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Thailand Country Profile

Business Process Outsourcing (BPO)


Information Technology Outsourcing (ITO)
for

Submission on
CBI KPO program 2014-2020
The Centre for the Promotion of Imports from developing countries (CBI)
The Netherlands

Conducted by
Software Park Thailand
under
National Science and Technology Development Agency (NSTDA)

Table of Content
Topics

Page
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Introduction
Description of Characteristic of BPO
Description of Characteristic of ITO
Key Strength and Weakness
Government support regarding to BPO and ITO
IT and BPO industry development strategies and initiatives
Quality of certification and support for IT and BPO industry
Key Stakeholders of BPO and ITO industry
Key bottlenecks for export development of the BPO and ITO industry
The most important Export markets for ITO and BPO products and services
Number of exporting companies in the ITO and BPO industry

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Country Profile Thailand for CBI KPO services


1.Introduction
Today the economics crisis forces many business to seek the effective method to reduce cost and enhance the
internal operations. The concept of global Business Process Outsourcing (BPO) and Information Technology
Outsourcing (ITO) has been growing since decade. Many Business concerns the budget of IT investment in order
to reach cost optimization while delivering paradigm for the best services.
Over few years, Thailand has proven as the international reputation on BPO and ITO as the center of excellence
to conduct the world class software outsourcing. The software industry gains the strong complementary
elements: a centric manufacturing of international software leading companies that align the global market
leaders and numerously indigenous companies who achieve the significant global market success. Thai software
has been recognized internationally as being dynamic, highly innovative, technically expert and international
standard adept.
Since 2008 to 2010 Thailand has been ranked as the Top 30 global destination for IT outsourcing by Gartner. Thai
Software Industry today comprises over 1,900 companies, employing over 100,000 people, with combines sales
growth 17.2% The vast majority of software activities are exported, so that the number of software exporting
last year achieved USD 14 billion (2010). (annual report Ministry of ICT ,2011) 1
The upcoming Asean Economic Community 2015 (AEC 2015) give the opportunity to trigger point of a
paradigm shift and integrated the economics in all Asean Regions. Thailand as the strategic location was proven
as the Hub of Asean Detroit export and manufacturing in automotive industry. Thailand is also location of hugh
foreign investment from Japan, USA, UK Germany and so on. Thailand has been recognized as one of 30 top
destination of global IT outsourcing ranked by Gartner. Some international leading software companies such as
Thomas Reuters and DSTi located the development center since 2001 to employ Thai IT professional more than
1,500 people and to deliberate quality software to global market place.
AEC 2015 will synergy platform to regional single market and production based which require removal of trade
barrier among countries (Asean + 3 countries; China, Japan and Korea) will deliver collaboration across business
sectors especially software concerned as the services will be key driver to shift the business model that
revolutionize the industrial sectors in the near future.

Why Thailand: Destination for BPO and ITO


Situated in the strategic location in Asia-Pacific region Thailand offers ranges of advantages to foreign business
firms. According to World Competitiveness Scorecared 2009 2 shows Thailand ICT statistics as 26th rank top in the
world on the domestic consumption in ICT sector represents 24 millions internet users, increasing number of 69
millions mobile users and augmented social network as a number of Facebook reached more than 13 million
users.
__________________________________________
1 The annual report Ministry of ICT Thailand ,2011
1
2 The World Competitiveness Scorecared ,2009

Thailand IT market is the largest in South east Asia region and project to grow at CADR of 12% over 2010-1214,
while total value of domestic spending on IT products and services are more than USD 5.4 billion in 2010 and by
2014 at USD 8.7 billion.
As the crossroad of software development in South East Asia, Thailand has been envisaged as highly competitive
software development and centric distribution/delivery in the region. Thailand provides further impetus toward
domestic and regional strategic integration to be success to embrace the market liberalization by 2015. There are
some key critical factors such as Human Resource, Skill& expertise, infrastructure support, IT professional and
standardization measurement, government privilege, strong software clusters to drive successfully Thai ICT
market . The additional atmosphere to support the investors are in term of the initiatives , taxation, legal
framework, business support, and investment conditions.

Thailand Today: Moving forward for future

From Kearney Global Service 3 Nowadays Thailand move to main contender of global software outsourcing
destination ranked on 7th Global service location on 2011. The attractive indicators are on the financial attraction,
people skill and business environment respectively.

2. Characteristics of BPO and ITO Thailand services


2.1 Business Process Outsourcing (BPO)
The late 20th century and the beginning of the 2nd millennium saw a huge development in the BPO sector.
Owing to the dependence of the BPO industry on information technology, IT Jobs in BPO are generally divided
into two categories, back office outsourcing and front office outsourcing. There is a stark difference between
these two categories of BPO jobs.
BPO in Thailand is not outstanding compared to ITO , mostly BPO in Thailand is in term of internal BPO such as
Human Resource, Lawyer, Accounting, Call Center, Selling, Marketing. In Thailand there are oversea companies
who looking for outsourcing services. However there are very few BPO buyers to subcontract local outsourcing in
Thailand. This cause language capabilities in specific business area.

2.2 Information Technology Outsourcing (ITO)


Gartner accredited Thailand as 10 leading locations for offshore services in Asia Pacific 2007-2011.These are
assets to Western and Japanese investors. Like most other manufacturing industries, Thailand is gaining its
acceptance in IT services outsourcing.
Over the past decade Thailand has gradually turned to be the destination for offshore outsourcing location. For
instance, Thomas Reuter has established the Software Center since 2001 after 18-months deliberation of global
development site.
From ITO and BPO table , we divided into three categories as following
1. Financial Attractiveness
2. People Skill and Availability
3. Business Environment
___________________________________________
3 A.T Kearney Global Service Location Index 2011

Categories

Subcategories

Metric Description

Thailand Indicators
(proportion %)
BPO

Financial Attractiveness Cost Optimization


(40%)

People Skill and


Availability (30%)

Business Environment
(30%)

ITO

1.Average salaries
2.Compensation cost to positions
(call center, BPO analyst, IT
programmer and local operation
manager)

Infrastructure Cost

1.Rental space
2.International telecom cost
3.Traveling cost to clients

Tax and Regulation

1.Tax Burden
2.Corruption Perception
3.Currency Rate

Remote services sector


experience and quality
rating

1.Size of existing ITO and BPO


sectors
2.Contact Center and IT center
quality certifications
3.Quality Rating of management
school and IT training

Labour Force availability

1.Total workforce
2University-educated workforce
3.Workforce Flexibility

Education and Language

Score on standardized education


and language test

Attrition Risk

Relative IT and BPO sector growth


and unemployment rates

Country Environment

1.Factors on political and local


economics
2.FDI
3.Security Risk
4.Regulatory burden and
employment rigidity
5.Government support for ICT
sector

Infrastructure

1.Overall infrastructure quality


2.Quality of telecom, internet and
electricity infrastructure

Security of Intellectual 1.Investor rating of IP protection


Property (IP)
and ICT laws
2.Software Piracy rates
3.Information Security Certification

Remarks:
High activities:

Lower activity

Even top three location remains in India, China, and Malaysia are outstanding to provide the off shoring software
services activity, Thailand is rank as the significant player. One article from the Global Service location 4 (top 10
locations based on their capabilities as figure following
Thailand focus on niche quality of software services which produce output on the qualified graduates and
English capabilities moving up to value chain of BPO and ITO industries due to large workforce and cost
competitiveness.

Thailand skillful workforce:


The software sector in Thailand has been driven by the highly skilled and well educated workforce. Thailand
education system transforms the variety of IT professional courses set by the standard nationwide.
___________________________________________
4 A.T Kearney Global Service Location Index 2011

Thailand development policy delegates the opportunity to the geographic clusters such as the IT valley in the
northern of Thailand and outsourcing cluster in Phuket.
The development of language skill in Thailand has been proven as the various interpretation skill. Thailand is
also the largest IS/ISV communities to do outsourcing in Southeast Asia region. Also now we have certified 47
companies CMMI appraisal and more than 70 certified PSP developers training and ranked at 3rd in the world.
The number of certified software professional in PM, Software Quality Assurance and software tester were
approved by Quality Assurance Institute (QAI) achieved 80 persons.
The industry development is underwritten by the continued state investment in education and research. The
information and communication technologies are the priority area supported by the government; therefore the
investment in R &D has also significantly risen. The Ministry of ICT has invested to initiative projects to
collaboration among academic, research and industries to ensure the optimum usage of resource and apply
successful commercialization. From INSEAD global IT report show the Quality of Education in country which
represented perception index 1-7. Thailand was ranked at 3.6 scale. There are more than 100 universities
produce more than 4,000 skill professional workers annually. Some institutions, for example Software Park
Thailand provided professional high skill enterprises training such as IT professional, project management, and
software process.
From figure about the population with English as the first and the second language (Cambridge Encyclopedia of
English language, KPMG analysis) 5 show 3% of 65 million people in country know english as second language
( 2.5 million). The multiple language skill rise the localization business opportunities because localization enabler
for international businesses. Adequate recruitment of the best skill and talent workforce are in various industrial
sectors. A case in point,ProZ.com, the largest online community of translators and the Localization Industry
Standards Association (LISA), the leading organization for companies involved in localization and globalization is
located in Bangkok to promote the localization and translation industry in domestic and global arena.
Case studies
The largest software development site globally. Asia Online, the machine translation company has also set up its
operational headquarters in Bangkok, from where it conducts R&D and daily business operations. Likewise Asia
Online currently employs more than 400 staffs and is in the process of being incorporated in other 10 Asian
countries.
One more interesting niche market in Thailand are animation, design and graphic development. With creativity,
Thai developers step forward from neighbor countries in term of character, design and emotion. The animation
industries USD 736,700 which categorized to animation industry USD 381,200 and Game industry reached USD
355,500 6

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5 KPMG Analysis, Cambridge Encyclopedia 2010
6 Thailand-Canadian Collaboration Forum 11-14 October 2011, Bangkok

3.SWOT Analysis
BPO
Strengths
-Skill workforces
-Quality Assurance
-Business Environment

Weakness
-Language-lacking in quality in english instruction
-Lack of adequate infrastructure
-Lack of adequate promotional support.

Opportunities
-Hugh hub of FDI
-ASEAN AEC 2015

Threats
-Unstable political situations

Positioning
Market of BPO in Thailand
Besides being a famous tourist destination and the auto making hub for Southeast Asia, Thailand is best known
as a tourist destination, the government of Thailand is attempting a lot to encourage business and make higher
investments in Business Process Outsourcing (BPO). The opportunities for global BPO in Thailand are obstructed
by lack of government support and vision, limited access to investment capital, and lack of regulations regarding
privacy or security, as per to research analysts. They also cited the adequate of infrastructure, ICT research
facilities, labor policies, etc. in the BPO market of Thailand.
For these reasons , Office of the Board of Investment (BOI) decided to encourage higher and better investments
in Business Process Outsourcing. It has expanded Activity 7.22 for including not only call centers, but also an
array of services under the new category of BPO. This activity will include finance and accounting services,
administrative services, sales and marketing services, human resources support, international call centers and
data processing, and customer services, just to name a few. Recently, the India-based company, Infosys, has
decided to put up its BPO in Thailand.( www.sitagita.com) 7
Case Studies
Infosys targets Thailand for banking solutions suite. Software major Infosys said on Wednesday that it had
identified Thailand as a key target market for its global banking solutions suite, Finacle, and entered into a
partnership with Datamat Public Company Ltd. and Yip in Tsoi & Co Ltd in that country to market the product in
the region.
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PRTRBPO.COM directly addresses the increasing need of our customers for value added business process
outsourcing services in Bangkok and Thailand. These requirements, to date, have been in the provision of PC /
Sales Team Management, Sales Outsourcing, Warranty Management, a number of retail related services and a
series of unusual management projects. PRTRBPO.COM is a relatively new business and was established to
ensure that PRTR is able to provide, as a separate resource, the business and project management skills that
address the increasing trend within Thailands business community for the outsourcing of many varied and
interesting areas of business. PRTR has looked to Europe and America in understanding the future trends that are
developing in Thailand and is ready and actively participating in providing interesting and original solutions to any
business process outsourcing requirement. (http://www.prtrbpo.com) 8
Best Practice
One of the successful BPO in Thailand according to human resource and payroll outsourcing to the oversea
clients who established own business in Thailand.
Humanica Thailand.
Humanica provides a full range of human resource management services from payroll outsourcing to HR
intelligence and talent management . We are also the number one SAP B1 reseller in Thailand. Our team has
extensive experiences in implementing ERP solutions for many years. With our practical approach drawn from
ERP experts, we help you to implement the ERP project to serve your business requirements on time and cost
effective.
Furthermore, they have a Performance Management team can help to implement the business intelligence
capability
Their PMS experts can help to design, develop and deliver the business intelligence system to enhance ability
to manage performance effectively. (www.humanica.com) 9

___________________________________________
7 http://sitagita.com/bpo/different-countries/thailand.html
8 http://www.prtrbpo.com
9 http://www.humanica.com/index.html

ITO
Strengths
Weakness
Vast pool of talent skill (Mix of multiple
Marketplace to promote ICT/ market campaign
capabilities)
Manpower on any type of offshore outsourcing
Human Capital on creativity
High Turn Over rate of new graduates
Business Environment
Educational system for deep technician
English Languages

Opportunities
Threats
Thailand as Hub Center for AEC 2015
Perception of oversee clients
(automotive, healthcare, tourism, food&
Unstable political situation
agricultural, logistics, manufacturing etc)
Transmission for new era digital technology
Large investment from China, Japan, USA

Best Practice
The successful development of software industry in Thailand complied by the uniquely supportive ecosystem.
Almost all of the worlds leading software companies including IBM, Microsoft, Oracle have significant presence in
Thailand. Situated in the strategic location in Asia Pacific region, Thailand is accredited for leading destination of
IT outsourcing location, for instance Thomas Reuter has established the software center since 2001 and
deliberated the global development site. Currently the company employs more than 1,300 IT professional as the
largest software development site globally.
In addition, the DST international Bangkok centre was established in 1993 and has grown to over 800
professionals providing Consulting, Support and Development services to Clients and DST affiliates globally. In
Thailand, DSTi services more than 50% of Fund Management companies and more than 50% of Broker
companies.

4.Government Support
The National ICT Master Plan chaired by Prime Minister approved the National ICT Framework 2020 ,which
applied National Broadband Policy Force Task on 2010. The broadband infrastructure allows to access
information via broadband internet reached 95% of Thai population in 2020. The Master plan also intend to
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invest human capital and IT literacy, to apply ICT enabling value creation to others industries and to develop
ICT for green economy and ICT for good governance. The government invests IT enabler services in the egovernment projects as well as offering the tax exemption privilege for 8 years for foreign start up companies,
also provides incentives for the working permission, equipment and machinery. The government offers the ICT
infrastructure to promote the development of 4G, Enterprise 2.0 and also security system in domestic and
international.
Linkage to AEC 2015: Single marketplace
With the paradigm of AEC 2015, the integration of ASEAN countries + 6 reach more than 50% of the world
population (3,284 millions) and consumed 22% world GDP which value USD 12,250 billion. The conceptional
framework of the ASEAN ICT Master plan will be enhance the human capital and apply the horizontal industries
the thematic track on digital economy, new media and social network. The community transform the mechanism
to pursue partnerships and collaboration with the regional counterpart and alliances. The vertical industries
which will comply the ICT enabler as the strategic STI keys such as Creative & Digital contents, Logistics ,
Toursim+ medical tourism , automotive parts, processed food and electronics etc. will be key drive to applied
ICT as engine to to raise competitiveness in AEC 2015. Complied to ASEAN ICT master plan, which use ICT as a
tool to rise the ASEAN Economic growth and also provide the linkage to integrate the infrastructure, Thailand
government has positioned Thai ICT industry as flagship on ASEAN strategic location.
Mapping Thailand as the strategic location of AEC 2015
Within 2012 telecommunication and ICT, one of four service industries that were stimulated to open free zone
market such as aero transportation, healthcare, tourism, will open 70% own foreign stakeholders. This is the
direction that Thailand has to open more Foreign Direct Investment (FDI) located in whole country. In the
meantime, Thai investor can run oversee business in ASEAN including the cross border Data Processing Services in
ASEAN members. More thai skilled workforce will work border less across the region. Some vertical industries
which effect by AEC 2015 and need software as an enabling platform to reinforce the value chain and operation
such as logistic and electronics assembly will invest more in order to get more competitiveness.
Case Studies: Logistic
In order to get cost optimization; Thailand positioned the strategic location on logistics. The government
agencies launched the Master Plan for Thailand Logistic by creating the awareness of using IT as enabling on
logistics or called E-logistics implemented marketplace with AEC 2012. The main strategic plan in on the
national single window which will be applied in the import-export on logistics methodology to linkage the
paperless that implement digital technologies to integrate E-transportation, e-custom, e-declaration, e-container,
e manifest, trading community, banking and insurance to single platform. This platform will penetrate to Asean
Single Window in 2012. This will drive Thailand as the center hub in logistics both ASEAN export and import
location.
Case Studies: Automotive
Thailand called ''Detroit of Asia,'' produces car plants over the past decade and initial vehicles manufacturers are
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made for export to more than 200 countries. The strengths of Thailand core value in the supply chain for car
Assembly, skill & experience workforce and also has been invested infrastructure by the government. Under the
paradigm of AEC 2015, Thailand is positioned to be Diesel automotive part assembly integrated to the whole
supply chain of Automotive in ASEAN. The automotive industries promote to apply ICT as enabler for
manufacturing, cost optimization, especially transform to the clients' orientation The ICT will help the
production line and manage the core value chain of industries to get better services and get competitiveness in
the global marketplace.
Case Studies: Tablet and device investment from the government to primary school
Thailand's Cabinet has approved the purchase of 860,000 tablet computers from a little-known Chinese
company for students in the first year of primary school. The software developer will take this opportunities to
create any contents and application on the mobility devices. The education institutes in Thailand have more
than 60,000 around the countries and proportion of users would be more than 600,000 students. The projects
will take hugh auction and procurement in the long term.

5.Strategies and Initiatives


Strategies

Description

5.1 Positioning Thailand as -Increase more professional skills by improving the education system and provide
strategic software development in more multiple national training
-Determine the strategic industries direction that used value added ICT enabler such
ASEAN and Global
as tourism, medical healthcare, software application in mobile devices etc.
-Set up the ICT integrated committee to push Thai ICT master plan.
-Launch the Telecommunication policy to comply with the ASEAN digital broadcasting
which will align with the 4G mobile service.
-Promote the Market -Entry methodology through ASEAN by sharing information,
looking for strategic partnership, exchange human resource, knowledge transfer etc.
-Focus on the niche software development by using the N2N model to integrate
potential small and medium software developers to bundle the selling services in
specific industries such as tourism, healthcare, financial management, and logistics.

Strategies

Description

5.2 Partnership and Alliance with -Increase more software park in distance area that boost the domestic demand, also
create the job for local people and get competitiveness.
domestic and regional
-Create the promoting program to transfer knowledge , skill and expertise among
region such as Exchange technician programmer with japan companies
-Make future collaboration program through the networking channels for example,
exchange inbound-outbound delegation, infrastructure; business matching program,
internship, rental office space, and so on.

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Strategies

Description

5.3.Benchmarking; identify; focus In order to sustain the ASEAN ICT competitiveness, Thai ICT industries must focus on
on a niche market (specific niche the software as a service application (Saas) in specific area such as our core value
vertical industries such as tourism , food , digital media and animation, medical
in global competition)

healthcare, automotive and logistics. These vertical industries align with the know-how
and workforce skill.

Strategies

Description

5.4. Awareness Creation of IT Thailand is also focusing on the growth of the IT domestic demand especially high
enabler on the vertical industries software skill and expertise on the vertical software industry applications such as
tourism, financial services, logistics, hospital, food, agriculture, manufacturing industries.
in domestic market.
In addition, hyper growth software services such as animation, mobile application,
multimedia and graphic are being promoted. This is also a result from the
governments efforts on the development of 3G and Wimax, web 2.0 and security
services.

Strategies

Description

5.5 Build Cluster and Platform for


emerging technologies.
-Trends of technologies are
change dramatically, Thai ICT
industries positioned on the new
emerging technologies according
to many research indicators to
map with the potential local
demand as following

Cloud Computing: The concept of IT usage with cost optimization make cloud
computing as the one potential driver for any business sectors. Today many private
applied cloud computing passed the software as a service (Saas) model by billing the
monthly service instead of software licensing. These provide great opportunities for
software developers to create various applications served on the cloud services. In
case of cloud infrastructure, AEC 2015 will allocate the concept of data centre free
zone and and provide the backup side outside among borders.
Mobile Application: The Office of the National Broadcasting and Telecommunication
Commission will comply with the ASEAN digital broadcasting. The government have
to provide the infrastructure and also extend the mobile broad width that will serve
the 4G for mobile industries. This will reinforce new mobile application and build the
mobile platform to serve the mobile communities and developers. Yet the mobile
industries will grow but the mobility device such as tablet help and transform
business methodology of many industries such as insurance, event organizer, printing
etc. The demand of vertical industries will build new application and new experience
for the end users.
Digital technology: The Digital Technology covered Record binary code combination
of digit (0,1) bits represent words / images and also Telecommunication (transmit
messages) such as TV broadband,sound, media,music, images, phone, cable system,
internet and social network (American encyclopedia) will be new trend for ASEAN ICT.
The digital technology transform the traditional industries to be more effectiveness,
reduce cost and increase customer satisfaction. For example Thailand logistic master
plan will use the national single window that apply digital tool in order to integrate
data, paperless and also certify the e signature or the printing industries which applied
digital technology for e-book, e-magazine that transform business model and also
revolutionize the whole industries.

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Strategies

Description

5.6 Build Manpower to meet ITO/ -Thailand education system transforms a various of IT professional nationwide that
produce more than 100,000 workforces. More than 100 universities produce more
BPO global standards.
than 10,000 skill developers annually. The universities provide standard courses
and workshop across the country. The IT workforce have dispersed and worked
through Software Park Alliance in other regions such as E-Saan Software Park in
KhonKhaen and Korat Software Park in the eastern and outsourcing pillar at Phuket,
south of Thailand. Thailand was selected to be strategic location for global software
development .
-Thailand education system transforms variety of IT professional courses set by
new education standards nationwide to uplift IT professional skill and experience.
-University training courses are readily available in software development, localization,
translation, internationalization and other specific fields. In AEC 2015 Thailand
government 's policy insist to enhance the quality of manpower by means of
increased skill workforce, multiple language skill and analytic skill.

Initiatives
Tax exemption and working permit for private to increase more professional skill workforce.

6.Quality Certifications and Support


- The Ministry Of ICT in cooperation with Ministry of Labor determine standard ICT professional will comply to
ASEAN cross border labor. This measurement will define the professional qualification, certificate and also
compensation to the single standardization such as System Analyst, Networking and system executives, ICT
Project management, organizational architecture and design software; network and ICT security, and software
developers. In addition, software testing and software certificate will be a must to Thai workforce to meet the
global standard.
-Government privilege will provide system for professional skill testing and certification and allocate the portion
of budget to make more ICT experts.
-Thailand will develop IT professional Repository dominated in the region and also establish institute of IT
professional measurement to produce more qualified IT professional since high school whole countries.

7. Key Stakeholders
Associations
1.The Association of Thai ICT Industry (ATCI),
Further information: www.atci.or.th
1. Promoting Thai ICT industry through business collaboration and sustained growth.
2. Focusing ICT human resource development.
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3. Working with the government to formulate policy to stimulate ICT uses and technological advancement.
4. Acting as a representative of Thailand in the international arena to enhance the countrys reputation and to
build relationships across the region.
2.The Association of Software Industry (ATSI)
Further information: www.atsi.or.th
1. Solve problem of Thai IT entrepreneurs to reinforce Thai software globally.
2. Promote software enabling to other industries efficiency.
3.Thai Software Export Promotion Association (TSEP)
www.tsep.or.th
1.To compete globally, TSEP companies must strive to be Best in Class in each areas of expertise
2.Focus & become niche ICT players in industries where Thai companies are well established
3.Organize & attend Buyers Meets Sellers Events & Trade Missions with emphasis on meeting corporate decision
makers, exploring their ICT needs and showcase our solutions and capabilities to domestic, regional & global
customers
4.Find new business partners to exchange market expertise, know-how on domestic & overseas business, comarketing activities.

Organizations
1.National Electronics and Computer Technology Center (NECTEC)
Further information: www.nectec.or.th
NECTEC was established on 16 September 1986, initially as a project under the Ministry of Science, Technology
and Energy (the former name of the Ministry of Science and Technology). In 1991, NECTEC was transformed into
a specialized national center under the National Science and Technology Development Agency (NSTDA), a new
agency following the enactment of the Science and Technology Development Act of 1991.
NECTEC contributes to the development of Thailand's capability in electronics and computer technologies
through:
I. Research, development, design and engineering
II. Technology transfer to industries and communities
III. Human resource development
IV. Policy research and industrial intelligence and knowledge infrastructure
2.The Software Industry Promotion Agency (SIPA)
Www.sipa.or.th
A public organization, established on September 24, 2003 under the administrative supervision of the Ministry of
Information and Communication Technology. SIPA acts as a lead agency that develops plans and policies to
advocate Thai software industry with a focus on promoting and developing software and digital content
entrepreneurs, improving human resource, supporting investments and market opportunities, boosting research
activities and technology instructions as well as supporting and developing measures to protect the Intellectual
Property Rights to software. The goal is to make Thai software industry domestically and internationally
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recognized. Thus, this is consistent with the Government Policy that defines a development of software industry
as a main strategy to build competitiveness of the country.
3.Software Park Thailand
Www.swpark.or.th
An organization under the National Science and Technology Development Agency (NSTDA). Our task is to support
and strengthen those in the Software industry by any means necessary, be it in procurement of human
resources, marketing, securing investment and even with the latest technology. Our aim is to help each and
every stakeholder in Thailands software industry from manufacturing industry to agriculture as well as the
service sector-Software can help all increase their efficiency and their potential. We aim to grow the domestic
software industry and instill confidence in this industry for overseas operators wishing to establish themselves in
Thailand.

Regional Software Park Around countries Alliance:Thailand Software Park Alliance (TSPA)
1.Software Park Thailand
2.Software Park Phuket
3.E-Saan Software Park
4.Korat Software Park
Software Park Thailand lead the regional alliances as the business model and share the infrastructure; facilities
and activities to promote the networking, marketing channels through software houses ' members. They signed
MOU among organizations on March 2012.

International development Program


1.The Asia Oceania Regional Software Park Alliance is an international collaboration among 22 software related
organizations from 13 economies such as Malaysia, Brunei, China, Hong Kong, Vietnam and Thailand etc. in the
Asia Oceania Region.
It was initiated during the Regional Software Park Forum 2007 in Bangkok, Thailand with the idea to create a
mutual collaborative linkage among Software Park operators and/or IT related organizations in this region which
can subsequently be extended to their tenants and members. A year later, the initiative has brought results with
the establishment of the Asia Oceania Regional Software Park Alliance where all alliance members signed the
official Memorandum of Understanding in Xiamen China on September 8, 2008 agreed to establish a network by
pooling resources among the members to assist local software/IT business in the region to go global and place
software/IT industry development in the Asia Oceania on the world scenario
2.The Asian-Oceanian Computing Industry Organization (ASOCIO) is a group of IT industry associations coming
from economies in the Asia and Oceania region. ASOCIO is established in 1984 with the objective is to promote,
encourage and foster relationships and trade between its members, and to develop the computing industry in
the region.
Presently, ASOCIO represents the interests of 29 economies, comprising 22 members from Australia, Bangladesh,
Brunei, Chinese Taipei, Hong Kong, India, Indonesia, Japan, Laos, Macao, Malaysia, Mongolia, Myanmar, Nepal,
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New Zealand, Pakistan, Philippines, Singapore, South Korea, Sri Lanka, Thailand, Vietnam and seven guest
members from USA, UK, Canada, Spain, Russia, France, and Kenya. Today, ASOCIOs members account for more
than 10,000 ICT companies and represent approximately US$350 billion of ICT revenue in the region.
ATCI is now leading the ASOCIO in Thailand and the next meeting will be held in Nepal.
3. CBI ITO Program 2009-2013
Software Park Thailand facilitated as counterpart to the Centre for the Promotion of Imports from developing
countries (CBI) is cordially inviting you to join with the CBI IT outsourcing Export Coaching Program (CBI ITO ECP)
2008-2010 from Netherlands. This program is selected developing countries with sake of delivering services to
provide assessment to EU market, offer business transfer and technology information, provide matchmaking and
promotion opportunities by the EU consultants.
Overview of program is to select 10-20 companies from developing countries through CBI counterpart and assist
them to enter the European market. During the program selected companies will be provided training, coaching,
and consulting and market entry assistant.

8.Best Practice
Emergence Technologies : Flagship for Thai ICT Ecosystem
Thai software Industry has adopted the software road map in order to reinforce the ICT industry ecosystem for
new market development and initiate the start up environment. Technologies have been changed dynamically
and made short computing cycle of products and turned on software as services. Thai ICT industry has to shift
spontaneously by following the technology trend and apply to global market orientation. There are some
emergence technologies that Thai ICT industry will focus on such as Mobile application, Cloud computing, Social
Analytics, and Social Networking.
The significant Enterprise 2.0 will lead the technology trend for mobile application technology especially on
mobile devices and smart phone. This will augment number of mobile content developers,mcommerce and
mpayment in the near future. Many Thai private and government organizations get recognition to apply
mobilizing application to execute value creation to their business performance and also embrace the platform to
support mobility. The emergence of cloud computing will support and manage remote cloud implementation to
the organizations both infrastructure and Saas delivery of cloud services. This technology will then become the
social media and turn on the cloud security concern in business sectors. Finally social networking will
collaborate the connection, networking, tools & services for the marketing and CSR activities for any
organizations. The enterprise 2.0 will create the new platform,communities and security serviced providers to
enhance and shift the business model of private sectors in order to adjust to any changes and survive in global
economic circumstance. These emergence technologies will support the industrial SMEs strategies and
performances to apply new business models in order to gain the competitiveness and work efficiency in the
global market. One successful story was applied Business Continuity for cloud computing and mobile
application in flood crisis in Thailand in 2011, the virtual technology can help SMEs and privates to access any
time, anywhere and any devices. This is helpful engine that can carry on the business efficiency even on the
crisis situations.
16

9. Key Bottleneck

Unstable Politics Situation


Fostering Human capital: skill & expertise, languages, education system
IP Rights/ security
Infrastructure Investment
Marketing skill promotion's activities
Perception of oversea clients
Business Environment : working permit, procedures,BOI
Reform Government system
Awareness of industries on the ICT enabling
Ensure green technology and Green ICT

10.The most important Export markets for ITO and BPO products and services
According to Board of Investment Thailand, 2010. They divided ITO into categories as following
Outsource Categories
BPO

ITO

Description

Outsourcing buyers

Human Resource

Japan, UK, USA, Scandinavian,Germany

Purchase and accounting

USA, France

Selling Department

USA, UK

Back Office

Japan, UK

Custom software development

UK, Scandinavian

Analytics /Business Intelligence

Germany

System Integration

Swiss, UK, Germany

Database development

Germany, the netherlands

Web development

Spain, Austria

Source: BOI Thailand (www.boi.go.th)

11. List of Potential BPO and ITO


Company Name

Description

URL

Amber Advisory Ltd

E-learning, database system network system design, system www.umithai.com


analyst

Aware Corporation

Contract software development, Internet data center, PM, www.aware.co.th


Giftware

Digicraft Co.,Ltd

Develop digital content, animation, mobile content

www.digicrafts.com

Enspry Technology Co.,Ltd

Web application, testing, automated testing

www.enspry.com

IT works Co.,Ltd

Mobile and biometrics application outsourcing

www.itworks.co.th

Solubiz Co.,Ltd

MRP , artificial Intelligence, genetic algorithms

www.solubiz.com

16

TNT Media and network Co.,Ltd Web application outsourcing, E-book, E-magazine

www.tnt.co.th

Innova Software

E-commerce, mobile application, Transportation control system www.innovasoftware.com

MiracleNET group

Outsourcing Java and Opensource

Softsquare International

Software customization in retail, manufacturing and www.softsqauregroup.com


government

Verisette Co.,Ltd

IT banking outsourcing, testing integration.

www.verisette.com

Suvitech co.Ltd

Telecommunication

www.suvitech.com

AI Soft Co.Ltd

Traveling search engine

www.aisoftthailand.com

Readyplanet Co.,Ltd

Web solution , web development

www.grandplanet.com

Infotronics Co.,Ltd

Infotronics is a leading Software Development Services, www.infotronics.co.th


Consulting, Trading, System Integrator and IT Services for
ubiquitous city

Ubiz Solution Co,.Ltd

PM, Helpdesk support, software development

Good Job Multimedia.com

Mobile application, game and animation, visual effect, graphic www.goodjobmultimedia.com


design

YIP In TSOI Co.,Ltd

Total IT solution provider

www.yipinsoi.com

Longkong studio Co.,Ltd

Software for construction

www.longkongstudio.com

Touch Technology Co.,Ltd

Mobile application, monitoring solution, wireless network www.touchtechnologies.co.th


solution

Sun Systems Corporation


Co.,Ltd

Solutions for VASs, enhanced / intelligent switching, call / www.sun-system.com


media processing, VoIP, unified messaging, wireless e-mail,
CallCenter, Helpdesk Applications, Thai Text to Speech, Thai
Automatic Speech Recognition and Value Added Services
Platform

Teletrol-One Co.,Ltd

Financial software

Code Suite Co.,Ltd

Conference system,
infrastructure

www.miraclenet.net

www.ubizsolution.com

www.teletrol-one.co.th
web

application,

network

and www.codesuite.co.th

Advance Intelligence Modernity Wireless application, mobile internet, content aggregator , game www.aimadvance.com
Co.,Ltd
Asiabiz Networks Co.,Ltd

Call center, Sales and services, Process Management www.asiabiznetworks.com


customers,

Asia Medisoft Co.,Ltd

Web application for medical software, mobile application

www.asiamediasoft.com

Alterlas Co.,Ltd

Design and web application

www.alterlas.com

Chanwanich Co.,Ltd

BPO provider and IT security integrator

www.chanwanich.com

ISLT Co.,Ltd

Interactive digital media, web application

www.figabyte.com

Anywhere to go Co.,Ltd

Mobility Enterprise Solution on cloud computing

www.anywheretogo.com

Sense water Co.,Ltd

Water leakage management

www.sensewater.net

Humanica Co.,Ltd

Human Outsourcing, ERP

www.humanica.com

17

Bibliography
The annual report Ministry of ICT Thailand 2011, Thailand ICT Market 2011 and outlook 2012 , Software
Industry Promotion Agency (SIPA), page 54.
The IMD World Competitiveness Yearbook (WCY); The World Competitiveness Scorecared, page 19.
A.T Kearney ; A.T Kearney Global Service Location Index 2011; page 23
Cambridge Encyclopedia 2010 , KPMG Landscape Report Analysis , page 18
Thailand-Canadian Collaboration Forum 11-14 October 2011, Bangkok; page 32
http://sitagita.com, BPO Thailand
http://www.prtrbpo.com, company profile
http://www.humanica.com; company profile
http://www.boi.or.th ; Board of Investment Thailand (BOI), 2011