Oman has identified IT as a primary facilitator to enhance the quality of the life of its citizens and grow its economy
Oman is making concerted efforts to promote information technology for the economic and social development of the Sultanate. "More and more organisations are seeing the importance of implementing IT systems and the benefits accruing from the same. This has resulted in some big IT projects being taken up by institutions, such as banks, telecom sector, oil and gas sector, and education. The Information Technology Authority (ITA), set up to spearhead the country's 'Digital Oman' strategy, is also playing a big role in creating IT/ITES awareness in Oman. ITA is also ensuring that IT implementation in the government sector follows international standards and is fronting e-government initiatives for the country," says Jayakumar Srinivasan, GM, International Information Technology Company LLC (IITC).
Another positive trend is the opening of local offices in Oman by multinational IT companies, such as Microsoft, Hewlett Packard, NCR, Oracle, Siemens, Cisco, Huawei, Motorola, Alcatel, GBM and Ericsson. Olivier Mouries, General Manager of Gulf Business Machines (Oman) Co. LLC, one of the largest IT solutions and service providers and the sole distributor for select IBM products and services in Oman, says "I am delighted that a small country like Oman has identified technology as a key differentiator to compete with other countries. The vision and determination of government officials and the business community in promoting IT is commendable."
Knowledge Oasis Muscat (KOM)
Located near Muscat, the technology park, Knowledge Oasis Muscat (KOM), is encouraging technology, business development, innovation and entrepreneurship by offering comprehensive facilities, services, support and expertise. Over 50 firms, dependent on Park-based businesses, are today expanding, creating new demand and pushing up disposable incomes.
KOM is also home to a number of educational institutions, including the Middle East College of Technology and the Waljat Colleges of Applied Sciences. These institutes are collaborating with giants such as Microsoft, Cisco and Oracle to offer higher education programmes in areas, including software technology, computing and information systems, software technology, medical data processing, database management systems, wireless networking, electronics and telecommunication, multimedia and games technology, etc. IT professionals produced by these institutes are already making a difference to Oman's quest to become a digital society.
On the impact of KOM, Mohammed Al Maskari, DG, KOM says, "The success of KOM is having a domino effect, which has resulted in an increased number of supporting businesses, attracting more investment capital, greater focus on research in higher education, increased the pool of highly-skilled labour and management, and improved the overall quality of life in the Sultanate. It is through initiatives such as KOM that Oman is working towards building a critical ICT mass. The critical mass is about having anchor companies that attract domestic as well as international creative talent and to achieve this, we need management, capital, a dynamic educational base and a supportive public sector environment. These are all areas in which we're making substantial progress."
Talking about KOM, William H. Lash, US Assistant Secretary of Commerce, says "The KOM is one of the very best IT parks I've seen. It offers excellent infrastructure, proximity to a prominent university, support from government and the private sector in partnership, and solid programmes for financing and mentoring entrepreneurs. Many countries say they want to establish IT hubs, but Oman is taking the right step with KOM."
Role of Private Sector
Besides the efforts by the government and its various bodies, the private sector is also playing the role of a catalyst in making Oman a digital society. Most of the top home-grown business groups have set up their IT companies/divisions in strategic alliance with global giants.
Companies such as IMTAC, Khimji Ramdas Computer & Communication Systems (KRCCS), Bahwan CyberTek, Bahwan IT, MHD's COAT Division, International Information Technology Company LLC (IITC), OCS Infotech, Al Madina Development & Supply and Towell Take Solutions besides many others are providing top IT products and solutions to meet the varied IT needs of different industries in the Sultanate.
Broadly, Omani IT companies offer end to end technology solutions, including software development, enterprise storage, enterprise IT/networking management, e-security, supply chain management, ERP and CRM implementation, information technology enabled services (ITES), business transformation management, training and development of human capital in IT, multi-dimensional turnkey consultancy and implementation projects, etc.
Today, major world class IT-based projects are executed and managed by companies based in Oman. In 2006, ITA signed an agreement with Microsoft to procure licenses to use Microsoft Desktop Products for a period of three years at a cost of RO 6.5 million. The agreement covers the usage of Microsoft products in 22,500 desktops across various Omani government organisations.
The Central Bank of Oman is also implementing phase-wise the new national payment system based on the latest technology. The new system provides a world-class payment infrastructure, leading to real-time settlement of payments between banks, commercial customers and consumers.
Talking about its banking related projects, Ashok Sardiwal, COO, IMTAC, says "Working with Hewlett-Packard, Imtac has successfully implemented the National Payment System projects for the Central Bank of Oman. Track record of successful projects deployment is being replicated in commercial banks in Oman, UAE, Yemen and Qatar."
Drivers of IT
"IT industry literally feeds on general buoyancy of any economy. There is a direct link between growth in IT industry and other key economic indicators even in developed countries like the United States. We believe that IT companies in Oman are in for a good time for three reasons primarily: First, the rapid economic development of the country. Second, the fact that IT spend in Oman has been less even by regional standards and hence, there is some catching up to do. And third, the formation of the ITA under the guidance of the Ministry of National Economy has given a much needed impetus to Oman's stated ambitions of creating a digital society. Their work towards creating a viable and robust framework for information flow through all levels of Omani society shall be a major catalyst for local IT companies to post handsome growth in the coming years," says Jayanta Borpujari, Divisional Manager, KRCCS
"One reason why we're getting results is because in regional terms, Oman is perceived as affordable, particularly in terms of housing, schooling, cost of living and other business costs. It is clear from our experience on KOM that Oman is attracting younger families, well-educated and upwardly mobile people. Perhaps, the most predictable bottomline in this current economic expansion is, well, the bottomline. Places kindest to business costs, whether in terms of office rents, taxes, or regulatory environments, are doing best. When people depend on debt to finance operations, they look at things differently than when it is equity," adds Mohammed Al Maskari.
Oman is geographically very close to India, the country that is experiencing a remarkable growth in the IT sector. Given the close economic ties between the two nations, Omani companies can take advantage of the burgeoning IT sector in India by partnering with Indian companies in developing and providing IT products and services for the Indian market.
Compared to other Arab countries, Oman offers the advantages of political stability, WTO and US FTA compliances, lower land prices, adequate infrastructure, young population and a talented labour pool. With such advantages, the Sultanate has the potential to become a major IT destination in the region. For example, Gulf Air is running its global call centre operations from KOM. If more companies are encouraged to follow the example of Gulf Air, tomorrow Oman can emerge as the information technology enabled services (ITES) or back office operations hub of the Gulf region.
Manmohan Singh Rehsi, GM, MHD's COAT Division, puts forth another interesting aspect on the driver of IT in Oman: "Enterprises will clean their houses. Several trends are converging to compel businesses to shed unnecessary and redundant systems. Omani companies will increasingly use integration technologies such as web services and service-oriented architecture."
Al Madina Development & Supply
Al Madina Development & Supply LLC (ADS) has enjoyed exponential growth since 1983 in the fields of information technology, enterprise mobility solutions, telecom services, system integration, security products and turnkey solutions. ADS has also been recognised by government ministries and agencies for its outstanding contributions to the employment of local resources and proliferation of e-government services.
ADS has further spread its wings through a growing network of partners and affiliated offices in the Middle East, North Africa, Asia, Europe and the Americas. ADS has also applied its breadth of expertise and wealth of resources to establish the 'Security Printing Press of Oman' (SPPO), a world-renowned printing firm that conceives and produces highly secure documents and smart cards ranging from MICR checks to digital passports and electronic banking, ID and SIM cards.
The application of latest industry standards and guidelines for the analysis, planning, deployment, support and management of turnkey projects further drive ADS success. Its ability to meet and exceed customer needs while ensuring highest levels of customer satisfaction establishes the track record of ADS, for successful delivery of best-in-class solutions in information technology; telecom and networking; banking, secure document management; time attendance and access control, CCTV solutions and point of sales (POS); and enterprise mobility solutions based on bar coding, RFID, and wireless networking.
Oman Economic Review 2007
