Upload
morgan-sullivan
View
218
Download
1
Embed Size (px)
Citation preview
InvesT in Romania
Aurel NETINState Secretary for IT
Overview on IT marketTotal IT market value (milion Euro)
553648
789872
967
0
200
400
600
800
1000
1200
2002 2003 2004 2005forecast
2006 forecast
284
347
439
475 520
5866 75 84 94
87 97 116137
162
0100200300400500600
Computerhardware
SOFTWAREtotal
IT Services
IT market value trend on specific components (million Euro)
2002 2003 2004 2005 forecast 2006 forecast
Source European IT Observatory 2005
SWOT Analysis - Strengths• Increasing usage of Hi-
Tech solutions in the business community
• Internationally recognized and award winning software products on IT services
• Still competitive labor costs
• Ideal geographic location to collaborate with EU countries and the CIS countries
• Good education system generating more than 5.000 IT profile graduates per year
• Highly skilled and motivated human resource
• Large pool of extremely efficient multi-language speakers
• Workforce mobility and flexibility
SWOT Analysis - Weaknesses• Limited incentives in
stimulating local IT industry and FDI
• Lack of specialized management capabilities in the IT industry. No relevant training in place
• Insufficient match between education curricula and IT industry needs
• Limited understanding of the importance of the certifications, process management, standards and quality control.
•High cost for use of internet and telephone infrastructure•Low productivity but steadily increasing per employee compared to regional competitors•Insufficient found absorption capability of the IT industry due to low demand and lack of entrepreneurship•No marketing and brand building strategy. Insufficient promotion and market development founding resources
SWOT Analysis - Opportunities• Growing domestic demand for complex IT solution ->
enabling the development of competences and internationally successful products
• Growing demand in Western Europe for IT services and software products
• Cultural proximity and understanding is a great asset• Growing world market demand for BPO, IT enabled
services and development outsourcing • Growing competition on fixed and mobile communications
market will encourage quality and lower service costs• Growing number of IT clusters: Bucharest, Timisoara,
Cluj-Napoca, Galati• Great potential for e-commerce market
SWOT Analysis – Threats
• Growing labor cost on medium and long term
• Lack of relevant market information and market analysis capabilities
• No consolidated/result oriented marketing and branding programmes for Romanian IT
• Strengthening regional competition among traditional and emerging IT exporters
Romanian competitiveness on the global IT&C market
Romania has a long history of education and research in all
fields of engineering and software: 116 universities, 36
have a computer science related faculty
Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University) and world
class concerning their competencies
Romania’s legal system and culture - similar to those in
Europe and US.
Romania’s location is an advantage in itself
Romania’s density of software graduates per thousand
inhabitants is significantly higher than in USA, five times higher than in Russia and nearly seven times
bigger than in India.
The cost of IT-skilled professionals = 1/3 in US
and Europe
Made in Romania
Main governmental objectives
• Increasing the competitiveness of the Romanian economy, by encouraging the use of the latest information technology
• Strengthening of the IT&C industry
• Increasing the institutional performance of the public administration by the coherent and generalized implementation of integrated information systems
• Increasing the citizens’ comfort
Some actions in order to boost IT industry (1)
• IT&C export strategy targeting sustainable economic development main objectives of the sector in the period 2005-2009 are :– extend into new service lines;– tap new and under penetrated customer segments;– move up to the value chain from maintaining and
implementing outside orders to implementing and designing creative solutions, customer tailored and from piece parts to full projects.
• IT national brand
Some actions in order to boost IT industry (2)
• National State Aid Strategy– Technological transfer and R&D investments
support – IT industry boost policy – Software parks – Broadband acces – IT clusters
Some actions in order to boost IT industry (3)
• Information Society DevelopmentAfter accession 2007 – Structural Founds* available for IT&C in order to increase competitiveness of Romanian companies through 3 line directions– Stimulating IT usage– Building a modern, efficient, effective and inclusive
government– Boosting e-business
* More than 300 M Euro
• Software market: $124 mil în 2004, growth rate 22% comparing to 2003.
• Software spending today represent 15% of the total IT spending market in Romania and is growing by more than 12% annually
• Labor force in IT in 2004: 30 600, is going to increase with more than 7,000 jobs generated by software industry opportunities. Forecast 2009: 38 000
• Software employees 16 000, representing 52% among all IT employees. Forecast for 2009: 24 000.
Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries
Romanian Software Market Features
Software applications demand growth• Software applications: more than 50% from all software spending. • Impact factors that will contribute to the increase of software applications
demand:– Changes in IT based infrastructure type– Complete solutions demand coming from public administration and private
sector – Sophisticated software applications demand induced by foreign direct
investments, especially manufacturing– Integration and alignment to NATO and EU standards– Investments in advanced applications like security – Document management, storage, BI, CRM still limited– Investments in accounting and stock managements applications continue.
Accounting application growth was induced by legislation and taxes changes – Security software is dominated by antivirus solutions– Management application market (system, network, input, output, jobs) is
limited. Increase of demand for this kind of applications are registered in telecommunications sector and financial services
– Telecommunications services market liberalization, banking sector privatization, growth of competition in many sectors due to UE accession will induce CRM solutions increase
IT growth generates jobs growth
*Total Software Employees include Software Vendors, Software-related Services and Channels and Software-related IT Professionals
• In Romania, software related employment will account for 64% of all IT employment by 2009
Romania
SEE
Other Services and ChannelsIT Hardware Other IT Professionals Total Software Employees
Source: IDC IT Economic Impact Study, 2005, 6 South East European Countries
• General IT employee opportunity will increase from 124,000 jobs today to over 159,000 jobs in 2009
• Over 50% of these jobs will be software or software related employment
0
5000
10000
15000
20000
25000
30000
35000
40000
2004 2005 2006 2007 2008 2009
0
20.000
40.000
60.000
80.000
100.000
120.000
140.000
160.000
180.000
2004 2005 2006 2007 2008 2009
Thank you!
www.mcti.ro