Analysis & Recommendations

Network Access

Even though Canada has an impressive technological capabilities, not all are getting the benefit from this. There are many rural regions that cannot access these technology due to distance limitations and insufficient infrastructure. Therefore overall stage for network access is between stage 2 and stage 3. To raise the stage to 4 Canada will need to invest more on high quality infrastructure or increase the wireless capabilities of the industry.

Network Learning

Network Society

Network Economy & Offshore Opportunity

Canada's close geographic proximity, political stability, and similar business culture help create its appeal .Canadians understand the business process and expectations of US business. There is a history of shared economic activity that goes back a long way and includes the IT services market. The near-shore value proposition becomes more attractive as higher project requirements become the norm rather than the exception. The deciding factor is managing risks. The further the US companies move away, the greater the risk of things going wrong. As projects become more interrelated and complex, the need to keep communication lines open is critical. While American businesses believe offshore providers can do the IT work more inexpensively, they also believe the greater distance can cut some of the cost advantage. Buyers may have to add travel expenses to the outsourcing budget to manage an offshore provider. 54% of the respondents believe that they would have to add at least ten percent to the stated cost for these expenses. Companies who outsourced farther offshore may have discovered "costs they didn't anticipate when they made the original decision to move IT work out of the company and across the globe.

Network Policy

Though Canada has opened its Telecommunications market up to competition from not only the public sector but the private sector as well, there is still much work to be done in regards to allowing wireless communications as well as other communication technologies to take hold and flourish. However, given the nature of the ICT environment that has been established where innovation is encouraged and rewarded the gap between stage 3 and stage 4 will close at a steady rate over the next few years. Given the financial tax benefits for corporations that choose to establish themselves in Canada this gap may close sooner rather than later. Canada must continue to have a solid financial backbone for companies desiring to find low-cast highly skilled workers to help them innovate, research and develop new technologies.