www.asocio.org The External Circulation Newsletter for ASOCIO Vol.

1 Issue 2

Presidents Message
Dear Friends,
Welcome to the second edition of ASOCIO Connect, a special newsletter for the ICT
industry in the Asian and Oceania region. The rst edition of this rotating Newsletter was
done by NASSCOM, India and now the second edition is done by AIIA, Australia.
AIIA is the IT association of Australia. Australia has a sophisticated, world leading ICT
market characterised by rapid growth and a high adoption of ICT by both business and
consumers. It is highly regarded for its ability to develop integrated business solutions
through applied ICT technology. Australia has a culture of innovation and a strong consumer
desire for access to the latest technologies. Australia also possesses a low cost, highly
skilled, culturally and linguistically diverse workforce capable of designing and developing
leading edge technologies.
In this edition, we are happy to give you an overview of the Australian ICT market and also
touch upon other important issues like its wishlist for federal elections and how ICT has
become vital to the Australian economy, contributing to about 4.6% to the GDP.
I would also like to take this opportunity to update you on a few activities that ASOCIO has
carried out in the last couple of months.
1. Laos MTV visit (13-16 June 2007): 32 business delegates from ASOCIO member
economies had an opportunity to network with over 20 IT companies, academic and
government agencies in Laos. The objective was to assist the host economy in shaping
the IT industry and exploring business opportunities for participating companies.
2. SME portal development: ASOCIO wants to build an SME Portal which will provide
a platform for all SME companies in the region (20 economies), to network, post and
exchange trade leads and share best practices.
3. Ambassador Program: The Ambassador Program has been conceptualized to bridge
the digital divide between the developed and developing economies. Volunteers from
developed economies will assist developing economies and help transfer ICT expertise
and best practices in planned manner.
ASOCIO Connect is a platform and an opportunity for IT/ICT associations to exhibit
their countrys ICT market on the ASOCIO platform. ASOCIO has been instrumental in
linking up IT companies in its member economies in the Asian-Oceanian region. ASOCIO
has 20 members and ASOCIO members associations, through their own members,
represent more than 10,000 IT companies in the region. The member associations
co-operate and coordinate with each other for achieving the common goal of strengthening
business ties for the betterment of the ICT industry in their region.
Your feedback is vital for us. Please send in your suggestions and comments to
lucas@jisa.or.jp
Ashank Desai
President, ASOCIO
Australian small businesses to invest
US$16 billion on IT this year
By Raju Chellam, Vice President (Asia-Pacic), Access
Markets International (AMI) Partners, Inc

Small and medium businesses SMBs or commercial

companies with up to 999 employees - across Australia
are on track to invest up to US$16.6 billion to boost their
infotech infrastructure and solutions this year, up some 5%
over last year. The bulk of the spending will be on telecom
services, IT services, computing and the Internet.

This is according to the latest study by New York-based

Access Markets International (AMI) Partners, Inc.
Increasing local and international competition is forcing
Australian SMBs to invest in high-tech to stay ahead of the
enhanced security and easier data recovery. Despite
curve. The major concerns for SMBs in Australia this year
increasing awareness of server-based computing, many
are enhancing IT security and privacy, deploying backup
SBs prefer white-box servers over branded ones because
and disaster recovery solutions, and improving Internet or
of their relatively low price point.
networking bandwidth for employees.
Data and online security is another moot point. Unfortunately
The single most important strategy that SMBs in Australia
for SMBs today, hackers dont single out large businesses
have adopted to ward off competition is to put a tighter
for their attacks. In fact, as more and more large businesses
rein on costs. When it comes to IT purchase preferences,
continue strengthening their internal security, SMB
SMB owners say they need solutions to be scalable, in line
with overall business strategy and the TCO (total cost of networks have become easier targets, as they are often

ownership) has to be low. However, Australian SMBs need inadequately protected.

to be educated on vendor nancing and leasing options,
since most of their purchases are being made with internal
funds. Leasing or other nancing methods could ease their
cash ow.
A major portion of spending on computing among small
businesses SBs or commercial companies with up to 99
employees - is on desktop PCs. SBs in Australia still favor
desktops over notebooks, despite falling notebook prices.
For SBs with limited nancial resources, the desktop
represents an optimal investment in terms of utility and
price points.
Adoption of server-based computing is also increasing
rapidly; as SBs start to understand the potential value of a
server-based network like better computing performance,
As for medium businesses MBs or companies with 100
to 999 employees - most are in the second wave of IT
adoption, while some have moved on to the third wave and
are now competing with large enterprises.
In the rst wave of IT adoption, companies buy notebook
PCs, install anti-virus software, set up a basic website and
have Internet connectivity. In the second wave of IT adoption,
companies install local area networks, opt for high-speed
Internet, deploy desktop and network rewalls and connect
the enterprise through intranets. In the nal or third wave
of IT adoption, companies deploy wide area networks,
virtual private networks, opt for storage area networks and
IP telephony and seek out solutions in enterprise resource
planning and supply chain management.

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The ICT industry in Australia
ICT is the link to a successful, accelerating
economy. By supporting the ICT industry,
we can ensure that all Australians benet
from economic growth, security and the
convenience which ICT provides.
Peter Kazacos, Chairman of AIIA and Managing
Director of Kazacos Industries.
Australia has a strong, vibrant, innovative and
sophisticated ICT industry. Australias ICT market is
characterised by rapid growth and a high ICT adoption by
both business and consumers.
Australias ICT market is the 12th largest ICT market in the
world, and the fourth largest in the Asia Pacic region after
Japan, China and Korea.
It is highly regarded for its ability to develop integrated
business solutions through applied ICT technology. Latest
statistics reveal that more than 500,000 ICT employees
work across the Australian economy, which represents
5.5% of Australias workforce. 25,000 ICT specialist rms
generate incomes of $80 billion a year.
During 2002-03 domestic production of ICT was worth
approximately 4.6% of Australian GDP (compared with
8.8% in the US and 7.3% in the UK). Moreover, Australias
ICT industry made a greater contribution to the economy
than the agriculture, forestry, shing, defence and education
industries and is also a driver of innovation in these and
other industries.
The ICT industry is a driving force behind the Australian
economys productivity growth. Government statistics tell
us that the Australian ICT industry contributed to 85% of
productivity growth in the manufacturing sector and up to
78% in the services sector in the last two decades.
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Key ingredients for the success of the Australian ICT
market include a modern economic base, political stability
with cultural and legal compatibility with key economies,
especially the United States, sound infrastructure, a
technically skilled workforce and competitive labour rates
when compared with other developed nations, geographic
proximity to Asia Pacic markets and a strong tertiary
education system and skills base with a solid foundation in
science and research.
AIIA outlines its federal election
wish list
With a national election on the horizon in Australia, AIIA
has launched its 2007 policy priorities.
The Association has identied four key themes most likely
to deliver benets to the ICT industry and the broader
economy.
These four key themes are rmly focused on advancing the
leadership and inuence of the ICT industry in Australia,
and have shaped a set of measurable priorities focused on
medium term outcomes.
AIIAs four key themes are:
Sustainable environment - The ICT industry
implements an equitable, viable and sustainable
national product take-back scheme under the
leadership of AIIA.
Industry sector growth - the Australian ICT industry
is vibrant and growing rapidly because it operates in
a business environment that supports collaboration,
advances export opportunities and values
entrepreneurship.
Workforce - Australia has a highly skilled and vibrant
knowledge-based workforce which drives innovation
in the technology industry. Australia has workforce
policies and practices that attract and retain workers in
the technology industry year after year.

Shaping the business environment - continuing the
evolution of a government procurement framework
which eliminates key inhibitors and allows both
multinational companies and SMEs to compete for
government work on a level playing eld.
These four themes are underpinned by a number of key
initiatives which, if implemented, would deliver on the
aspirations highlighted in the themes and nurture a growing
and competitive ICT industry sector. These include:
Procurement and/or tax incentives to those
companies addressing environment issues
developing green ICT solutions;
A national ICT careers attraction campaign;
A national framework for industry collaboration;
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Reduced tendering costs for government ICT
contracts by 2010; and
Accelerated investment in the development of
business skills for Australias ICT entrepreneurs.
High-speed, accessible broadband continues to remain
high on AIIAs policy agenda, and more information can be
found on AIIAs website: www.aiia.com.au
AIIA will now begin an intense lobbying campaign with both
sides of politics in the lead-up to a federal election later in
the year.
ICT is a critical factor in determining the success of
Australias economic performance and the future well-
being of our nation, so its vital that Australias government
decision-makers develop policies and programs which
support and develop our essential industry.
AIIAs full Federal Election 2007: ICT Industry Policy Action
Plan is available online at www.aiia.com.au
Getting a Second Life!
AIIA entered the virtual world of Second Life in June.
By the end of 2011, 80 per cent of active Internet users (and
Fortune 500 enterprises) are predicted to have a second
life and virtual worlds are developing far beyond the fad
that many had predicted. Creating your own virtual life is
merely a few mouse clicks away.
Virtual worlds, and in particular Second Life, provide an
alternative future for how we work, rest and play, said
AIIAs Chief Executive Ofcer, Sheryle Moon.
As Australias peak body representing the ICT industry, AIIA
is committed to demonstrating the benets of cutting edge
technology and how it can positively inuence Australians,
both personally and commercially, Ms Moon explained.
and AIIA is utilising technologies such as Second Life to
show Australians that the ICT industry is fun, vibrant and
constantly evolving. Just because youre in ICT, it doesnt
mean you have to be stuck behind a computer typing code
for twelve hours a day, Ms Moon added.
Second Life is a virtual online world created by Linden
Lab in 2003 with an initial population of 300,000 residents.
Since then its popularity has skyrocketed.
Seven million residents now inhabit Second Life, and
this number is continutally growing. Residents can play
with, educate, and even shop for their online character
or avatar.
Ms Moon said Second Life had already become big
business as large multi-national corporations establish
their own presence in the virtual world.
If you look at recent statistics, nearly US$1.5 million
is spent every day. Even though its just a bit of fun to
many people using Second Life, some are making a very
protable living buying and selling the virtual products and
services they create.
Companies such as IBM, Lacoste and Sony are just a
few examples of major international companies that are
harnessing the potential of Second Life to market their
products to a whole new audience, Ms Moon said.
In addition, the AIIA virtual space offers visitors a unique
opportunity to learn more about the ICT industry in Australia
and how it plays integral role in driving Australias future
prosperity.
The ICT industry is vital to the Australian economy. It
represents 4.6 per cent of GDP in Australia, which is
more than the education, defence and agriculture sectors.
AIIAs Second Life presence will remind people of just how
important ICT is to our nations future prosperity, Ms Moon
concludes.
For more information visit AIIAs Second Life webpage.
AIIAs Talking Technology
AIIAs Chief Executive Ofcer, Sheryle Moon, has her own
blog: www.talkingtechnology.com.au In it she explores
how ICT holds the key to future prosperity. Around 10,000
readers are visiting the site each month to nd out what
Sheryle thinks about social networking, the digital divide,
global exporting, connecting SMEs to online opportunities
and more.

Global analyst rm Gartner believes that the collaborative

Australian ICT industry welcomes
and community-related aspects of virtual environments
NASSCOM delegation
will dominate in the future and that the majority of active
Internet users and major enterprises will nd value in AIIA welcomed a delegation from the National
participating in this area in the coming years. Association of Software and Services Companies
(NASSCOM) recently. The visit, program and
Gartner suggests that companies need to enter virtual
networking functions were organised by the
worlds with their sights rmly set on the long haul.
Australian Information Industry Association (AIIA) and
Find enthusiasts within your enterprise and support them. NASSCOM, together with the NSW and Victorian
Understand the implications for access to open virtual state governments.
platforms from within the enterprise and the risks involved,
The networking session at Australian Technology Park
says Steve Prentice, vice president and distinguished
was a great success with each delegate taking three
analyst at Gartner. Despite the concerns within companies,
minutes to share information about their products
dont ignore this trend. They will have a signicant impact
and services with the audience of 50. Australian local
on your enterprise during the next ve years.
companies were very interested to learn how they
AIIAs Second Life presence allows members to access could partner with Indian companies for mutual
services such as forums, discussion groups, meeting benet and a number of Australian companies
places to nd new staff and avenues to increase their reach are considering their partnership options with the
into untapped markets. Indian visitors.

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Upcoming events of ASOCIO
Invitation to join ASOCIO - Multilateral ICT
Trade delegation of ICT companies from multi
economies to meet with the top ICT companies
in Xiamen, China from 7-11 September 2007.
The Xiamen visit is designed specically for ASOCIO
overseas delegates to
Business match making session 60 local
ICT companies
Visit Xiamen Software Park facility and meet software
park incubators
Meet Xiamen City Government and other local key
ofcials for trade
Do companies visits
Get rst hand market and incentive information at the
international conference and exhibition
For more information and registration, please visit http://
www.asocio.org/xiamen/index.htm
For any further information or inquiry e-mail to: sophiachen@
mail.cisanet.org.tw or lucas@jisa.or.jp
Invitation to join ASOCIO Multilateral Trade
Visits to Bangkok. 19-22 September 2007
Complementary Exhibition Booths! First come rst served!
For ASOCIO member companies,
Software Park Operators and Tenants
A series of events will be hosted by ATCI (the Thai ICT
Association) from 19-22 September 2007. This will include:-
Regional Software Park Forum 2007 Theme: The
Innovation Extender.
ICT SME Summit Theme: The Net Generation SME.
ASOCIO MTV (including business matching)
Complimentary Booths for member companies
Complimentary Booths for software park operators
and tenants
Highlights of the event will be conference and workshops,
Multilateral Trade Visit from over 20 Asian and Oceanian
economies, Business Matching and exhibition showcase.
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For further information on:
ICT SME Summit, please contact Mr. Nassaran
Deeprasert at Tel 662 6368285 Fax 662 2678409
Email: info@ictsmesummit.com,
nassaran@absolutealliances.com.
Visit our website at www.ictsmesummit.com
For further information on:
Regional Software Park Forum 2007,
please contact Mr. Purivut Tummabhand
at Tel 662 6368285, Fax 662 2678409
Email: info@regionalsoftwarepark2007.com,
purivut@absolutealliances.com.
Visit website www.regionalsoftwarepark2007.com
Invitation to join ASOCIO Multilateral Trade
Visit to Vietnam Software and Game Event,
Ho Chi Minh, 11-14 October 2007
Free pass will be given to delegation to visit the Exhibition,
Business Matching, Company and Software park visits
and to related trade agencies and companies. Targeted
delegations will be mainly from Japan and companies from
the region.
For information and registration, kindly contact Ms Junko at
kawauchi@jisa.or.jp
ASOCIO ICT Summit 2007
Date: 26-29 November 2007
Venue: Rafes Convention Center, Singapore
ASOCIO ICT Summit a premier event is brought to you
by Singapore Infocomm Technology Federation. The event
would offer opportunity to listen to key insights on the
regional ICT masterplans, and also explore business and
networking opportunities.
Early bird discount 20% before 30 September 2007
For registration and general inquiries, kindly contact
Ms Lai Cheng at laicheng@singex.com.sg or
visit www.asocio.org/2007
 Australia leads the region in revenue budgeted for IT
Scope unlimited operations at 2.1%, compared to a low of 1.2% in Malaysia
and South Korea. Singapore and China stand in between,
for Asia-Pacific with 1.8% and 1.7% respectively. Spending on IT capital
varied from a high of 1.7% in India to a low of 0.8% in
Companies for IT Australia, against 1.2% in North America.

Adoption Not surprisingly, the smaller share of spending results in

a similarly smaller size of information technology units,
By Shu-Ching Jean Chen, Forbes.com ranging from Indias 59-member team in the average
company to Singapores minuscule 15-member operation.
Companies in the Asia/Pacic region are lagging in the
By contrast, North American companies on average have
global technology spending race and devote only about
160 specialized staff.
half as much expenditure as a proportion of total revenues
as their U.S. counterparts, a new survey revealed. The survey highlights distinct trends for individual countries.
More than anyplace else, China emphasizes hardware, which
The ndings, issued by industry consultancy Gartner,
accounts for 46% of its IT spending, and it consequently
show that Asia/Pacic companies spend only 1.4% of their
places less emphasis on hiring IT staff. South Korea has
revenue on information technology operations, compared
reaped the benet of low costs in telecommunications
to 2.6% for American corporations. Measured in absolute
spending, a result Gartner suggested owed much to the
value, tech spending by Asia/Pacic companies comes in
nations excellent broadband infrastructure.
at about one-third that of their American counterparts.
In general, far more Asian companies polled consider
The survey was a result of polling midsized companies
themselves as conservative in the pace and scope of
in six countries in the region: Australia, China, India,
their adoption of information technology, ranging from
Malaysia, Singapore and South Korea. The average size
35% to 50% across the region, compared with only 14%
of companies surveyed in these countries varied from $720
of North American companies that describe themselves as
million in China to $150 million in Singapore.
conservative in their IT adoption.

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Count on
Singapores startups
By Victoria Ho, ZDNet Asia
Entrepreneurs these days arguably have it easier, thanks
in large to the new Web 2.0 era.
The emergence of Web 2.0 business models and the buzz
surrounding such tools have opened doors a little wider for
IT startups seeking seed or angel funding.
According to PricewaterhouseCoopers, the global mobile
entertainment and games market is expected to be worth
US$73 million by 2009. And the growth has caught the
attention of the Singapore government, which announced
earlier this year that it has allocated S$500 million (US$332.2
million) over the next ve years to fund interactive digital
media projects.
As for the local startups borne during the dot-com bubble,
the perilous times after the bubble burst meant many did
not surface after.
Singapore celebrates its 42nd National Day, or day of
independence, ZDNet Asia celebrates a diverse group of
companies--some of which started small and managed to
keep aoat during tougher times--that have progressed far
enough to now share some of its wisdom.
Pikom appeals
Malaysias PDA tax
By Cordelia Lee, ZDNet Asia
The Association of Computer and Multimedia Industry of
Malaysia (Pikom) has urged the government to reconsider
its plan to impose a sales tax on ICT equipment.
If tax is imposed on PDAs, the countrys development
and adoption of ICT (information and communications
technology) will be hindered since only the more afuent
can afford such devices, said Lee Boon Kok, deputy
chairman of Pikom, in response to a local news report
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about the imposition of a 10 percent sales tax on personal
digital assistants (PDAs) with wireless connectivity, such
as WiFi and Bluetooth.
The wireless option for the PDA encourages a more
connected society and increases the uptake of Internet-
related applications, Lee noted.
Last week, the popular handheld devices were reclassied
and put under the 8525.20.900 tariff code that imposes a 10
percent sales tax. Previously, such devices were classied
with other computing hardware, such as personal computers
and notebooks, under a duty-free tariff code. Personal
computers and notebooks with WiFi or Bluetooth features,
however, were not affected by the reclassication.
Currently, no sales tax is imposed on IT equipment,
including PDAs. It is difcult to draw a line between
computer equipment and information and communications
technology devices because of the convergence of
technology. All communication equipment are made up of
microchips, software and applications, Lee said in a press
statement.
He pointed out that the sales tax would cause confusion
among consumers and the industry as to where to draw
the line for the various wireless communication devices.
A PDA with wireless built-in and even a phone device plus
camera have become a trend and are common features,
he said.
As a PDA is a small piece of equipment, consumers may
also choose to buy such devices when they are abroad. It
will be difcult for the Royal Customs Malaysia to impose
sales tax for the PDA purchased in this way, Lee added.
Market research rm IDC estimates that over 70,000 PDAs
were shipped in Malaysia last year, making the market
worth about US$100 million.
 Throughout the expanse of Asia-Oceania, which
encompasses both developed and developing
economies, the Asian-Oceanian Computing Industry
Organization (ASOCIO) stands tall as the bridge for
IT companies in the region to expand their network
of contacts, do business together and develop
their capabilities.

Since its establishment in 1984, in Tokyo, Japan,

ASOCIO has dedicated itself to promoting,
encouraging and fostering relationships,
while promoting trade between its member
organisations. As a federation of computing
industry associations from the Asian-Oceanian
region, ASOCIOs overriding objective is to
develop the computing society and industry in the
region. ASOCIO has been instrumental in linking
up IT companies in its member economies. The
annual ASOCIO ICT Summit is one of the regions high-powered IT forums, providing platforms for
Government and industry to share information, develop closer relationship and, most importantly, identify new
business opportunities.

Members
Australian Information Industry Association (AIIA) Association of the Computer and Multimedia Industry of
www.aiia.com.au/i-cms.isp Malaysia (PIKOM)
Bangladesh Computer Samity (BCS) www.pikom.org.my
www.bcs-bd.org Mongolian Information Development/National Information
Information and Software Industry Association (ISIA) Technology Association (MIDAS/MONITA)
www.isia.org.hk www.ict.mn/midas
Information Service Industry Association of Computer Association of Nepal (CAN)
Chinese Taipei (CISA) www.can.org.np
www.cisanet.org.tw
ICT-New Zealand (ICT-NZ)
National Association of Software and Service www.ict-nz.org.nz
Companies (NASSCOM)
www.nasscom.in Pakistan Software Houses Association (PASHA)
www.pasha.org.pk
Indonesia Computer Software Association (ASPILUKI)
www.aspiluki.or.id Singapore Infocomm Technology Federation (SiTF)
www.sitf.org.sg
Japan Information Technology Services
Industry Association (JISA) Federation of Information Technology Industry
www.jisa.or.jp/en Sri Lanka (FITIS)
Federation of Korean Information Industries (FKII) www.itlanka.lk
www.fkii.or.kr/new/main/main.asp The Association of Thai ICT Industry (ATCI)
Myanmar Computer Federation (MCF) www.atci.or.th
www.mcf.org.mm Vietnam Software Association (VINASA)
Lao ICT Commerce Association (LICA) www.vinasa.com

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President Deputy President Immediate Past President

Ashank Desai Richard Yin Wilson Tan

National Association of Software Information Service Industry Singapore Infocomm
and Service Companies Association of Chinese Technology Federation (SiTF)
(NASSCOM) Taipei (CISA)

Vice President

Peter Kazacos Looi Kien Leong Atsushi Nishijo

Australian Information Association of the Computer Japan Information Technology
Industry Association (AIIA) and Multimedia Industry of Services Industry
Malaysia (PIKOM) Association (JISA)

Abdullah H. Ka Bunrak Saraggananda Dr. Y. T. Lee

Bangladesh Computer The Association of Thai ICT Federation of Korean
Samity (BCS) Industry (ATCI) Information Industries (FKII) Design: Creative Inc. (011-41634469)

Contact:
Lucas Lim
Secretary General

C/o JISA, 17th Fl, TIME 24 Bldg, 2-45 Aomi,

Pek Yew Chai Koto-ku, Tokyo - 135-8073, Japan
Singapore Infocomm Tel: +81-3-5500-2706 Fax: +81-3-5500-2630
Technology Federation (SiTF)

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