software associa-tions, academia, developer community groups ( as well as individual developers ), and software users. The complex set of interactions between these groups informs the level

of coordination, collaboration, product development and innovation that is occurring.

Enabling conditions include a robust vision coupled with enabling strategies and policies that foster cooperation, innovation, ease of doing business and other necessary factors. Policies include legal framework for conducting business operations and investments in the sector. The ecosystem must also by necessity involve global linkages with partners and consumers beyond the national borders.

The scope for improvements is immense and extends across the value chain. In some cases the scope involves strengthening of existing linkages as well as creation of new linkages and process flows. Market development will also be a focus area, aimed at developing domestic mar-kets as well as other key market segments.

23THE WAY FORWARD

Figure 6 : Future Value Chain


25THE WAY FORWARD

STRATEGIC OBJECTIVESStrategic objective 1 : Improve trust, maturity and innovation levels in the sector

The future state of the sector will be marked by a high degree of cohesiveness among sector enterprises stem-ming from ramp-up of activities of the MCE. The MCE aims to offset the inherent challenges associated with a small island developing state where the sector mainly comprises small-sized firms unable to bid successfully for large-sized projects. With additional sectors such as construction etc. involved in MCE, the value proposition to potential clients has increased significantly. With time and accumulated experience, individual firms will develop a robust track-record through subcontracts flowing through the MCE model, allowing them to develop stronger capa-bilities and scale up operations.

With sector growth, a strong industry association is es-sential. MITIA will be supported to adapt with sector re-quirements and will be in a stronger position to promote the sector, and provide value added services to member firms.

Over the strategy timeline, a variety of public-private part-nership models will ensure that the sector receives and makes adequate use of public sector support. This in-cludes the deployment of a ‘growth vouchers’ scheme that provides government-funded vouchers to select Mauritian firms in sectors that could potentially be clients of the Software Sector ( but the lack of prior experience prevents them from procuring from Mauritian software firms ). The end goal would be to incentivize and thereaf-ter spur procurement from software firms. Other forms of support will be the inclusion of the software Sector in the scope and mandate of MyBiz.

The activities under this strategic objective are also fo-cused on investment promotion activities that will bring in much required capital and best practices in the sector as well as improve the exposure of enterprises to inter-national markets.

Human capital is a core component of this strategic ob-jective and activities are aimed at overcoming the sig-nificant skills mismatch issue in the sector. Incubation support across the board will be provided – through na-tional level competitions and development / upgradation of incubation facilities − and is expected to result in the rise of a startup culture and increased innovation in the sector.

Strategic Objective 2 : Enhance the operating business and policy environment for the Mauritian software development sector

The activities contained in this strategic objective are grouped under three operational objectives : Rationalize policy and regulations to spur sector to align with in-ternational best practices, Develop innovative financial products meeting needs of sector operators, and im-prove Institutional Coordination in the sector and en-sure that structures are in place for efficient strategy implementation.

The future state of the sector will include an efficient busi-ness and policy environment for enterprises to ensure compliance and parity with existing global best practices, and to be able to function smoothly. The first operational objective is therefore focused on identifying ( and fixing ) areas of gap and improvement in policies and regulations.

To overcome the financial constraints faced by the rela-tively small sized-firms, the credit lending environment must be improved through the design and deployment of tailored products that fit the need of software SMEs.

To ensure sustainable implementation management of this five-year strategy, essential implementation structures such as a steering body and a supporting secretariat will be established and resourced. These entities will be re-sponsible for overseeing the prioritization, resource allo-cation, smooth implementation of activities of a strategic and operational level.

Strategic objective 3 : Develop capabilities for penetrating and expanding in national and international markets

One of the key insights gained through the strategy con-sultations was that enterprises across the board need to improve their outreach and business development exper-tise in the domestic as well as the international markets. At the same time, potential buyers need to be sensitized to the value proposition of the sector.

The operational objectives falling under this strategic ob-jective are : Develop the domestic market as a driver of competitiveness, Develop strong enterprise level busi-ness development capabilities, and improve the brand for the sector to develop market awareness and make buyers trust the Mauritian value proposition.

Proposed activities include holding demonstration days for potential buyers in non-IT sectors ( such as finance, healthcare etc. ) to explore procurement opportunities with Mauritian firms. Scaling up of the e-government initiative – connecting ministries and public institutions through a workflow, deploying government services such as pay-ments online etc. – will also offer a market.


To assist the sector in developing a strong brand – surveys to understand target market requirements better, brand-ing/marketing campaigns, coordination with consulates and named-contacts, development of a yellow book for the sector and other mechanisms will be employed.

CRITICAL CONDITIONS FOR STRATEGY SUCCESS

The following are necessary conditions for the strategy implementation to succeed :

1. Consistent focus and support by the government : The government will need to play an important and consistent role in two aspects – facilitating an enabling business and policy environment for software firms, and leveraging official procurement for developing a functioning market for Mauritian firms. E-government initiatives will need to be ramped up, and Mauritian firms must be according special incentives and quo-tas. Without this support, small firms and startups will find it extremely difficult to gain a foothold in the mar-ket and gain experience.

2. Robust implementation management framework in place :A robust implementation management framework will be essential for sustainability of strategy imple-mentation, not only for this sector but the entire NES portfolio. This would include a public-private steering committee that meets regularly to discuss progress of the strategy implementation. The committee would be supported by an operational secretariat for managing the day-to-day details. Essential tasks would include resource mobilization, project tracking, report genera-tion etc. In the absence of structures such as these, the focus may deviate to other matters and therefore the key consideration will be the implementation of a management framework for the entire NES strategy.

3. Improved enterprise trust levels leading to fruitful collaboration : Enterprises will find it difficult to ‘go-it-alone’, given the tough competition from established sectors in coun-tries like India, the small size of Mauritian enterprises which makes it difficult to win bids, and the lack of established cooperation between firms which inhib-its innovation. In the future, this status-quo will need to change and levels of trust, and collaboration will need to improve. To a large extent, MCE activities will lead to increased collaborative activity out of neces-sity as firms will need to subcontract and work with each other to complete their components. MITIA will also need to play a stronger role in fostering improved collaboration among firms.

4. Steady pipeline of candidates seeking to pursue the IT profession :The IT sector does not attract sufficient talent and there is a high degree of brain drain stemming from trained professionals leaving the country. In the me-dium-long term, this trend will need to be reversed. As an intellectually driven skills-intensive sector, soft-ware development field will require adequate numbers of professionals trained in a variety of software skills made available. This will ensure competitiveness and innovation.

5. Political and economic stability in key markets :Stability in key target markets is an obvious prereq-uisite for maintaining client relationships, whether in developing countries which face both economic and political risk factors as well as developed countries where recent economic downturns have led to disrup-tions. Iterative growth – building on and strengthening existing relationships – will be an essential model for software firms and this can happen only when markets are stable and growing.

CONCLUSION

The Mauritian software development sector will need to embrace significant challenges, in a quickly evolving op-erating environment both within target client countries as well as within competitor economies that are strong in the sector. Strong implementation management of the strat-egy over the five-year timeframe coupled with improve-ments across the supply-side, business-environment and market-development dimensions will serve to ensure that the sector can maintain strong rates of growth. The future is bright and definitely achievable.

Photo: (cc) pixabay

MAURITIUS

RODRIGUESMauritius

Mad

agas

carAFRICA

IndianOcean

IndianOcean

MAURITIUS NATIONAL EXPORT STRATEGY

SOFTWARE DEVELOPMENT SECTOR

PLAN OF ACTIONThe following five-year strategic plan of action ( PoA ) con-stitutes the implementation framework for this strategy. The PoA comprised Strategic Objectives, which are ag-gregated through multiple Operational Objectives and each operational objective has several activities. For each

activity, key indicators in the form of priority level, imple-mentation period, beneficiary information, targets, imple-mentation partners ( lead and supporting ) and funding source ( where applicable ) are also indicated.

28 MAURITIUS NATIONAL EXPORT STRATEGY – SOFTWARE DEVELOPMENT SECTOR• 2017 – 2021St

rate

gic

obje

ctiv

e 1 :

Impr

ove

trust

, mat

urity

and

inno

vatio

n le

vels

in th

e se

ctor

Ope

ratio

nal

obje

ctiv

eAc

tiviti

esPr

iorit

y1=

high

2=m

ed3=

low

Impl

emen

tatio

n pe

riod

Bene

ficia

ries

Targ

ets

Lead

im

plem

ente

rSu

ppor

ting

impl

emen

ters

Poss

ible

fu

ndin

g so

urce

2017

2018

2019

2020

2021

1.1

Impr

ove

inst

itutio

nal

colla

bora

tion

and

trust

leve

ls

1.1.

1 Pr

ovid

e wi

de-r

angi

ng s

uppo

rt to

MCE

ove

r a m

ulti-

year

per

iod

»Re

gula

tory

app

rova

ls

»Or

gani

zatio

nal s

uppo

rt »Ad

viso

ry s

uppo

rt »In

itial

bus

ines

s de

velo

pmen

t sup

port

to s

pur m

omen

tum

by

gove

rnm

ent

1

MCE

and

Se

ctor

Firm

sRo

lling

sup

port

prov

ided

by

gov

ernm

ent

Min

istry

of

ICT

Min

of F

inan

ce

1.1.

2 Pr

ovid

e pro

fess

iona

l adv

ice t

o M

ITIA

on

expa

ndin

g/re

finin

g op

erat

ions

. Are

as in

clud

e : »Aw

aren

ess

of M

ITIA

am

ong

Mau

ritia

n co

mpa

nies

and

out

side

Mau

ritiu

s. Im

prov

ed

mar

ketin

g in

clud

ing

the

laun

ch o

f a s

ecto

r mag

azin

e. »Po

tent

ial e

xpan

sion

of s

ecre

taria

t »Im

prov

emen

t in

colla

bora

tion

with

oth

er re

late

d se

ctor

ass

ocia

tions

suc

h OT

AM

3

MIT

IAAd

viso

ry s

uppo

rt fo

cuse

d on

inst

itutio

nal

deve

lopm

ent f

or M

ITIA

pr

ovid

ed b

y en

d-20

17

MIT

IA

1.1.

3 In

line

with

the

‘gro

wth

vou

cher

s’ s

chem

e pi

lote

d in

the

UK, c

omm

issi

on a

si

mila

r pilo

t pro

gram

me

for t

he M

aurit

ian

Softw

are

deve

lopm

ent s

ecto

r – sp

anni

ng o

ne

year − to facilitating greater penetration to the domestic market for sector firms. The

prog

ram

me

will

com

pris

e th

e fo

llowi

ng :

a. F

inan

cial

sup

port

( as

a fo

rm o

f sub

sidy

) to

pote

ntia

l cus

tom

er fi

rms

seek

ing

to te

st

and

cont

ract

sof

twar

e de

velo

pmen

t ser

vice

s fo

r the

ir co

re o

pera

tions

.b.

Mat

chin

g pr

ogra

mm

e to

con

nect

sof

twar

e se

rvic

e pr

ovid

ers

with

pot

entia

l clie

nts.

M

atch

ing

mec

hani

sms

will

incl

ude

an o

nlin

e pl

atfo

rm a

s we

ll as

an

in-p

erso

n gu

idan

ce

faci

lity.

c. R

igor

ous

mon

itorin

g an

d ev

alua

tion

mec

hani

sm im

plem

ente

d in

par

alle

l to

gaug

e sc

alab

ility

of s

uch

prog

ram

me,

and

to a

sses

s pr

iorit

y se

rvic

es w

ith h

igh

pote

ntia

l in

the

dom

estic

mar

ket.

2Q3

Sect

or fi

rms

Scop

e ex

tend

ed e

nd Q

3-20

16Gr

owth

vou

cher

s sc

hem

e la

unch

ed Q

3 20

16

Min

of

Busi

ness

and

Co

oper

ativ

es

Sect

or

Asso

ciat

ions

1.2

Spur

bu

sine

ss

incu

batio

n an

d en

trepr

eneu

rshi

p in

the

sect

or

1.2.

1 Ex

tend

the

scop

e of

the

One-

Stop

-Sho

p ( M

YBiz

) to

the

SW d

evel

opm

ent s

ecto

r as

a m

eans

to g

rowi

ng th

e se

ctor

.

2Q4

SMEs

in th

e So

ftwar

e De

velo

pmen

t se

ctor

Feas

ibili

ty o

f ext

endi

ng t

man

date

to d

evel

opm

ent

of s

oftw

are

woul

d be

ad

vise

d. S

cope

ext

ende

d to

Sof

twar

e De

velo

pmen

t se

ctor

by

end

2017

Min

istry

of

Busi

ness

, En

terp

rise,

an

d Co

oper

ativ

es

MCC

I

1.2.

2 Es

tabl

ish

and

cons

olid

ate

a na

tiona

l sof

twar

e co

mpe

titio

n th

at w

ill a

im to

iden

tify

prom

isin

g So

ftwar

e De

velo

pmen

t tal

ent :

»W

inne

rs o

f the

com

petit

ion

to b

e of

fere

d m

ento

ring

and

incu

batio

n su

ppor

t for

en

trepr

eneu

rial a

ctiv

ity.

»Co

mpe

titio

n to

be

wide

ly m

arke

ted

and

adve

rtise

d to

gen

erat

e en

thus

iasm

. »Jo

int s

pons

orsh

ip b

y th

e pr

ivat

e an

d pu

blic

sec

tor.

2Q1

Prof

essi

onal

s in

the

sect

orFi

rst i

tera

tion

of th

e co

mpe

titio

n to

be

held

in

Q1 2

017

NCB

Min

istry

of I

CT

1.2.

3 Es

tabl

ish

a ne

twor

k of

incu

bato

r fac

ilitie

s fo

r the

sec

tor t

hat w

ill b

e pu

blic

ly

fund

ed b

ut p

rivat

ely

man

aged

: »Co

-loc

atio

n of

firm

s to

pro

mot

e ex

chan

ge o

f ide

as »Ph

ysic

al c

o-lo

catio

n of

firm

s th

at c

olla

bora

te w

ith e

ach

othe

r Ex

plor

e ex

pand

ing

the

scop

e of

the

Incu

bato

r in

Eben

e to

bro

ader

Sof

twar

e De

velo

pmen

t

2

Sect

or fi

rms

Feas

ibili

ty s

tudy

to

asse

ss e

xpan

sion

opt

ions

co

mpl

eted

by

mid

-201

7

NCB

Min

istry

of I

CT

1.3

Spur

In

vest

men

t pr

omot

ion

in th

e se

ctor

1.3.

1 Ad

voca

te fo

r a c

laus

e fo

r inv

olvi

ng lo

cal i

ndus

try ( 3

0 % o

f tot

al c

ost )

in la

rge

gove

rnm

ent p

rocu

rem

ent i

nitia

tives

won

by

inte

rnat

iona

l firm

s.

a. In

volv

emen

t to

incl

ude

know

ledg

e an

d ex

perti

se tr

ansf

er a

spec

ts w

here

pos

sibl

e,b.

Advo

cacy

to re

sult

in p

ossi

ble

amen

dmen

t of p

rocu

rem

ent a

ct.

1Q3

Sect

or F

irms

Amen

ded

proc

urem

ent

Act

Min

istry

of

Fina

nce

and

Min

. of T

CI

MIT

IA&

Indu

stry

As

soci

atio

ns

29PLAN OF ACTIONSt

rate

gic

obje

ctiv

e 1 :

Impr

ove

trust

, mat

urity

and

inno

vatio

n le

vels

in th

e se

ctor

Ope

ratio

nal

obje

ctiv

eAc

tiviti

esPr

iorit

y1=

high

2=m

ed3=

low

Impl

emen

tatio

n pe

riod

Bene

ficia

ries

Targ

ets

Lead

im

plem

ente

rSu

ppor

ting

impl

emen

ters

Poss

ible

fu

ndin

g so

urce

2017

2018

2019

2020

2021

1.3

Spur

In

vest

men

t pr

omot

ion

in th

e se

ctor

1.3.

2 De

linea

te c

lear

sep

arat

ion

of re

spon

sibi

litie

s an

d bu

dget

s be

twee

n EM

, BOI

, and

ot

hers

rela

ted

to IC

T ( a

nd B

PO ) e

xpor

t pro

mot

ion

and

inve

stm

ent r

espe

ctiv

ely.

PMO

to m

edia

te a

nd d

efin

e cl

ear s

epar

atio

n of

resp

onsi

bilit

ies.

1

Q3Ov

eral

l sec

tor

Clea

rly d

elin

eate

d re

spon

sibi

litie

s by

Q3-

2016

PMO

1.3.

3 Fa

cilit

ate

mat

ch-m

akin

g ev

ents

with

fore

ign

inve

stor

s an

d ve

ntur

e ca

pita

lists

–

who

may

be

inte

rest

ed in

usi

ng th

e Ga

tewa

y to

Afri

ca v

alue

pro

posi

tion

that

Mau

ritiu

s of

fers

2

Over

all s

ecto

rDe

lega

tions

/Mis

sion

s to

be

pla

nned

on

a ro

lling

ba

sis

NCB

PMO

Min

istry

of

Fina

nce

Min

istry

of I

CT

1.4

Impr

ove

hum

an c

apita

l an

d ta

lent

re

tent

ion

in th

e se

ctor

1.4.

1 Co

nduc

t a c

ompr

ehen

sive

ski

lls g

ap a

naly

sis

for t

he s

ecto

r bet

ween

th

e na

tiona

l inf

rast

ruct

ure

( sup

ply

of h

uman

cap

ital )

and

dem

and

for s

oftw

are

deve

lopm

ent s

kills

by

com

pani

es.

The

anal

ysis

will

cov

er th

e fo

llowi

ng a

spec

ts :

a. Le

vel o

f alig

nmen

t of e

xist

ing

curri

culu

ms

at u

nive

rsiti

es a

nd v

ocat

iona

l tra

inin

g in

stitu

tes

in re

latio

n to

ski

lls in

dem

and

by th

e pr

ivat

e se

ctor

,b.

Qual

ity o

f cur

ricul

ums

in c

ompa

rison

with

bes

t-in

-cla

ss e

xam

ples

from

oth

er

coun

tries

incl

udin

g In

dia,

c. Q

ualif

icat

ions

of t

each

ing

staf

f and

rela

ted

skill

s/ex

perti

se g

aps,

d. Qu

ality

of p

lace

men

t ser

vice

s at

uni

vers

ities

, e.

Equi

pmen

t, so

ftwar

e de

ficie

ncie

s at

inst

itutio

ns.

Reco

mm

enda

tions

will

incl

ude :

a. En

umer

ated

tech

nica

l ski

lls o

n th

e de

man

d si

de ( e

nter

pris

es ) a

nd s

uppl

y-si

de

( tech

nica

l ins

titut

ions

/ ins

truct

ors )

whi

ch c

onst

itute

a c

urre

nt g

ap

and

need

to b

e bo

oste

d,b.

Spec

ific

area

s of

cur

ricul

ums

upda

te,

c. So

ftwar

e an

d Ha

rdwa

re re

quire

men

ts in

inst

itutio

nsd.

Impr

oved

mec

hani

sms

for p

lace

men

t ser

vice

s

2

Sect

or fi

rms

Gap

anal

ysis

to b

e co

mpl

eted

, dis

sem

inat

ed

by e

nd-Q

2 20

16 a

nd

reco

mm

enda

tions

di

ssem

inat

ion

to k

ey

publ

ic a

nd p

rivat

e se

ctor

en

titie

s

HRDC

TEC

Indu

stry

as

soci

atio

nsM

QA

Voca

tiona

l in

stitu

tions

Univ

ersi

ties

MOE

Natio

nal

Budg

et

1.4.

2 En

hanc

e co

nver

sion

pro

gram

me

for t

rain

ing

non-

IT g

radu

ates

in

to IT

fiel

ds to

dev

elop

dep

loya

ble

IT-b

ased

ski

llset

s. »Im

prov

e co

ordi

natio

n an

d in

form

atio

n di

ssem

inat

ion

betw

een

diffe

rent

pro

gram

me

( bet

ween

pro

vide

rs-in

dust

ry a

s we

ll as

pro

vide

rs- t

rain

ees )

thro

ugh

sche

dule

d ro

undt

able

s be

twee

n th

e di

ffere

nt p

rogr

amm

es. V

ario

us p

rogr

amm

es in

pla

y in

clud

e GT

ES p

rogr

amm

e by

HRD

C, M

ITIA

, Cer

idin

, ICT

aca

dem

y. »Re

view

HRD

C re

gula

tions

on

train

ing

prov

ider

s be

ing

limite

d to

gen

erat

e pr

ofits

.

1

Non-

IT

grad

uate

s se

ekin

g to

tra

nsiti

on to

th

e IT

sec

tor

Roun

dtab

le e

stab

lishe

d by

end

-Q2

2016

HRDC

NCB

and

vario

us

prov

ider

s an

d in

stitu

tions

pr

ovid

ing

serv

ices

1.4

Impr

ove

hum

an c

apita

l an

d ta

lent

re

tent

ion

in th

e se

ctor

1.4.

3 De

velo

p an

awa

rene

ss b

uild

ing

cam

paig

n to

reac

h ou

t to

stud

ents

in S

econ

dary

Sc

hool

( For

m 3

) to

expo

se th

em to

opp

ortu

nitie

s in

the

IT s

ecto

r : »Po

tent

ially

use

exi

stin

g m

echa

nism

s su

ch a

s ac

tivity

per

iods

and

car

eer d

ays

»Re

-intro

duce

the

care

er c

ouns

ello

rs’ r

ole

in s

choo

ls to

spr

ead

info

rmat

ion

on

car

eer o

ppor

tuni

ties

in th

e se

ctor

. »In

form

atio

n da

ys fo

r par

ents

and

stu

dent

s »Ca

mpa

ign

to b

e ba

cked

up

by a

n ad

verti

sing

and

com

mun

icat

ion

stra

tegy

. »Al

ign

with

exi

stin

g pr

ogra

mm

e le

d by

ME.

1

Stud

ents

Sect

or fi

rms

Cam

paig

n de

ploy

ed b

y en

d-Q3

Min

istry

of

Educ

atio

nSe

ctor

As

soci

atio

nsM

inis

try o

f La

bour

M

inis

try o

f TCI


rate

gic

obje

ctiv

e 1 :

Impr

ove

trust

, mat

urity

and

inno

vatio

n le

vels

in th

e se

ctor

Ope

ratio

nal

obje

ctiv

eAc

tiviti

esPr

iorit

y1=

high

2=m

ed3=

low

Impl

emen

tatio

n pe

riod

Bene

ficia

ries

Targ

ets

Lead

im

plem

ente

rSu

ppor

ting

impl

emen

ters

Poss

ible

fu

ndin

g so

urce

2017

2018

2019

2020

2021

1.4

Impr

ove

hum

an c

apita

l an

d ta

lent

re

tent

ion

in th

e se

ctor

1.4.

4 Im

plem

entin

g in

dust

ry in

tern

ship

s an

d en

d of

yea

r pro

ject

s in

col

labo

ratio

n wi

th

the

indu

stry

»Lo

bby

Terti

ary

Inst

itutio

ns –

thro

ugh

a po

sitio

n pa

per d

evel

oped

by

sect

or

associations − to allow/mandate students to work on end of year projects with

ente

rpris

es a

s a

mea

ns fo

r stu

dent

s to

gai

n in

dust

ry e

xper

ienc

e,

and

for c

ompa

nies

to a

sses

s an

d id

entif

y po

tent

ial h

ires.

»De

velo

p co

oper

ativ

e pr

ogra

mm

e th

at a

re in

tegr

ated

in th

e cu

rricu

lum

s

of th

e in

stitu

tions

so

that

stu

dent

s ha

ve a

n op

portu

nity

to re

ceiv

e in

dust

ry

expe

rienc

e. C

oop

prog

ram

-me

to b

e in

tegr

ated

with

in th

e sc

hool

cur

ricul

ums.

2Q1

Sect

or F

irms

Stud

ents

Posi

tion

pape

r writ

ten

and

shar

edIm

plem

enta

tion

at k

ey

univ

ersi

ties

TEC

Sect

or

asso

ciat

ions

( M

CCI,

MIT

IA,

OTAM

)

1.4.

5 Pr

ovid

e su

ppor

t to

the

newl

y es

tabl

ishe

d IC

T ac

adem

y in

boo

stin

g te

chni

cal

capa

citie

s : »En

sure

that

the

acad

emy

can

issu

e vo

uche

rs a

nd in

tern

atio

nally

acc

epte

d ce

rtific

atio

ns to

stu

dent

s. »Co

urse

add

ition

s ba

sed

on o

utco

mes

of r

egul

ar in

dust

ry/a

cade

mia

/pub

lic s

ecto

r ro

undt

able

s.Ac

adem

y to

leve

rage

exi

stin

g ce

rtifie

d co

urse

s, w

here

pos

sibl

e, p

rovi

ded

by M

aurit

ian

and

Inte

rnat

iona

l pro

vide

rs in

the

coun

try, r

athe

r tha

n de

velo

ping

new

cou

rses

.

2Q3

ICT

Acad

emy

Prov

isio

n of

sup

port

to

the

acad

emy

NCB

Indu

stry

1.4.

6 In

vite

inte

rnat

iona

l exp

erts

from

inte

rnat

iona

l col

labo

rativ

e un

iver

sitie

s wi

th

a st

rong

Sof

twar

e De

velo

pmen

t tra

inin

g ba

se ( o

r con

tract

exi

stin

g ex

perts

in th

e co

untry

) to

assi

st M

aurit

ian

univ

ersi

ties

in a

ssis

ting

and

enha

ncin

g th

eir c

urric

ulum

s.

»Fe

edba

ck re

ceiv

ed fr

om th

e ou

tput

s of

act

ivity

1.1

.1 w

ill in

form

the

area

s of

upg

rade

. »Up

grad

ing

to b

e ac

com

pani

ed b

y co

mpr

ehen

sive

con

sulta

tions

with

the

priv

ate

sect

or.

»Pr

oces

s to

be

pilo

ted

in o

ne u

nive

rsity

and

sca

led

up b

ased

on

feed

back

. »Up

date

cur

ricul

ums

on a

yea

rly b

asis

to re

flect

fast

cha

nges

in te

chno

logy

2Q3

Univ

ersi

ties

offe

ring

IT

cour

ses

Pilo

t uni

vers

ity to

be

sele

cted

by

Q3 2

016.

T

ECSe

ctor

As

soci

atio

ns

1.4.

7 La

unch

inte

nsiv

e re

train

ing

cour

ses

for l

ectu

rers

to g

et re

-acq

uain

ted/

upgr

ade

thei

r ski

lls b

ased

on

upda

tes

in th

e se

ctor

. »Tr

aini

ng to

be

cond

ucte

d by

inte

rnat

iona

lly re

cogn

ized/

certi

fied

train

ers

curre

ntly

ac

tive

in M

aurit

ius

»Pr

actic

al h

ands

-on

train

ing

that

can

be

swift

ly in

tegr

ated

in e

xist

ing

curri

culu

m a

nd

that

»Gi

ven

the

cons

tant

flux

and

rapi

d ad

vanc

es in

the

sect

or, e

xplo

re w

heth

er th

is c

an

beco

me

a pe

riodi

c ac

tivity

. »Pr

ovis

ion

of fu

ndin

g gr

ants

to le

ctur

ers

to u

nder

take

this

pro

fess

iona

l dev

elop

men

t ex

erci

se.

Deve

lop

a cl

uste

r tra

inin

g ac

adem

ies

on th

e lin

es o

f Alb

ania

, Mac

edon

ia a

nd o

ther

s to

im

prov

e hu

man

cap

ital.

1

Lect

urer

s in

un

iver

sitie

s an

d tra

inin

g in

stitu

tes

Trai

ning

cou

rse

with

firs

t co

hort

laun

ched

in Q

4-20

16

TEC

&

Univ

ersi

ties

31PLAN OF ACTIONSt

rate

gic

obje

ctiv

e 2 :

Enh

ance

the

oper

atin

g bu

sine

ss a

nd p

olic

y en

viro

nmen

t for

the

Mau

ritia

n so

ftwar

e de

velo

pmen

t sec

tor

Ope

ratio

nal

obje

ctiv

eAc

tiviti

esPr

iorit

y1=

high

2=m

ed3=

low

Impl

emen

tatio

n pe

riod

Bene

ficia

ries

Targ

ets

Lead

im

plem

ente

rSu

ppor

ting

impl

emen

ters

Poss

ible

fu

ndin

g so

urce

2017

2018

2019

2020

2021

2.1

Ratio

naliz

e po

licy

and

regu

latio

ns to

sp

ur s

ecto

r to

alig

n w

ith

inte

rnat

iona

l be

st p

ract

ices

2.1.

1 Co

ntin

uous

ly e

xam

ine

and

ensu

re th

at D

ata

Prot

ectio

n Ac

tis in

line

with

EU

Dire

ctiv

es.

Advo

cate

for l

egis

latio

n to

be

enac

ted

for :

»So

ftwar

e In

dust

ry B

ill »El

ectro

nic

trans

actio

ns, m

obile

pay

men

ts ( N

CB ).

Com

mis

sion

a n

eeds

-ass

essm

ent s

tudy

rela

ted

to In

telle

ctua

l Pro

perty

Rig

hts

( IPR )

pr

otec

tion

cons

ider

atio

ns ( i

nclu

ding

cop

yrig

ht, t

rade

mar

ks, p

aten

ts, i

ndus

trial

des

ign

right

s et

c. ) i

n th

e se

ctor

. Th

e st

udy

will :

»As

sess

the

qual

ity o

f exi

stin

g ( if

any

) IPR

pro

tect

ion

mec

hani

sms

in M

aurit

ius

spec

ifica

lly p

erta

inin

g to

the

sect

or, i

nclu

ding

mon

itorin

g an

d en

forc

emen

t mea

sure

s, »Pr

ovid

e re

com

men

datio

ns a

t the

pol

icy

( reg

ulat

ions

), in

stitu

tiona

l ( m

onito

ring,

en

forc

emen

t, gr

ieva

nce

redr

ess )

, and

ent

erpr

ise

( awa

rene

ss b

uild

ing

on ri

ghts

and

re

spon

sibi

litie

s ) le

vels

.

2Q1

Inve

stor

sSe

ctor

firm

sSt

udy

com

plet

ed

by e

nd-2

016

Min

istry

of

ICT

( Wor

king

Gr

oup )

Data

Pro

tect

ion

Offic

e, In

dust

ry

2.1.

2 Re

duce

/ratio

naliz

e th

e ap

prov

al tu

rnar

ound

tim

e wi

th M

QA

to g

et tr

aini

ng

( cou

rses

) & tr

aine

r app

rove

d in

a ti

mel

y m

anne

r. Tr

acki

ng s

yste

m to

be

deve

lope

d to

ass

ess

stat

us o

f app

licat

ion.

2Q4

Trai

ning

co

mpa

nies

Turn

arou

nd ti

me

redu

ced

by e

nd-

2016

MQ

ASe

ctor

Ass

ocia

tions

2.1.

3 To

cov

er in

stitu

tiona

l sup

port

gap

for e

arly

sta

ge a

nd s

tart-

up c

ompa

nies

, exp

ort-

incu

bato

rs w

ill b

e de

velo

ped

and

aim

ed a

t com

pani

es s

eeki

ng to

exp

ort (

whi

le a

lso

focu

sing

on

the

dom

estic

mar

ket a

s a

grow

th m

echa

nism

). A

coho

rt sy

stem

will

be

esta

blis

hed

wher

ein

a ba

tch

of c

ompa

nies

will

be

sele

cted

th

roug

h an

app

licat

ion

prog

ram

me

and

indu

cted

for a

one

-two

yea

r inc

ubat

ion

cycl

e.

The

appl

icat

ion

proc

ess

will

invo

lve

a bu

sine

ss p

lan

com

petit

ion

amon

g ot

her c

riter

ia.

Supp

ort f

or in

duct

ed c

ompa

nies

will

invo

lve

the

follo

wing

: »Fi

nanc

ial s

uppo

rt,

»Of

fice

spac

e wi

th a

cces

s to

faci

litie

s in

clud

ing

com

pute

r equ

ipm

ent a

nd re

late

d ne

twor

k in

frast

ruct

ure,

prin

ting,

fax,

inte

rnet

, mee

ting

room

s, a

dmin

istra

tive

supp

ort,

»M

ento

ring

and

coac

hing

sup

port

thro

ugho

ut th

e m

atur

ity li

fecy

cle,

»In

-mar

ket s

uppo

rt th

roug

h cl

ient

mat

chin

g bu

sine

ss d

eleg

atio

ns e

tc.

2Q2

Pote

ntia

l sta

rt-up

ent

rant

s 1

Expo

rt In

cuba

tor t

o be

es

tabl

ishe

d by

Q2

201

7 wi

th

the

1st g

roup

of

indu

cted

firm

s.

Min

istry

of

TCI

In-m

arke

t sup

port

and

mar

ket

inte

llige

nce :

EM

, M

EXA,

MCC

IIn

stitu

tions

in

volv

ed in

the

tech

nica

l edu

catio

n sp

here

suc

h as

the

Min

istry

of T

ertia

ry

educ

atio

n, H

RDC,

NC

B Un

iver

sitie

s,

and

TVET

pr

ovid

ers.

2.2

Deve

lop

inno

vativ

e fin

anci

al

prod

ucts

m

eetin

g ne

eds

of s

ecto

r op

erat

ors

2.2.

1 Im

plem

ent a

sch

eme

to p

rovi

de fi

nanc

ial a

ssis

tanc

e to

loca

l com

pani

es fo

r the

de

velo

pmen

t of i

ntel

lect

ual p

rope

rly th

at w

ill re

side

in M

aurit

ius

and

with

the

pote

ntia

l to

be m

arke

ted

in ta

rget

mar

kets

. Sch

eme

to in

clud

e pr

ovis

ions

for t

he fo

llowi

ng :

1. T

ax c

redi

t – A

sup

er d

educ

tion

to o

ffset

inve

stm

ent i

nto

R&D

for a

num

ber o

f yea

rs.

MIT

IA w

hite

pape

r has

pro

pose

d 20

0 % d

educ

tion

over

thre

e ye

ars

for i

nves

tmen

ts

into

R&

D.2.

Fun

ding

opt

ions

for R

&D :

Thr

ough

pur

e gr

ant a

nd e

xten

ded

loan

faci

litie

s ba

sed

on th

e ex

istin

g M

yBiz

sche

me.

Pro

posa

l of p

er p

roje

ct o

ne-t

ime

gran

t up

to M

UR 1

m

illio

n wi

th th

e po

ssib

ility

of b

orro

wing

up

to a

dditi

onal

MUR

5 m

illio

n a

guar

ante

e in

the

deve

lope

d IP

. Exi

stin

g CR

IGS

sche

me

can

be a

dapt

ed a

nd p

rom

oted

to fi

t in

bette

r.3.

Ass

ista

nce

in p

rodu

ctizi

ng e

xist

ing

solu

tions

dev

elop

ed fo

r the

loca

l mar

ket.

Prop

osed

gra

nt w

ould

allo

w co

mpa

nies

to c

ontra

ct a

dvis

ory

serv

ices

for d

evel

opin

g a

mar

ketin

g pl

an fo

r the

pro

duct

invo

lvin

g bu

sine

ss d

evel

opm

ent,

and

esta

blis

hing

di

strib

utio

n ne

twor

k.4.

Pos

sibi

lity

of c

apita

lizin

g R&

D in

vest

men

t to

boos

t attr

activ

enes

s fo

r inv

esto

rs.

1Se

ctor

firm

sIn

tegr

ated

in th

e bu

dget

201

6-17

Min

istry

of

TCI

Min

of F

inan

ce,

Indu

stry

As

soci

atio

ns, M

ITIA

Natio

nal

Budg

et


rate

gic

obje

ctiv

e 2 :

Enh

ance

the

oper

atin

g bu

sine

ss a

nd p

olic

y en

viro

nmen

t for

the

Mau

ritia

n so

ftwar

e de

velo

pmen

t sec

tor

Ope

ratio

nal

obje

ctiv

eAc

tiviti

esPr

iorit

y1=

high

2=m

ed3=

low

Impl

emen

tatio

n pe

riod

Bene

ficia

ries

Targ

ets

Lead

im

plem

ente

rSu

ppor

ting

impl

emen

ters

Poss

ible

fu

ndin

g so

urce

2017

2018

2019

2020

2021

2.2

Deve

lop

inno

vativ

e fin

anci

al

prod

ucts

m

eetin

g ne

eds

of s

ecto

r op

erat

ors

2.2.

2 Ex

amin

e th

e su

cces

s ra

te o

f cur

rent

fina

ncin

g in

stru

men

ts in

clud

ing

the

Boos

ter

Mic

ro C

redi

t Sch

eme

for m

icro

and

sm

all p

roje

cts

and

the

Busi

ness

Dev

elop

men

t Sc

hem

e fo

r sm

all a

nd m

ediu

m p

roje

cts

put i

n pl

ace

by th

e M

au B

ank.

»An

alys

is to

iden

tify

root

cau

ses

prev

entin

g So

ftwar

e De

velo

pmen

t sec

tor f

irms

from

ac

cess

ing

prov

isio

n of

loan

inst

rum

ents

»Re

com

men

datio

ns to

gui

de ta

ilorin

g of

loan

inst

rum

ents

dev

elop

ed b

y M

au B

ank

for

the

sect

or.

2Q3

Sect

or F

irms

Anal

ysis

co

mpl

eted

by

end

Q3-2

016;

DBM

2.2.

3 Pr

omot

e th

e de

velo

pmen

t and

ava

ilabi

lity

of fi

nanc

ial p

rodu

cts

for e

xpor

ters

.a.

Poss

ibili

ty to

use

sig

ned

cont

ract

s / le

tters

of i

nten

t in

case

s wh

ere

tradi

tiona

l co

llate

raliz

atio

n is

diff

icul

t.b.

Use

of in

telle

ctua

l cap

ital r

athe

r tha

n ph

ysic

al a

sset

s as

col

late

ral

c. D

evel

op s

peci

alize

d lo

an in

stru

men

t for

the

sect

or –

with

focu

s on

deb

t fin

anci

ng

aim

ed a

t ena

blin

g gr

owth

and

exp

ansi

on.

Roun

dtab

le b

etwe

en le

nder

s an

d se

ctor

firm

s/as

soci

atio

ns to

kic

k-st

art s

take

hold

er-

driv

en e

xplo

rato

ry p

roce

ss fo

r dev

elop

ing

spec

ializ

ed in

stru

men

ts.

1Q4

Sect

or F

irms

Initi

al ro

undt

able

di

scus

sion

to b

e he

ld b

y en

d Q3

-20

16

Fina

ncia

l In

stitu

tions

+

Sec

tor

Asso

ciat

ions

Min

istry

of I

CT

2.2.

4 Ex

tend

ing

exis

ting

sche

mes

to re

gist

er fo

r fun

ding

( par

tial o

r ful

l ) to

atte

nd tr

ade

fairs

and

con

duct

B2B

mis

sion

s.

»Co

vera

ge to

be

exte

nded

»B2

B, In

divi

dual

mar

ketin

g fu

ndin

g, »Po

ssib

ility

of a

mou

nt to

be

incr

ease

d fro

m c

urre

nt le

vels

2Q3

Sect

or fi

rms

Fund

ing

sche

me

to b

e la

unch

ed

by Q

3 20

16

SMED

ABO

I, EM

, Min

of

Coop

erat

ives

, Min

. of

Fin

ance

2.2.

5 Es

tabl

ish

gran

ts ( b

ased

on

succ

essf

ul c

ertif

icat

ion )

for s

oftw

are

firm

s to

ben

efit

from

, to

acqu

ire s

tand

ards

and

cer

tific

atio

ns.

»Gr

ants

to c

over

ISO,

CM

MI,

IT M

ark,

ITIL

»Pa

rtial

to fu

ll re

fund

on

succ

essf

ul c

ertif

icat

ion

»Fu

nds

to b

e us

ed fo

r act

ual c

ertif

icat

ion

proc

ess

as w

ell a

s po

tent

ial c

onsu

lting

2Q1

Sect

or fi

rms

inte

rest

in

beco

min

g ce

rtifie

d

Gra

nts

prog

ram

me

to

be e

stab

lishe

d by

Q1

2017

NCB

Min

istry

of I

CT

2.3

Impr

ove

Inst

itutio

nal

Coor

dina

tion

in th

e se

ctor

an

d en

sure

th

at s

truct

ures

ar

e in

pla

ce

for e

ffici

ent

stra

tegy

im

plem

enta

tion

2.3.

1 In

stitu

tiona

lize

a fe

edba

ck lo

op b

etwe

en in

dust

ry, a

cade

mia

and

the

publ

ic s

ecto

r in

the

form

of a

ded

icat

ed ro

undt

able

pla

tform

that

mee

ts o

n a

regu

lar b

asis

, to

guid

e th

e sk

ills

deve

lopm

ent a

gend

a.

1. P

artic

ipan

ts to

incl

ude

indi

vidu

al fi

rms,

sec

tor a

ssoc

iatio

ns, u

nive

rsiti

es/tr

aini

ng

inst

itutio

ns a

nd th

e pu

blic

sec

tor.

2. R

ecom

men

datio

ns fr

om in

itial

ass

essm

ent s

tudy

to b

e us

ed a

s ba

sis

for i

nitia

l di

scus

sion

s.

1Q2

Sect

or fi

rms

Inst

itutio

ns

invo

lved

in

trai

ning

Hu

man

Cap

ital

for t

he s

ecto

r

Firs

t mee

ting

of

the

roun

dtab

le to

be

hel

d in

end

-Q

2014

6

Min

istry

of

ICT

Univ

ersi

ties

Sect

or F

irms

2.3.

2 En

hanc

e ca

pabi

litie

s of

Sta

tistic

s M

aurit

ius

to c

aptu

re d

etai

led

stat

istic

s re

late

d to

th

e so

ftwar

e de

velo

pmen

t sec

tor.

»Co

nven

e ro

undt

able

mee

ting

( thr

ough

feed

back

loop

est

ablis

hed

in a

pre

viou

s ac

tivity

) with

sec

tor s

take

hold

ers

and

Stat

istic

s M

aurit

ius

offic

ers

to u

nder

stan

d re

quire

men

ts a

nd fo

rmal

ize s

urve

y/da

ta c

olle

ctio

n m

echa

nism

s. »De

velo

p ca

pabi

lity

to p

rovi

de d

isag

greg

ated

dat

a be

twee

n BP

O an

d So

ftwar

e De

velo

pmen

t seg

men

ts.

»Fa

cilit

ate

onlin

e su

bmis

sion

of c

ompa

ny d

ata

to S

tatis

tics

Mau

ritiu

s

1Q4

Over

all s

ecto

rRo

undt

able

hel

d by

Q4

2016

Data

col

lect

ion

to

begi

n in

201

6

Stat

s M

aurit

ius

Min

istry

of T

CI

Min

istry

of F

inan

ceM

ITIA

33PLAN OF ACTIONSt

rate

gic

obje

ctiv

e 2 :

Enh

ance

the

oper

atin

g bu

sine

ss a

nd p

olic

y en

viro

nmen

t for

the

Mau

ritia

n so

ftwar

e de

velo

pmen

t sec

tor

Ope

ratio

nal

obje

ctiv

eAc

tiviti

esPr

iorit

y1=

high

2=m

ed3=

low

Impl

emen

tatio

n pe

riod

Bene

ficia

ries

Targ

ets

Lead

im

plem

ente

rSu

ppor

ting

impl

emen

ters

Poss

ible

fu

ndin

g so

urce

2017

2018

2019

2020

2021

2.3

Impr

ove

Inst

itutio

nal

Coor

dina

tion

in th

e se

ctor

an

d en

sure

th

at s

truct

ures

ar

e in

pla

ce

for e

ffici

ent

stra

tegy

im

plem

enta

tion

2.3.

3 Se

t up

( or n

omin

ate

exis

ting )

a s

hare

d So

ftwar

e de

velo

pmen

t sec

tor p

ublic

and

pr

ivat

e pl

atfo

rm, l

ed b

y th

e pr

ivat

e se

ctor

ope

rato

rs, b

oth

from

lead

firm

s, a

ssoc

iatio

ns,

incl

udin

g fo

reig

n in

vest

ors,

as

well

as S

MEs

to le

ad N

ES im

plem

enta

tion.

»Go

al w

ould

be

to p

lay

the

role

of a

n ex

port

prom

otio

n ag

ency

for t

he s

ecto

r as

well

as

serv

e as

an

umbr

ella

net

work

ing

plat

form

»Po

sitio

n th

e pl

atfo

rm a

s th

e pu

blic

-priv

ate

sect

or c

oord

inat

ing

body

to m

anag

e th

e im

plem

enta

tion

of th

e se

ctor

stra

tegy

und

er th

e NE

S.

1Q3

Over

all s

ecto

rPl

atfo

rm to

be

iden

tifie

d an

d es

tabl

ishe

d by

Q3

-201

6

MCE

Min

istry

of T

CIBu

dget

20

16/2

017

2.3.

4 Bu

ild c

apac

ity o

f the

sec

tor p

latfo

rm th

roug

h ta

rget

ed tr

aini

ng im

parte

d to

a s

mal

l se

cret

aria

t sta

ff to

coo

rdin

ate

and

mon

itor c

ompl

etio

n of

the

stra

tegy

’s a

ctiv

ities

and

to

mob

ilize

reso

urce

s re

quire

d fo

r im

plem

enta

tion

of th

e st

rate

gy.

The

plat

form

will

be

resp

onsi

ble

to m

obili

ze a

nd e

ngag

e im

plem

entin

g in

stitu

tions

ef

fect

ivel

y to

alig

n al

l dev

elop

men

t pol

icie

s to

the

softw

are

deve

lopm

ent s

trate

gy, a

nd

to id

entif

y ac

tiviti

es th

at fa

ll un

der t

heir

lead

ersh

ip a

nd p

lan

for r

equi

red

hum

an a

nd

finan

cial

reso

urce

s in

the

five

upco

min

g ye

ars.

1Q3

Natio

nal

Expo

rt Co

unci

l ( N

EC )

secr

etar

iat

Capa

city

bui

ldin

g tra

inin

g to

beg

in

in Q

3 20

16

NEC


rate

gic

obje

ctiv

e 3 :

Dev

elop

cap

abili

ties

for p

enet

ratin

g an

d ex

pand

ing

in n

atio

nal a

nd in

tern

atio

nal m

arke

ts

Ope

ratio

nal

obje

ctiv

eAc

tiviti

esPr

iorit

y1=

high

2=m

ed3=

low

Impl

emen

tatio

n pe

riod

Bene

ficia

ries

Targ

ets

Lead

im

plem

ente

rSu

ppor

ting

impl

emen

ters

Poss

ible

fu

ndin

g so

urce

2017

2018

2019

2020

2021

3.1

Deve

lop

the

dom

estic

mar

ket

as a

driv

er o

f co

mpe

titiv

enes

s

3.1.

1 Ho

ld IC

T de

mon

stra

tion

days

targ

etin

g ot

her e

cono

mic

sec

tors

for e

xplo

ring

and

expa

ndin

g lin

kage

s wi

th th

e en

d go

al o

f : »In

crea

sed

cros

s-se

ctor

al b

usin

ess

deve

lopm

ent f

or th

e so

ftwar

e de

velo

pmen

t sec

tor.

»jo

int p

rodu

ct/s

ervi

ce d

evel

opm

ent

Prom

inen

t can

dida

te s

ecto

rs in

clud

e go

vern

men

t ( e-

gove

rnan

ce, e

duca

tion

and

heal

th ) a

nd

busi

ness

sec

tors

suc

h as

fina

ncia

l ser

vice

s, to

uris

m, a

ccou

ntin

g an

d au

dit,

and

othe

rs.

1Q4

Sect

or fi

rms

Firs

t de

mon

stra

tion

day

to b

e he

ld in

Q3

201

6

NCB

& M

ITIA

M

CE &

Indu

stry

as

soci

atio

ns

3.1.

2 La

unch

a b

road

pro

cure

men

t pro

gram

me

aim

ed a

t con

tract

ing

softw

are

deve

lopm

ent

serv

ices

at k

ey m

inis

tries

and

pub

lic s

ecto

r ins

titut

ions

. The

onl

ine

syst

ems

from

mor

e de

velo

ped

coun

tries

can

be

used

as

benc

hmar

ks.

Fast

Tra

ck c

ompu

teriz

atio

n of

gov

ernm

ent i

nstit

utio

ns a

nd w

orkf

low,

from

a p

olic

y po

int o

f vi

ew s

tarti

ng w

ith s

elec

t min

istri

es/ g

over

nmen

t ins

titut

ions

. Thi

s wo

uld

incl

ude :

»Id

entif

icat

ion

of p

riorit

y min

istri

es an

d go

vern

men

t ins

titut

ions

whe

re w

orkf

low

woul

d be

pilo

ted.

»Tr

ansl

atio

n of

pap

er-b

ased

sys

tem

s to

onl

ine

work

flows

thro

ugh

a co

mpr

ehen

sive

and

ph

ased

SDL

C ap

proa

ch, s

tarti

ng w

ith a

requ

irem

ents

ana

lysi

s ph

ase.

»In

stitu

tions

to b

e lin

ked

onlin

e.

Addi

tiona

lly, i

dent

ify s

elec

t pro

cure

men

t opp

ortu

nitie

s ac

ross

the

spec

trum

of p

ublic

sec

tor

entit

ies,

incl

udin

g th

e fo

llowi

ng n

oted

in th

e e-

Gove

rnm

ent S

trate

gy 2

013-

2017

»On

line

appl

icat

ion

for M

aurit

ian

pass

port

»On

line

appl

icat

ion

for o

btai

ning

a c

opy

of b

irth

or m

arria

ge c

ertif

icat

e »Re

gist

ratio

n of

mot

or v

ehic

les

»On

line

appl

icat

ion

for o

btai

ning

a C

ertif

icat

e of

Cha

ract

er »Ap

plic

atio

n fo

r adm

issi

on to

sch

ools

/col

lege

s »Fa

cilit

y to

enr

ol a

s el

ecto

r »Fa

cilit

y to

requ

est f

or tr

ansf

er o

f stu

dent

s »Fa

cilit

y to

mak

e de

clar

atio

n of

thef

t to

the

polic

ePr

ocur

emen

t ini

tiativ

e to

invo

lve

Mau

ritia

n fir

ms

to th

e ex

tent

pos

sibl

e, g

uide

d by

the

impl

emen

tatio

n of

act

ivity

3.1

.2.

1Q3

Gove

rnm

ent

inst

itutio

nsSe

ctor

firm

s

Inst

itutio

ns

prio

ritize

d by

Q3

2016

Requ

irem

ents

an

alys

is p

hase

in

itiat

ed b

y Q4

20

16

Min

istry

of

ICT

Sect

or

Asso

ciat

ions

Natio

nal

Budg

et

3.1.

3 Ro

ll ou

t the

Stra

tegi

c pl

an b

y th

e Ce

ntra

l Inf

orm

atic

s Bu

reau

re

com

men

datio

ns to

be

gear

ed to

ward

s : »Re

star

ting

the

stal

led

e-go

vern

men

t ini

tiativ

e. »Re

-pur

posi

ng th

e Na

tiona

l ID

for a

uthe

ntic

atio

n, p

roof

of a

ddre

ss e

tc.

»Re

view

ing

othe

r cou

ntry

cas

e st

udie

s su

ch a

s th

e Es

toni

an m

odel

of p

ublic

-priv

ate

colla

bora

tion

»In

volv

e th

e lo

cal s

ecto

rs in

the

rollo

uts

of th

e St

rate

gic

Plan

2Q4

Sect

or fi

rms

Gap-

anal

ysis

with

re

com

men

datio

ns

com

plet

ed b

y en

d-Q3

201

6

Min

istry

of

ICT

Sect

or

Asso

ciat

ions

Min

istri

es a

nd

offic

ial t

echn

ical

ag

enci

esNC

BLo

cal g

over

nmen

t

3.1.

4 Re

view

Pub

lic P

rocu

rem

ent A

ct ( P

PA ) t

o en

sure

that

Mau

ritia

n fir

ms

are

prov

ided

with

ad

equa

te o

ppor

tuni

ties

for b

iddi

ng/w

inni

ng/c

olla

bora

ting

on p

ublic

pro

cure

men

t. Th

is w

ill s

erve

the

purp

ose

of p

rovi

ding

exp

osur

e/ to

a p

oten

tially

val

uabl

e m

arke

t for

loca

l se

rvic

e pr

ovid

ers,

dev

elop

men

t of M

aurit

ian

IP, a

s we

ll as

faci

litat

ing

acce

ss to

inst

itutio

ns

for n

eces

sary

wor

k.a.

Laun

ch a

pro

cure

men

t ini

tiativ

e, w

ith re

quis

ite tr

ansp

aren

cy a

nd fa

ir-pl

ay m

echa

nism

s in

tegr

ated

, to

proc

ure

serv

ices

from

Mau

ritia

n se

rvic

es p

rovi

ders

.b.

Reco

mm

enda

tions

on

perc

enta

ges

for l

ocal

con

tent

to b

e de

cide

d an

d en

forc

ed.

1Q2

Mau

ritia

n fir

ms

Min

istri

es/

Para

stat

als

Revi

ew

com

plet

ed o

n a

prio

rity

basi

s by

en

d-Q2

201

6

Min

istry

of

ICT

Min

istry

of

Fina

nce

Sect

or

Asso

ciat

ions

( M

ITIA

)

3.1.

5 Re

view

pot

entia

l opp

ortu

nitie

s fro

m th

e ‘S

mar

t Citi

es’ i

nitia

tive

that

can

be

leve

rage

d by

sec

tor f

irms.

M

CE to

take

the

lead

in id

entif

ying

opp

ortu

nitie

s, li

aisi

ng w

ith th

e pu

blic

sec

tor o

n en

surin

g pr

oper

repr

esen

tatio

n an

d fa

ir-pl

ay.

1M

CE /

Sect

or

firm

sM

CE to

take

the

lead

MCE

35PLAN OF ACTIONSt

rate

gic

obje

ctiv

e 3 :

Dev

elop

cap

abili

ties

for p

enet

ratin

g an

d ex

pand

ing

in n

atio

nal a

nd in

tern

atio

nal m

arke

ts

Ope

ratio

nal

obje

ctiv

eAc

tiviti

esPr

iorit

y1=

high

2=m

ed3=

low

Impl

emen

tatio

n pe

riod

Bene

ficia

ries

Targ

ets

Lead

im

plem

ente

rSu

ppor

ting

impl

emen

ters

Poss

ible

fu

ndin

g so

urce

2017

2018

2019

2020

2021

3.2

Deve

lopi

ng

stro

ng e

nter

pris

e le

vel b

usin

ess

deve

lopm

ent

capa

bilit

ies

3.2.

1 De

velo

p an

d de

ploy

brie

f tra

inin

g co

urse

s on

pla

nnin

g an

d ex

ecut

ing

trade

mis

sion

s fo

r com

pani

es.

Spec

ifica

lly, d

evel

op c

apac

ity-b

uild

ing

prog

ram

mes

for c

ompa

ny e

mpl

oyee

s on

bus

ines

s de

velo

pmen

t and

mar

ket a

cces

s, tr

ade

mis

sion

s an

d in

tern

atio

naliz

atio

n.

2Q1

Sect

or fi

rms

seek

ing

to

expo

rt

Trai

ning

cou

rses

de

sign

ed a

nd

depl

oyed

by

end

Q1-2

016

NCB

3.2.

2 Co

nduc

t ann

ual r

oad-

show

s by

Mau

ritia

n de

lega

tion

of s

oftw

are

firm

s to

sel

ect t

arge

t m

arke

ts to

pro

mot

e th

e so

ftwar

e de

velo

pmen

t sec

tor,

and

to fa

cilit

ate

deal

-mak

ing.

»Ro

adsh

ows-

to b

e he

ld in

tand

em w

ith B

2B m

eetin

gs w

ith p

oten

tial c

usto

mer

s in

the

targ

et

mar

kets

. »Se

nior

pub

lic s

ecto

r acc

ompa

nim

ent i

n th

e ro

adsh

ow-

2Q1

Sect

or fi

rms

1st r

oad

show

Fi

rst R

- to

be

held

by

Q1 2

016

EM/ B

OIM

inis

try o

f ICT

/ EM

Natio

nal

Budg

et

3.2.

3 De

velo

p a

‘yel

low

book

’ of M

aurit

ian

softw

are

deve

lopm

ent p

rovi

ders

with

con

tact

in

form

atio

n, a

reas

of s

peci

aliz

atio

n an

d po

rtfol

io s

ampl

es.

Onlin

e fo

rmat

with

pos

sibi

lity

of e

ffici

ent u

pdat

es

2Q4

Sect

or fi

rms

Yello

w bo

ok to

be

onl

ine

by Q

4-20

16

NCB

MIT

IA

3.2.

4 Le

vera

ge th

e Fr

ench

-Eng

lish

lang

uage

cap

abili

ties

of M

aurit

ian

firm

s to

dev

elop

a

stro

ng v

alue

pro

posi

tion

for l

ocal

izat

ion.

»Or

gani

ze d

eleg

atio

n of

Mau

ritia

n fir

ms

to s

elec

t Fre

nch

spea

king

mar

kets

to h

old

B2B

mee

tings

with

pot

entia

l clie

nts.

»In

itial

thru

st in

the

Afric

an m

arke

t with

a s

econ

dary

– m

ediu

m te

rm –

out

look

on

the

Euro

pean

mar

kets

.

2Q1

Sect

or fi

rms

inte

rest

ed

and

capa

ble

in

Loca

lizat

ion

capa

bilit

ies

B2B

mis

sion

to

be h

eld

in Q

1 20

17

NCB

Sect

or

Asso

ciat

ions

3.2.

5 Pr

ovid

e sp

ecia

lized

trai

ning

to o

ffice

rs in

con

sula

tes

and

exis

ting

Mau

ritia

n ov

erse

as

trade

repr

esen

tatio

ns re

late

d to

the

softw

are

deve

lopm

ent s

ecto

r. »Tr

aini

ng p

rogr

amm

e to

last

two-

thre

e we

eks,

and

to b

e in

corp

orat

ed in

to th

e ex

istin

g tra

inin

g of

offi

cers

. »Sp

ecifi

c in

telli

genc

e fo

r eac

h ta

rget

mar

ket r

equi

red

»Th

is tr

aini

ng w

ill b

e al

igne

d wi

th th

e ex

istin

g ef

forts

pla

nned

as p

art o

f the

NES

inte

rven

tions

. »Ef

forts

will

focu

s on

est

ablis

hing

an

effe

ctiv

e fe

edba

ck lo

op fo

r con

veyi

ng m

arke

t in

telli

genc

e co

verin

g a

varie

ty o

f asp

ects

bet

ween

targ

et m

arke

ts a

nd th

e M

aurit

ian

TSN.

2Q2

Sect

or fi

rms

Trai

ning

pr

ogra

mm

e to

co

mm

ence

by

Q2

2017

Min

of

Fore

ign

Affa

irs

Sect

or

Asso

ciat

ions

3.2.

6 Co

nduc

t in-

dept

h m

arke

t sur

veys

as

a pr

ecur

sor t

o fu

ll pr

omot

iona

l and

mar

ketin

g ca

mpa

ign

– on

key

Afri

ca m

arke

ts :

»M

adag

asca

r »Af

rica :

Gov

ernm

ent s

olut

ions

»Gh

ana

– op

portu

nitie

s to

be

iden

tifie

d on

a c

lust

erin

g se

tup.

»Et

hiop

ia ( N

CB )

»Rw

anda

( NCB

) »M

ediu

m te

rm op

portu

nitie

s ( NC

B ) : U

gand

a, Ta

nzan

ia, Z

ambi

a, A

ngol

a, M

alaw

i, Les

otho

, Zim

babw

e

1Q2

Sect

or fi

rms

Mar

ket s

urve

y to

sp

an Q

2 an

d Q2

20

16

EM/B

OI/N

CBNC

B Se

ctor

As

soci

atio

ns

3.2.

7 Es

tabl

ish

a sy

stem

of n

amed

con

tact

s ( p

rom

inen

t mem

bers

of M

aurit

ian

dias

pora

/bu

sine

ss c

omm

unity

or o

ther

s ) lo

cate

d in

spe

cific

targ

et m

arke

ts. N

amed

con

tact

s wi

ll be

in

form

al a

mba

ssad

ors

of th

e se

ctor

in th

e ta

rget

mar

ket –

and

will

repr

esen

t the

sec

tor’s

in

tere

sts

in ta

rget

mar

kets

.Sp

ecifi

c re

spon

sibi

litie

s to

incl

ude :

a. L

iais

ing

with

con

sula

tes/

repr

esen

tatio

ns o

n is

sues

rela

ted

to m

arke

t dev

elop

men

t,b.

Lea

ding

/hos

ting

sect

or b

usin

ess

dele

gatio

ns in

targ

et m

arke

ts,

c. B

eing

ava

ilabl

e to

mar

ket-

rela

ted

quer

ies

by s

ecto

r ent

erpr

ises

2Q1

Sect

or fi

rms

Syst

em s

etup

by

Q1 2

017

Min

of

Fore

ign

Affa

irs

MFA

, EM

/BOI


rate

gic

obje

ctiv

e 3 :

Dev

elop

cap

abili

ties

for p

enet

ratin

g an

d ex

pand

ing

in n

atio

nal a

nd in

tern

atio

nal m

arke

ts

Ope

ratio

nal

obje

ctiv

eAc

tiviti

esPr

iorit

y1=

high

2=m

ed3=

low

Impl

emen

tatio

n pe

riod

Bene

ficia

ries

Targ

ets

Lead

im

plem

ente

rSu

ppor

ting

impl

emen

ters

Poss

ible

fu

ndin

g so

urce

2017

2018

2019

2020

2021

3.3

Impr

ove

the

bran

d fo

r the

se

ctor

in o

rder

to

deve

lop

mar

ket

awar

enes

s an

d m

ake

buye

rs tr

ust t

he

Mau

ritia

n va

lue

prop

ositi

on.

3.3.

1 In

itiat

e a

bran

ding

/mar

ketin

g ca

mpa

ign

for t

he s

ecto

r and

inte

grat

e m

arke

ting

effo

rts

with

bro

ader

exi

stin

g ef

forts

for M

aurit

ius :

»De

velo

p co

llect

ive

prom

otio

nal a

nd m

arke

ting

mat

eria

l for

bot

h lo

cal a

nd in

tern

atio

nal

mar

kets

to c

omm

unic

ate

the

valu

e pr

opos

ition

sta

tem

ent f

or th

e se

ctor

»Ad

verti

sem

ents

/arti

cles

in in

dust

ry jo

urna

ls/m

agaz

ines

in k

ey m

arke

ts e

spou

sing

the

adva

ntag

es o

f doi

ng b

usin

ess

with

Mau

ritiu

s.

»Fi

nanc

ial s

pons

orsh

ip b

y th

e go

vern

men

t with

ope

ratio

nal i

nvol

vem

ent o

f the

priv

ate

sect

or ( a

ssoc

iatio

ns )

3Q1

Sect

or fi

rms

Cam

paig

n to

be

initi

ated

by

Q1

2017

Min

istry

of

TCI

Sect

or

Asso

ciat

ions

3.3.

2 De

velo

p a

cata

logu

e of

loca

lly-d

evel

oped

app

licat

ions

– fo

cusi

ng o

n HR

, ERP

, pe

nsio

ns –

whi

ch h

ave

expo

rt po

tent

ial a

nd s

howc

ase

thes

e so

lutio

ns.

»Ap

plic

atio

ns w

ith s

ecto

ral l

inka

ges

– te

xtile

s, m

anuf

actu

ring,

hos

pita

lity

etc.

– s

houl

d be

se

gmen

ted

and

high

light

ed.

»Ca

talo

gue

to b

e lin

ked

to ‘y

ello

w bo

ok’ i

nitia

tive.

»Ca

talo

gue

to b

e us

ed a

s pa

rt of

sec

tor p

rom

otio

n ef

forts

with

pot

entia

l clie

nts.

2Se

ctor

firm

sCa

talo

gue

to

be o

nlin

e by

Q4

2016

NCB

and

Sect

or

Asso

ciat

ions

M

ITIA

BOI /

EM

37ANNEX 1

ANNEX 1

Business case related to the strategic objective 1 : Improve trust, maturity and innovation levels in the sector

S. No Activities Business case

1 Provide wide-ranging support to MCE over a multi-year period : • Regulatory approvals • Organizational support• Advisory support• Initial business development support to spur momentum by

government

Small per-capita size of software firms in Mauritius render it difficult to bid successfully for large projects. Strength-in-unity model will allow the entire sector to benefit. This multi-sector national initiative ( MCE ) can significantly boost market penetration, project acquisition and management efforts for the sector.

2 Provide professional advice to MITIA on expanding/refining operations. Areas include :• Awareness of MITIA among Mauritian companies and outside

Mauritius. Improved marketing including the launch of a sector magazine.

• Potential expansion of secretariat• Improvement in collaboration with other related sector

associations such as Outsourcing and Telecommunications Association of Mauritius ( OTAM )

MITIA is a professionally run organization with a requirement for increased visibility and provision of services to its constituents. This will be especially relevant once the sector starts experiencing growth.

3 In line with the ‘growth vouchers’ scheme piloted in the UK, commission a similar pilot programme for the Mauritian Software development sector – spanning 1 year − to facilitating greater penetration to the domestic market for sector firms. The programme will comprise of the following :a. Financial support ( as a form of subsidy ) to potential customer

firms seeking to test and contract software development services for their core operations.

b. Matching programme to connect software service providers with potential clients. Matching mechanisms will include an online platform as well as an in-person guidance facility.

c. Rigorous monitoring and evaluation mechanism implemented in parallel to gauge scalability of such programsme, and to assess priority services with high potential in the domestic market.

Trust in Mauritian software firms on the part of firms in other sectors ( potential clients ) needs to be generated. The growth vouchers scheme in the UK and such Public-Private Partnership initiatives are aimed at providing a risk-free testing atmosphere for potential clients to use the vouchers to try out service providers and appreciate the value of their services. The end goal is that the firms would thereafter contract service providers on their own.

4 Extend the scope of the One-Stop-Shop ( MYBiz ) to the SW development sector as a means to growing the sector.

MyBiz is a valuable service available to firms in other sectors of the Mauritian economy. Feasibility of extending t mandate to development of software would be advised. An extension of the scope to the software



5 Establish and consolidate a national software competition that will aim to identify promising Software Development talent :• Winners of the competition to be offered mentoring and

incubation support for entrepreneurial activity.• Competition to be widely marketed and advertised to generate

enthusiasm.• Joint sponsorship by the private and public sector.

Talent incubation and recognition will be essential to sector growth as well as innovation. As a small sector with significant room for growth, such initiatives that offer opportunity for recognition, exposure and support at a national stage will go a long way in talent development as well as making the sector more attractive to the youth community.

6 Establish a network of incubator facilities for the sector that will be publicly funded but privately managed : • Co-location of firms to promote exchange of ideas• Physical co-location of firms that collaborate with each other Explore expanding the scope of the Incubator in Ebene to broader Software Development.

Software firms in Mauritius have typically not received the same incubation support levels as in other countries. This critical component is being improved gradually and efforts need efforts need to continue.

7 Advocate for a clause for involving local industry ( 30 % of total cost ) in large government procurement initiatives won by international firms. a. Involvement to include knowledge and expertise transfer

aspects where possible,b. Advocacy to result in possible amendment of procurement act.

This constitutes a win-win solution allowing Mauritian firms to gain experience, expertise and revenue, while the lead international firms can gain available local expertise. Without a regulated clause such as this, the Mauritian software sector may find it difficult to compete with domestic projects ( in addition to the international projects where they already face significant competition )

8 Delineate clear separation of responsibilities and budgets between EM, BOI, and others related to ICT ( and BPO ) export promotion and investment respectively.PMO to mediate and define clear separation of responsibilities.

The lack of demarcation on mandate has created uncertainty regarding services export promotion and investment promotion. In the interim, the software sector has suffered owing to a lack of support mechanism. This was brought out clearly during the consultations involved in the strategy design process.

9 Facilitate match-making events with foreign investors and venture capitalists – who may be interested in using the Gateway to Africa value proposition that Mauritius offers

This is aligned with the stated official ambition of Mauritius becoming a hub of foreign investments into Africa.

10 Conduct a comprehensive skills gap analysis for the sector between the national infrastructure ( supply of human capital ) and demand for software development skills by companies. The analysis will cover the following aspects :a. Level of alignment of existing curriculums at universities and

vocational training institutes in relation to skills in demand by the private sector,

b. Quality of curriculums in comparison with best-in-class examples from other countries including India,

c. Qualifications of teaching staff and related skills/expertise gaps,d. Quality of placement services at universities, e. Equipment, software deficiencies at institutions.

Recommendations will include :a. Enumerated technical skills on the demand side( enterprises )

and supply-side( technical institutions/ instructors ) which constitute a current gap and need to be boosted,

b. Specific areas of curriculums update, c. Software and Hardware requirements in institutionsd. Improved mechanisms for placement services

A separate and comprehensive gap analysis will identify the specific areas where the gaps lie, and help in recommending curriculums, policy and institutional updates required.

39ANNEX 1


11 Enhance conversion programme for training non-IT graduates into IT fields in order to develop deployable IT-based skillsets.• Improve coordination and information dissemination between

different programmes ( between providers-industry as well as providers – trainees ) through scheduled roundtables between the different programmes. Various programs me in play include GTES programme by HRDC, MITIA, Ceridin, ICT academy.

• Review HRDC regulations on training providers being limited to generate profits.

This is important in view of attracting individuals interested in the IT sector but who are not necessarily interested in a four-year degree, or would like to transition from their current non-IT professions.

12 1.1.3 Develop an awareness building campaign to reach out to students in Secondary School ( Form 3 ) to expose them to opportunities in the IT sector :• Potentially use existing mechanisms such as activity periods

and career days• Re-introduce the career counsellors’ role in schools to spread

information on career opportunities in the sector.• Information days for parents and students• Campaign to be backed up by an advertising and communication

strategy.• Align with existing programme led by ME

Reaching out early to secondary school students as well as using existing career counseling mechanisms in schools will help promote the sector and raise attractiveness of the sector to future talent

13 Implementing industry internships and end of year projects in collaboration with the industry• Lobby Tertiary Institutions – through a position paper developed

by sector associations − to allow / mandate students to work on end of year projects with enterprises as a means for students to gain industry experience, and for companies to assess and identify potential hires.

• Implementation at university level including frameworks• Develop cooperative programme that are integrated in the

curricula of the institutions so that students have an opportunity to receive industry experience. Coop program-me to be integrated within the school curriculums.

Relevant internship and Coop- programs will benefit both students interested in the sector as well as companies seeking to hire candidates

14 Provide support to the newly established ICT academy in boosting technical capacities :• Ensure that the academy can issue vouchers and internationally

accepted certifications to students.• Course additions based on outcomes of regular industry/

academia/public sector roundtables.Academy to leverage existing certified courses, where possible, provided by Mauritian and International providers in the country, rather than developing new courses.

Promising initiative offering training as an alternative for conventional 4four-year degree programme.

15 Invite international experts from international collaborative universities with a strong Software Development training base ( or contract existing experts in the country ) to assist Mauritian universities in assisting and enhancing their curriculums. • Feedback received from the outputs of activity 1.1.1 will inform

the areas of upgrade. • Upgrading to be accompanied by comprehensive consultations

with the private sector.• Process to be piloted in one university and scaled up based

on feedback.• Update curriculums on a yearly basis to reflect fast changes

in technology

Proven business model for overcoming an expertise gap by procuring it from outside the country.



16 1.1.8 Launch intensive retraining courses for lecturers to get re-acquainted / upgrade their skills based on updates in the sector.• Training to be conducted by internationally recognized / certified

trainers currently active in Mauritius• Practical hands-on training that can be swiftly integrated in

existing curriculum and that • Given the constant flux and rapid advances in the sector, explore

whether this can become a periodic activity.• Provision of funding grants to lecturers to undertake this

professional development exercise.Develop cluster training academies on the lines of Albania, Macedonia and others to improve human capital in the sector.

Necessary step in line with the upgrading of the curriculums and the deployment of a feedback look between the industry and academica will be to refresh training of lecturers and trainers through retraining programme.

Business case related to the strategic objective 2 : Enhance the operating business and policy environment for the Mauritian software development sector


1 Continuously examine and ensure that Data Protection Act is in line with EU Directives. Advocate for legislation to be enacted for : • Software Industry Bill• Electronic transactions, mobile payments ( NCB ).Commission a needs-assessment study related to Intellectual Property Rights ( IPR ) protection considerations ( including copyright, trademarks, patents, industrial design rights etc. ) in the sector. The study will :• Assess the quality of existing ( if any ) IPR protection mechanisms in

Mauritius specifically pertaining to the sector, including monitoring and enforcement measures,

• Provide recommendations at the policy ( regulations ), institutional ( monitoring, enforcement, grievance redress ), and enterprise ( awareness building on rights and responsibilities ) levels.

For the software sector to operate at par with competitors, rules and regulations ( especially those that influence minimum entry requirements into target markets ) must be brought up to globally acceptable standards. Regulations related to IPR etc. are important to help the sector develop competitiveness.

2 Reduce/rationalize the approval turnaround time with the Mauritius Qualifications Authority ( MQA ) to get training ( courses ) & trainer approved in a timely manner. Tracking system to be developed to assess status of application.

This will improve the supply base of qualified trainers who can nurture human capital with relevant skill sets required by industry.

3 To cover institutional support gap for early stage and start-up companies, export-incubators will be developed and aimed at companies seeking to export ( while also focusing on the domestic market as a growth mechanism ). A cohort system will be established wherein a batch of companies will be selected through an application programme and inducted for a one-two year incubation cycle. The application process will involve a business plan competition among other criteria. Support for inducted companies will involve the following : • Financial support, • Office space with access to facilities including computer equipment

and related network infrastructure, printing, fax, internet, meeting rooms, administrative support,

• Mentoring and coaching support throughout the maturity lifecycle, • In-market support through client matching business delegations etc.

Software firms in Mauritius have typically not received the same incubation support levels as in other countries. This critical component is being improved gradually and efforts need to continue

41ANNEX 1


4 Implement a scheme to provide financial assistance to local companies for the development of intellectual properly that will reside in Mauritius and with the potential to be marketed in target markets. Scheme to include provisions for the following :1. Tax credit – A super deduction to offset investment into R&D for a

number of years. MITIA whitepaper has proposed 200 % deduction over three years for investments into R&D.

2. Funding options for R&D : Through pure grant and extended loan facilities based on the existing MyBiz scheme. Proposal of per project one-time grant up to MUR 1 million with the possibility of borrowing up to additional MUR 5 million a guarantee in the developed IP. Existing CRIGS scheme can be adapted and promoted better to fit in.

3. Assistance in productizing existing solutions developed for the local market. Proposed grant would allow companies to contract advisory services for developing a marketing plan for the product involving business development, and establishing distribution network.

4. Possibility of capitalizing R&D investment to boost attractiveness for investors.

Incentives are required to drive innovation in this fledgling sector to assist the firms to develop new products in a risk-mitigated and supported environment. Without this support, companies will simply not be in a position to undertake the risk

5 Examine the success rate of current financing instruments including the Booster Micro Credit Scheme for micro and small projects and the Business Development Scheme for small and medium projects put in place by the Mau Bank.• Analysis to identify root causes preventing Software Development

sector firms from accessing provision of loan instruments• Recommendations to guide tailoring of loan instruments developed

by Mau Bank for the sector.

Financial inclusion has been identified as a key challenge impacting the sector. The small size of the average firm along with the weak track record of firms is a barrier. Lending products tailored to the software sector will help bridge the lending gap.

6 Promote the development and availability of financial products for exporters.1. Possibility to use signed contracts/letters of intent in cases where

traditional collateralization is difficult.2. Use of intellectual capital rather than physical assets as collateral 3. Develop specialized loan instrument for the sector – with focus on

debt financing aimed at enabling growth and expansion.Roundtable between lenders and sector firms/associations to kick-start stakeholder driven exploratory process for developing specialized instruments.

Flexibility in lending requirements is needed given that average software firm in Mauritius does not possess significant physical collateral.

7 Extending existing schemes to register for funding ( partial or full ) to attend trade fairs and conduct B2B missions. • Coverage to be extended • B2B, Individual marketing funding,• Possibility of amount to be increased from current levels

Attending trade fairs and B2B missions will result in enhanced exposure for companies, especially ones that are unable to organize financing on their own.

8 Establish grants ( based on successful certification ) for software firms to benefit from, to acquire standards and certifications.• Grants to cover ISO, CMMI, IT Mark, ITIL• Partial to full refund on successful certification • Funds to be used for actual certification process as well as potential

consulting

Certifications will help firms develop a competitive edge over potential clients ( as a symbol of quality ), and in some cases may be a mandatory buyers requirement.



9 Institutionalize a feedback loop between industry, academia and the public sector in the form of a dedicated roundtable platform that meets on a regular basis, to guide the skills development agenda. 1. Participants to include individual firms, sector associations,

universities/training institutions and the Public sector.2. Recommendations from initial assessment study to be used as

basis for initial discussions.

The severe skills mismatch issue that exists currently will need to be resolved before the sector can reach its potential. A concrete mechanism is required to be instituted, which will encourage industry and academica to discuss their perspectives on a rolling basis.

10 Enhance capabilities of Statistics Mauritius to capture detailed statistics related to the software development sector. • Convene roundtable meeting ( through feedback loop established in

a previous activity ) with sector stakeholders and Statistics Mauritius officers to understand requirements and formalize survey/data collection mechanisms.

• Develop capability to provide disaggregated data between BPO and Software Development segments.

• Facilitate online submission of company data to Statistics Mauritius

Information is a key prerequisite for efficient decision making, and conversely the lack of adequate disaggregated statistical information on the Software Development sector hinders informed decisions. This will be even more relevant with time as the sector grows in scale.

11 Set up ( or nominate existing ) a shared Software development sector public and private platform, led by the private sector operators, both from lead firms, associations, including foreign investors, as well as SMEs to lead NES implementation. • Goal would be to play the role of an export promotion agency for the

sector as well as serve as an umbrella networking platform• Position the platform as the public-private sector coordinating body to

manage the implementation of the sector strategy under the NES.

Implementation management for the strategy over the five years’ timeframe will be an ongoing activity and a steering body in the form of the platform to maintain oversight is recommended as best practice.

12 Build capacity of the sector platform through targeted training imparted to a small secretariat staff to coordinate and monitor completion of the strategy’s activities and to mobilize resources required for implementation of the strategy.The platform will be responsible to mobilize and engage implementing institutions effectively to align all development policies to the software development strategy, and to identify activities that fall under their leadership and plan for required human and financial resources in the five upcoming years.

To assist the platform in performing its duties, a secretariat will be required to discharge the operational duties on a day to day basis.

43ANNEX 1

Business case related to the strategic objective 3 : Develop capabilities for penetrating and expanding in national and international markets


1 Hold ICT demonstration days targeting other economic sectors for exploring and expanding linkages with the end goal of :• Increased cross-sectoral business development for the software

development sector. • joint product /service developmentProminent candidate sectors include government ( e-governance, education and health ) and business sectors such as financial services, tourism, accounting and audit, and others.

Demonstration days will serve as a platform for exploring cross-sectoral linkages and provide business development and collaboration opportunities for firms and non-IT based entities

2 Launch a broad procurement programme aimed at contracting software development services at key ministries and public sector institutions. The online systems from more developed countries can be used as benchmarks.FastTrack t computerization of government institutions and workflow, from a policy point of view starting with select ministries/government institutions. This would include : • Identification of priority ministries and government institutions where

workflow would be piloted.• Translation of paper based systems to online workflows through a

comprehensive and phased SDLC approach, starting with a requirements analysis phase.

• Institutions to be linked online. Additionally, identify select procurement opportunities across the spectrum of public sector entities, including the following noted in the e-Government Strategy 2013-2017• Online application for Mauritian passport• Online application for obtaining a copy of birth or marriage certificate• Registration of motor vehicles• Online application for obtaining a Certificate of Character• Application for admission to schools/colleges• Facility to enrol as elector• Facility to request for transfer of students• Facility to make declaration of theft to the policeProcurement initiative to involve Mauritian firms to the extent possible, guided by the implementation of activity 3.1.2.

This public procurement mechanism can lead to significant efficiency gains for the public sector while allowing the software sector to bid for projects.

3 Roll out the Strategic plan by the Central Informatics Bureau Recommendations to be geared towards :• Restarting the stalled e-government initiative.• Re-purposing the National ID for authentication, proof of address etc.• Reviewing other country case studies such as the Estonian model of public-

private collaboration• Involve the local sectors in the rollouts of the Strategic Plan

Expected to serve as a procurement platform for Mauritian software firms once it is online

4 Review Public Procurement Act ( PPA ) to ensure that Mauritian firms are provided with adequate opportunities for bidding/winning/collaborating on public procurement. a. Launch a procurement initiative, with requisite transparency and fair-

play mechanisms integrated, to procure services from Mauritian services providers.

b. Recommendations on percentages for local content to be decided and enforced.

This will serve the purpose of providing exposure/ to a potentially valuable market for local service providers, development of Mauritian IP, as well as facilitating access to institutions for necessary work.



5 Review potential opportunities from the ‘Smart Cities’ initiative that can be leveraged by sector firms. MCE to take the lead in identifying opportunities, liaising with the public sector on ensuring proper representation and fair-play.

The smart cities ‘SC’ initiative is expected to include certain components involving digital content and can serve as a procurement platform for software firms

6 Develop and deploy brief training courses on planning and executing trade missions for companies. Specifically, develop capacity-building programmes for company employees on business development and market access, trade missions and internationalization.

This will result in improved capabilities of companies in conducting their own trade missions effectively

7 Conduct annual road-shows by Mauritian delegation of software firms to select target markets to promote the software development sector, and to facilitate deal-making.• Roadshows- to be held in tandem with B2B meetings with potential

customers in the target markets.• Senior public sector accompaniment in the roadshow-

Highly relevant for firms to get exposure to target markets. Especially important once MCE operations have ramped up

8 Develop a ‘yellow book’ of Mauritian software development providers with contact information, areas of specialization and portfolio samples. Online format with possibility of efficient updates

Highly relevant and essential as a means of advertising software firms and their capabilities

9 Leverage the French-English language capabilities of Mauritian firms to develop a strong value proposition for localization. • Organize delegation of Mauritian firms to select French speaking markets to

hold B2B meetings with potential clients. • Initial thrust in the African market with a secondary – medium term – outlook

on the European markets.

Strong potential for Mauritian firms to succeed in the localization niche given the bilingual population and geographical positioning

10 Provide specialized training to officers in consulates and existing Mauritian overseas trade representations related to the software development sector.• Training programme to last 2-twothree weeks, and to be incorporated into the

existing training of officers.• Specific intelligence for each target market required• This training will be aligned with the existing efforts planned as part of the

NES interventions.• Efforts will focus on establishing an effective feedback loop for conveying

market intelligence covering a variety of aspects between target markets and the Mauritian TSN.

11 Conduct in-depth market surveys as a precursor on full promotional and marketing campaign – on key Africa markets :• Madagascar • Africa : Government solutions• Ghana – opportunities to be identified on a clustering setup. • Ethiopia ( NCB )• Rwanda ( NCB )• Medium term opportunities ( NCB ) : Uganda, Tanzania, Zambia, Angola,

Malawi, Lesotho, Zimbabwe

These surveys are essential to understand comprehensively the buyers requirements associated with the selected target markets

45ANNEX 1


12 Establish a system of named contacts ( prominent members of Mauritian diaspora/business community or others ) located in specific target markets. Named contacts will be informal ambassadors of the sector in the target market – and will represent the sector’s interests in target markets.Specific responsibilities to include :a. Liaising with consulates/representations on issues related to market

development,b. Leading/hosting sector business delegations in target markets,c. Remaining available to market-related queries by sector enterprises

The potential for Mauritus’ geographically diverse diaspora can be leveraged for firms to conduct networking in select target markets

13 Initiate a branding/marketing campaign for the sector and integrate marketing efforts with broader existing efforts for Mauritius : • Develop collective promotional and marketing material for both local and

international markets to communicate the value proposition statement for the sector

• Advertisements/articles in industry journals/magazines in key markets espousing the advantages of doing business with Mauritius.

• Financial sponsorship by the government with operational involvement of the private sector ( associations )

In the highly competitive software development landscape, marketing efforts will gain importance in line with increasing capabilities of firms

14 Develop a catalogue of locally-developed applications – focusing on HR, ERP, pensions – which have export potential and showcase these solutions. • Applications with sectoral linkages – textiles, manufacturing, hospitality etc. –

should be segmented and highlighted. • Catalogue to be linked to ‘yellow book’ initiative.• Catalogue to be utilized used as part of sector promotion efforts with

potential clients.

Such a catalogue will allow for better promotion of the sector’s capabilities, and encourage new entrants including investors seeking to partner with local firms

Photo: (cc) pixabay

Photo: (cc) pixabay

47REFERENCES

REFERENCES

Africa Leadership Network. ( 2012, August 13 ). Lifting up Africa by Empowering its Youth. Retrieved from http ://www.africanleadershipnetwork.com/our-perspectives/lifting-africa-up-by-empowering-its-youth/

Erhardt, E. ( 2013, May ). Youth in developing countries : A generation looking for work. KFW Development Re-search( 4 ).

Government Information Service, Prime Minister’s Office. ( 2015, March 15 ). ICT Minister announces Smart Mauritius Strategy. Retrieved from http ://www.govmu.org/English/News/Pages/ICT-Minister-announces-Smart-Mauritius-Strategy.aspx

Mauritius Cooperation Enterprise. ( n.d. ). Retrieved from http ://www.eds.mu/mse/

Mauritius IT Industry Association ( MITIA ). ( n.d. ). Retrieved from http ://www.mitia.mu

Ministry of Information and Communication Technology. ( 2012 ). National Broadband Policy 2012 - 2020.

Ministry of Information and Communication Technology. ( n.d. ). NATIONAL INFORMATION & COMMUNICATION

TECHNOLOGY STRATEGIC PLAN ( NICTSP ) 2011 – 2014 : TOWARDS I-MAURITIUS.

National Computer Board. ( 2013 ). Overview of the ICT sector and software industry in Mauritius.

National Computer Board. ( 2013 ). Strategic Plan for Boosting ICT Exports of Mauritius.

National Computer Board. ( n.d. ). Making of Mauritius a Regional Hub and a Gateway to Africa.

NCB. ( n.d. ). Vision and Mission. Retrieved from National Computer Board : http ://www.ncb.mu/English/AboutUs/Pages/Vision-and-Mission.aspx

Porter, M. E. ( 2015 ). Cluster Strategies for Competitive-ness. Harvard Business School, Institute for Strategy and Competitiveness .

UNCTAD. ( 2012 ). Information Economy Report 2012 : The Software Industry and Developing Countries. New York and Geneva. : United Nations publication.

UNCTAD-WITSA. ( 2012 ). Survey of IT/Software Associa-tions.

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MAURITIUS...Government of Mauritius. The NES was developed on the basis of the process, methodology and technical assistance of the International Trade Centre (ITC ) within the framework