Information Technology Sector - East African Market - Case Study Example

Information Technology Sector - East African Market Introduction The radical growth of the Information Technology sector across Africa has created myriad opportunities for investment. Some of these opportunities exist in several sectors where IT has become of much value these days. In any case, the major driving force behind the development of the IT infrastructure is basically the growing need of the efficient opportunities created by Information Technology and the shift from the traditional forms of operations. The growth of business opportunities in East Africa is a clear sign of the area’s potential to the growth and development of Information technology. In any case, Information technology is the basis for business growth and provides the ground for such growth (Costa 2011). Across East Africa and the rest of Africa, it has been realized that organizations that have invested effectively in Information Technology are normally ahead of the park in terms of business operations and thereby capture a larger share of the market. Like the rest of Africa, East Africa has continued to lag behind as the world progresses in the adoption of modern technology especially in the Information and Telecommunication Technology (ICT). Hopefully, this trend is now changing as the opportunities for investment in this fundamental area are being identified. It is believed that in just a few years, Africa shall become a hub of ICT outsourcing like India and China (Grembergen 2011). One of the greatest shortages that have been affecting the East African region in relation to the growth of Information Technology is a relatively low number of specialists in the field. Although the colleges in this region churn out many graduates per year, few of these people are able to cope up with the fast changing IT field which is characterized by new realities that seem to emerge each day. Many opportunities for investment exist in training specialists in project management and in general IT management skills. Practical Areas of Investment Several gaps exist in the East African Market where practical IT investment can become necessary. Investment opportunities exist in the provision of fast internet services in all the East African countries. For instance in Uganda, most schools are today computerized. A growing number of the population is becoming more computer literate. However, it is realized that the cost of internet is still very expensive especially in the rural areas. The high computer literacy coupled with the low internet infrastructure translates into very definite business opportunities in the region. The number of reliable internet service providers is still low while the cost is very high. Opportunities abound for investment in this region. Cyber cafes should therefore be established in several areas in the country. The same situation is replicated in Tanzania where much investment opportunities abound in the provision of reliable internet services. In Kenya, the situation is slightly different with broadband and wireless internet having captured the market. However, the cost of surfing is still high and unmanageable for a majority of the population. The few servers available in the region seem to be overworked. They often crash leading to a lot of inconvenience to business people and other internet users. In East Africa, the basic investment opportunity in IT lies in the provision of efficient and reliable internet services. The cyber optic cable The laying of the optic cyber cable under the sea to the East Africa region is seen a trigger that will spur a lot of opportunities in the East African region. In Kenya, the government has been encouraging the youth to develop a taste for the web and tap into the benefits that come with broadband. Most of the older generating does not realize the opportunities that have come about as a result of the growth of the Information Technology development. The younger generation is nevertheless savvy about this growing field and is always on a constant search for opportunities (Lucas 2009). Several opportunities exist in the development of IT in such sectors as banking, trading, trade brokerage and online tourism. Indeed, several developments have been seen in mobile money transfer and other sectors which have been developing fast. In view of the above opportunities realized in the IT sector in East Africa, Victoria IT can indeed take part in many investment opportunities in order to satisfy some of these demands. In the context of these realities, the company can establish a center for training specialists in order to satisfy the need to qualified specialists in the industry. The demand for personnel who can take charge of the dynamic IT sector is very high in East Africa. In that regard, a proper training center that imparts relevant IT knowledge and inundates the learners with the latest trends in the IT world would be much important and would get many customers. Indeed, for the company to operate effectively in the region, it needs to establish a pool of qualified personnel who would help it to spearhead its activities across the region. In the same way, it is realized that the growing number of computer literate masses faces a challenge of limited access to internet facilities. The establishment of such facilities should therefore be a core priority for any investor who aspires to invest in the region. Such investment opportunities exist in establishing cyber cafes and internet booths where consumers can access internet services at manageable costs. This can easily be facilitated by the fact that broadband internet facilities are now widely available in the region. Whichever the case, opportunities in internet provision certainly abound in this area and it creates the need for much investment in this regard. In a bid to enhance the concept of ICT in the East African region, Victoria IT can consider establishing a center where both inbound and outbound calls can be made without the challenges that often characterize international calls. In the same vein, software development in this region is at its developmental stage. Victoria can consider setting up a modern center that develops software that can address the various needs that needs in the region. Without doubt, software is on very high demand in this region while the developers are very few. The demand for software exists in entirely all facets of the economy that employ internet technology in the operations. While the internet broadband has certainly arrived in the region, the infrastructure to facilitate its expansion is still lacking greatly in this particular region. A proper broadband expansion plan is therefore imperative to address this challenge and meet the growing demand for the broadband connectivity across the region. While Kenya is certainly ahead of the other East African countries in connectivity, myriad opportunities still abound in linking most of the areas with fast internet connectivity. In this regard, an efficient strategy to link several areas with the broadband becomes quite imperative as a means of investment (Brynjolfsson 2010). Information Technology Roadmap A proper and efficient IT roadmap should be able to forecast the development and changes that can be realized in the IT sector for a long time to come. The timing of these changes should be very appropriate in order to support the organization in its study of where and what to engage in the market. The roadmap for Victoria should begin with the training of people in order to create a pool of local qualified personnel who can advance the policies of the organization. Thereafter, other opportunities for investment will be tackled in a progressive manner that takes account of all the necessary needs of the society. The roadmap is definitely time bound and each of the investment undertakings will be conducted in a logical manner that addresses the particular IT needs in the region. Market analysis to determine the specific areas of concern and investment. Setting up of the regional sub office to support the activities in this region Putting up the framework to comply with legal regulation and support the operations businesses. Training the personnel to take charge of the operations of the organization. Taking part in the opportunities realized in the market. Milestone plan The above strategy can effectively address the concerns of Victoria IT in the new market as it seeks to establish itself as a brand in the emerging market. Despite the relatively stable and growing IT market, challenges are bound to arise in the course of operations. The sector is fast changing and the players are normally required to be abreast with any developments that take place (Ndulu 2007). It is also imperative that the organization strategizes itself effectively in the market considering that the IT sector can actually get infiltrated with a lot of players who might create a lot of competition for the established organizations (Lubbe 2007). In that regard, the fundamental concern for Victoria should be the establishment of a brand name that can effectively be used to recognize it in the market. Without doubt, such a strategy would greatly benefit the organization. In conclusion, Victoria IT is certainly at the right place in East Africa as an IT investment zone. Success can indeed be realized if the market conditions are favorable and the policies of the organizations are adapted to conform to the environment. In that way, success is inevitable. References Brynjolfsson, E.(2010). Wired for innovation: how information technology is reshaping the economy. Cambridge, Mass.: MIT Press. Costa, A. P. (2011). The new economy in development ICT challenges and opportunities. Houndmills, Basingstoke: Palgrave Macmillan ;. Grembergen, W. (2009). Information technology evaluation methods and management. Hershey, Pa.: Idea Group. Lubbe, S. (2007). Managing information communication technology investments in successful enterprises. Hershey PA: Idea Group Pub.. Lucas, H. C. (2009). Information technology: strategic decision making for managers. Hoboken, NJ: John Wiley & Sons. Ndulu, B. J. (2007). Challenges of African growth: opportunities, constraints, and strategic directions. Washington D.C.: World Bank. Read More