Transcript Doing business in CEE

ICT Market in South East Europe
and Investment Opportunities
GORAN RADMAN
Chairman ECEE
Microsoft Corporation
SEE TRANSFORMATION
RESOURCES
ADDED VALUE
GROWTH
INNOVATION
COMPETITIVENESS
PRODUCTION
INVESTMENT
IS IT SUSTAINABLE?
SEE ICT MARKET VALUE
Albania, 2.1%
Hungary, 28.6%
Croatia, 10.5%
Slovenia, 6.7%
BiH, 2.8% Bulgaria, 8.1%
Montenegro, 0.8%
Romania, 14.0%
Serbia, 5.3%
Macedonia, 1.7%
Turkey, 63.0%
23.3 billion EUR in 2006
Source: EIU
SEE ICT MARKET VALUE SEGMENTS
Albania, 0.7%
Croatia, 7.9%
Hungary, 23.2%
Slovenia, 6.2%
Romania, 2.9%
BiH, 1.1%
Bulgaria, 5.4%
Montenegro, 0.3%
Serbia, 3.2%
Macedonia, 0.7%
Turkey, 47.9%
IT: 8.6 billion EUR
Source: EIU
Telecom: 14.7 billion EUR
Source: WB
Slovenia
Hungary
Turkey
12
Macedonia
Serbia
Romania
Montenegro
Bulgaria
BiH
Albania
Croatia
Greece
Sweden
Ireland
Austria
SEE ICT MARKET GDP EQUIVALENT
14
% of GDP
10
8
EU 25
6
4
2
0
CEE ICT SPENDING AND EMPLOYMENT
IT Spending
Hardware &
Services Software
13%
87%
$46.4 billion
Employment
Software
Vendors
Hardware Vendors
Channel Firms
Channel Firms
Services Firms
Services Firms
IT Professionals IT Professionals
40%
60%
1.526 million IT jobs
Source: IDC Economic Impact Study CEE, 2007
While software
represents only
13% of total IT
spending, it drives
40% of IT
employment
IT CEE IMPACT
• An aggregate of $18.1 billion in new tax
revenues over four years
• Contribution of new revenues of $67.3
billion to GDP over four years
• More than 676,000 new jobs generated
in next three years
Source: IDC Economic Impact Study CEE, 2007
ENCOURAGING IT GROWTH
0
10
20
30
40
50
60
70
80
90
100
Rank 2004./out of 104 countries
Rank 2005./out of 114 countries
Rank 2006./out of 122 countries
Source: The Global Information Technology Report 2004 – 2006. WEF
SEE ICT ADVANTAGES AND SHORTCOMINGS
Source: The Global Information Technology Report 2004 – 2006. WEF
SEE ICT OFFSHORING
Source: neoIT Offshore Insights, 2006
SEE will need time to catch up, but still is the
fastest growing region for ICT market
MICROSOFT SEE STRATEGY
Tech Access
Content
Community
Human Potential
Capital flow
Business
Model
Jobs Creation
Tools
Innovation
LSE Local Software
Localization
Economy
Accessibility
Public/Private
Partnerships
Knowledge Capital
Social Contribution
© 2005 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.