The exploitation of the potential of Information and Communication Technologies (ICTs) sectors to foster innovation and economic growth is considered one of the seven pillars of the Digital Agenda for Europe. There are various reasons why ICT matters in the eyes of the European Union. The internet and ICT investments contribute to GDP and productivity and create more jobs. Yet, Europe lacks over 1 million ICT specialists. ICT-enabled services can boost economic growth and employment in every country that can be an ICT nearshore outsourcing destination for EU-based companies that need to locate services.
Being an essential element in the business model of large international companies that operate on a global scale, ICT-enabled services have a key role in defining a country’s attractiveness as an outsourcing destination.
Why are ICTs important?
From a social and economic point of view, ICTs are important not only for the economic development of a given country, but also for creating better employment opportunities and innovative labor markets, and building capacities. Besides creating new jobs, the sector empowers employees to improve their skills.
Technically speaking ICTs are general-purpose technologies. So far IT and electricity are the most important GPTs and they are used across all sectors and industries. Therefore, ICTs bring social change, create more choices, increase connectivity, develop skills for a globalized economy (even North Korea outsources its workforce),
Sales and marketing services
Insurance and financial services
Management administration and back-office services, call centers
Education and training
Royalties and license fees
Personal cultural and recreational
The potential for turning into a center for outsourcing IT and ICT-enabled services?
Access to ICT professionals
People skills and availability
How to make the best use of ICT?
According to the World Bank (WB), there are five recommendations that policymakers should take into consideration to strengthen the role of ICTs on employment and social change
HCS: Human Capital System or providing a workforce with the necessary ICT skills
Omnipresent connectivity to ICTs