Transcript Title of Power Point Presentation

Invest in ICT
Information Package
May 2014
ICT Sector-overview
Competitive ICT services in Moldova
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Success Stories
Software development
specialized outsourcing activities
Support activities (call-centers)
Mobile telephony
…and many more to come
Moldova is expected to remain one of the favorite
offshoring locations in the near future due to its
advantages in terms of costs, geographic position and
availability of human resources – all factors that will
continue to give Moldova a direct competitive
advantage over its direct competitors in the region.
Competitiveness Assessment of the Moldovan IT Market,
IDC 2011
Important role of ICT in Moldovan economy
ICT sector as an agent of change of the Moldovan economy
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Since 2000, the Moldovan ICT sector has grown faster than the economy as a whole and has
exerted a positive impact on labor productivity in different sectors
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IT sector in Moldova has a GDP share of 8.9% (2012) and employs 3.2% of the Moldovan labor
force*
IT Spending in Moldova
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The growth until 2015 is estimated at 6.6% per year **
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High ICT spending in Moldova
200
150
100
ICT spend as % of GDP 2x Bulgaria, Croatia, Slovenia
ICT spend as % of GDP 3x Romania
50
0
2010
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2011
2012
2013
2014
2015
Today, there are about 900 registered ICT companies operating in Moldova. Most of the
companies are based in Chisinau.
* Source ATIC White book
**Source IDC report : Competitiveness Assessment of the Moldovan IT Market, 2011
(http://mtic.gov.md/img/d2011/promovarea/CEMA17850_Final.pdf)
Moldova as a nearshoring destination
Key reasons to use Moldova as a nearshoring destination for services provided to
companies based in the EU and the CIS
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Highly competitive cost of labor and low operating costs
salary offered to fresh graduates - starting from €300-400 euros per month
salary offered to a skilled IT employee – around 700 euros (net) and 1,000 euros (gross).
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Increasing number of IT graduates per year
almost 2.000 students graduate Moldovan universities yearly with degrees in computing
and related fields. Another 8,500 have math or engineering degrees.
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Well-educated and talented workforce with technical skills and proficiency in different
languages (Romanian, Russian, English/French)
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Sustainable and continuous growth of the IT sector;
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Legal framework in line with European Directives and openness to reform
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Solid government support of the sector and commitment to improve the investment climate
Business opportunities in ICT
In terms of IT services, Moldova is well positioned for:
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Software development: specialized outsourcing activities around high value services such as
analysis and design, software development and testing;
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Support activities (call-centers): competitive workforce with high levels of language proficiency.
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In the telecommunication sector, the main opportunities are:
Mobile telephony: penetration still well below potential (70% for fixed and 120% for
mobile);
Moldtelecom, among the most important state-owned companies to be privatised in the
near future.
Incentives in the ICT Sector
Special incentives for Moldovan IT companies for the 2012- 2016 period include:
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Employee income tax exemption - Law 1164/24.04.97 (article 24 (21) + annex 1 and 2)
Company’s activity should be listed in annex 1 of the law*
Employees positions should be listed in annex 2 of the law**
More than 50% of the company revenue should come from software development
The company must have no debts to the public budget
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Limitation of monthly social security contributions for employers (Law 250/08.11.2012
(Annex 3, art. 1.3)
The company only pays the 23% social contribution from a maximum of 2 average salaries
estimated by the government for the year in course.
Example: this year – the estimated average salary is MDL 3950. Two salaries would be
MDL 7900. 23% of that is MDL 1817 which today is about EUR 105. That is the upper limit
to be paid as social contribution per employee, by the company.
*Activities related to the analysis, design and programming of information systems ready for use
**Analyst, developer, design of systems, engineer,database administrator, network administrator, software engineer, information project
manager.
Committed Government to support ICT sector
Two strategies are being designed: “Digital Moldova 2020” and “ICT Competitiveness”.
The current ICT Strategy 2011-2014 aims to:
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Increase Moldova’s ICT sector position within the global value chain : exports of ICT products and
services to increase from EUR 100 million to EUR 180 million over the 2011-2014 period;
Upgrade the ICT infrastructure through greater private involvement
Strengthen IT skills through education to ensure adequate resources for the ICT sector
development.
Creation of technological parks and incubators in the ICT field and attraction of international
companies;
Sector stimulation through public procurement; e-Government Centre initiative, aiming at
improving access to public information
Market size and dynamics
Number of software specialist on IT market
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In 2012, more than 20.000 individuals were employed in the ICT sector. Around 83% were
technical specialists, such as software engineers, analysts, developers, and project managers
Approximately 6.000 worked in the software sector alone.
IDC’s examination of the combination of available skills, suggest that Moldova is particularly
well positioned for high-value activities like analysis and design and software development, and
testing. *
*IDC Report, Competitiveness Assessment of the Moldovan IT Market, 2011, http://www.mtic.gov.md/img/d2011/promovarea/CEMA17850_Final.pdf
Exports of software products
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The export volume of software products has increased almost four times between 2007 -2012.
This increase was due to the development of information technology and the related services but
also due to the low baseline of the export volume
According to the estimations of European experts (www.oDesk.com), IT exports provided by
freelancers which are not reflected in the balance of payments, was in 2011 of 15 mln USD. The
main export destination it local IT companies are UK, USA, France, Germany and Romania.
2009
2010
2011
2012
Total Export
2000,03
2290,75
3158,53
3164,30
Export of ICT services
134,96
159,47
182,8
195,88
Communication services
105,21
126,05
134,96
140,04
Computing and Information services
29,75
33,42
47,84
55,84
Share of the ICT sector (%)
6,74
6,96
5,78
6,19
Total Imports
3988,6
4573,78
6030,56
6109,56
Import of ICT services
63,13
61,76
65,45
77,3
Communication services
39,15
38,13
42,46
40,16
Computing and Information services
23,98
23,63
22,99
37,14
Share of the ICT sector (%)
1,58
1,35
1,08
1,26
* Ministry of Information Technology and Communications
Education in ICT sector
The Moldovan labor market is supplied with skilled workforce thanks to the learning
mechanisms in universities and training methods applied by the private companies
in cooperation with the universities.
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During the 2011-2012 academic year, almost 2.000 students graduated in an IT related
specializations (from an overall figure of 28.000 graduates yearly), a number which registers a
constant grow
The Government has shown its support to these specializations by increasing the number of
scholarships (from 618 to 762 in 2012)
The graduates are ready to be trained and join IT firms looking for hardworking, mid- and highend developers. Many are trilingual, speaking Romanian, Russian, and French or English.
Universities/ Technical University (UTM)
Technical University from Chisinau (UTM) www.utm.md ;
Some sections at UTM with special groups where all the subjects are taught in a foreign language.
Within the Faculty of Computers, Informatics and Microelectronics there is the Francophone
Department "Informatics" and the Anglophone Department "Computer Sciences and
Electronics".
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Faculty of Computers, Informatics and Microelectronics;
- Automatics and Informatics;
- Microelectronics;
- Computers;
- Informational Technologies;
- Informatics.
Faculty of Engineering and Management in Electronics and Telecommunications; concentrated on
training in Electronics and Communications profile.
- Department of “Electronics and communications”;
- Department of “Engineering and industrial technologies”; specialties:
o 525.1 „Electronics”;
o 525.2 „Optoelectronic systems”;
o 525.3 „Tele-radio-communications”;
o 521.8 „Engineering and management in Telecommunications”.
Universities/ USM/ ASEM/ULIM
State University of Moldova from Chisinau (USM):
• Faculty of Mathematics and Computer Science; http://usm.md/?page_id=2080&lang=en
- Department of Applied Mathematics Informatics;
- Bachelor degree: Applied Mathematics; Computer Science; Applied Informatics; Information
Management.
- Number of students: Cycle I – 916; Cycle II - 120
• Faculty of Physics and Engineering; http://usm.md/?page_id=1176&lang=en
- Department of Applied Physics and Informatics;
- Master’s Degree in Semiconductor Physics and Engineering;
- Number of students : Cycle I – 678, Cycle II – 45
Academy of Economic Studies of Moldova from Chisinau (ASEM)
• Faculty of Cybernetics and Economic Informatics ; http://cie.ase.md/en/
⁻ Bachelor degree: Informatics; Information management; Computer science
⁻ Master’s Degree: Economic cybernetics; IT in Economy; Information management
Free and international university of Moldova from Chisinau (ULIM)
• Faculty of Informatics and Engineering ; http://inginerie.ulim.md/en/
⁻ Bachelor degree: Informatics; Computer science; Programming
⁻ Master’s Degree: Computer science; Applied informatics
Intellectual property rights protection
The STATE AGENCY ON INTELLECTUAL PROPERTY OF THE
REPUBLIC OF MOLDOVA (AGEPI) is the governmental body,
having the aim to promote policies in the field of intellectual
property and to increase the efficiency of the protection
system of intellectual property rights.
Although Moldova is still in the process of fully ensuring the
IPR protection (i.e. the software piracy rate is still high),
many efforts have been done in order to harmonize the legal
framework with the EU directives and thus, ensuring a
better quality of IPR enforcement.
With the entering into force of the DCFTA, the intellectual
property rights will be among the list of requirements to be
adapted to the EU norms.
International rankings (1)- IDI
80
70
60
50
40
30
20
10
0
2010
Sweden
2011
Moldova
Romania
Ukraine
Turkey
Georgia
Moldova is ranked 62 out of 155 countries, according to the ICT Development Index both in
2010 and in 2011, and ranked the 4th country in the CIS region (ranked after Russian
Federation, Belarus and Kazakhstan)*
*Measuring the information technology 2012
International rankings (2) - NRI
120
Network readiness index comparison
Rankins
100
80
60
40
20
0
2011
2012
2013
Sweden
3
1
1
Romania
65
67
75
Ukraine
90
75
73
Georgia
98
88
65
Armenia
109
94
82
Serbia
93
85
87
Moldova
97
78
77
The NRI reveals that Moldova has registered an important growth, moving from the 97th position, on the
77th one on 2013. This was due to a substantial improvement of the ICT infrastructure. The chart also reveals
that Moldova is getting closer to the ranks of its neighbors (Romania, Ukraine), which are considered to have
a better infrastructure. Moreover, Moldova is ranked ahead Armenia (82), which is considered a developed
country in terms if IT services.*
* Measuring the information technology 2012
International rankings (3) - EGRI
Country Level E-Government Data.
120
Rankings
100
80
60
40
20
0
2010
2012
Moldova
80
69
Romania
47
62
Ukraine
54
68
Georgia
94
72
Armenia
110
94
Macedonia
52
70
According to the United Nations’ (UN) Global E-Government Survey (2012), Moldova moved up 11 places in
the world ranking for e-government development, ranked the 69th. According to the document, the Republic
of Moldova shows the growth of the Index e-GRI from 0.4611 (in 2010) to 0.5626 (in 2011) exceeding
the world average.
E-GRI index reflects the state of technological infrastructure and the level of educational training in the
country in Information Communication Technologies (ICT) sphere and indicates the extent to which the
government uses ICT capacity for economic and social development of the country and citizens.
Top players in the Moldovan ICT sector
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Endava (www.endava.com) : IT Services company, with over 600 staff operating from headquarters
in London and offices in US, Romania and Moldova (Chisinau). The company designs, implements
and manages business-critical systems and digital services for the world’s leading organizations.
Cedacri International (http://www.cedacrinternational.md/?lang=en) : provides software and
business process outsourcing services to banking sector clients.
Deeplace (www.deeplace.md) : has a vast experience in software and applications development,
online banking technologies, website development, information security applications. The
company is also an outsourcing center.
Pentalog (www.pentalog.md): an international software and computing services company,
specialized in offshore outsourcing. The global business administration and marketing activities are
based in Orleans, France and Eschborn, Germany.
Q systems (www.qsystems.md): develops On-Line technologies based on Internet/Intranet
solutions. The company is specialized in the production of information systems for management
and accounting in financial organizations; direction of electronic payments; business management
via Internet.
Tacit knowledge (http://www.tacitknowledge.com): digital commerce consultancy that delivers
Silicon Valley innovation to retail organizations around the world. The company implements
packaged applications and builds custom software for multichannel organizations
Top players in the Moldovan ICT sector (II)
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Alfa Soft SRL (www.alfa-xp.com): a software development company, with offices in Ashburn, VA
(USA) and in Moldova (Eastern Europe). The company works as a software development
outsourcing center. Alfa XP is specialized exclusively in the latest Microsoft .NET technologies and
has developed its own set of tools, methods and templates.
ALLIED TESTING (www.alliedtesting.com): specialized in QA and testing. The company works
mainly with the capital markets, trading and finance industry. Allied Testing has offices in USA, UK
and Cyprus, with its test labs based in Moldova, Belarus, Russia and Argentine
NetInfo (www.netinfo.md): has a vast experience in implementation of medical information
systems, development of financial and accounting software. The company is also an outsourcing
center.
Orange Moldova: mobile network operator, part of the Group France Telecom. Orange has started
its activity in Moldova in 1998. Orange has over 2 mln clients in Moldova
Moldcell: second mobile network operator in Moldova, part of the Telia Sonera Group. Moldcell
started its operations in Moldova in 2000
Address: Chișinău, Piața Marii Adunări
Naționale nr.1, MD 2033
Email: [email protected]
Website: www.invest.gov.md
Thank you!
Phone: +373 22 250-586