Transcript Softline
IT Market Yuriy Sivitsky 2008 Ukraine: growing economy 2 • Basic social and economic indicators, cumulative growth (2002 as 100%) Basic social and economic indicators 250 200 150 100 50 0 2003 2004 2005 2006 2007 Gross domestic product (at constant prices) Industrial production (at constant prices) Retail trade turnover (at constant prices; all channels of sales) Data: State Statistics Committee of Ukraine 2008 Ukraine: IT market growth forecast 3 World Information Technology and Services Alliance: Ukraine’s ICT market reached $10 Bn. in 2007 with the average annual growth of 20% Ukraine, Total ICT Spending, Mn. USD 14000,0 13223,5 11580,0 12000,0 9987,3 10000,0 USD, Bn. 8332,6 8000,0 6000,0 4000,0 2000,0 0,0 2006 2007 Data: World Information Technology and Services Alliance 2008 2009 Ukraine: IT market growth forecast 4 • ICT market growth by major sectors Ukraine, Computer Software and Services growth forecast, Mn. USD 14% 12000 10000 8000 9460 16% 20% 10770 8176 6843 6000 4000 2000 141 198 180 265 1755 1557 1367 1150 220 342 265 434 0 2006 Computer SoftWare 2007 Computer Services 2008 Computer HardWare Data: World Information Technology and Services Alliance 2009 Communications Ukraine: customer types 5 Actual and forecast, mln. USD Major ICT Segments 20000 Mn. USD • 15000 10000 5000 0 2006 2007 2008 Agriculture Mining Manufacturing Utilities Construction Wholesale & Retail Trade Transport & Communications Finance &Business Services Other Services Government Consumer Data: World Information Technology and Services Alliance 2009 US market: competition differentiation 6 Top outsourcin g players Israel Staff qualificatio n Manageme nt quality + + India Service cost + + Russia + + Ukraine + + Source: Softline, industry experts State support Political risks + + China Sales support Cultures proximit y 3 + 3 + 2 + + + Potentia l rating + + 4 + 6 What shall be done? • A Strategy to Develop IT and High Technology Industry in Ukraine • Develop comprehensive national innovation strategy. • Regulatory incentives. • Heavily invest into the human capital. • Encourage knowledge transfers through industrial clusters. • Proceed with the liberalization of the telecommunications industry. – A comprehensive national vision on science and technology parks (STPs). • STPs management. • STPs tax concessions. • STPs technology infrastructure. • Special customs regimes in STPs. • Facilitate start ups of innovation companies. • International promotion of STPs. • Improve Ukraine’s investment climate. • Advance integration of Ukraine into the global economic • community. Build trust of domestic and international business community into Ukraine. • STPs tax concessions. – tax holidays are widely used to expand the pool of potential investors, the magnitude of the impact (unless tax concessions are extremely generous) is rather modest. Investors prefer to have stable regulatory and taxation rules to tax holidays that may not be sustained in the long-run. Thus, a better option for the government is to provide part of the initial infrastructure needed for the STPs and liberalize taxation procedures instead of maintaining STPs tax preferences that may be infeasible under tight state budget constraints. Thank you Yuriy Sivitsky +38067-5380012 [email protected]