Software Park Launches "IT Spin -Off" Scheme to Help Industry

The project aims to use the spin-off model to develop local software companies that are competitive in software development and services instead of setting up new companies that have no prior experience.

Software Park Thailand director Suwipa Wanasathop said IT Spin-Off is part of the park's incubation strategy but is different from the park's traditional incubation services.

Rather than incubating new companies the park will spin-off businesses from the IT departments of large organisations,.

The project will provide soft-skills training, free of charge, to participants. This will include courses on creating business models, negotiating, making presentations and developing strategies for closing sales. Lectures will be delivered by the park's mentors -- executives from successful local and international software companies.

"We hope to change the mindset of the IT department in an organisation from a cost centre to a profit centre.

The project aims to encourage an organsation to spin-off its IT department into a new software company within a short span of time," Suwipa said.

Normally, when large organisations spin off their IT departments into companies, it involves a lot of time, Suwipa said. Therefore, the park will serve as an accelerator and help these IT departments transform into software organisations within a year.

She said these software companies begin operations with an existing potential customer base, thanks to their parent companies. And they are equipped not only with IT skill sets but also business-process knowledge. For example, Freewill Solution is a software company spun off from CP Group, Go Soft is a software provider spun off from 7 Eleven and Ice Solution is a software provider spun off from DHA Siamwalla.

"We are welcoming all IT departments that are willing to transform their business units into new companies from organisations across industries," Suwipa said.

The park aims to help at least three IT departments within the next year.

The park's incubation centre provides incubation services for newly set up companies for seven years. It supports 30 software companies each year.

"Up to now, about 180 companies have benefitted from the incubation programme. About 85 per cent are successfully running and their growing their businesses. With the IT Spin-Off project, we hope to assist more software companies, which in turn can drive the country's software-industry growth in the near future," Suwipa said.