Digitisation is good but expensive, says Cisco expert
While the world is going digital and every transaction is done with the touch of a button, cost factor plays a pivotal role when large corporates make decisions to go digital in Sri Lanka, an industry expert reveals.
“The process of decision-making whether to go digital is slow in Sri Lanka. Large government and private sector conglomerates in Sri Lanka consider the cost factor very critically when getting into the digital space. It’s a large investment for corporates to go digital but the return is immense,” Cisco Country Manager for Sri Lanka and Maldives, Gerald Vethanayagam told the Business Times on the sidelines of a media briefing hosted by the company at the Shangri-La Hotel in Colombo last week.
Looking at the Sri Lankan digital eco-system the mindset of the generation that is getting into the business today are very supportive towards digitisation and they know the value digitisation has in today’s context, he added. The government of Sri Lanka needs to provide a common network where all its services are done digital, noted Mr. Vethanayagam.
At the media briefing the company launched Cisco-START, a new initiative specifically designed to help Sri Lankan Small and Medium Enterprises (SMEs) build their digital foundation and become globally competitive. The initiative is a demonstration of Cisco’s commitment to accelerate Sri Lanka’s digital transformation and showcase how digitization can fuel economic growth, word-class innovation, sustainable competiveness and prosperity.
Sudhir Nayar, Managing Director for Commercial Sales in India and Sri Lanka, during the briefing mentioned that 52 per cent of the GDP comes from SMEs in Sri Lanka. If all SMEs go digital, wonders can happen to Sri Lanka’s digital eco-space, emphasised Mr. Nayar.
He also stated that already 300 SMEs have signed up with Cisco-START that serves as a platform for SMEs to go digital in seven clicks or 10 minutes at a cost of US$70 per user per year for a 50-user business. Sri Lanka has the highest literacy rate of 92 per cent in South Asia and has the growing per capita income, he noted.
According to a media release issued at the event, a digitised country aims to drive GDP growth, create jobs and foster innovation, enhance research and education, stimulate entrepreneurship, accelerate business innovation, develop economic cluster initiatives and support infrastructure. Towards that, Cisco is the leading technology partner helping countries become digital hubs of innovation by building sophisticated and forward thinking IT network eco-systems that allow for greater connectivity, productivity and security. Through the digital transformation of Sri Lanka, Cisco will work with governments and businesses to grow GDP, create new jobs, train the future workforce, build smart cities, develop new business models and enable better quality of life for residents and more satisfying experiences for visitors. Cisco is also looking to collaborate with the public sector and contribute to large-scale transformation projects such as broadband networks, development of smart cities as well as education and healthcare in Sri Lanka.