National Technology Associations 

 


National IT Association Mergers & Competition

Mergers can be valuable to associations for the main benefits of increased lobbing effectiveness, cost-savings, increased membership benefits, and greater recognition in the industry that comes with a larger membership presence. Associations begin to recognize the signs of a merger possibility when they experience overlap in many functional areas such as conventions, educational opportunities, lobbying and probably most importantly, where their core sources of funds are the same. This could include membership dues and those who purchase services such as trade show exhibitors. Mergers may also be brought about by recognizing that another association has core competencies that the other association is lacking. The combination of forces benefits everyone.

Canada

In Canada in 2003, the Canadian Advanced Technology Alliance (CATA) merged with the Smart Toronto Technology Alliance, a local group that has concentrated on developing a city-specific technology cluster of new media organizations through educational programs and breakfast seminars. CATA, was best known for its lobbying efforts and “red book” policy recommendations. The merger came about after the two organizations signed a formal agreement to work on some joint events. CATA had already been working on a strategy to add more regional coverage through its Tech Action Town Hall program where it hosts discussions with local firms across the country. The merger grew the joint organization to about 700 members. No strangers to mergers, the new venture came on the heals of the 2003 CATA merger with the Canadian Association of Internet Providers, and Smart Toronto merger with the Liberty Village Technology Alliance in 2002.[i]

Russia

A merger that came with much contention is the merger of Fort Ross Consortium with the National Software Development Association in May 2004. The new association goes by the name RUSSOFT. This merger brought together more than 70 companies with more than 6,000 highly qualified, professional software engineers. RUSSOFT is part of the Russian Information and Computer Industry Association (APKIT).

The RUSSOFT Association core members are software-developing companies from Russia, Byelorussia and Ukraine. The association is headquartered in St. Petersburg. The combined core interests of the association are a commitment to maintaining the highest level of international standards, professional training, information security and quality control and ensure that members implement CMMI/ISO standard in Europe. RUSSOFT members have customer relationships with Italtel, IBM, Boeing, SAP, Procter&Gamble, CSC and others. The membership is focused on growing their outsourcing business to U.S., Asia, and European Union customers.

RUSSOFT Association is the voice of the industry and lobbies the Russian Government with a focus on deregulation of IT sector in the Russian economy, for better tax and customs' legislation, for promoting the network of modern IT-parks all over Russia, for allocating State support to international activity.[ii]

Singapore

Citing the need to strengthen the interactions between IT consultants and professionals, in Singapore, the Broadband Media Association (BMA) and the Association of IT Consultants (AITC) merged with the Singapore infocomm Technology Federation (SiTF) in May 2004.

The BMA reorganized as the SiTF Digital Media Chapter (SiTF-DMC), with a mission to promote and assist in the deployment and adoption of broadband technologies, digital media and entertainment content through strong working relations with government agencies, local trade associations and international organizations. SiTF’s seven chapters focus on the development in emerging growth sectors include the Application Service Provider and Internet Data Center, e-learning, digital media, security, small and medium enterprises, web services and wireless sectors.

“With the rapid convergence of information, digital communications and media, we needed to take a holistic view of the development of the digital media industry,” said Mock Pak Lum, pro-tem chairman of SiTF-DMC and past president of the BMA. “The merger with SiTF is a logical extension, as it allows us to leverage on the strengths of SiTF and its constituent chapters.”[iii]

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Report Last Updated: December 19, 2004
 © 2004 Pamela Strother
Impacts of National Information Technology Environments on Business
Kogod School of Business, American University
Comments: pamelastrother@hotmail.com