Organization
IFC
Report Year
2013
1st MAR Year
2013
Accepted
Yes
Status
Active
Recommendation

II. Applications
1. Strengthen the capacity of the Bank Group to respond to client demands for ICT applications by:
(i) building greater ICT expertise and awareness across the networks and the Regions regarding the potential applications of ICT, including more consistently capturing ICT aspects in country and sector strategies
(ii) building incentives mechanisms for collaboration, coordination, and joint approaches for innovation between Bank Group units, reflecting the thematic nature of ICT and
(iii) transforming the ICT unit to enable it to act as a connector between internal/client demands, and outside expertise from the public and private sectors.

Recommendation Adoption
IEG Rating by Year: mar-rating-popup NYT NYT M M Management Rating by Year: mar-rating-mng-popup NYT S C NYT
CComplete
HHigh
SSubstantial
MModerate
NNegligible
NANot Accepted
NRNot Rated
Findings Conclusions

· Despite the frequent occurrence of ICT applications, only a few sector strategies have included ICT. (Para 3.33)
· Task team leaders lacked sufficient ICT support. Bank task team leaders are not able to secure support or advice from the ICT unit. Only one network (education) was identified as very proactive in disseminating knowledge related to the use of ICT in projects, although it was not able to offer direct support during project preparation or implementation. (Para 5.54)
· Technical and operational staff in the GICT Department increased as the Bank Group ICT portfolio expanded. Although this increase might help the ICT unit address the insufficient support that task team leaders reported for the ICT components in their operations, it probably will not be enough, and other solutions should be pursued to ensure the needed support (for example, the ICT unit could put together a roster of ICT experts that task team leaders could call when they need such support). (Para 5.55)

Original Management Response

IFC will continue to support companies that develop new IT applications or use them in new business models.

Action Plans
Action 1
Action 1 Number:
B
Action 1 Title:
Pursue interventions in new IT applications and in companies that use existing IT applications in new business areas
Action 1 Plan:

IFC Specific Action B: Pursue interventions in new IT applications and in companies that use existing IT applications in new business areas Given the high risk/high reward nature of this subsector, IFC will be very selective in this area.

Indicator: # of projects in new IT applications

Baseline: 2 per year

Target: 4 per year

Timeline: FY15

Action 2
Action 3
Action 4
Action 5
Action 6
Action 7
Action 8
2016
IEG Update:

Management did not submit an update for FY16. Progress on implementation is therefore rated as moderate as in the previous year.

Management Update:
No Updates
2015
IEG Update:

The update refers to the same number of IT/ITES investments referenced in recommendation. It does not provide any further information regarding whether these investments related to IT applications in other sectors (such as finance, health, education, etc). IEG requests that IFC attach a list of these investments to be able to assess progress in implementing this recommendation.

Management Update:

In FY 15, IFC invested in 13 projects worth USD71 million. This surpasses significantly the FY15 target. Given the high risk/high reward nature of this subsector, IFC will remain selective and this uptick in business does not forebode a trend.

(note: Omar Chaudry has reviewed and cleared the update and ratings for this recommendation as a Reviewing Manager and has authorized Kris Luniku to clear in the system on his behalf. Kris Luniku is clicking in the system on Omar's behalf).

2014
IEG Update:
No Updates
Management Update:

In FY14, IFC committed 3 projects in this space. In early FY15, 2 more projects have been committed with a pipeline of 6 more transactions expected for FY15.

2013
IEG Update:
No Updates
Management Update:

(This recommendation has been followed- up by Bank as lead. No IFC input.)

WB Action C

Status:

- A draft governance framework for ICT at the World Bank Group is developed.

- An early meeting of a governing committee for ICT is planned for FY13.

Baseline: None

Target: A meeting per year on governance of ICT at World Bank

Timeline: Every FY until FY16