The global proliferation of the phenomena of the internet and of mobile communication technologies has materially and irreversibly changed the way that we work, play and communicate. Geographical gaps have been bridged beyond our comprehension or imagination in as little as twenty years. Today we are almost unmoved by the fact that an e-mail message pops up on the recipient’s screen in another corner of the world within seconds- as though it was sent to the room next door. Similarly, it is difficult to remember how we ever lived without mobile phones.
Moore’s law relating to the exponential rapidity at which technology improves has today practically become a cliché. Not only are we not surprised that technology continues to improve by becoming faster, better and more reliable and affordable, but we have almost come to expect such improvements.
It is clear that the accessibility, affordability, speed and reliability of communication technologies, coupled with the relentless expansion of the supporting networks, will continue to add more flexibility to each of us by empowering us to be on the move and to run our business, professions and personal lives from our laptops, mobiles and PDAs, wherever we are at whatever time of the day or night- our mobile office tools are unlikely to weigh in at an aggregate weight exceeding 3 kilos, meaning that we can take them wherever we go.
Besides, the internet has brought along with it a heightened degree of transparency- it represents the closest thing to a perfect market in that consumers have access to information, prices and comparison sites all set at their fingertips. Internet sites are open 24 hours a day 7 days a week, ready to provide any product or service imaginable. This translates into more opportunity for online businesses and much more convenience for their customers.
These developments do not, however, yield fruits automatically. There is a process of empowerment that businesses must undergo in order to harness the power of available technologies and maximising their use to render their operations more efficient- getting more done in less time, possibly with the benefit of cost-savings! Businesses failing to make this quantum leap effectively fail to jump onto the “technological ladder” and risk falling by the wayside to make way for more dynamic, forward-looking, efficient competitors.
With this backdrop, modern businesses are taking full advantage of the benefits and efficiencies presented by technological innovation. Business processes are analysed and broken-down, questioned, tested and de-constructed with the objective of identifying which parts of the business process can be outsourced to specialised operators, thereby providing a better quality performance for that business and permitting the entrepreneur to focus on the core business activities, leaving the non-core or support services to external third-parties to deal with. Thus, for example, call centres are engaged to provide customer care and customer support services; software developers are contracted to improve and innovate existing systems; co-location centres to host the servers so central to the sales and marketing effort of the business; back-office administration companies to deal with regular payment transactions, payroll administration, preparation of management, interim and annual accounts and other specialised administrative services; and corporate and professional services providers are entrusted to handle any legal, regulatory, tax-planning, administrative and corporate matters to tend to the business’ continuing compliance with applicable formalities. Similar set-ups, with participators from all corners of the world, are indeed becoming the order of the day, throwing the doors wide open for the provision of more innovative and specialised services.
Malta has a central role to play in this new world order, with its educated and flexible workforce, continuous improvement of its technological infrastructure and generally attractive business environment. It is no coincidence that remote gaming operators, call centres, investment funds, financial institutions and other financial services providers and captive insurance companies have found Malta to be a solid foothold for their operations.
With this vision in mind, every effort should be made by both the public and the private sectors to encourage these industries through further investment, both financial and in terms of human resources formation, further complemented by the introduction of adequate legal underpinnings, attractive commercial incentives, and the implementation of additional technological and organisational infrastructures. In this respect the importance of the public sector’s commitment towards rendering the administrative process more efficient for businesses considering Malta as a possible base for some or all of their remote business support services cannot be underestimated.