IT-enabled Services as Development Drivers in Low-Income Countries: The Case of Fiji

Abstract

This paper examines the options available to a developing country, Fiji, for participating in the exploding international trade in IT-enabled business services. A rapidly-growing portion of this trade takes place when firms from developed countries purchase services from providers located in low-income countries or place remote service delivery facilities in such locations. The paper describes the segments of IT-enabled business services in terms of their skill-intensity and the value they add, and discusses current trends in the international trade in business services, with particular emphasis on North-South service outsourcing. The paper identifies conditions that low-income countries must create in order to develop entry-level IT-enabled service delivery capability and then analyses Fiji's potential to develop or attract such services delivery capability. Policy options to facilitate the development of an indigenous IT-enabled service industry in Fiji are proposed.