Joseph Norton was 50 years old when he discovered the Internet.
Chief of the Kahnawake native council south of Montreal, he was approached in the mid-1990s to help establish a band-run Internet service provider to take advantage of what they believe is the reserve’s status free of certain federal
and provincial taxes and regulations.
Although it has grown to be a controversial host of online gambling sites, Mohawk Internet Technologies (MIT) is one of the biggest aboriginal-owned IT companies in the country.
“”We employ about 300 people at this moment,”” said Norton, now MIT’s vice-president of operations.
“”Half are from the community, half are from outside the community. As a matter of fact, we’re having a difficult time finding people who are able to fill a lot of the positions opening up. We have a very low unemployment rate.””
The native community isn’t usually thought of as being among the information technology leaders in the country. But thanks to a combination of factors that’s changing.
Interest in IT up
These include usual interest among youth in IT, resource development on some reserves which is bringing in investment, the interest in far-flung bands in communications; increased federal and provincial funding of bands and land claim settlements, and a push from Ottawa to get the private sector to help aboriginal companies win some federal contracts.
It’s a market VARs could be paying attention to more.
According to a 2002 survey of 1,126 aboriginal entrepreneurs by Statistics Canada, almost two-thirds reported profits and expected their businesses to grow in the next two years.
Approximately half of them had been in business for 10 years or more. One-quarter of those surveyed had taken business training at a college or university.
The Canadian Council for Aboriginal Business says native-owned companies are doing tens of millions of dollars a year in partnerships with resource companies such as Syncrude and DeBeers in everything from catering to consulting.
“”They own airlines, you name it,”” said Robin Adamson, a spokesman for the council.
Some of the biggest IT companies in the country are partnering with aboriginal-owned business. Fujitsu Consulting Canada, for example, signed a joint venture with the Innu of Newfoundland and Labrador last year called Innuvations to foster high-tech job skills in the Innu community. Innuvations is providing IT consulting services to the Voisey’s Bay nickel mining project.
IBM’s strategy
Perhaps, however, it may take IBM Canada to give smaller resellers a push. Last month it announced it is creating a national Aboriginal strategy to expand its presence in native communities as well as increase opportunities for aboriginal-owned businesses.
It’s starting by becoming the IT patron of the Canadian Council for Aboriginal Business’ Seven Generations Campaign to help natives pursue business opportunities, and reaching a similar agreement with the Manitoba government.
In addition, IBM has vowed to develop an Aboriginal People in Technology program to encourage native students in junior high schools to study maths and science, similar to one it runs in North American for young women.
The move has been applauded across the country.
“”It’s wonderful,”” said Randell Morris, vice-president of academics at the Saskatchewan Indian Institute of Technologies.
“”This really indicates that one of the world’s leading information technology companies is beginning to focus on the needs of Aboriginal people in Canada,”” said Adamson.
IBM is making a good business investment, he suggested. “”Aboriginal people control a huge amount of land and resources, and when the federal government gets around to settling land claims there’s going to be a serious amount of dollars invested in their communities. It makes sense that they have a good technological partner onside to be able to help develop the future.””
Fujitsu Computing Canada thought so, at least for a time. Under the leadership of then-president Tony Grice, it was the council’s IT patron on the Seven Generations Campaign when it was a division of Fujitsu’s Japanese parent. However, earlier this year, after it was brought under the wing of the Canadian subsidiary and Grice was no longer needed, it dropped the sponsorship.
So IBM stepped in.
“”We can’t predict where the relationship will go,”” said Adamson, “”but our hope is that by working with us they’re taking the first step in recognizing there is a unique marketplace, a unique labour pool, and that a unique approach can be taken to developing cross-cultural business.””
One of the big pushers behind IBM’s move came from Beth Bell, the company’s Manitoba industry leader, who said the idea came after seeing federal and provincial moves to boost Aboriginal businesses.
Bell is also Manitoba chapter leader for IBM’s Women in Technology program, which sends volunteers to junior high schools to encourage girls to study math and science. A similar Aboriginal pilot program is set to start this month.
Reseller participation
It’s the kind of project VARs could join, she said. However, when pressed if IBM Canada used its resources to spread the word among its partners, she replied, “”We haven’t formally done so.””
Which begs the question of what resellers should be doing to embrace the Aboriginal community.
Norton says VARs should be eagerly looking for business from and partnerships with aboriginal companies.
“”I think they should be snooping around out there, finding out who’s doing what. There have been a lot of things that have been taking place in Alberta, Saskatchewan, Manitoba, in New Brunswick. People would be surprised to find out how many companies are aboriginal.””