Across the developing world, pioneering small firms are taking advantage of new information and communications technologies to improve their business processes and expand their export markets for traditional products and services. They are also supplying high-tech goods and services themselves.

Consider back office operations in your national export development strategy. Developing countries can harness the current trend of outsourcing business operations to address key challenges in managing their economic development.

This article is the second of two about the growing opportunities for developing and transition economies to provide back office services to international firms, public-sector agencies and non-profit organizations (see also Forum, issue 3-2000).

Services exporting, software development and hardware represent three major market opportunities for firms in developing and transition economies. Traditional exporters can also harness new technologies to cut costs and reposition themselves in the international marketplace. But are the firms most likely to benefit ready to take the plunge?

“Independent of income levels, more people have been able to enjoy access to what had previously been perceived as a status symbol. RCP has contributed to strengthening civil society.”

A network of Peruvian housewives is using the Internet to bake cakes ordered by Peruvian expatriates and deliver them locally. The start-up e-business, Tortasperú, came into being with the assistance of Red Científica Peruana (RCP) and E-connexions, two Peruvian NGOs. RCP is based in Peru; E-connexions is based in the United States, but is composed of expatriate Peruvians who work entirely via the Internet. This case provides a practical example of how organizations can work together to foster e-trade for small businesses in developing countries.

This article is the first in a two-part series about the growing opportunities to provide back office services to international firms, public-sector agencies and non-profit organizations. Adapted from ITC’s new publication, Offshore Back Office Operations: Supplying Support Services to Global Markets, these articles are designed to raise awareness about the market opportunities for developing countries and share successful strategies and best practices.