Hong Kong has taken the bold step of creating the post of a CIO for the entire government. But the effectiveness of the role could be compromised by a complex system of checks and balances and limited control over the government's IT budget, say observers. The government chief information officer (GCIO) will head the new 640-strong Office of the GCIO (OGCIO). An appointment is expected before the end of this year.
Deputy GCIO Betty Fung says officials realised the old structure governing IT was "unduly hierarchical" and unable to cope with a dynamic business and technology landscape.
Consolidating the jobs of IT promotion and regulation into the single Office, created earlier this year, will not only save some US$951,000 in staff costs yearly, but also boost efficiency and improve communications among employees. They will be freed up to plan Hong Kong's long-term IT policies "more strategically," she says.
The OGCIO replaced the Information Technology Services Department and the IT-related divisions of the Commerce, Industry and Technology Bureau as the agencies governing Hong Kong's IT development.
Hong Kong's GCIO move follows those of the US, UK, and Canada, and who becomes the former colony's first top IT leader remains the million-dollar question. But whoever assumes the position faces a difficult road ahead.
Real leader or figurehead?
Sin Chung Kai, a frequent commentator on IT issues, warns the city's companies may not appreciate advice on how to update their operations.
"In an economy as open as Hong Kong's, the corporate sector is not used to being told how things should be done by the government. Even if the government tries to provide guidance, the corporate sector may not want it," says Sin, who was recently elected to Hong Kong's legislature as a councillor representing the IT functional constituency.
IT is one of 30 functional constituencies, which represent special interest groups, in Hong Kong's legislature.
And if the IT budget is any indication of its power, the GCIO may find it hard to work effectively even within the government.
Although the Finance Committee of Hong Kong's Legislative Council has approved an annual recurrent budget of US$74.5 million for the Office, Sin says that the office's influence over how the funds are disbursed is limited.
"The GCIO is expected to come into the picture when the departments want to implement something. Seldom is it the other way round," he says.
In response, an Office spokesperson pledges that the Office will be working "very closely" with the private sector to encourage companies to adopt new technologies, as well as to draw up "specific targets and plans" for the city's IT future.
The spokesperson, who asked to remain anonymous, also points out that the GCIO is not only the controlling officer of the block vote for new administrative computer systems, which stand at US$69.4 million in the 2004-5 financial year, but will have "much influence" over the nature and scope of public sector IT projects.
Bridging gaps
Critics such as Sin believe that the GCIO's role will be largely limited to that of a coordinator, as it has been in a reform program known as the integrated criminal justice process (ICJP).
The ICJP is an attempt to streamline the awkward and mostly paper-based communications among as many as 10 public agencies, including the police force, immigration, justice authorities, an independent counter-corruption commission and a security bureau, without altering their legal responsibilities or roles.
Deputy GCIO Fung admits differing priorities and budget constraints will make the job tough, but says that her boss will be able to "provide leadership" to cross the boundaries among government departments.
More of the same?
While the creation of the Office represents the biggest institutional adjustment in years where Hong Kong's IT landscape is concerned-the last being the formation of the Information Technology and Broadcasting Bureau in 1998-legislative councillor Sin does not expect it will result in drastic changes.
"The restructuring is not entirely groundbreaking. Efficiency may have improved after the merger, but it's so hard to measure," he says.
The Office spokesperson, however, insists that it's too early to criticise the effectiveness of the role.
Strong IT track record
Thankfully, the city's track record in IT seems to bode well for the future.
E-government programmes account for the bulk of the government's US$591 million in annual IT spending.
As most such projects are outsourced, deputy GCIO Fung says the initiatives "create considerable business opportunities" for the private sector.
All of Hong Kong's other IT efforts are dwarfed by the government-owned Cyberport. This colossal US$2-billion venture, operated by the Cyberport Management Company, spreads across a 24-hectare site. It is home to more than 100 IT companies and more than 10,000 IT professionals.
Some of OGCIO's operations are also based in Cyberport, including its IT Solution Centre and management and support facilities for IT training to government departments.
Fung says the government sees China's "great potential in becoming a major world player in outsourced software development, IT services and software products."
"While it has good IT expertise and relatively low-cost manpower, Hong Kong has the international experience and connections to channel overseas investment into China, as well as to market China's products and services to the world," she adds.
Hong Kong's IT Vision
Hong Kong is one of the most wired cities on the planet. In 2003, 67.5 per cent of households had a PC and 60 per cent were connected to the Internet, compared to 35 per cent and 12 per cent in 1998 respectively. Mobile phone penetration, meanwhile, soared to an astonishing 106 per cent in early 2004, one of the highest rates in the world, compared to just 44 per cent in 1998.
Broadband coverage extends to virtually all commercial complexes and residential buildings; local schools are also connected to the Internet by broadband. Hong Kong's external connectivity of 900Gbps is second only to Japan in Asia.
With no limits set by the government on the number of licences issued, Hong Kong's telecommunications sector is one of the world's most competitive. As of August, the city had 13 local fixed telecom network service operators and 24 external ones, as well as six mobile phone operators and 521 Public Non-Exclusive Telecommunications Service (PNETS) licensees.
Hong Kong received a big boost to its efforts to reinforce its status as a regional telecom hub when it beat Geneva, Milan, Istanbul and Algiers to host ITU Telecom World 2006. It will be the first time in the 30-year history of the most prominent global telecom trade show that the event is held outside of Geneva.
ITU Telecom World 2006 will take place at the new AsiaWorld Expo in the Hong Kong International Airport, which when completed in late 2005 will boast some 66,000 sq m of column-free exhibition space. The event is expected to bring some 100,000 foreign visitors and US$154 million in direct economic benefits to Hong Kong.
During Hong Kong's bidding for the event, the Chinese government gave assurances that there would be a high level participation from mainland Chinese companies, which will take up no less than 20,000 sq m of exhibition space.
Autor: Silvia Wong
Quelle: MIS Magazine, 08.12.2004
