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North Korea: an ITO destination?

11 Jun 2010 12:00 AM | Anonymous

Because of the precarious situation, it may come as a surprise to learn that North Korea has been positioning itself as an interesting ITO destination in recent years.

How has this come to happen? Part of the answer could lie with Pyongyang relations with China, which has been a longstanding IT destination and production factory of the world.

In a very short period of time, China's software industry has emerged to become a global player. ITO providers, the likes of TCS, Infosys, Wipro and Satyam, have all established a Chinese presence.

And now, Chinese companies are outsourcing IT work to North Korea. This may have provided enough spark to light a small fire and drive the country to invest in the IT sector.

The government’s emphasis on IT and innovation can be seen in the increased number of computer engineers and scientists graduating from universities. But as a destination the country also offers business process outsourcing (BPO) services and has also been reported to possess the skills necessary for high-quality animation.

While US firms may be banned from carrying out business with North Korean companies, most other countries don’t face such restrictions.

Could the quality and level of skills offered overcome the political and economic conditions of the country? Time will tell.

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