Modern services such as information and communication technology (ICT) and business services (BS) have encountered significant growth over the last few decades in emerging economies. In 2024 alone, developing countries contributed approximately US$550 billion to the worldwide export value of ICT and BS. These sectors, once almost invisible in many developing countries, now play a vital role in global export volumes and also contribute to increasing earnings and creating high-skilled jobs in poorer nations. Are you curious to learn more about the impact of ICT and BS exports on the overall economic development of these countries? Check out some expert opinions in the article below.
Key Takeaways:
- With multiple interpretations, the term information and communications technology (ICT) is generally used to describe computing and telecommunication technologies, systems, and instruments that facilitate the way information is created, collected, processed, transmitted, and stored. Business services is a broader term, referring to various processes that are the backbone of a company’s operations such as finance, procurement, marketing, consulting and others.
- In 2023, the global export value of ICT and business services was approximately US$3 trillion.
- ICT and business services have increased the number of jobs available and enhanced workforce skills, driving technological innovation and contributing to GDP growth in developing countries.
- According to experts, key challenges include infrastructure deficits, skill gaps, cybersecurity concerns, and regulatory barriers.
- To scale up ICT and business services exports, developing countries need targeted investments in infrastructure, education, and continuous professional development.
- Aligning educational programs with industry needs and investing in continuous professional development are essential for ICT and BS progress.
DevelopmentAid: What is the impact of the growth of ICT and business services exports on developing countries?
“The growth of ICT and business services exports has significantly advanced the economic progress of developing countries. By shifting economic models away from the traditional exploration of commodities, these nations capture higher value-added sectors, leading to increased foreign exchange earnings and economic stability. This expansion fosters job creation, particularly at the high-skilled level, and enhances the overall skill base of the workforce. Furthermore, integration into global ICT and business services markets drives technological innovation and improves institutional capacities. Countries like India and the Philippines exemplify how engagement in these sectors not only stimulates GDP growth but also elevates their global economic presence.”
“Over the past two decades, developing economies have seen a noticeable shift in their export dynamics due to the growth of ICT and business services. These modern services are now a substantial part of their export portfolio, which has undeniably played a role in economic development. Speaking from personal experience, the impact has been a mixture of positive and negative experiences. On one hand, the growth of ICT and business services has provided new job opportunities and has fostered a skill upgrade among the workforce. It has led to higher wages for those equipped with the necessary skills and has also contributed to GDP growth. However, the picture of overall economic development hasn’t been as rosy as some might think. The benefits have been largely confined to certain urban areas, leaving rural regions and less-educated populations still struggling. There is also the issue of job displacement in traditional sectors such as civil engineering or medicine, creating a socioeconomic divide, and in some cases a lack of skills in these sectors.”
“The digital revolution is reshaping economies. Developing countries are experiencing a transformative shift through the growth of ICT and business services. These sectors are diversifying economies, enhancing competitiveness, and allowing integration into global markets. They allow the creation of high-value jobs and develop stakeholder skills, which in turn drive a culture of innovation. ICT and business services create jobs, attract investment and drive infrastructure development. However, challenges such as inadequate infrastructure, limited financing, skills shortages, and regulatory barriers can still be a barrier to progress. The limitations can also be increased when these countries are faced with the high costs of technology and equipment, an unfavourable regulatory environment or even competition from established players in developed countries.”
DevelopmentAid: What are the main challenges faced by developing countries in scaling up their ICT and business services exports, and how can they be addressed?
“Developing countries face key challenges in scaling up their ICT and business services exports. Infrastructure deficits can impede growth, as reliable internet and power are crucial. Addressing this requires targeted investments in infrastructure and technology upgrades. Skills gaps also pose a barrier; therefore, aligning educational programs with industry needs and investing in continuous professional development are essential. Regulatory and institutional hurdles can stifle growth; thus, improving regulatory frameworks and enhancing transparency are critical steps. Finally, global competition necessitates a focus on niche areas and innovation to maintain a competitive edge. By overcoming these challenges through strategic investments and reforms, developing countries can further capitalize on the opportunities presented by the ICT and business services sectors.”
“Scaling up ICT and business services exports comes with its own set of challenges. One major hurdle is the lack of infrastructure; reliable internet connectivity and power supplies are still not universal. There is also a significant skills gap where the education systems in many developing countries are not aligned with the needs of the ICT sector. Cybersecurity concerns and data privacy are additional pressing issues that need to be addressed. To tackle these challenges, governments need to invest heavily in infrastructure and education. Public-private partnerships could help to bridge the skills gap by offering training programs that are designed in collaboration with industry stakeholders. Enhancing cybersecurity measures and fostering a robust legal framework for data protection are also essential steps.”
“To unlock the full potential of these sectors, strategic actions are needed. Supportive government policies, investment in education and training, public-private partnerships, access to affordable finance, regulatory reform, and international cooperation are key to overcoming these challenges. By fostering a favourable environment for growth, developing countries can leverage the transformative power of ICT and business services, driving sustainable economic development and creating a brighter future for their citizens. This digital leap promises not only economic advancement but also increased prosperity and a more equitable global landscape.”
ICT exports drive job creation in developing countries and tend to become one of the most promising sectors to lead economic growth. On the DevelomentAid platform, both junior and senior development professionals can find multiple open positions in the ICT field, which can be easily accessed with an Individual Professional Membership. Access to a wide range of job opportunities, exposure to a large network of organizations, customizable alerts for jobs, tenders, and grants, along with tools such as CV generation, revision, and broadcasting, streamlining the job search process, all saving DevelopmentAid members valuable time and ensuring that they don’t miss out on relevant opportunities.
