Professional Documents
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It Landscape: Inside
It Landscape: Inside
It Landscape: Inside
IT Competitiveness Index
IT LANDSCAPE
THE FUTURE OF IT
REPORT
The ultimate guide for IT buyers,
investors and experts
2021
© 2021 Emerging Europe Limited
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ISSN 2399-7605
IT LANDSCAPE
THE FUTURE OF IT
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2021
IN T R O D U C T I O N
Page 5
TABLE
OF CONTENTS
IT Landscape Report
Table of contents 5 Georgia 108
Hungary 110
Introduction 7 Kosovo 112
Latvia 116
Regional analysis 14 Lithuania 118
Moldova 120
Global context 16 Montenegro 122
IT Competitiveness Index 20 North Macedonia 124
Regional overview 26 Poland 126
Romania 130
Technologies and verticals 34 Serbia 134
Slovakia 138
Slovenia 140
Fintech 36
Ukraine 142
E-commerce 40
Central Asia 146
Gaming 44
Healthtech 48
Govtech 52 Additional resources 150
E-mobility 54
Cybersecurity 60 Technology ecosystem 152
Artificial Intelligence 62 Methodology 158
Internet of Things 64 References and sources 164
Blockchain 68 Abbreviations and acronyms 170
Cloud 70 Acknowledgements 172
Virtual / Augmented Reality 72
5G 74
Automation 76
Country profiles 80
Albania 82
Armenia 84
Azerbaijan 86
Belarus 88
Bosnia and Herzegovina 92
Bulgaria 94
Croatia 98
Czechia 100
Egypt 102
Estonia 106
A WORD FROM
the Chairman of the Tech Emerging
Europe Advocates Advisory Board
observed over the last few decades, that the world is becoming a different
especially in the emerging Europe place. That there is a shift from a global
ROSEN PLEVNELIEV region. to a regional approach - there is no
FORMER PRESIDENT
OF BULGARIA (2012-2017)
When most emerging Europe way to be globally strong unless you
countries were starting their transition are locally strong too.
from a centrally planned to a market One result of these global
B
efore the Covid-19 pandemic, economy, I was graduating from geopolitical changes is that large
there was already a lot of the Technical University of Sofia German companies are bringing at
discussion regarding the with a diploma in computer science, least part of their huge operations
implications of technology for the specialising in artificial intelligence. back from China, to Europe. The same
future of our lives and our work. I had earlier received an award in a goes for American companies. They
However, the future arrived national computer programming are once again looking to be close
far sooner than anticipated, and competition. But it never occurred to to their potential customers. This
many of us changed our routines me that my home country of Bulgaria offers an enormous opportunity for
dramatically. Remote virtual and the entire region, for decades emerging Europe.
meetings are now commonplace stuck behind the Iron Curtain, would But for that to be successful, we
and economic activity has increased successfully compete with free-market need to see greater collaboration
on a range of digital platforms. We economies and would deliver highly between our countries and a joint
are all now using digital services advanced technology used across the value proposition showing the region’s
across an ever-increasing range of globe and come up with technological potential. This is why it is essential to
domains: finance, health, commerce, solutions to fight a global pandemic. show emerging Europe’s potential
to name just a few. After serving as a head of state and in technology. The IT Landscape:
None of this would have been talking to many world leaders, both The Future of IT in Emerging Europe,
possible without the technological political and business, it was obvious co-branded by Tech Emerging Europe
advancements and the unprecedented to me that the world was moving into Advocates, is an important step
economic growth that we have a new phase of development and towards doing just that.
A WORD FROM
Emerging Europe's Founding Partner
shell and beginning to take the others — around 40 million, the IT
lead in creating a world in which market is quite fragmented.
digitalisation and AI will move us The IT Landscape: The Future
all beyond what we ever thought of IT in the region is Emerging
ANDREW WROBEL possible. Europe’s first attempt — updated
LEAD, TEEA
The region’s business partners — annually — to look at the sector
both foreign investors and importers across the region and use the same
W
hen we were setting up — begin to understand that access to methodology to understand how
Emerging Europe almost talent and the quality of products and each and every country contributes
a decade ago, we knew we services should be the primary motive to the size of the regional market.
were engaging with a high-growth behind their decision to expand or The IT Competitiveness Index,
region. Security, amazing digital relocate in the region.In this picture, which analyses talent, the growth
infrastructure (often much better the IT sector has a special place. of the sector and business climate
than traditional infrastructure), Over the last decade, I have in the countries shows areas where
innovation, and most importantly, taken part in hundreds of panel individual countries can become even
talent have helped most of the 23 discussions, debates, fireside chats more competitive.
countries across emerging Europe and webinars focused on the sector Finally, we have included five
triple (or in some cases, even and I cannot recall a single one, Central Asian countries — covered by
quadruple) their gross domestic be it in China, South Korea, South Tech Emerging Europe Advocates,
product since the beginning of the Africa, the United States or in Europe, and Egypt — a massive talent pool
millennium. where the growth, value proposition already working with emerging
This is no longer a region that and potential of the sector in the Europe companies, to see how they
robotically carries out repetitive emerging Europe region would not can strengthen the IT sector in the
processes at low cost. This is a region be appreciated. region and also benefit from its
that is redesigning those processes. But with 23 countries, some having future growth.
A region that is emerging from its a population of less than a million,
“
Page 8 Page 9
A WORD FROM
the Tech Emerging Europe Advocates
C
ovid has significantly Winners will be the fastest, most
T
he Emerging Europe region other exciting tech verticals in the platforms have been developed and well placed to be key players of the
is a very important part of the years to come. are under constant development world transformation on the back of
world for the global technology At Global Tech Advocates our all around the world. No country is its young, well-educated and thirsty
sector. The area has the talent, the mission is to connect and forge excluded from this process and all population!
BRUNO BALVANERA countries have a relatively similar
innovation and the entrepreneurs to vibrant networks between tech
FORMER MANAGING DIRECTOR FOR competitive advantage.
become a critical IT partner for the communities internationally. CENTRAL ASIA AT THE EUROPEAN BANK
UK and other tech hubs right across Creating greater cooperation and FOR RECONSTRUCTION AND DEVELOPMENT
the globe. In a time where the trade in global tech is essential for
digital economy is driving growth supporting early-stage markets
and employment for countries and sharing in the considerable
at a rapidly increasing rate, the opportunities that innovation
T
ambition to scale of the tech offers for society and the economy. he biggest strength of the only helped Serbia unlock its full
community in emerging Europe is This report will serve a vital emerging Europe region, potential. The foundation was set
RUSS SHAW CBE very encouraging. I would advise role in mapping many of these especially of the Balkans by the dedicated leadership in the
FOUNDER, TECH LONDON ADVOCATES & tech leaders in more established opportunities across the region and countries — lies in their geopolitical past few years, but in 2020, the
GLOBAL TECH ADVOCATES hubs to truly start taking note as signposting what tech in the region context. Historically, geopolitical most difficult year for the world -
the ecosystem there could well has to offer today and moving turbulences turned people here the country managed to have the
represent a key location for IT and forwards. in the best problem solvers, and highest GDP growth in Europe.
the best innovators, as they live Three reasons – agility and excellent
in constant “survival mode”. problem-solving skills, great
G
rowing technology companies which can be seen as a proxy for the Additionally, by bridging east and relations with both east and west,
can be called Covid-winners ‘appetite for investment’ in the video west, countries in the region need and finally, excellent tech skills. I
since 2020. As they develop gaming sector, increased by almost to maintain good relations with have the feeling that emerging
rapidly, they need external 54 per cent year-on-year. both. Finally, this part of the world is Europe is not going to waste this
investment which in the current I believe that the exchanges are famous for good math and technical crisis but position itself as the fresh
market environment is readily innovative thanks to technology MARTA ARSOVSKA TOMOVSKA education, which produces solid frontrunner.
available from the investment implementations. GPW Group’s DIGITAL INNOVATION EXPERT, engineering potential.
community, via the stock exchange. technological development initiatives ADVISER TO THE SERBIAN PRIME MINISTER Why is this important? Take
We have seen spectacular are a key priority of both mine the example of Serbia. The crisis
growth in sectors such as IT, video and our strategy #GPW2022. This
gaming and biotechnology. During ambition is attributed to GPW
the pandemic, the performance Tech, our technology subsidiary,
of Warsaw Stock Exchange (GPW) which is responsible for the inhouse
indices and stock sub-indices development and subsequent
I
MAREK DIETL reflected this growing interest commercialisation of IT products and
CEO, WARSAW STOCK EXCHANGE from both retail and institutional solutions for the financial sector. n my decade covering technology language skills have made them key
investors. For example, WIG.GAMES, with CNN, I’ve seen many players in the tech ecosystems. Now,
countries and regions attempt to emerging Europe faces an enviable
become “the next Silicon Valley.” challenge of how it will leverage
Start-ups across emerging Europe the partnerships and investments
are proving they have more than flowing into the region to bolster its
just the desire — they’re already flourishing tech sector.
T
alent, then talent, and again And not only that. According making it a reality.
talent. We are not pubilicising to Eurostat, eight out of ten ICT The region’s deep history of
sufficiently how gifted specialists across the European advanced engineering, market
and hard working people in our Union are men. The proportion of access as well as advanced
SAMUEL BURKE
countries are. We are missing a female ICT specialists is significantly
TECH CORRESPONDENT AND ANCHOR,
trick. Investors only know about this higher in emerging Europe. In CNN AFFILIATE NETWORKS
wealth of talent from anecdotes Bulgaria, over 30 per cent of ICT
they hear from companies that specialists are women, in Romania,
have already invested in the region. over 26 per cent, followed by Latvia
Central and Eastern Europeans and Lithuania.
should stick together. We have We need to find all ways possible
something special to offer on the to boast about that internationally.
OLGA GRYGIER-SIDDONS
global stage.
A BUSINESS ADVISOR AND MENTOR,
FORMER CEO OF PWC CEE
A WORD FROM
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How do buyers of business
services find reliable, high-quality
sellers of business services that
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project needs?
How do sellers of business
services connect with potential
buyers to grow their business?
We are thrilled to have partnered
MIKE BEARES with Emerging Europe to expand
FOUNDER, CLUTCH that mission and give even more
visibility to companies from
C
onsumers don’t make many emerging Europe while helping
purchases without looking buyers looking for an outsourced
for third party content on provider.
products on services. Over the years,
we have seen that behaviour from
the consumer side translate into the
business-to-business space world
as well.
During the buying process,
decision-makers are looking for
content that will help them learn as
much as possible about potential
partners to build trust in them and
find the best match for their needs.
1011100010101000101010101000111110101010000111010100000 In fact, 94 per cent of businesses
have used an online review to help
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make a B2B purchasing decision.
That’s almost all businesses who
have hired a developer, partnered
FOR EMERGING EUROPE’S of the Global Sourcing Association also benefit from close proximity talent continues to be developed
OUTSOURCING INDUSTRY,
and the chairwoman at the Global and aligned time zones and cultures, and nurtured, specially at middle
Technology and Business Services in a strong position to continue management levels, where an
Council. growth, providing they continue on-going dearth is predicted.
COVID-19 IS A REAL OPPORTUNITY “Emerging Europe’s countries
are perfectly positioned to take
their investment in talent and
infrastructure and maintain an
Furthermore, as the landscape
continues to evolve at a pace, the
advantage of the situation created appealing,” says GSA’s Ms Hallard. CEE region must ensure it stays
The Covid-19 pandemic has been one of the most disruptive
by the transitional changes “Over the last couple of years, the value competitive – a significant
events since World War II.
occurring within the industry. GSA has witnessed huge growth in increase in costs or attrition rates will
A relatively recent entrant onto its member companies investing in negatively impact their opportunity
the business services scene, countries such as Poland, Czechia, to capitalise on the advantage
these countries have garnered Romania, Bulgaria and Ukraine – for afforded to them. This could and
a reputation for producing high the delivery of business services should be a golden period for the
value services through the use of a ranging from customer service CEE region to prosper as a leading
highly skilled labour force, operating through finance and accounts delivery destination serving buy-side
at consistently high rates of a to software development – with companies directly, as well as service
conscientious and diligent work- Ukraine being the most recent providers, around the world,” GSA’s
ethic, with high levels of English destination to cement its reputation Ms Hallard adds.
fluency, a quality that objectively as a key tech hub. The investment The emerging Europe region
appeals to many nations in the has come in the form of establishing may not yet be of the size and scale
Western world,” she adds. and growing shared service centres, of India as an outsourcing delivery
“Global organisations tend to as well as through partnering destination, but it has emerged as
operate multifaceted infrastructures with domestic players. Companies an IT powerhouse over the last two
internationally, most often with such as Ciklum, NIX Solutions, decades and is catching up quickly.
several locations throughout EPAM, ScaleFocus, and 60K are all With over 3.7 million individuals
multiple countries. When one examples of emerging Europe-based employed in the ICT sector, almost
of these organisations decides companies that have gained stable twice as many as in Eastern Europe,
to transfer activity from one site footholds in the global sourcing India is unarguably the largest player
to another, everyone is affected: eco-system, helping to diversify the in the sector globally. However,
suppliers, distributors, service UK service provider community when we look at the number of IT
providers and consumers,” Debi whilst enhancing the reputation of employees per 100,000 inhabitants,
Hamill, CEO at the International emerging Europe-based operations emerging Europe’s numbers are
Association of Outsourcing – driving growth for all firms,” four times higher. In countries like
Professionals (IAOP). she adds. Estonia, it is nine times higher.
“Trends have always shown that The 2021 Global Outsourcing 100 With its progressive nature and
proximity, cost and language skills includes over a dozen companies rich talent pool of highly educated
are the most significant determining headquartered or with main delivery resources, together with a culture
factors for many businesses seeking centres in the emerging Europe embedded in innovation and
services outside their native region, including Sigma Software, IBA matched with the desire to deliver
country. Culturally speaking, this is Group, Innovecs, Solbeg, Intellias. service excellence in the new
important for emerging Europe as “However, for CEE countries global context backed by a strong
N
ot only has it had – and will The impact has been greater on contracts or hiring new staff. That it gives these countries a nearshore to take full advantage of this entrepreneurial spirit developed
continue to have – an impact business process outsourcing (BPO) has made it possible to access global advantage. When it comes to opportunity open to them, it is in a challenging historical context,
on the global economy, Covid- than on information technology talent from the most cost-effective emerging European countries, integral standards do not drop or emerging Europe is a reliable
19 is disrupting various global trends. outsourcing (ITO). This is largely locations. another advantage they have stagnation occur. They cannot sit on global partner.
Agility is key, and those who respond due to the regulatory limitations At the same time, businesses over other global markets is their their laurels and it is imperative that
and adapt to what has become on the extent of virtual workforces, worldwide are continuing to friendliness toward neighbouring
known as the new normal will thrive rendering BPO firms under- struggle to find qualified talent countries, which allows for business
in the post-pandemic world. prepared. despite millions of candidates ease in gaining nearshore cost
But how has Covid-19 impacted The pandemic exposed looking to re-enter the workforce. advantages,” Ms Hamill adds.
the outsourcing sector, which has deficiencies in levels of Randstad Sourceright’s 2021 “Unlike other leading delivery
long been a source of disruptive preparedness. Business continuity Talent Trends Report reveals that 40 destinations such as India and the
technology? has become critical and will test per cent of human capital leaders Philippines, the emerging Europe
According to Deloitte’s 2020 the ability of service providers to report talent scarcity has negatively countries have typically been
Global Outsourcing Survey, the deliver from home offices and impacted their organisation, awarded contracts on a smaller
uncertainty created by Covid-19 has maintain their own supply chains, highlighting a desperate need for scale but consisting of higher value
instilled caution, as everyone in the while delivering the desired level of reskilling. The survey of 850 C-suite transactional work. The smaller size
industry adjusts. data security and work productivity. and human capital leaders in 17 of these contracts means their talent
The survey says that outsourcing It has also sped up cloud adoption, markets across the world found that pools are not under the same level
decisions will play a significantly helping organisations to scale their 40 per cent of HR leaders continue of threat to automation as countries
more strategic role in short-term technology resources according to to experience talent scarcity in IT. such as India, who are predicted to
resilience and long-term growth. changing demand. “British companies now more lose about a third of their current
However, the outsourcing industry The physical co-location of than ever need fast access to flexible, work to robotic process automation
itself is not unaffected by the resources is no longer necessary to innovative and skilled labour to (RPA), which has led to a wholescale
pandemic, and providers are having develop a trusting relationship in help them achieve their quickly upskilling and repositioning exercise
to adapt quickly to new ways of the workplace. Physical presence changing business objectives,” says for India. This therefore places the
working. is no longer needed when signing Kerry Hallard, the chief executive emerging Europe countries, who
Common success
Common challenges DERIVATIVES MARKET COMMODITY MARKET INFORMATION PRODUCTS
STRATEGIC INITIATIVES
www.gpw.pl
R EGI O N A L A N A LY S I S R EGI O N A L A N A LY S I S
Page 20 Page 21
(OUT OF 60)
100,000 of population
100,000 of population
Average salary in ICT
across the board, Poland’s Czechia, Hungary and Romania Macedonia and Moldova are the
IT sector remains the most join Poland in the top five. Despite least competitive countries for the IT Country
EF EPI rank
population
competitive in the region. Hungary having a large IT sector, Ukraine, sector. As far as talent is concerned,
and Serbia perform better in the whose position in the talent North Macedonia ranks 23rd. In
talent component while Estonia, component is similar to Poland’s, terms of sector development,
Lithuania, Czechia, Slovenia and lags behind in the development Azerbaijan and Kosovo take the
Latvia rank better when it comes to of the sector and business climate lowest places. The business climate
business climate. component. That can also show is least favourable in Ukraine.
room for further development.
(OUT OF 15)
Export of ICT services
Value added of ICT
Country Country
Poland 17.37 7.50 3.06 5.00 1.80 Estonia 14.24 2.70 3.00 2.89 2.65 3.00
Czechia 16.66 4.71 6.04 2.88 3.03 Lithuania 13.19 2.89 2.81 2.47 2.40 2.62
Competitiveness index (TALENT) – Competitiveness index (TALENT) –
Estonia 14.83 1.33 7.50 1.00 5.00 Czechia 12.51 2.01 2.58 2.84 2.75 2.33
Labour and skills Education
Romania 14.66 4.86 3.64 3.76 2.40 Slovenia 12.33 2.18 1.53 3.00 3.00 2.62
100,000 of population
100,000 of population
Average salary in ICT
Bulgaria 8.75 2.05 3.32 1.40 1.98 Slovakia 9.36 1.65 1.20 2.26 2.15 2.10 Country
EF EPI rank
population
Slovakia 8.70 1.74 3.26 1.37 2.34 Croatia 7.97 1.18 0.91 2.10 1.99 1.80
Belarus 8.00 1.93 2.35 1.74 1.99 Romania 7.89 1.09 2.10 1.74 1.76 1.20
Ukraine 7.77 2.79 1.15 2.75 1.08 Armenia 7.85 1.47 2.23 1.44 0.61 2.10
Lithuania 7.67 1.27 3.44 0.87 2.09 Bulgaria 7.68 0.95 2.16 1.86 1.50 1.20
Croatia 7.53 1.46 3.18 0.98 1.91 Hungary 7.67 1.16 1.18 2.04 2.10 1.20
Serbia 6.64 1.46 2.04 1.31 1.84 Belarus 7.18 1.29 0.86 1.62 1.61 1.80
Egypt 33.62 3.75 0.50 1.94 8.00 4.06 0.72 0.30 1.66 2.00 0.79 2.00 2.00 1.90 0.63 1.51 1.87
Montenegro 4.22 0.77 1.87 0.50 1.07 North Macedonia 6.85 2.73 1.98 1.00 0.58 0.57
North Macedonia 4.02 0.85 1.41 0.60 1.17 Montenegro 6.35 1.20 0.82 1.13 1.80 1.40 Competitiveness index (BUSINESS
Competitiveness index (SECTOR)
(OUT OF 25)
Index of Economic
Perception Index
Bosnia and Herzegovina 3.86 0.96 1.49 0.58 0.82 Kosovo 5.34 1.04 1.49 1.07 1.07 0.68
Social Progress
Freedom Rank
Business Rank
Ease of Doing
Development
Export of ICT
Export of ICT
Index Rank
Index Rank
Corruption
per capita
Country
services
Armenia 3.53 0.84 1.09 0.61 0.99 Azerbaijan 5.09 2.26 1.85 0.30 0.37 0.30
Human
Rank
Albania 3.09 0.83 1.04 0.53 0.69 Albania 4.70 0.48 1.32 1.20 1.03 0.68
Georgia 2.99 0.85 0.97 0.53 0.65 Moldova 4.01 1.38 0.87 0.95 0.30 0.51
Azerbaijan 2.75 0.97 0.78 0.50 0.50 Bosnia and Herzegovina 3.67 0.30 0.93 0.98 0.89 0.57
Egypt 5.38 3.19 0.78 0.90 0.51 1.68 0.30 0.30 0.30 0.30 0.48
Kosovo 2.73 0.75 0.75 0.51 0.72 Ukraine 3.56 0.89 0.30 1.04 0.85 0.48
REGIONAL OVERVIEW The average salary in the ICT sector across the region
amounted to 1,583 euros in 2019. The table below
We have also looked at the salaries in individual
countries in relation to the country’s GDP per capita.
shows the average salary per country as a percentage
of the emerging Europe average.
In 2020, there were over two million people employed in the ICT sector
across the 23 countries of emerging Europe. We estimate that number to
grow by another three per cent in 2021. Average
salary in Average
The emerging Europe average salary in the ICT sector is forecast at 1,669 ICT as salary in
Average Average
euros in 2020 and is expected to grow by close to seven per cent in 2021. percentage GDP per ICT as
Country salary in ICT Country salary in ICT
of the capita percentage
(euros) (euros)
The share of the sector’s value added compared to the region’s GDP keeps average of GDP per
on growing and accounted for 4.42 per cent in 2019, up by 0.17 percentage regional ICT capita
points compared to 2018. salary
Slovenia 2,432 154% Belarus 6,112 1,357 22%
Average gross
salary in ICT,
euros Latvia 1,731 109% Romania 11,561 1,899 16%
2015 2016 2017 2018 2019 2020 2021
forecast
Croatia 1,687 107% Kosovo 3,986 593 15%
Estonia is the region’s leader as far as the number of people employed Command of English as well as the countries’ performance in key rankings
in the ICT sector per 100,000 inhabitants is concerned: 2,430. We have such as PISA Mathematics and the International Mathematical Olympiad ICT GROSS SALARY IN 2015-21
also looked at the number of students and graduates per 100,000 people are important to understand a country’s potential.
to show how much some of the countries in the region need to step up Gross salary 176% 178% 175%
their game. in ICT as a 172% 175% 173%
percentage of
gross salary
2,187
2,060
EF English International PISA overall
1,981
Number Number Number
1,873
Country Proficiency Mathematical Mathematics
1,687
of ICT of ICT of ICT
1,579
1,515
Index Rank Olympiad Place Rank Average gross
specialists students graduates salary in ICT,
Country Country Country
per per per euros
2015 2016 2017 2018 2019 2020 2021
100,000 of 100,000 of 100,000 of Albania 43 77 48 forecast
population population population
Armenia 51 37 -
Estonia 2,430 Estonia 333 Albania 81
Azerbaijan 86 65 56
Slovenia 1,598 Serbia 325 Ukraine 68
Belarus 40 45 38
ICT EMPLOYMENT IN 2015-21
Czechia 1,589 Albania 312 Belarus 58
Bosnia and Herzegovina - 56 62
Bulgaria 1,437 North Macedonia 306 Estonia 54 2.9%
Percentage 2.7% 2.8%
Bulgaria 20 38 49 employed 2.5% 2.6%
2.4%
Croatia 1,432 Latvia 297 Serbia 46 in ICT
1,236,772
Croatia 13 32 40
1,206,226
1,178,670
1,137,322
Slovakia 1,403 Kosovo 254 Romania 41
1,061,839
1,030,442
1,014,354
Czechia 19 23 22 Number
Hungary 1,356 Ukraine 251 Armenia 39 of people
working in ICT
Estonia 25 57 8
Serbia 1,345 Hungary 229 Montenegro 37 2015 2016 2017 2018 2019 2020 2021
Georgia 47 18 66 forecast
Latvia 1,342 Belarus 226 Czechia 35
Hungary 14 13 36
Belarus 1,328 Georgia 213 Latvia 34
Kosovo - 78 75
Lithuania 1,324 Montenegro 207 Croatia 34 ICT VALUE ADDED
Latvia 29 67 24
Moldova 1,139 Slovenia 203 Slovenia 32
Lithuania 24 54 35
Poland 1,122 Romania 203 Slovakia 32
Moldova - 52 55
Armenia 1,044 Czechia 187 Azerbaijan 32
Montenegro - 73 53
Romania 920 Bulgaria 178 Kosovo 31 4.44%
North Macedonia - 72 67 4.36%
Montenegro 852 Bosnia and Herzegovina 173 Hungary 31
Poland 16 6 10
Kosovo 786 Armenia 162 Lithuania 31
Romania 17 15 52
North Macedonia 739 Croatia 157 Bulgaria 30
Serbia 15 25 46
Ukraine 693 Moldova 138 North Macedonia 29
Slovakia 22 40 32
Albania 638 Lithuania 131 Moldova 29 4.31% % of GDP
Slovenia - 40 14 2019
Azerbaijan 628 Poland 131 Georgia 24
Ukraine 44 11 43 2018
Georgia 515 Slovakia 126 Bosnia and Herzegovina 24 2017
Bosnia and Herzegovina 483 Azerbaijan 99 Poland 23
Emerging Europe 1,044 Emerging Europe 200 Emerging Europe 42 ICT STUDENTS ICT GRADUATES
Finally, Emerging Europe has looked
at its four subregions: Central Europe,
Eastern Europe, North East Europe and
163,380 2019 30,140 2019 South East Europe.
1,245
935
1,175
overall overall
858
1,080
788 % of GDP
1,000
940
% of GDP
897
864
Average gross 3.60% 2019 Average gross 4.10%
625
573
494
ICT EMPLOYMENT IN 2015-21 ICT STUDENTS ICT GRADUATES ICT EMPLOYMENT IN 2015-21 ICT STUDENTS ICT GRADUATES
2.0% 2.9%
Percentage 1.9% Percentage
1.7% 1.8% 2.6% 2.8%
employed 154,179 2019 39,707 2019 employed 2.3% 2.4% 50,269 2019 8,216 2019
in ICT in ICT 2.2%
179,655
576,714
558,079
557,399
172,586
530,175
162,821
510,510
506,405
499,540
148,239
2015 2015
141,149
Number Number
133,803
126,284
of people of people
working in ICT working in ICT
% of GDP
2,177
4.10% 2019
1,687
Average gross
1,534
and the abilities, intellect, creativity of a foreign investor that saw the
1,421
salary in ICT,
euros 2018
and output of the country’s young potential, the opportunity and the
2015 2016 2017 2018 2019 2020 2021
forecast 2017 population have exceeded my long-term sustainable rewards of
ROBERT WRIGHT expectations. investing in the country’s young
The young population of Kosovo population and we are now enjoying
ICT EMPLOYMENT IN 2015-21 ICT STUDENTS ICT GRADUATES CEO, RAIFFEISEN BANK KOSOVO
(the average age is 29 and 53 per all the significant benefits of that
cent of the population is under the belief and optimism we had about
age of 25) is a relatively low-cost the country’s future.
I
3.5%
3.3%
Percentage 3.1% 3.2% n the years immediately after resource compared to Central or
employed 3.0% 13,779 2019 2,238 2019
in ICT 2.8% independence in 2008, Kosovo Western European countries, well
would boast about its young educated, multilingual, readily
100,889
96,446
94,900
91,100
F
promising for the continued
intech is one of the fastest reducing the costs of remittances. strides to becoming a fintech hub. evolution and revolution of financial
growing areas of Eastern Remittances contribute to double The country’s Financial Conduct services.
Europe’s technology sector. digit percentages to the GDPs of Authority created a regulatory institutions in Europe. In Latvia, one industry. Tajik programmers have
Defined as a product or company or seven countries we are covering, sandbox allowing companies to in five start-ups is involved with managed to revolutionise their
technology that employs innovative, including Armenia, Ukraine and test their products in a controlled fintech, with the market estimated banking and e-commerce systems
newly-developed technologies in Kosovo. The World Bank estimates environment, one of only a few such to represent over 800 million euros. with their start-up Alif Sarmoya,
banking and financial services, The Visegard Four - Poland, the first of its kind in the region.
fintech has seen a sharp increase Hungary, Czechia and Slovakia - Kazakhstan is also one few countries
in prominence over the past see the highest proportion of the to run a specialised fintech
decade, with two trends spurring population which uses services regulatory sandbox, following
this growth: the proliferation of like online banking and money Lithuania’s example.
the internet, and the smartphone transactions. Meanwhile in the
revolution. Balkans, Sofia has cemented itself
While fintech ran into some as an unlikely hub for fintech
hurdles in the more developed businesses. Bulgarian fintech
West, where venerable institutions company Cash Credit is one of the
and infrastructure were sometimes biggest success stories and has
slow to incorporate the rapidly managed to expand to as far as
progressing changes, the process South Africa and the Philippines,
was smoother in Eastern Europe. and raised nearly 19 million euros in
With most countries in the region funding in 2018.
having spent a sizable period Croatia too has also established
of the twentieth century under itself on the fintech map. The
communism, banking and financial success of companies such as Twisto
sectors were less complex. With the and Microblink have set the stage
widespread economic liberalisation for continued innovation in the field.
of the 1990s, countries in Eastern However, the Balkans lag behind the
Europe managed to ‘skip’ decades rest of Europe in terms of proportion
of accumulated progress and of population which uses digital
institutionalisation to embrace payment services. In 2017, under
new technologies. However, the 10 per cent of the adult population
penetration of digital payments used the internet to access their
remains low in much of the region: bank accounts, far below the Central
60 per cent of adults in non-EU European average of just under 40
countries have made us of these per cent.
technologies, as compared to the 90 Central Asia is also unlikely
per cent EU average. success story in fintech - despite
Fintech has potential for the being a latecomer to the entire ICT
economic and social development
IT Landscape Report 2021 |
PA R T NER CO N T EN T
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INDUSTRIES
DIGITALISING OPERATIONS UNLOCKING POTENTIAL
W
hile there has been cent of all banking tasks within COST SAVINGS
significant investment the next few years, which directly
towards B2C changes translates to cost savings and With massive layoffs hitting the
in digital payments, the Covid-19 reduction in human errors for global finance industry, financial
environment will compel banks financial institutions. Although institutions need to extract every
to adopt more innovative B2B start-up costs for robotic process efficiency out of their existing
processes, re-designing and automation (RPA) are hefty, most technology systems and labour
rebuilding back-office processes companies see a 40-100 per cent force to handle increasing digital
which are time-consuming, ROI within three-eight months. customer volumes while also being
complicated, and expensive. under income pressure from low
With more digitised operations yields and loan demand. This focus
in the banking sector, banks will CONSOLIDATION AND on cost savings will drive a new
offer their clients more flexibility PARTNERSHIP BETWEEN wave of B2B innovations.
and an easier way to manage their FINTECH START-UPS AND
finances. Because cloud technology TRADITIONAL FINANCIAL
and software as a service (SaaS) offer PLAYERS KYC USING BEHAVIOURAL
resilience, scalability, and security, SCIENCE TECH
it will be a primary focus for many Fintech start-ups have
financial services providers in 2021. traditionally been a global disruptor, With banking and fintech having
broad Know Your Customer (KYC)
requirements, they will need to
build relationships with clients
that they cannot meet in-person
to judge their trustworthiness,
“ They
customer satisfaction, and a host of
other parameters.
Data harvesting, machine
are industry experts that
learning, and AI will feed the
behavioural science models that
had a collaborative approach. Through-
will, in turn, turn these insights into out our discussions, they shared their
input and perspectives which we found
client objectives and behaviours.
”
Integrations will improve, breaking
data from silos to become more
democratized. The extremely data invaluable. They were fantastic!
intensive nature of the fintech
industry will enable behavioral AI to Director of Business
grow to a whole new level.
Development & Sales |
Cloud Marketplace
sales@sciant.com www.sciant.com
T ECHN O LO GIE S A ND V ER T I C A L S T
CHECHN
A P T ER
O LO
PAGIE
R TSNER
A ND V ER T I C A L S
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domestic tech companies. across the board in the countries of e-commerce. Now, with many
-commerce is a rapidly growing
In the Caucasus, the sector is covered, there are still some shops moving online, there is a
industry. Defined as the
a little more underdeveloped. As common limitations which mitigate greater level of institutionalisation
activity of conducting business
of 2019, over a third of Armenians growth. In many of the countries of this sector. As postal, road and
transactions online - most commonly
and Georgians didn’t have internet surveyed, cash transactions remain internet infrastructure continues to
manifested as shopping online - it
access. Furthermore, the kinds of the most popular. Retirees often get develop, e-commerce will certainly
has particular room to grow in
robust postal services required their pensions in cash, as do other follow suit in these countries.
Eastern Europe. A large part of this is
to facilitate the delivery of goods people receiving social welfare.
because many of these countries are
is lacking in many parts of these Large parts of the population also
still in the process of digitising: even
countries, particularly rural areas. seem not to be entirely trustful
in EU countries in the region like
Nevertheless, the Armenian Central of paying by card on the Internet.
Bulgaria and Romania, over a quarter
Bank recorded a 30 per cent While it is possible to pay cash
of the population does not access
increase in e-commerce transactions for online transactions, this slows
the internet. This proportion is even
from 2015 to 2016. Meanwhile, the whole process, thus limiting
higher in some of the Caucasus and
Azerbaijan’s fledgling e-commerce a company’s capacity to move as
Central Asia. Ukraine, meanwhile, has
sector nearly trebled between 2015 quickly as it would like. Banking
the lowest Internet penetration rate
and 2017. In 2018 in Kazakhstan, penetration remains not-universal
in Europe, at 58 per cent as of 2019.
This means that e-commerce has
more growth potential in this region
than in Western Europe, where
internet access and smartphone
ownership is near-universal. As the
countries in the region develop their
infrastructure, grow their economies
and continue the linear progression
of internet access, the potential
market for e-commerce grows
proportionally.
Furthermore, as the European
Union continues expanding and
taking in new members, allies
and partner states in the covered
region, countries benefit from
access to consumers and supply
chains from the more developed
West. This trend has already been
seen: in Romania, for example, instead. Furthermore, many shops rate of 16 per cent. The bulk of
the e-commerce market went simply had to move to selling their transactions in the country were
from a valuation of 1.1 billion goods online, or they would risk made from local services, such as
euros in 2014 to 2.8 billion euros bankruptcy. This extraordinary alza.cz and mall.cz. Cross-border
in 2017. In 2020, Romania and sequence of events has also purchases amounted to only 15 per
Bulgaria saw the highest growth seen some innovations in the cent of online purchases. Poland
rates in the e-commerce sector e-commerce sector. For example, likewise has a bustling e-commerce
in all of Europe, with 30 per cent Ukrainian start-up Liki24, which sector. In October 2020, the Polish
increases in revenue. The increasing delivers pharmaceutical goods e-commerce service Allegro, riding
ubiquitousness of international to peoples’ houses, saw revenues the wave of its post-covid surge
e-commerce behemoths like dramatically increase during the in sales, became Poland’s biggest
Amazon, ebay and Aliexpress are period. Halfway through 2020, listed company, reaching a valuation
another factor driving this growth. the company managed to raise of just under 16 billion euros.
The Covid-19 pandemic has 4.2 million euros in funding for its In the Balkans, Croatia leads
opened a strong window of planned European expansion. in the highest proportion of
opportunity for e-commerce. More E-commerce has also been e-commerce users, with over half of
and more people are driven to stay growing in the more developed the population estimated to have
inside for their own safety - this is countries of the region, like the made purchases online in 2020.
particularly true for the populations Visegrad Four. Czechis had one of Montenegro trails the rest of the
that are especially vulnerable to the the highest number of online stores Balkans. In the highly-digitised
disease. The lockdowns enforced per capita - over 40 thousand as Baltic countries, e-commerce has
across the world saw the closure of 2017. This sector raised some also been growing. In 2019, China
of all but essential stores, leading 4.4 billion euros in 2019 and was set up an e-commerce hub in
people to do their shopping online projected to grow at an annual Latvia, greatly easing the process of
E-COMMERCE
The future is now, but
are you ready?
T
o the surprise of nobody, When it comes to local stores, the
Covid-19 has had a huge, reverse is true. People are shopping
mostly positive, impact on locally to avoid high-risk areas, but it’s TOMASZ GUTKOWSKI
e-commerce. not an immediate win. Convenience BUSINESS DEVELOPMENT DIRECTOR,
While retail is expected to here is essential. Click and collect, UNITY GROUP
underachieve again this year, online deliveries and other methods that
shopping is estimated to reach minimise further risk and exposure
a worldwide total of 4.2 trillion will go a long way.
US dollars by the end of this year, For smaller businesses, third
according to eMarketer. party integration with local providers
With e-commerce growing as – while still maintaining the best
the dominant source of revenue, customer experience – is essential. simpler ordering systems and better
competition will be fierce, especially Choose your business partners, product images – anything to help
in Europe and North America, where and technology, wisely! As central improve the customer experience.
we expect the biggest surges. remote shopping and deliveries The ability to go elsewhere gives
To meet the challenge, companies become paramount, companies like power to the shopper so a proactive
need to adapt in three key areas.
Firstly, they need to adapt to their
Ocado are investing more heavily
in warehousing and distribution –
rather than reactive approach will
keep them happy.
Webstore
audience – we’re seeing different a trend seen in all countries. In any case, digital channels
trends in various age groups and are the key to convenience, and
markets. NO TIME FOR convenience is the key to success.
Secondly, they must adapt COMPLACENCY On that note, don’t forget mobile,
their business models – primarily either.
in shopping and delivery – while As for online stores – which will Global trends have long shown
thirdly, they should adapt their still define the major part of all that mobile is readily outgrowing
digital channels – as simply “being online business - now is not the time desktop usage – in fact, it has done
online” is no longer enough.
Notably, we’re seeing new
to be complacent.
Increased competition means
since 2014, according to Statista.
Even with lockdowns, mobile
Product Information
market segments enter into online the need for clearer information, convenience cannot be overstated.
shopping, such as senior citizens
– according to Eurostat, over half
of this group now purchase online,
and the number of senior online
shoppers is growing.
Order & Warehouse
This in turn impacts the
respective businesses: pharmacies, Management Mobile Support
groceries and other operations that
relied on in-store shopping or pay
and collect models now need to
broaden their horizons.
NATIONAL AND
INTERNATIONAL BUSINESS
The wider your chain, the
Scalable
more likely you are to be based in
shopping centres. Even when open,
statistics show public hesitation
Architecture
lead to decreased sales. Such
businesses need to get online and
establish convenient alternatives.
The knock-on effect here comes
in increased warehouse demand
and pressure on back-office
systems, rather than front-of-store NEW YORK / ZURICH / WROCLAW / KRAKOW
operations. unitygroup.com
contact@unitygroup.com +48 71 358 41 00
T ECHN O LO GIE S A ND V ER T I C A L S T ECHN O LO GIE S A ND V ER T I C A L S
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estern Europe, the United In Poland, CD Projekt, the large- now, with a market worth 447 million
States, and Japan have scale dev and publisher behind euros, it is not the only country that
long been synonymous the runaway success roleplaying has been successful in the field.
with the video game industry. But, game series The Witcher - which In 2019, the Estonian game studio
in the last few years, many countries sold a combined 50 million units as ZA / UM swept the awards circuit
in the CEE region, Poland especially, of May 2020 - has become one of with their twisted take on detective
have begun to upset this paradigm. the country’s largest companies — stories Disco Elysium. It’s a good
second to only the energy concern start for Estonia, which while a leader
Over the last 15 years or so, the PKN Orlen. Smaller independent in IT, has not yet made a name for
region has been shifting from studios and the mobile sector have itself in the gaming sphere.
being an outsource destination for had a lot of success too. Belarus too is on the map thanks
western gamedev companies to a These factors all indicate that to Wargaming and their online
powerhouse of original creativity the Polish video game industry is multiplayer hit World of Tanks
by leveraging the know-how no longer emerging or maturing. It which currently has more than 150
gained from outsourcing and the is already mature, and the level of million active players worldwide,
comprehensive STEM educations differentiation present within the and has made its CEO Victor Kislyi
that many CEE countries offer. industry is proof of that. Just like in a billionaire.
the West, Poland has large-scale In Czechia, according to the
Building on this, developers and producers who make big budget statistics portal Statista, the gaming
publishers in CEE have been able titles, a host of independent studios market revenue is projected to hit
to produce video games that have working on game at a time, and a 121 million euros in 2021, and to grow
enjoyed both market and critical bourgeoning mobile game sector. to 157 million euros by 2025.
success. But, while Poland is definitely the Kingdom Come: Deliverance, a
main video game hub in CEE right roleplaying game set in 15th century
Bohemia, developed by the Czech In Slovenia, Outfit 7 has with Microsoft for their H.R. Giger-
gamedev Warhorse Studios, has dominated mobile sales charts inspired first-person shooting game
managed to move three million with their edutainment game My Scorn to become exclusive to the
units since its release in 2018. These Talking Tom. At the other end of the Windows platform and the Xbox
are very encouraging numbers for spectrum, Triternion’s competitive series of consoles.
the maturing Czech industry. online fighting game Mordhau has Last year, a small two-
Elsewhere in the region, the managed to sell over 500,000 copies person studio from Bosnia and
gaming market and industries are in in just one month following its April Herzegovina, AI Interactive, got their
various phases of evolution. What is 2019 release. puzzle game The Enchanted World
important is that nearly all countries Croatia, long represented by featured on the exclusive Apple
have had some kind of success, Croteam, the developer behind the Arcade mobile platform.
even if it is limited to only a few Serious Sam series, is also finding One thing is clear, the CEE region
notable games coming out from the success in the mobile area through has the know-how and the talent
country. Pine Studio’s well-received puzzle to become the next major game
Hungary and Romania are still games such as Faraway: Puzzle industry hub. The number of foreign
mostly focused on outsourcing, Escape. Indie studios are becoming companies who outsource to the
but notable games have come out noticed too, with the American region is proof enough of that.
of the two countries. In Hungary, publisher Devolver Digital picking But for the region to truly shine,
Zen Studio has seen international up Binx Interactive’s I Hate Running developers in most countries will
success with the Zen Pinball series Backwards in 2018. need the support of governments
and in Romania Angry Mob Games’ According to data from Statista, and investors to shift away from the
Brawlout sold more than 50,000 the video game market revenue is outsourcing model and strike out on
copies on the Nintendo Switch. expected to reach 53 million euros their own, just as Poland did.
According to Statista, revenue in this year in Croatia.
the game segment in Hungary is Even in the Western Balkans,
projected to reach 86 million euros in companies are becoming noticed.
2021, and to grow to 123 million by 2025. Serbia’s Ebb Software scored a deal
P
is now being taught in literature
oland has long been a cultural an expert in economic geography. According to Krzysztof Kwiatek, classes in Polish schools.
powerhouse. The birthplace “Poland in particular has developed the CEO of Creepy Jar, one of “When all puzzle pieces like
of no fewer than six Nobel into a significant cluster, using the gaming companies listed on gameplay, emotions, mood, and
Literature Prize laureates (most initial links to overseas developers the WSE whose independently- aesthetics started to make a
recently Olga Tokarczuk in 2018), to significantly develop indigenous produced Green Hell has found consistent picture, we felt we had
the country can also boast a giant capacity.” a successful home – and player a unique title on our hands,” says
of science fiction – Stanisław Lem – recognition – on the Steam digital Konrad Adamczewski, PR lead for
and one of the world’s greatest ever THE WIG GAMES storefront, Poles have always liked 11 bit studios. “The overwhelmingly
film directors, Krzysztof Kieślowski. INDEX video games. positive global reception of This
Today, however, the country’s most “The economic transformation War of Mine, resulting in rising
valuable cultural export is a most So important is the gaming after 1990 opened the door for interest from more prestigious
contemporary phenomenon: industry for Poland that in 2019 the people who wanted to make such and mainstream media outlets
video games. Warsaw Stock Exchange (WSE), games themselves,” he says. and newspapers, proved we were
In 2019, video games passed the largest in the region, launched So successful has Poland been right, but we did not expect that Will Poland be known from now on The video game industry – and
an important milestone when an index dedicated to it, the WIG that critically-acclaimed titles huge interest.” as a country that good video games the medium itself – are inherently
worldwide revenue eclipsed that of Games Index, part of the exchange’s from the country are no longer the What 11 bit studios did with the come from? global, and more than 90 per cent
Hollywood for the first time. strategy to attract technology exception, but the rule. game is perhaps one of the best Experts from the industry of games produced in Poland are
It’s been a long journey for the companies. “Rather than a single one-off indicators that succeeding in the Emerging Europe talked to are in played outside of the country. The
industry, from nerd obsession to “The listing of regional gaming success, Poland’s creative industries field of video games is not just broad agreement on this. Polish government has taken notice
mainstream entertainment, which companies on the WSE is a brilliant are delivering a growing catalogue about the money. With games “I feel that this might indeed be at the possibilities this offers for
along the way has stoked much strategy,” says John Lawrence, chief of highly-regarded titles that an now being a mainstream form of the case,” says Marek Markuszewski, nation branding and has doled
debate as to whether or not video investment officer at J.A. Lawrence audience of international gamers entertainment possessing actual CEO of Starward Industries, another out more than 300 million złotys
games can be considered an art Wealth Management. “This is enjoy,” Joost van Dreunen, video artistic currency, countries that do independent studio that is currently (around 66.7 million euros) through
form. Now with their own category at a purely global play for Poland. game expert, lecturer at NYU Stern, well have a chance to export their working on turning Stanisław Lem’s an EU-funded programme to help
the BAFTA awards, rigorous scholarly Gaming itself is a global hobby and author of One Up: Creativity, culture to a global audience. novel The Invincible into a video small studios get their projects off
criticism, and the kind of cultural shared all over the world. Listing Competition, and the Global “It is more than the economy. game. “I saw a headline the other the ground.
cachet previously reserved only for these companies will continue to Business of Video Games tells It is our cultural heritage,” day that said Poland had overtaken “When it comes to game
“serious art”, the debate appears to pull global investment into Poland.” Emerging Europe. Mr Adamczewski adds, “even if our Japan when it comes to the number development the right amount of
have been put to one side for good. By the end of 2020, the number games don’t focus on Poland or of game studios it has. If someone support from the government and
For a long time, the video gaming of gaming companies listed on the are not set here. [Grand Theft Auto] told me this 10, 15 years ago, I would adjacent industries will ensure there
industry coalesced around three WSE had risen to 54, the most in GAMES AS LITERATURE is now part of the UK’s cultural have told them that they’re nuts.” are few obstacles toward Poland
major hubs — North America, the world, beating out the previous heritage despite being set in the Paweł Marchewka, CEO of becoming a world-leading nation in
Western Europe, and Japan. leader, the Tokyo Stock Exchange. Titles from Poland that have sold US. Poland is proud of its games Techland, one of the biggest gaming,” Mr van Dreunen notes.
Publishers from the United States, “This shows the importance of millions of copies around the world and finds them being more than development and publishing That the Polish video game
the UK, France, and Japan were the the game development segment for include CD Projekt’s behemoth role- entertainment.” companies in the country, concurs. industry has matured is now a
largest and most powerful, taking the Polish capital market, and why playing game brand The Witcher, “We have lots of studios in Poland foregone conclusion. Now it’s up
what appeared to be an unassailable we were prompted to create the and This War of Mine from 11 bit and highly talented developers,” he to all stakeholders to turn that
lead in this emerging, booming WIG Games Index,” Marek Dietl, the studios, a strategy game set in an LONG WAY TO GROW says. “Therefore it is not surprising recognition and market success into
industry. WSE’s CEO, tells Emerging Europe. occupied city (loosely inspired by that a lot of great video games a genuine national brand that will
In recent years, however, this With so many active game are made in Poland and game fuel the next stage of development
has changed. Developers from development studios (over 400 development has definitely become and make Poland synonymous with
emerging Europe have stormed the according to recent industry reports) a brand for our country.” high-quality digital entertainment.
market, creating some of the world’s and so many people in the country Not for the first time, a perfect
most innovative and best-selling identifying as gamers (nearly half THE GOVERNMENT mix of innovative creatives, capital
games, creating a phenomenon that of its 38 million population), experts TAKES NOTE market backing and government
brings in not just export revenue, believe that the industry still has a support means that Poland appears
but boosts the cultural recognition long way to grow. Of course, the best proof of this to be uniquely positioned to take
of an entire region, branding it as “Where even just a few years ago lies with the gamers themselves. On advantage.
the home of cutting-edge gaming. Poland played a more passive role the popular discussion site Reddit,
Poland, as it so often does, has as a place to outsource software the community dedicated to the
led the way. development, it has since then found game The Witcher III has more than
“The CEE region has been able to its own voice. From their humble 150,000 members, where fans share
capitalise on its strong mathematics beginnings, Polish game makers have memes, fan art, cosplays and more.
and engineering education and grown into a creative and cultural Meanwhile, Bloober Team’s recently
expertise to offer highly skilled force,” says Mr van Dreunen. released horror game the The
workers for the games industry,” But what do these successes Medium sold so well that it broke
says Dr Jennifer Johns, a lecturer mean for the country at large, even just days after being released
at the University of Bristol, and especially on the world stage? on the PC and Xbox platforms.
H
particular can be vital in coming
ealthtech, or medtech, is service, pushing people to look for healthcare. Ukraine, for example, up with quick, innovative solutions
defined as the application alternatives in the private sector. has had its population drop from a to actively developing issues, like
of technology - be it Some countries have pursued peak of 51 million in the early 1990s Covid. EU-backed group EIT Health
through devices, software, apps, widespread privatisation of health to just under 42 million in 2020. has consequently been active in
procedures - to health systems. services — Latvia, for example, The median age has gone up in the laying the legal and regulatory
Healthtech in Europe so far has spends under six per cent of its GDP same period from 35 to 41. Over 20 groundwork for innovative solutions
been concentrated in a few Western on healthcare, compared to 11.2 per per cent of the populations of Latvia, to be tested, as well as financing
European countries, like the UK, cent for France. Serbia, Croatia and Bulgaria are potentially innovative solutions
Switzerland and Germany. However, Another factor driving the aged 65 or older. which traditional health systems
recent years have seen a quick demand for healthtech in emerging Healthtech has the potential to tend to be slow to move on.
growth in this sector in Eastern European countries is the ageing create widespread changes in the Innovations in healthtech
Europe and beyond. populations. As these countries health sector across the region. have also happened outside the
There are several interconnected develop, life expectancy goes up, The application of technology can Covid window. In Kazakhstan,
factors that explain this growth. along with the median age. This is help the less developed countries a remarkable start-up Sezual has
Throughout Eastern Europe, exacerbated by low fertility rates - of the region catch up quicker developed a Braille self-tutor.
demand for private healthcare has while it is common for fertility rates to the West - and there are still Even more excitingly, following
been growing fueled by higher to decline as a country develops, many areas where they need to World Bank recognition, Sezual is
salaries and widespread budget in many of the countries in this catch up. Take life expectancy, for developing a device which can help
cuts to previously robust public region, fertility rates remain below example - in Moldova and Ukraine, blind and visually impaired persons
healthcare systems, which have led replacement levels. All of this men’s life expectancy is at 68 and have vastly improved awareness
to long waiting lists, understaffed drives up the average age — and 67 respectively, lower than in many of their surroundings through
hospitals and poorer quality consequently the demand for African countries. echolocation - essentially making
€ 25,000 SMART MONEY ACCESS TO EIT HEALTH’S Through this unique collaborative
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Funded by the For more information, please visit: LEARN MORE AND JOIN US: W W W.EITHEALTH.EU
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ovtech is defined most are EU member states (EU-11) who above the previously forecasted government functions have become
simply as technology for have accessed at least one online 2019 “business-as-usual” scenario, accessible to the population online.
public sector applications; service has risen by 15 percentage reaching a value of around 94 Voting, paying taxes and utilities,
essentially any technology which points since the start of the Covid-19 billion euros. However, CEE signing contracts, making bank
makes government services more pandemic, according to the Covid-19 countries achieved only 80 per transfers, applying for welfare - all
innovative, responsive, efficient. Digital Sentiment Insights survey by cent of the target levels in an of these vital functions can be
While still in its early stages, McKinsey & Company. “aspirational scenario”. In light of done with the click of a button,
breakthroughs in certain countries At the peak of the pandemic, the rapid migration of consumers hugely simplifying the processes.
point to an exciting future where there were almost 12 million new to digital technologies driven by These innovations have reportedly
the interaction between the users of online services – more the Covid-19 pandemic, the region saved the state two per cent of its
government and the public will be than the populations of Slovakia, has an opportunity to capture the GDP, freeing up vital resources
done in an efficient manner, online. Croatia, and Slovenia put together. momentum for future growth. from administrative trivialities.
In most of the countries covered Prior to the pandemic, 61 per cent Embracing digital technology in Lithuania is looking to follow suit
in this region, govtech is still in its of consumers used digital services; the coming years may accelerate through the establishment of its
infancy — however the potential following the lockdowns imposed digitisation of the region. Govtech Lab, where new innovations
benefits are nothing short of in various countries, that figure had The survey reveals rapid digital and technologies can be trialed
revolutionary. grown to 76 per cent. adoption by all age groups and and tested. During the Covid-19
The number of people in those The 2019 digital economy in the geographies, not just traditional pandemic, the governments of 2010. Now, Serbian citizens can access parties do not trust the system.
emerging Europe countries which EU-11 was roughly two per cent “early adopters” – young professionals Estonia and Lithuania deployed 800 government services through Armenia has been looking to
living in large cities. Younger innovative methods to combat the portal. The government reported continue its recent ICT development
generations (people aged 18–44) the virus, like using automated that the portal has over a million by launching the Govtech
led the way with regard to digital chatbots to answer concerned active users, out of a population of Launchpad, similar to Lithuania’s
adoption in all the EU-11 countries, citizens’ queries. just under seven million. Govtech Lab.
both before and after lockdowns Elsewhere in emerging Europe, Kazakhstan briefly experimented However, there are deep-
were imposed. But the digital govtech remains in its infancy. Serbia with e-voting in the early 2000s, but seated factors which may limit the
adoption rate also grew significantly is somewhat of an exception, having discontinued it after claiming the spread and growth of govtech.
during lockdown for consumers aged launched an e-government portal in public prefers paper and political In many countries, there may be
over 65, a group whose increased powerful political factions for whom
level of medical risk creates a strong transparency and accountability is
incentive to access services online. not in their interest.
In fact, this age group showed the Corrupt administrations across
strongest growth across the region, the region have reason to fear any
with the number of users increasing innovations which may lay bare their
by 40 per cent. illegal activities. Furthermore, some
Govtech can go a long way in governments may express valid
boosting those numbers further. security concerns around govtech -
Streamlining public administration this is a particularly pertinent issue
processes can make the government for govtech companies to address.
more efficient, which can restore Sensitive internal data about
a sense of trust from the public. a country can be compromised if it
Connecting the government to is all online. E-voting can be easily
the public through the internet manipulated if implemented in
or cloud can also vastly improve a country with weak or unstable
transparency, accountability and democratic institutions.
good governance, all vital elements Despite these issues, however,
in the development of a democracy govtech seems to be a solution to
and stable civil society. many political and administrative
The introduction of electronic problems. Govtech has the capacity
voting has the potential to greatly to create truly fruitful public-private
increase voter participation and initiatives which benefit the entire
galvanise previously apathetic citizens. population of the country - in safe,
Furthermore, the simplification of competent hands, its potential for
public functions can also save the good is vast.
state in question significant sums of
money, freeing up funds to be used
for more pressing issues.
OF E-MOBILITY
Aeromobil, a Slovakian start-up However, the Balkans are still and lessen the dependence on
has even more extravagant ideas: lagging behind most of Europe battery imports.
in 2019, it raised 20 million dollars in electric vehicle ownership - The e-mobility sector is one
in funding to continue developing Croatia records the lowest total which is almost guaranteed to
a flying electric car. French-owned in the European Union with just see continuous growth in the
Romanian car manufacturer Dacia 730 electric cars on the roads. coming years. The limitations of
meanwhile has promised its electric Non-EU Serbia records just 102 in oil - it being finite, detrimental
car, the Dacia Spring, will be the total. Furthermore, the Covid-19 to the environment and subject
and wide-reaching benefits. cheapest electric vehicle available pandemic has seen double-digit to constant price fluctuations -
Automobile ownership rates are on the European market, with decreases in demand for electric indicates that over the next century,
lower in the region than in the production for it based in China. cars throughout Europe, although its use will continue to fade.
rest of Europe, meaning there are In the Baltics, Lithuania’s Elinta this is in conjunction with the drop This presents an exciting
less people who are used to motor Motors in 2020 unveiled an electric in demand for regular cars. opportunity to capitalise on a trend,
vehicles and are unwilling to make minibus to be used for public Previously, a big barrier to the as the electric car industry is still
the switch to electric. Furthermore, transportation. Estonia is home to growth of the electric car market not fully mature. Furthermore,
breakthroughs in e-mobility in Bolt - what started as an electronic in the region has been the cost - some countries in emerging Europe
public transit systems like trains scooter service in 2013 and currently electric cars are more expensive to can be attractive nearshoring
and buses can go a long way in operates in over 40 different buy than their fossil fuel equivalents, destinations for production of
alleviating mobility issues caused countries. Demand for electric even if they save money in the long- vehicles and vehicle components.
by the relatively underdeveloped cars has been soaring in Eastern term. However, this issue is quickly
infrastructure in much of the region. Europe. In late 2020, Belarus’s fading with the quick decrease
A huge potential benefit for energy ministry announced that in prices of electric car batteries.
the nations of emerging Europe the number of electric cars in the In 2020, Slovakian car battery
1,0
0,8
0,6
0,4
0,2
0,0
in the widespread adoption of country had doubled in a six month manufacturer InoBat announced
electric vehicles is how this lessens spell. Ukraine has seen even more a strategic partnership with German
the dependence on oil. Oil has dramatic changes - between 2018 giant Manz, which looks set to give
rapidly fluctuating and changing
prices. Furthermore, the vast
majority of countries covered in
the region do not have their own
oil resources. This makes them
dependent on outside providers
- and with the ubiquitousness of
oil, this dependence can take the
form of submission to the whims
of the oil providers. Electrifying a
country’s vehicles will take away this
dependence on oil, thus freeing up
countries to act more independently
and become more self-sufficient -
each of these countries produces its
own electricity and has the capacity
to produce more.
The Visegrád Four - Poland,
Czechia, Slovakia and Hungary
W
ith the spectre of global the European Green Deal, a set of - have already made impressive
warming casting a shadow policy initiatives carrying the overall progress in e-mobility. Czech
over the entire world, the goal of making the entire European car manufacturer Skoda in 2019
need for more environmentally- Union climate neutral by 2050. This unveiled the Skoda Superb, the first
friendly solutions has never been also targets a 55 per cent reduction plug-in hybrid electric vehicle made
more pressing. This has driven the in greenhouse gases compared to in the country. It also announced
growth of the e-mobility industry, the 1991 level. plans to make another five models
particularly over the past decade. Such initiatives, in conjunction by 2025. Poland’s nationalist
E-mobility refers to any technology with the increasingly urgent need government has supported plans
which allows electrical propulsion of for solutions to the currently to produce its own electric car, the
cars, buses, scooters and trains. unfolding climate crisis have opened Izera, by 2023. Furthermore, Europe’s
Today, the public is more a big window of opportunity for the largest electric bus producer, Solaris,
environmentally-conscious than e-mobility industry. is based in Poland, and boasts a 25
ever before. Governments have Electric vehicles are by orders of per cent market share. Its vehicles
also followed suit and recognised magnitude more environmentally- are also being exported to other
the enormous implications of the friendly than regular motor vehicles. countries, including Germany, Italy
current rate of climate change. In emerging European countries, and Sweden. Poland also exports
Reflecting this, in 2019, the there is particularly vast space for electric golf carts to over 20 different
European Commission unveiled growth for the e-mobility market countries, while Polish electric
data also shows that the number of “Even if companies do not use marketplaces to
USING ONLINE B2B MARKETPLACES accessories ordered per computer buy all their IT devices, they certainly should for
TO BUY IT HARDWARE
has risen 83 per cent over the past
10 years.
IT accessories. It just makes sense. The aggregate
time and money savings on frequent orders of
AND ACCESSORIES
As such, even if companies do
not use marketplaces to buy all low-cost IT accessories are significant.”
WORDS ANDRES AGASILD, CEO, MARKIT
their IT devices, they certainly ANDRES AGASILD, MARKIT CEO
should for IT accessories. It just
makes sense. The aggregate time
In this article we look at three things: IT procurement predictions and trends and money savings on frequent
for 2021, the role of marketplaces in buying IT hardware and accessories, orders of low-cost IT accessories are challenge is how to shorten supply written for Procurement Leaders:
and solving the dilemma of having more IT suppliers to minimise supply risk significant. chains, buy more locally and at the The Indirect IT Procurement
against reducing the number of suppliers to save time and money on supplier same time consolidate IT hardware Dilemma – Solved. In it we showed
management and contractual/compliance obligations. and accessory purchasing for the how the single-vendor model for
obvious time and money savings B2B marketplaces can give buyers
SOLVING that consolidation offers. the best of both worlds. We call
cent of their business purchasing THE DILEMMA It is worth noting that Deloitte’s it the Marketplace-as-a-Supplier
on a marketplace, while according CPO (Chief Procurement Officer) solution (MaaS).
to Gartner, at least 70 per cent of Flash Survey 2020 found 25 per cent In 2021, more IT buying decision
enterprise marketplaces will serve The pandemic has highlighted of companies were consolidating makers will seek a marketplace-
B2B transactions by 2023. the issues and unpredictability and 47 per cent were expanding as-a-supplier that can offer single-
McKinsey meanwhile found of IT supply chains that stretch their supplier bases. vendor, rather than broker, model.
that by 2021, indirect spending thousands of kilometres and the We propose that companies Demand will increase for “an IT
will be led and directed by tech- risk of supplier consolidation when need to both expand and supplier AND a marketplace all
procurement people at up to 60 per a critical supplier was adversely consolidate the number of IT rolled into one” who is responsible
cent of large enterprises. affected. suppliers at the same time. It for fulfilment, deliveries, and
But even before Covid-19 the sounds impossible but it is not - we warranties on the products they sell.
local/global dilemma existed. The addressed the dilemma in a report
WHAT IS THE
OPTIMUM ROLE OF
AN ONLINE B2B
MARKETPLACE IN
IT PROCUREMENT?
IT PROCUREMENT
PREDICTIONS The sweet spot for an IT device
marketplace is where the products
that are being bought are available
In Markit’s recent free report, in a wide variety of options, have a
How Key Procurement Predictions relatively low unit cost, have a high
for 2021 Impact the Indirect IT annual order count, and form a
Category, we listed the nine most significant part of the total annual
frequently predicted trends for IT device spend.
procurement in 2021: In other words, where the
Technology touches even more aggregate savings potential is
aspects of business, leading to IT high. This is especially the case for
demand increases IT accessories such as headsets,
Continued economic ANDRES AGASILD cables, and webcams etc.
uncertainty raises the focus on MARKIT CEO In some scenarios, traditional
business agility, contingency tenders may still make sense for
planning and risk mitigation a large order of notebooks, but
Trusted IT supplier relationships does it really make sense to tender
will become even more important THE ROLE OF f requent orders of low-cost items,
Acceleration of IT procurement MARKETPLACES especially those with variable
automation will lead to increased IN BUYING IT HARDWARE specifications, such as cable
transparency and spend visibility AND ACCESSORIES lengths? No, it does not - quite
Sustainable IT procurement simply the cost of the time taken
initiatives increase to meet The Covid-19 pandemic has plus the fact that that time could be
consumer and compliance demands accelerated interest in, and put to better use.
HR departments will optimise adoption of, B2B marketplaces in We believe the time-wasting
more talent for adaptation, various categories - including IT. process of tendering IT accessories
transformation and agility McKinsey was one of the first to should be consigned to the past.
CFOs continue to minimise highlight how B2B marketplaces The explosion of choice and
fixed costs and non-essential spend could transform indirect usage of IT accessories means the
B2B marketplace usage procurement in their 2019 report of long tail has morphed into the
continues to grow the same name. body. The tail is wagging the dog! In
Shortening IT supply chains According to Digital Commerce some organisations, IT accessories
whilst solving the global v local 360 B2B (2020), 58.8 per cent of B2B can account for more than 40 per
consolidation dilemma persists. buyers now conduct at least 25 per cent of indirect IT spend. Markit
CYBERSECURITY
IN EASTERN EUROPE
A
s the world becomes The economic growth seen commission was targeted on the to harm. Individuals are also Cybersecurity Index, with the Europe don’t have a cybersecurity
more and more digitised, throughout emerging Europe in day of polling during national vulnerable to cyberattacks, with government running a National strategy. Companies in the surveyed
cybersecurity becomes an the last few decades has seen the elections. The year before, personal data, private information Cybersecurity Centre. In the Balkans, regions lost an average of 1,100
increasingly pressing need. The expansion of corporate activity, the National Revenue Agency and finances all at risk. This is Kosovo has made some headway euros a month to cyberattacks.
proliferation of ICT specialists and the proliferation of personal of Bulgaria came under an particularly pertinent in some in cybersecurity, establishing a Furthermore, as evidenced by the
throughout the world is something computer ownership, leading unprecedented cyberattack which parts of emerging Europe, where national cybersecurity strategy in big cybersecurity attacks on North
of a double edged sword - their to a relatively recent increase affected the personal data of as individuals are also vulnerable 2020. Serbia followed suit the same Macedonia, Bulgaria and Georgia
knowledge and skills can also in demand for cybersecurity. much as 70 per cent of the country’s to cyberattacks or monitoring by year, indicating that governments in recent years, cyberattacks seem
be used for illegal purposes. Furthermore, the development of population. These attacks constitute their own governments or other are taking the issue more seriously to be stronger than defences - or
Companies risk losing huge the ICT industries in these countries not just a threat to the profits of vested powers. across the board. companies and state institutions
amounts of money, people can has made cyberattacks become businesses, but also legitimate Covid-19 has also affected However, in the region as are not putting enough effort and
have personal information stolen, more sophisticated. Some estimates geopolitical or even military threats cybersecurity, as it has so many a whole, there is much work to be resources into cybersecurity. This
and, more worryingly, government indicate that cyberattacks are the to a country’s security. other facets of life. With more and done in cybersecurity. According makes investment in cybersecurity
institutions can be compromised by third biggest organised criminal This is particularly concerning more businesses and services to the Cybersecurity in CEE Report a top priority, for governments,
ill-intentioned actors. This presents industry in the world today. with the recent move towards pushed online, and countries using of 2018, as many as 65 per cent of businesses and people.
a demand in cybersecurity, both in There are strong, disturbing e-governance in countries like increasingly data-driven approaches companies in Central and Eastern
the public and private sectors. precedents for cyberattacks. In Estonia - what should be a positive to public health issues, there is an
In Eastern Europe, this is July 2020, the website of North step forward for the country could unprecedented amount of personal
particularly pertinent today. Macedonia’s state election end up exposing the country data online.
Luckily, governments have
recognised this as a threat. In 2019,
under the EU4Digital initiative,
the European Union launched
a cybersecurity development
project for non-EU partner states in
Eastern Europe and the Caucasus.
The countries involved included
locations with recent or ongoing
conflicts like Moldova, Ukraine,
Azerbiajan, Armenia and Georgia,
making them particularly vulnerable
to cyberattacks.
In late 2020, Romania’s capital
of Bucharest was selected to
host the European Cybersecurity
Competence Centre, a research
centre for things like encryption
and network security, beating more
well-known cities like Brussels,
Vilnius and Luxembourg. This
was an important recognition
of Romania’s cybersecurity
capabilities. Romania is also the
birthplace of one of the biggest
anti-malware software companies
in the world, Bitdefender, which as
of 2018 recorded over 500 million
customers. The software has also
worked with the likes of Europol,
Interpol and the FBI.
The Baltics have made some
headway with cybersecurity.
Estonian start-up RangeForce
raised 16 million US dollars in
funding in 2020, for a cybersecurity
training programme. Lithuania is
ranked fourth in both the National
Cybersecurity Index and the Global
AI: TECHNOLOGY OF AllRight raised 4.2 million euros facilitate applied research ensuring pressing need to formulate their own
A
rtificial Intelligence (AI) is a The potential applications of AI As mentioned previously, system in its 2019 Action Plan, which
new frontier in computing are nearly limitless. Virtually any countries like Belarus and Ukraine discussed using AI for ‘predictive
and is set to be a major sector activity done with technology can have made impressive progress justice’. In Central Asia, since 2018,
in the world for the foreseeable be augmented and improved with in AI development despite their Kazakhstan has been using a
future. AI is defined as the ability of AI. AI can assist in education, law relative underdevelopment. In combination of big data and AI to
a digital machine or computer to enforcement, healthcare provision 2015, Ukraine’s AI development augment its healthcare provision
perform tasks normally associated and economic planning. It has vast was put on the map when popular system and assist in diagnostics and
with living beings; essentially military applications, making national social media app Snapchat bought treatment. While the programme
simulating living intelligence, like militaries in the region some of the Ukrainian company Looksery for is still in its early stages, it shows
that of people, inside a machine. biggest researchers on the topic. The its ‘lenses’ feature in a deal worth a very important application of
Emerging Europe has vast quickly-developing gaming industry a reported 150 million US dollars. the technology. Despite these
potential in AI. Historical factors, in Eastern Europe has been utilising Not to be outdone, Facebook uses, however, few countries have
such as government-initiated heavy AI for years, and can continuously subsequently bought Belarusian devoted AI strategies.
emphasis on maths and sciences produce better products startup Msqrd, which offered a Within its AI strategy, Hungary
in most of the countries in the through continued research and similar technology to Looksery. established the National Data Asset
region gives a solid foundation development. Businesses can use AI The following year, Google bought Agency (NAVÜ) with a goal to set
of human capital necessary for to streamline their processes. AI even yet another Belarussian AI startup, the data economy in motion. It will
the development of AI. The fast has the potential to solve enormous AIMatter to assist with its image not store data, but rather manage
and cheap internet in much of problems faced by the entire world, processing. The presence of these the strategic national data asset,
the region, combined with ever- like food insecurity, demographic international tech giants in Ukraine encourage the use of secondary
increasing internet penetration rates declines and climate change. The and Belarus is a testament to the data use and ensure that public and
builds on this foundation. In recent latter application is of particular level of talent in the countries. private records enter the economic
years, Poland, Belarus, Ukraine and interest to countries in Central Asia In 2020, another Ukrainian bloodstream as assets of pecuniary
Estonia have established themselves with the projected desertification of start-up utilising AI made value. The newly established
as hubs for AI development. much of the region. waves. The English-learning app National AI Lab is commissioned to
THE INTERNET T
oday, IoT ranges from small
devices - like smartphones,
OF THINGS (IOT)
smart TVs, smart watches,
earphones, fitness trackers - to
more complex systems like homes,
networks of cars, security systems
and even entire cities. IoT is heavily
The Internet of Things (IoT) is a new frontier in technology comprising linked and interrelated with big
a vast range of applications. IoT refers to computing devices that are data, artificial intelligence and
connected to the internet and that can gather data and ‘communicate’ machine learning.
with other devices. With the economic growth
seen in emerging Europe over
the past decades, along with the
conjoint increases in salaries, there
is more demand for consumer
items. Furthermore, internet access
has been constantly increasing,
particularly in the past decade as
infrastructure improves and Internet
becomes cheaper and faster.
This constantly creates more and
more consumers for IoT devices.
In 2017, CEE countries spent 9.7
billion dollars on Internet of Things
devices. Demand for smart homes
in Central and Eastern Europe grew
by 53.5 per cent from 2018 to 2019,
compared to a European average
of 20 per cent. Although demand
for these products dipped with the
Covid-19 pandemic, this is expected city - electricity, traffic lights, central Although the potential
to rebound as of next year as more heating systems, for example - applications, both commercial
and more countries begin slowly and make them all a part of and public, for IoT devices and
opening up again. an interconnected grid. systems is broad, much of emerging
Emerging European countries The potential benefits of this Europe still has a long way to go
are not only a growing market for for emerging Europe are huge. before it can realise its potential.
IoT devices - they can also become The venerable infrastructure in In several countries - including
potential producers. Already, many of these countries often Georgia, Ukraine and Bosnia and
many western products outsource leads to periods of no heating or Herzegovina - over a quarter of the
research and software development hot water - something that can population lacks internet access,
to companies in the region. For be fatal in winter. Being able to greatly hampering any development
example, Ukrainian company make these systems self-sustaining in the field.
Softengi has done IoT work for and self-regulating could solve Ambitious projects like smart
established international companies such issues virtually for good, as cities can only function when
like Boeing and Zeppelin. Chinese well as make these systems more everybody living in them has a
electronics giant TLC operates energy-efficient, cost-effective base level of computer and internet
a research and development centre and environmentally-friendly. The literacy, something which has yet
in Kraków. In 2017, the Romanian- relentless increase in urbanisation to happen in virtually every country
made Vector Watch - a smartwatch seen around the world makes this in emerging Europe, outside
with a long battery life - was an ever more pressing issue. the Baltics.
bought for 15 million dollars by US The movement for smart cities However, demand for IoT
company fitbit. has picked up the most momentum consumer goods is nevertheless
There are even broader in the Baltic states, Estonia in rising, despite the Covid-fuelled
applications of IoT than simply particular. In 2018, the country’s wobble of last year - and as the
consumer goods: some countries capital Tallinn declared intentions nations of emerging Europe
have put forth ambitious plans to become a ‘smart city’ - with continue developing their ICT
to create interconnected smart 86 e-government services as of capabilities, the benefits of this
cities using this technology. This that year. The same year, Latvia’s could be seen sooner than expected.
would connect various facilities capital of Riga announced a similar
and bits of infrastructure of the initiative.
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BLOCKCHAIN: MORE
worldwide. This popularity of
cryptocurrency in the region
has given a solid foundation for
B
lockchain is still a relatively for its app which allows people
new technology that only in to aggregate data relating to the
the past few years has started cryptocurrency market. This year,
to gather momentum. Blockchain Slovenian start-up Eligma raised
functions as a decentralised ledger four million euros in funding, for
of transactions which is duplicated its product GoCrypto, a platform
and sent to all computers and which allows sellers to receive
devices on the network. This makes payment in cryptocurrencies.
the history of any digital asset Ukraine has already began
available for all to see, and because drafting laws regulating the use of
the blockchain is duplicated and cryptocurrencies. In 2019, the Bank
distributed across the network, it of Lithuania unveiled its own digital
is also virtually impossible to be coin, targeted at collectors. This
altered. This can go a long way follows some global precedents,
in ensuring transparency, trust like China’s ambitious plan to have
and accountability. Blockchain a state-sanctioned digital currency
technology has a broad range of which can possibly even challenge
applications, some of which can the US dollar’s international
revolutionise entire industries. eminence.
For some time, the best-known To reduce the application of
blockchain application was blockchain technology just to
cryptocurrency, of which Bitcoin, cryptocurrency would be doing of ownership. Such practices could has also begun to develop a strong
founded in 2009, is the most the technology a disservice, be virtually eliminated, creating a blockchain sector, which looks
valuable. however. Blockchain technology viable environment for businesses set to be given a boost when the
Cryptocurrency can have far- can be used for electronic contracts to flourish. In recognition of the government proposed a Law on
reaching benefits for countries in for example, a rapidly growing benefits of this technology, in 2019, Digital Assets in 2020. In 2019 and
emerging Europe. In fact, some service. In countries like the Baltic Slovenia became the first country in 2020, Serbia placed fifth worldwide
of the countries in the region are States which have sophisticated the European Union (and only the in sheer number of blockchain
far ahead of the curve in terms of e-government capabilities, this is second worldwide, after China) to developers. Serbian blockchain
cryptocurrencies than most of the particularly important and relevant - establish national blockchain testing company MobileGo reached a
world, the developed West included. many of the e-government services infrastructure, known as SI-Chain. valuation of 56 million US dollars
In 2020, Ukraine was named as provided are registered using Blockchain technology also in 2020.
the top country in the world in blockchain technology. Blockchain has utility for the private sector. Despite the potential uses,
cryptocurrency adoption. can also go a long way in improving Businesses can benefit from being countries have been slow to pass
Cryptocurrencies find fertile transparency and trust - the nature able to demonstrate proof of their policies or initiatives related to
ground for growth in emerging of the technology, being a public reliability and trustworthiness blockchain technology. To this
Europe for several reasons. After the ledger that virtually anyone can through the blockchain ledger. day, Slovenia and China remain
widespread collapse of communism access is vital in ensuring this. Items can be tracked from their the only countries with specific
in the 1980s and 1990s, much of the In Georgia, the government point of origin to where they arrive, national blockchain testing
region had severely underdeveloped uses blockchain technology for thus making it more difficult for sandboxes. Although Ukraine’s
banking infrastructure, pushing the country’s national public counterfeits to slip through the government has made moves to
people to look for alternatives. registry. Land claims are stored cracks. Emerging Europe is full of regulate cryptocurrencies which
The economic crises of the 1990s digitally, and thus have the ability start-ups and companies which have heavily proliferated in the past
also lead people to have a low to be independently verified. This service this demand - companies decade, the law is yet to have been
sense of trust in traditional banks, is an innovative use of blockchain like Poland’s 10Clouds and Bulgaria’s passed. Furthermore, blockchain
at least lower than in the West. technology with particular utility Limechain have partnerships with technology also has a dark side -
Furthermore, countries like Ukraine for countries in emerging Europe, prominent international companies cryptocurrencies are used to trade
still lack developed formal stock where much of the time, laws are in developing software using illegal items, including drugs,
exchanges, so people looking for flouted in the business world. Take blockchain technology. In 2019 weapons and forged documents.
appreciable assets to invest in put the phenomenon of ‘raiding’ in Ukrainian start-up UATAG came up However recent trends - like the
their stock into cryptocurrency much of the post-Soviet world as with a particularly innovative and European Union’s call to create
instead. In 2020, the nations of an example - local businessmen inexpensive way of combatting a unified regulatory regime for
Russia, Ukraine, Belarus and would send thugs to forcibly claim counterfeiting – it uses a photo of blockchain technology - shows that
Moldova accounted for 12 per cent a rival’s property and present a piece of shattered glass to tag we are moving in the right direction.
of cryptocurrency transactions forged documents about transfers elements in the blockchain. Serbia
EMBRACING
THE CLOUD
services as a result. Microsoft followed much more efficient in the compared to just 18 per cent of
suit a year later, along with a promised vast country. Romanian cloud worldwide ICT companies. More
investment of one billion dollars computing company Star Storage government initiatives like that of
and the opening of a data centre. In has made waves around the Poland - constructing a national
2020, American cloud computing world, enjoying a 10-year working cloud which local companies and
W
heavyweight Box opened a research relationship with Japanese international conglomerates alike
ith the world becoming and development site in Warsaw, electronics conglomerate Hitachi. can subscribe to - so far seems to
increasingly digitised, an endorsement of the country’s Despite the clear benefits be an effective method of speeding
cloud computing has been sophistication in the technology. of cloud, in much of emerging up the digitalisation of the economy
rising in ubiquitousness. Cloud Elsewhere in Emerging Europe, Europe, both companies and and of society.
computing refers to a method of Azerbaijan also has a government- governments have been slow to
delivering computing resources run cloud service, known as adopt this. This holds true even
- whether it be data centres, AzCloud. Estonia, Lithuania, Latvia following the covid-19 pandemic
server space or software - through and Kazakhstan all have similar which saw worldwide increases
the internet, or the ‘cloud’. The systems. The latter country in in demand for cloud computing
exponential increase in data use particular has seen the utility of services. In Serbia, for example, half
that has occurred in conjunction this - cloud can make government of surveyed companies reported not
with society’s digital transformation functions and communications using advanced cloud computing,
makes it increasingly expensive for
businesses to maintain all their vital
files, data and systems on in-house
servers. This has opened the door
for companies specialising in cloud
computing to do this background
work on behalf of the companies.
As always, emerging
Europe benefits
from this through
outsourcing, with many
international firms
contracting companies
from the region for
cloud computing.
There are numerous
benefits to cloud
computing for
businesses. It can greatly
reduce maintenance
costs - instead of
companies having to
maintain their own
systems, a cost which
increases with the size of
the operation, they can
contract others to do this for them
at a flat rate. As cloud computing
companies are also responsible the smaller countries of emerging can only be done cost-effectively
for maintaining adequate security Europe, there is an increase in through cloud computing. This has
around their software, the demand for storage space for all led to a worldwide spike in demand
contracting firms can also save the data required to make such for cloud services.
resources on cybersecurity. Storing sweeping projects function. In Poland is one of the leaders in
vital files, data and information on 2018, software cloud services (SaaS) emerging Europe in cloud computing.
the cloud can also save businesses dominated Eastern Europe’s cloud In 2018, a joint initiative by the
from potentially catastrophic computing market, taking up Poland’s PKO Bank and the Polish
accidents. 62 per cent. Development Fund was announced,
Furthermore, cloud computing The Covid-19 pandemic has also in which a ‘National Cloud’ would be
allows companies to access driven demand for cloud services. established. This makes it significantly
software on demand, instead of Companies all over the world were cheaper for Polish enterprises to
having to stockpile software which driven into the virtual space as subscribe to, and goes a long way
they may or may not end up using. countries instituted full lockdowns. in supporting and bolstering the
Cloud computing also has public Coordinating business processes digitisation of society. In 2019, Google
benefits. With the increasing move entirely online, without a physical signed a strategic agreement with
towards integrated ‘smart cities’ shared workspace requires vast Poland’s National Cloud, with Google
and e-governance, particularly in storage space, something which getting access to Poland’s cloud
A BRIGHT FUTURE
Huawei, HTC, Vodafone, and On the whole, it is still early days spent around one million euros to
Wargaming. Estonia is also home to for VR and AR in the CEE region. A create a VR-based showroom of the
the R&D centre of Criffin, a London- number of start-ups are active in country’s digital accomplishments,
BECKONS FOR
based company developing VR for the space and have gotten attention that includes a 360 degree video
industrial and military applications. from venture capital funds both virtual sit down with the country’s
Poland is a significant presence domestic and foreign. Most of president Kersti Kaljulaid.
VR AND AR
in the region when it comes to the start-ups are focused on the From video games to the
the VR and AR industry. Where software development side, rather aerospace industry, innovative
the country really excels is in the than on hardware solutions. Just start-ups in the region are making
number of software developers like in most ICT sectors, the pieces extended reality products that are
for the VR platforms. A search on are there to make CEE a regional attracting international attention,
F
Clutch.io reveals more than 50 active hub in VR. a clear sign that there is potential
or years, virtual and augmented reality, many countries in the region contenders in the consumer market companies around the country. A possible way to promote virtual for development and growth in the
reality (VR and AR) have been are competing in the sector, with in the form of Facebook’s Oculus, Some notable examples include and augmented reality comes from sector for CEE.
the most talked about and start-ups leveraging the technology Sony’s PlayStation VR, and HTC’s The Farm 51, a game developer Estonia, where the government
the hottest sector within the ICT to many different ends. Poland Vive, no single leading standard in which has also produced its own
sphere. It’s easy to understand leads the way with the number of the space has emerged, leaving the proprietary VR engine that is
why — the potential applications software developers working in the door still open to start-ups from compatible with the major players
of VR/AR seem virtually limitless. space, but notable examples of VR around the world. in the consumer market. In addition,
From entertainment in the form of tech are found in most CEE nations. In Estonia, one of the key players the company has also developed
immersive video games to helping According to the statistics portal is a start-up called Wolfprint 3D, training simulations for military
surgeons and engineers access Statista, the VR and AR market is which is working on making avatars use. Companies in Poland also
information faster and in more expected to reach a value of nearly for use in the virtual spaces more produce business VR solutions such
convenient ways. 60 billion euros by 2024. This means realistic. The company is able to as the Gdynia-based VR Visio, and
While there is no clear leader there is still a lot to play for in the create these from a single selfie Krakow-based EPIC VR which makes
in CEE when it comes to virtual space. While there are strong image. Clients include Tencent, content for companies in Poland
and Europe.
Given the country’s strong video
game industry, it is not surprising
that many gamedevs are also
exploring the VR/AR space.
In Czechia, the carmaker
Škoda has used AR solutions to
help with logistics and workplace
safety. Lifelique, a California-based
company with an office in Prague is
making edtech solutions to enhance
STEM curricula with AR and VR. The
positioning of the CEE region as an
outsource and R&D hub is clear in
the VR space, just like in the broader
ICT sector.
In neighbouring Slovakia, the 3D
augmented reality platform Vectary
recently secured nearly six million
euros in VC funding. Through the
platform, users can produce 3D, VR,
and AR content without the need
for in-dept modelling expertise.
Another ed-tech play, this time
from Serbia, comes in the form
of Propter, a company which has
received 97,900 US dollars from
UNICEF’s Innovation Fund — the first
company from the country to do
so. Their ScioXR platform is actually
open source, and it lets students
visualise complex physics problems
and chemical reactions in an easy-to-
understand way using VR and AR.
The Budapest-based AerinX is
helping in the aerospace sector with
a tool that uses augmented reality
to make aircraft inspections easier.
It has recently completed a Series
A funding round to the tune of two
million euros.
5
G is the fifth generation made 5G networks being used by are not as beholden to the United campaigns, conspiracy theories
technology standard of the Chinese government to spy on States’ whims, as Huawei is forced to and unsubstantiated allegations.
broadband cellular networks. European countries. look for alternative clients and offer Some go so far as to blame 5G
It utilises shorter, higher-frequency This puts much of emerging even cheaper rates. towers for the Covid-19 pandemic.
bands and is defined by lower Europe in a difficult position. China’s As of today, Romania, Poland, Although these sound ludicrous,
latency, higher speeds and greater Huawei is already a world leader in Latvia, Estonia and the Czechia their proliferation could also harm
bandwidth capacity. This gives it 5G technology - and offers much have all signed memoranda of the spread of 5G.
an enormous range of applications, cheaper installation rates than its understanding with the United States Despite these challenges, the
particularly with the continuous European competitors, like Orange regarding 5G security. Although benefits of 5G are so clear that
growth of Internet of Things (IoT) or Telia. With much of emerging none of these specifically mention it appears to be only a matter of
products and AI-capable devices. Europe being allies of the United Huawei, many find it obvious that time before it becomes universally
5G is hitting the market fast - South States, governments are reluctant this is the United States’ main target. adopted. Some estimate that by
Korea was the first country to fully to anger their powerful patron. If the US continues putting pressure 2025, there will be 1.7 billion 5G users
adopt it in April 2019. Since then, Huawei has even been banned from on its allies in emerging Europe, this in the world. If true, this could spur
in under two years, another 37 some western European countries, could have detrimental effects on the massive evolutions of our current
countries have 5G networks up and including the United Kingdom. adoption of 5G. technological capabilities.
running, with many more having However, this tense standoff can be 5G has also been the subject
preliminary infrastructure already an advantage for countries which of numerous disinformation
deployed.
5G can have huge benefits for
the countries of emerging Europe.
The increased bandwidth, and
thus capacity of the network can
allow more devices than ever
to be supported at once. This is
particularly pertinent to IoT products
- now more and more devices can
be integrated. With the recent move
towards ‘smart cities’ and electronic
governance, this can be a vital
boost. The numbers are particularly
promising in this: 5G is estimated to
be able to support up to one million
devices in a one square kilometre
radius. In contrast, 4G, the previous
generation of cellular networks,
could only support 2,000 devices in
the same area.
In addition to this, the much
faster speed of 5G networks can
have major impacts on businesses. Furthermore, the European subsequent shift to other priorities.
4G topped out at a maximum Investment Bank estimated that 5G has also been another facet of
speed of around 100 megabytes per 5G technology could reduce energy the long-running trade war between
second, under perfect conditions. consumption by between 50 and the United States and China. With
In contrast, 5G has a potential 95 per cent. This is an especially the former concerned about the
maximum speed of 10 gigabytes per big benefit for energy-dependent latter’s surge in influence - including
second - literally 100 times faster countries and could break the in areas which historically have
than its predecessor. With the vast stranglehold some major energy been firmly within the US’s zone
amounts of data that enterprises producers have over much of of influence, like Europe - many
process constantly growing, this Europe. countries of emerging Europe
can be a decisive factor in allowing Currently, in emerging have been caught in the crossfire.
business’ capacity to increase. Europe, only Moldova, Kosovo In 2019, the United States banned
Another enormous benefit of and Kyrgyzstan don’t have any its own companies from buying
5G - particularly for the developing form of 5G infrastructure. Other any hardware from Chinese
countries of emerging Europe - is countries, like Ukraine, Belarus and telecommunications giant Huawei.
how 5G infrastructure is more Serbia have pushed back plans for Some countries within emerging
affordable than its predecessors, widespread 5G adoption following Europe, like Czechia also expressed
with a much bigger payoff. the Covid-19 pandemic and the their concerns about Chinese-
AUTOMATION IN EMERGING and unemployment rates are low. world’s biggest hospital bed makers, UiPath has been actively searching
PUBLIC CONCERNS
make it more difficult for companies collect data on patient health, and 50,000 US dollars cash prize and
to hire new employees. Automation can cost as much as a BMW. Despite access to its expertise and network
is an effective response to these these huge numbers, Linet has of clients.
issues, especially in countries which not been able to employ enough In Armenia, the government
have been reluctant to turn to people, with the unemployment has announced an ambitious plan
immigration to curb their labour rate in Czechia the lowest in the aiming to equip 50 per cent of
force decline. European Union. schools in the country with robotics
Workers in emerging Europe In emerging Europe, Slovakia and labs. This is recognition of the belief
can also benefit from automation. Slovenia lead innovation in robotics that automation can help countries
Robots and machines can perform and automation as of 2019. Slovakia counteract small labour forces and
the most monotonous, repetitive had 151 robots per 10,000 workers low natural resources. Armenian
and hazardous tasks, freeing up while Slovenia recorded 144; this company Expper Tech won a grant
humans to do less physically taxing is far above the European Union from an EU initiative for designing
labour. Furthermore, robots don’t average of 106. In Czechia, new robot a business assistant robot. Azerbaijan
necessarily have to replace human installations rose by 40 per cent has maintained a national robotics
labour. They can also be used to between 2010 and 2015, highlighting lab since 2018 alongside a Robotics
make certain jobs much easier the utility of automation in and Automation Society.
for individual workers. However, combating labour shortages. However, automation comes
automation could also slow down In Poland, 30 per cent of with its pitfalls. Large swathes of the
the outsourcing industry, which companies in the manufacturing population in the covered region
emerging Europe has benefited sector plan to introduce robots into view it with suspicion, having little
so much from - western firms their operations in the next three faith that it won’t lead to them
could choose to keep production years; between 2017 and 2018 the losing their jobs. And this is a valid
within their own borders as with number of robot installations rose fear, especially with the shocks of
widespread automation, the high by 40 per cent as well. In 2020, the 1990s which saw many of the
costs of labour would be less of Polish robotics start-up VersaBox old working comforts of the region
an issue. received 2.5 million euros in funding suddenly ripped away. Conventional
Automation can also drive for international expansion. wisdom states that the jobs lost in
countries’ GDP growth by Romania is where the unicorn manual fields will be replaced by
simultaneously raising productivity software company UiPath was jobs in other sectors, but there is no
levels and addressing the labour founded. UiPath is a major player in guarantee.
shortage. Czech hospital bed robotics and automation, focusing Although automation will lead to
producer Linet was founded in 1989, on software automation for big an increase in jobs in the ICT fields,
after the end of the communist companies. It has a valuation of over not every worker who loses their job
regime. Today, Linet is one of the 35 billion US dollars. Since 2020, to automation will necessarily learn
how to code. In countries where
businesses are less regulated by the
government, this could increase
R
obotic Process Automation cent of large businesses would have current job could at least partly stratification within the labour force,
(RPA) continues to be a major integrated RPA software which will be done by a robot or artificial where there will exist an aristocratic
driving force in outsourcing be optimising the workflow within intelligence. In Hungary, 38 per minority of ICT workers, with ever-
solutions, but today's challenges the company. In some industries cent of the population is against increasing numbers of people
are more granular. According to the percentage of companies that automation, one of the highest sucked into the ‘innovative’ yet
Deloitte’s 2020 Global Outsourcing have already implemented RPA is percentages in Europe. precarious gig economy.
Survey, over 75 per cent of even higher. The countries of emerging To ensure that automation is
respondents are actively considering In emerging Europe, spending Europe have much to gain from used for the benefit of society and
or already pursuing RPA in their on robotics and related services automation. Low fertility rates humanity as a whole - and not a way
sourcing arrangements and that are expected to have exceeded 4.2 and demographic decline plague for business owners to reduce costs
trend is growing: there is a clear billion US dollars in 2020. But while much of the region. The Visegard and increase profits, governments
progression in the adoption of RPA companies are increasing their Four — the nations of Poland, have to take an active role in
through outsourcing. usage of robots, public attitudes Hungary, Czechia and Slovakia — mitigating the externalities. This
RPA is among the fastest- remain negative. are projected to see a decline of includes retraining programmes
growing industries worldwide due According to a 2017 eight million people by 2050 at the for workers and stronger safety
to the solution it provides to some of Eurobarometer poll, the majority of current rate, over ten per cent of nets to support the temporarily
the major problems faced by large respondents were concerned about the current combined population. unemployed.
businesses. Process automation via the impact of robots and artificial Ukraine’s population meanwhile has However, automation has the
software eliminates the need for intelligence on employment: 74 per declined by nearly a fifth since 2000. potential to vastly change society by
some frequently repetitive tasks to cent expect more jobs to be lost The consistent economic making products more accessible
be handled manually, thus allowing to robots and artificial intelligence growth seen in the region in the for regular people and working
employees to focus on activities that than will be created; 72 per cent past few decades exacerbates conditions safer and less stressful.
have higher value and importance. believe robots steal peoples’ jobs; the issue caused by demographic If harnessed the correct way,
Previously, Gartner reported that and 44 per cent of those who are decline - now salaries are higher automation can be a major factor
by the end of 2020 around 40 per currently working thought their than ever in much of the region in making our lives easier.
emerging-europe.clutch.co/directory
COUNTRY
PROFILES
CO UN T RY PR O FIL E S
Page 82 Page 83
Population GDP nominal GDP per capita GDP change Inward FDI
Labour force
(million) (millions, euros) (euros) 2000-2019 (%) (millions, euros) 8,228 86% 14% 2017* 2,109 66% 34% 2017
82 57 54 48 69 43
The government has recognised Salaries however have been steadily
the potential of the ICT industry, increasing. Despite this, Albania
suffers from severe brain drain
ICT GROSS SALARY IN 2015-21 Albania is a country with huge
and in its initiative Digital Agenda
for Albania 2015-2020, it identified and its internet penetration rate,
potential for growth in the ICT developing the sector as a key standing at just under 70 per cent, 0.53%
161% 159%
Gross salary 150% 153% 150% 149%
industry. Although it has a relatively priority. Now, ICT companies enjoy is lower than Europe’s average. 0.76%
in ICT as a small population, Albania has a large the lowest corporate tax rates of all These however are relatively minor
percentage of
gross salary
diaspora, offering its people access businesses in the country. issues and Albania has undoubtedly
660
651
646
overall to the benefits of more developed Two seed accelerator created a strong foundation for the
594
553
548
548
countries. With an average age a full programmes, Protik and Oficina ICT industry to continue to develop.
Average gross decade lower than the European operate in the country, with the In the IT Competitive Index
salary in ICT, Union, and relatively high levels former also involved in teaching Albania ranks 17th among the 23
euros
of university enrollment, Albania children coding. However, both countries of emerging Europe. There
2015 2016 2017 2018 2019 2020 2021 1.06%
forecast has the human capital to develop report struggles for funding. Other are 638 ICT specialists per 100,000
its ICT industry. Business-friendly programmes and institutions like people, which accounts for about
policies implemented since the fall Garazh and Yunus Social Business 70 per cent of the Western Balkans
ICT EMPLOYMENT IN 2015-21 of communism have allowed the share knowledge, expertise and average and about 60 per cent of
% of GDP
business environment to improve resources to up and coming the emerging Europe average.
and the ICT sector has come to ICT businesses. The country scores relatively low 2018
1.6% represent a major source of foreign The statistics show a general in the International Mathematic 2017
Percentage 1.3% 1.4% 1.5%
employed 1.2% 1.2% income for the Albanian economy. improvement in most indicators Olympiad (77th in 2020). On a
With lower average salaries and positive note, the country is on a 2016
in ICT for Albania’s ICT industry. Although
20,170
costs of living than the European exports of ICT services dropped, path towards producing more IT
18,740
average, Albania has become an exports of computer services rose specialists in the future — only
14,844
13,938
Number
12,955
of people attractive place for outsourcing. from 5.5 million euros in 2016 to Serbia has a higher number of IT
working in ICT There are currently 3,089 active over 47 million euros in 2019. Only students per capita than Albania
2015 2016 2017 2018 2019 2020 2021
enterprises that operate in the 18,000 people are employed in the across the Western Balkans.
forecast ICT sector in Albania, out of which ICT sector, which represents 1.43 Albania has the highest number
752 were registered in 2019. 488 per cent of the total number of of IT graduates per 100,000 (81)
operate in telecommunication, people employed in the economy, across the emerging Europe region.
1,371 in computer programming one of the lowest in the region. 2.85%
and consultancy and 539 in 3.09%
information service. The number
of active foreign companies in 2019
amounted to 279. EXPORTS
The most successful and well-
known Albanian start-up meanwhile
2015 2016 2017 2018 2019
is the Albanian language search
engine Gjirafa — a particularly ICT services (millions, 3.08%
needed software because of 101.1 113.3 87.6 68.3 96.5
euros)
the uniqueness of the Albanian
language. Other prominent start- of which computer
10.0 5.5 20.4 37.4 47.4
ups include food delivery service services (millions, euros)
Baboon and service industry tool
SoftMogul.
Population GDP nominal GDP per capita GDP change Inward FDI
Labour force
(million) (millions, euros) (euros) 2000-2019 (%) (millions, euros) 5,126 88% 12% 2018 1,355 77% 23% 2018
47 34 50 - 81 51
nearly 50 per cent of schools in the of living. Nevertheless, between 2010
country equipped with robotics and 2016, the ICT sector’s output
ICT GROSS SALARY IN 2015-21 Armenia can be considered
labs. From 2014 onwards, the
government has also given tech
increased fivefold. Between 2014
and 2019, the export of computer
the tech powerhouse of the start-ups preferential tax regimes, services rose particularly dramatically, 1.91%
Gross salary 251% 259% Caucasus, thanks to several unique and easing the incorporation increasing by 240 per cent. 2.02%
in ICT as a 232% 241% historical factors. Under Soviet process. International companies According to the Enterprise
218%
percentage of 205%
gross salary 192% rule, Armenia was the USSR’s hub like Microsoft, Cisco and IBM all Incubator Foundation, some 800 ICT
917
for technological research and the have offices in Armenia and for
876
overall
centre of high-tech manufacturing, years tech has been the biggest and services and the internet service
752
710
672
with 15 universities built during the source of foreign investment in the provider sector, generated total
621
Average gross
salary in ICT, period, providing a foundation for country. Now, Armenia boasts over revenue of 922 million US dollars
euros
such industries to flourish. 500 start-ups, an impressive feat in 2018 which was 20.5 higher than
2015 2016 2017 2018 2019 2020 2021 1.84%
forecast Upon independence, Armenia in a country of under three million in 2017.
estimate found itself in a predicament: it people. Perhaps the most successful In the IT Competitiveness Index
was a small country, lacking natural of these start-ups is photo editing Armenia ranks 15th in the region.
resources, cut off geographically app PicsArt, which in July 2020 There is room for improvement as
ICT EMPLOYMENT IN 2015-21 from natural allies and hemmed reported over one billion downloads far as the command of English is
% of GDP
in on two sides by hostile since inception. concerned — Armenia is placed 51st 2019
governments. As such, in 2000 the However, despite the progress, in the EF EPI with only Azerbaijan 2018
Percentage 3.3%
3.7% Armenian government declared the Armenia still lacks much volume of being ranked lower across the
2.9%
development of the ICT industry 2017
employed 2.0%
ICT exports. This can be explained emerging Europe countries. At the
1.8% 1.9%
in ICT a top priority, identifying the by its relatively small population. same time, Armenia boasts the
ICT VALUE ADDED
39,410
Armenian people themselves as the Although Armenia, particularly in highest growth of employees in the
20,800
33,980
19,200
19,200
country’s biggest resource. recent years, has become more sector. The number grew by some
19,100
30,900
Number
of people Armenia is also one of the few hospitable to business activity, it still 15 per cent between 2015 and 2019,
working in ICT countries in the world whose has some work to do in eradicating with an increase of 49 per cent in
2015 2016 2017 2018 2019 2020 2021 diaspora dwarfs its home population issues which have plagued many 2019, compared to 2018. Both figures
forecast - some estimates put the Armenian similar countries, like low standards are the highest in the region.
diaspora at 11 million, nearly four
times Armenia’s population. With this 3.32%
diaspora known for retaining strong 3.22%
cultural and emotional ties with the
home country, it has in recent years
become a source of financing, talent EXPORTS**
and creativity for the Armenian ICT
industry. Take the TUMO Centre as an
2015 2016 2017 2018 2019
example of this impact, founded in
2011 by a US-based Armenian couple, ICT services (millions, 3.34%
it is a remarkable centre of learning 117.6 156.4 187.4 213.0 233.7
euros)
where children aged 12-18 learn
coding, programming and design, of which computer
74.4 119.2 146.6 164.1 198.3
all for free. services (millions, euros)
The Armenian ministry of
education has set a target of having ** SOURCE: ITC, UNCTAD, WTO based on IMF statistics for 2015-2018 and estimated for 2019
Population GDP nominal GDP per capita GDP change Inward FDI
Labour force
(million) (millions, euros) (euros) 2000-2019 (%) (millions, euros) 10,268 91% 9% 2018 3,643 91% 9% 2018
34 44 104 56 88 86
the economy and 88 per cent of range of potentially successful
the sector’s revenue in 2017 came economic activities in the non-
ICT GROSS SALARY IN 2015-21 early 2019, a law came into effect
from telecommunications alone.
The more lucrative computer
oil sector.
Recognising the need for
exempting not only start-ups from and information service sectors innovation, the country has started 0.12%
165% 162% tax duties, but also the workers
Gross salary 160% 156% 158% 160% contributed to only seven per cent to develop a national innovation 0.17%
in ICT as a themselves. This has both fueled of the ICT sector’s revenue the system. The government shows
percentage of
gross salary
desire to work in the industry and same year. a high level of commitment to
655
overall given companies a boost in the ICT exports have also declined innovation by preparing the national
584
580
establishment phase. Furthermore, from 78.3 million euros in 2015 to innovation strategy and establishing
528
447
443
Average gross 52.2 million in 2019. Average ICT government bodies in charge
salary in ICT, initiative, two high-tech parks have salaries are also relatively low, even of innovation policy, such as the
euros
been constructed. These serve as when compared to countries of Innovation Agency. Azerbaijan has
2015 2016 2017 2018 2019 2020 2021 0.16%
forecast incubators for up and coming ICT similar economic stature - and, more made progress in developing digital
companies, as well as research and importantly, not significantly higher government platforms and public
development institutes. Following than the national average. This may sector innovation.
ICT EMPLOYMENT IN 2015-21 others’ examples, these high-tech reduce demand for working in this In the IT Competitiveness
% of GDP
parks also provide classes for school field. The government should take Index, Azerbaijan ranks 20th.
age children where they can learn initiatives to reverse these trends With 99 ICT students per 100,000 2019
1.3% 1.3% skills which will benefit them and and revitalise the ICT industry. people, Azerbaijan has the lowest 2018
Percentage
employed their country. To sustain growth, Azerbaijan percentage in the region. It is also
Now, Azerbaijan has over 200 2017
in ICT needs to invest further in innovation ranked the lowest in the EF English
63,820
63,200
62,800
62,550
61,700
61,200
Population GDP nominal GDP per capita GDP change Inward FDI
Labour force
(million) (millions, euros) (euros) 2000-2019 (%) (millions, euros) 21,481 95% 5% 2018* 5,766 95% 5% 2018*
to secure a reputation as a reliable companies and software successes projected that many companies
1,477
overall
1,357
and sophisticated environment under its belt. Messaging service would become disillusioned with
1,154
1,089
1,058
Average gross for the ICT industry. Radical Viber did much of its initial the political process and relocate.
924
salary in ICT, government initiatives, like the development in Belarus (and However, the protests have since
euros
unveiling of the High-Tech Park has a Belarussian co-founder). petered out, returning a modicum of
2015 2016 2017 2018 2019 2020 2021 2.66%
forecast (HTP) near Minsk in 2006 allowed Wargaming, the company behind stability and predictability — for now.
estimate the country to build on a stable the well-known online multiplayer In the IT Competitiveness Index
base to punch well above its weight game World of Tanks was founded in Belarus ranks 14th. The country
ICT EMPLOYMENT IN 2015-21 in the ICT sphere. Although recent Belarus. International heavyweights has made huge strides in the past
% of GDP
political events have thrown some like Google and Yandex operate decade in the ICT sphere. The
doubts into the future of the research and development offices in number of people employed in it has 2019
3.3% industry, Belarus has undoubtedly Minsk. Companies like IBA Group and grown from just over 90,000 in 2014 2018
Percentage 2.9% 3.1%
employed 2.4% 2.6% come a very long way in a short SolbegSoft, listed in the IAOP Top to 125,000 in 2019. ICT exports have
2.1% 2.2% 2017
in ICT time span. Outsourcing 100, have their delivery seen a dramatic increase 215 per cent
141,510
The HTP functions both as centres in Belarus. in the same period, now making up
133,150
a strategic incubator for ICT Salaries in ICT are considerably 3.74 per cent of the country’s GDP.
113,900
Number
104,500
companies and as a tax haven. higher than the average (while However, rather paradoxically, the
98,800
96,100
of people
working in ICT Companies signed onto it are lower than in most of the West), number of ICT students enrolled
2015 2016 2017 2018 2019 2020 2021
exempt from all corporate tax allowing Belarus to simultaneously has been dropping over the last
forecast and employees enjoy a 30 per retain its top talent and attract few years. Furthermore, if Belarus
cent income tax reduction. The foreign investors. It has also become continues to be alienated from the
impressive growth of the Belarusian an up and coming outsourcing rest of Europe for political reasons,
CLUTCH TOP PROVIDERS* ICT industry is reflected in the destination, with over 60 per cent the ICT sector could well be harmed. 6.29%
increase in companies registered 5.37%
Top Software Top Mobile with the HTP: this number went
No. Top IT Services from 388 companies in October
Development Development
2018, to 969 in October 2020. The EXPORTS
1 Itransition iTechArt Group *instinctools number of employees working for
HTP-registered companies rose
2015 2016 2017 2018 2019
2 N-iX Syberry ScienceSoft from 30,000 to over 65,000 in the
same period. ICT services (millions, 5.07%
3 iTechArt Group Orangesoft Itransition At the end of 2016, the country’s 905.1 1,047.5 1,289.6 1,572.9 2,149.6
euros)
president, Alexander Lukashenko,
4 Forte Group Tapston N-iX signed a decree on the development of which computer
733.5 866.2 1,068.5 1,346.1 1,893.1
of the digital economy, thus making services (millions, euros)
5 Altoros Intellectsoft Code Inspiration
Belarus the first world’s jurisdiction
* SOURCE: Clutch Leaders Matrix with overall legal regulation of
BOSNIA AND
HERZEGOVINA ICT STUDENTS ICT GRADUATES
Population GDP nominal GDP per capita GDP change Inward FDI
Labour force
(million) (millions, euros) (euros) 2000-2019 (%) (millions, euros) 6,331 91% 9% 2018* 852 84% 16% 2018*
overall
1,005
999
985
potential that this industry holds, children. In 2019, companies in the develop at a steady pace. ICT exports
Average gross the necessary elements for a vibrant BiT signed onto a strategic document increased from just over 109 million
salary in ICT, ICT sphere have gradually been known as the IT manifesto which euros in 2015 to 187.5 million euros
euros
coalescing. A steady proliferation of targeted an improvement in the in 2019. The percentage of ICT
2015 2016 2017 2018 2019 2020 2021 0.89%
forecast educational programmes, incubators educational, legislative and economic specialists in the workforce also
and foreign investment has occurred conditions to allow the ICT industry increased from 1.5 per cent to 2.6
in recent years, and with the vast to truly take off. In 2018 and 2019, per cent in the same timeframe.
ICT EMPLOYMENT IN 2015-21 growth potential of the fledgling the University of Sarajevo began Thus, progress has undoubtedly
% of GDP
industry, there are reasons to be offering a two-year ICT programme, been made — but to accelerate this
2.6% optimistic about the development at the initiative of BIT, creating 150 progress and take the nation to new 2019
2.3%
2.0% 2.1% of ICT in BiH. However, the nation additional spaces for aspiring ICT heights, Bosnia still has steps to 2018
Percentage
employed 1.5% 1.7% is hampered by its small size and specialists. Several high schools make, particularly in creating a viable
relative lack of government support 2017
in ICT around the country also began business environment.
18,710
for the industry. preparing their students for careers In the IT Competitiveness Index,
ICT VALUE ADDED
17,290
16,854
15,884
Despite the recent progress, BiH in the ICT field by offering elementary Bosnia and Herzegovina ranks
Number
13,590
13,522
of people still lacks sufficiently accommodating coding and software classes. 21st. There are 483 IT specialists
12,128
working in ICT laws and policies to allow the ICT According to the Foreign per 100,000 which makes the
2015 2016 2017 2018 2019 2020 2021
industry to truly take off. There is Investment Promotion Agency country placed lowest across
forecast still no special tax regime for such (FIPA), the future of the ICT sector emerging Europe. However, the
companies, increasing the barriers to in BiH is dependent on three figure is growing at over 10 per cent
entry. It doesn’t offer any specialised strategic objectives: restructuring per annum.
CLUTCH TOP PROVIDERS* ICT visas either, the way many other 4.19%
countries do, preventing it from 4.12%
Population GDP nominal GDP per capita GDP change Inward FDI
Labour force
(million) (millions, euros) (euros) 2000-2019 (%) (millions, euros) 11,502 82% 18% 2018 2,055 63% 37% 2018
61 36 43 49 56 20
In recent years, Bulgaria and its drain problem which intensified after
capital of Sofia in particular have accession to the European Union.
ICT GROSS SALARY IN 2015-21 Bulgaria is a country which
become major hubs in fintech.
In 2018, fintech company Cash
Despite the unwanted label of being
the most corrupt EU country in 2018,
has made real progress in the Credit raised nearly 19 million euros the ICT industry is flourishing. Since 2.58%
Gross salary 244% ICT industry. In the early 1980s, in funding. then, there has been a substantial 2.19%
238% 240% 241% Bulgaria emerged as an unlikely
in ICT as a
229% 234% 237% Bulgaria also has a remarkably number of foreign companies
percentage of
gross salary
computing hub. At some points, as low flat tax rate of ten per cent, opening their own service centres
1,829
overall many as 40 per cent of computers making it an attractive place for and capital investments for local
1,656
1,542
produced in the Eastern Bloc were investment. Despite this, however, tech start-ups.
1,367
produced in Bulgaria, with the Bulgaria still lacks a preferential Export-oriented businesses and
1,262
Average gross
1,129
country becoming the third largest tax regime for start-ups or ICT
1,035
96,840
95,230
2000s and early 2010s. Following its other countries’ successful examples. In the IT Competitiveness Index
91,900
accession to the European Union Between 2015 and 2019, Bulgaria’s Bulgaria ranks 12th. There are 30
Number
of people in 2007, the ICT industry benefited ICT exports more than doubled from ICT graduates per 100,000 people,
working in ICT from access to a broader market and 788 million euros to over 1.6 billion compared to the weighted average
2015 2016 2017 2018 2019 2020 2021
the 2010s saw an explosion of start- euros, highlighting the impressive of 46 across the Western Balkans and
forecast ups. Some estimates claim as many rate of growth in the industry. Salaries 81 Albania, which is the highest in the
as 2,000 start-ups were founded in ICT have also steadily increased, entire emerging Europe region.
between 2013 and 2018. To this day, mitigating a long-standing brain
CLUTCH TOP PROVIDERS* Bulgarian schools focus heavily on 6.53%
maths and science and orient their 5.89%
IT IN BULGARIA
The emerging and powerful WHERE
tech ecosystem
An increase in IT talent is driving the growth of Bulgaria’s digital PERFORMANCE
LEADS TO
services industry.
SUCCESS
becomes even more mature, information systems, mobile apps,
sustainable, and attractive for talent. and chatbots.
The software development and ITO
2020
sectors in Bulgaria have managed RAISING IT TALENT
to sustain stable growth numbers, CAPACITY IN THE NEW
and the country continues to see ENVIRONMENT
an increasing number of major CLUTCH LEADER
international businesses entrust In macroeconomic terms,
local partners. Many are setting up
shop in Bulgaria themselves, in order
Bulgaria’s technology and business
services sectors have generated a
INNOVATE.
to establish teams or whole areas of
operations in this thriving location.
sustainable trend of about 20 per
cent year-on-year growth for the last TRANSFORM.
PLAMEN TSEKOV
ACCELERATE.
With Covid-19 impacting few years, according to AIBEST. The
businesses last year, software IT sector's contribution to Bulgaria's
CO-FOUNDER AND CHAIRMAN OF
SCALEFOCUS, BOARD MEMBER OF AIBEST development companies in the GDP is expected to rise to 4.7 billion
Ranked
country reorganised quickly and euros or 8.9 per cent of GDP in 2022 3 times in
without any service continuity gaps, (compared to the 2.9 billion euros, or company by
CROATIA
ICT STUDENTS ICT GRADUATES
4.058 1,798,750 54,270 13,373 159% 1,219 bachelor and short-term bachelor and short-term
master's and doctoral master's and doctoral
Croatia’s position in international rankings
Index of
Social Progress PISA Human EF English
Ease of Doing Economic companies, counts established The sphere has seen a boost in 2020,
Index Mathematics Development Proficiency
Business (of 190) Freedom
(of 163) (of 78) Index (of 189) Index (of 100) institutions like Uber and WhatsApp despite the Covid-19 pandemic. ICT EXPORTS
(of 180) among its clients. Such a company ICT exports steadily increased
having two headquarters in Croatia from 485.8 million euros in 2015
51 84 39 40 43 13
is an undeniable endorsement of to over 875 million euros in 2019.
the country’s ICT talent. Another Furthermore, Croatia has a largely
innovative ICT company based in multilingual workforce, ranking
ICT GROSS SALARY IN 2015-21 Croatia is an underrated Croatia is Gideon Brothers, which is 14th in the world in EF’s English
hotspot in the ICT industry and developing autonomous robots for Proficiency Index. Although 1.61%
Gross salary 143% 143% its tech industry has managed to factories and warehouses, signifying bureaucratic restrictions still pose an 1.53%
142% 142%
in ICT as a 140% flourish with several exciting and Croatia’s entrance into the rapidly obstacle to the unfettered growth of
percentage of
gross salary
innovating projects originating from growing AI field. the ICT industry, Croatia nonetheless
1,807
overall
1,627
1,540
According to the European data, there were some 35,300 According to Ookla, the average
1,471
1,404
Average gross Union (EU) Digital Economy and developers in Croatia in 2019. download speed of broadband
salary in ICT, Society Index (DESI) 2018, Croatia What makes Croatia’s progress in internet in Croatia was 46.76 Mbps
euros these fields even more impressive in December 2020.
ranks 22nd out of the 28 member
2015 2016 2017 2018 2019 2020 2021 1.38%
forecast states. The use of internet services is how this is accomplished in the In the IT Competitiveness Index,
in Croatia is well above the EU face of a sluggish bureaucracy. Croatia is ranked 9th. It boasts
average, with news, video calls, Entrepreneurs have to go through the highest EF EPI position in the
ICT EMPLOYMENT IN 2015-21 music, videos and games being as many as 314 administrative emerging Europe region (13th).
% of GDP
the most used services. However, procedures to run a business The average annual growth of the
Croatian businesses are slow in the — although the government number of people employed in 2019
3.8% integration of digital technology, has promised to simplify these. ICT per 100,000 between 2015 and 2018
Percentage 3.5%
employed 2.6% 3.1% 2.7%
ranking 21st in the EU. The use of Furthermore, Croatia does not 2019 accounted for 10.3 per cent
in ICT cloud technologies, at 22 per cent, have a specialised tax regime for and is the fourth highest figure 2017
61,830
is above the EU average, but for ICT companies, nor does it offer a in the region. At the same time,
58,096
58,000
57,500
start-up visa, both policies which have the number of ICT graduates per ICT VALUE ADDED
49,250
Number
42,000
of people in the bottom five EU countries. proven results in other countries. 100,000 people amounts to 34, lower
working in ICT Croatia has a highly-educated, Such policies may be needed, than the neighbouring Western
2015 2016 2017 2018 2019 2020 2021
multilingual population, with more particularly for Croatia to overcome its Balkans countries where the
forecast than half of the workforce proficient demographic limitations. average is 46.
in English. A member of the Most statistics, however, bode
European Union since 2013, Croatia well for Croatia’s ICT industry.
CLUTCH TOP PROVIDERS* has capitalised on this opportunity 4.10%
to solidify its position as a centre of 4.05%
CZECHIA
ICT STUDENTS ICT GRADUATES
10.694 5,412,170 223,939 20,941 177% 6,768 bachelor and short-term bachelor and short-term
master's and doctoral master's and doctoral
Czechia’s position in international rankings
Index of
Social Progress PISA Human EF English
Ease of Doing Economic
Index Mathematics Development Proficiency
Business (of 190) Freedom
(of 163) (of 78) Index (of 189) Index (of 100) allowing them to live in the country of just five years: from 2014 to 2019, ICT EXPORTS
(of 180) long-term. Czechia has undoubtedly this figure more than doubled, now
benefited from this: 20 per cent of generating over four billion euros
41 23 25 22 27 19
start-ups in the country have foreign per annum and contributing to
founders. 1.8 per cent of the GDP. Czechia is
Czechia is estimated to have undoubtedly one of Europe’s major
ICT GROSS SALARY IN 2015-21 Czechia is another country which as many as 900 start-ups, with players in the ICT industry, and if it
has made impressive progress to particular concentration in the continues down its current path, the 1.83%
176% 177%
Gross salary 172%
168% 166% 169% 166%
develop a well-established ICT sector. gaming, entertainment and future bodes well for the industry. 1.71%
in ICT as a With the country ranking in the travel sub-sectors. There is a Czechia has the ambition to
percentage of
gross salary
top 20 worldwide for percentage weaker investment environment become an innovative leader in
2,506
of GDP invested in research and to incentivise the creation and Europe. The government has
2,350
2,344
overall
2,206
development, the ICT industry has financing of new projects, but there adopted an Innovation Strategy
2,038
1,903
1,797
Average gross capitalised on this. is partial support for start-up projects and committed itself to increasing
salary in ICT, Czechia remains much cheaper in through the state CzechInvest public spending on innovation to 2.5
euros agency, through incubation and billion euros over the next 10 years.
labour and operating costs than most
2015 2016 2017 2018 2019 2020 2021 1.75%
forecast other European Union countries, acceleration programmes. In 2025, it should reach 2.5 per
giving it a competitive edge over the Although Czechia has a relatively cent of GDP, and three per cent of
likes of Germany. high number of ICT specialists per GDP in 2030.
ICT EMPLOYMENT IN 2015-21 Czechia has a long standing capita, the supply of labour still In the IT Competitiveness Index,
% of GDP
history of proficiency in technical struggles to keep up with demand. Czechia ranks third across emerging
fields. It has an automobile making This is a good sign, as it shows Europe. The average salary in the 2019
3.3% 3.4% tradition going back over a century, that despite the country’s small sector is the second highest in the 2018
Percentage 3.2%
employed 2.9%
as well as being the homeland of population, the ICT industry grows at region, after Slovenia, and amounts
in ICT
2.8%
the inventors of contact lenses. This a fast pace. Because of this, Czechia to 2,350 euros. At 1,111 euros, the value 2017
179,770
173,770
already establishes a tradition of also offers work visas to ICT specialists added of the ICT sector per capita is
169,903
169,751
from a select group of countries, the second highest in the emerging ICT VALUE ADDED
149,327
Number
of people of the most well-known software including the up and coming ICT Europe region. Moreover, the number
working in ICT companies come from the Czechia. powerhouse Ukraine and far-flung of people working in the ICT sector
2015 2016 2017 2018 2019 2020 2021
Antivirus giants Avast and AVG were nations like Mongolia. per 100,000 people is the third
forecast both founded and are headquartered Exports of ICT services have highest in the region.
in the country, alongside the software dramatically increased in the space
company behind the video game
CLUTCH TOP PROVIDERS* Mafia. Perhaps the most well-known 5.31%
export of the country’s ICT sector is 5.25%
EGYPT
ICT STUDENTS ICT GRADUATES
98.101 28,348,200 294,570 3,003 209% 8,048 bachelor and short-term bachelor and short-term
master's and doctoral master's and doctoral
Egypt’s position in international rankings * estimate * estimate
Index of
Social Progress PISA Human EF English
Ease of Doing Economic driving the digitisation of the multinational companies. The country
Index Mathematics Development Proficiency
Business (of 190) Freedom
(of 163) (of 78) Index (of 189) Index (of 100) economy through its “Digital has been supporting the expansion ICT EXPORTS**
(of 180) Egypt” strategy that focuses on of leading European companies
innovation, digital skills and jobs including Vodafone’s Worldwide
114 142 112 - 116 83
and digital transformation. The Technology Centre of Excellence,
ministry is offering an array of skills Ericsson’s AI & Analytics hub, and
development programmes delivered Valeo’s Software R&D Centre.
ICT GROSS SALARY IN 2015-21 Egypt is one of the few countries in partnership with tech providers Despite not being officially
in Africa and the Middle East that is like Amazon, Google, and Microsoft. included in Emerging Europe’s IT 0.25%
Gross salary 183% 179% taking concrete steps towards vastly The most recent Egypt FWD (Future Competitiveness Index, with 40.68
in ICT as a 169% improving its ICT industry. It has an Work is Digital) initiative aims to points out of 100, Egypt would be
percentage of 153% 159% 157% enormous population, the biggest train 100,000 young Egyptians ranked 15th if it were included,
gross salary
817
overall in the MENA region and the third- on in-demand ICT skills. Building mainly owing to its large talent 0.26%
biggest in Africa. Like most African on the success of Cairo’s startup pool. . Egypt can boast the highest
661
countries, it has a large youth bulge, ecosystem, which attracts the highest number of ICT students when
510
Average gross
490
454
salary in ICT, with a median age of just 24. With the number of investment deals in Africa, compared to the emerging Europe
384
386
According to the International Data recently passed its data protection destinations. Moreover, salaries in the
212,990
212,100
210,900
Corporation (IDC), the combined law, which is similar to the EU’s GDPR. Egyptian sector remain competitive
173,452
Number
of people IT, BPO, and KPO export market is Egypt has a competent — in 2019, the average salary was
working in ICT forecast to grow from 3.2 billion US multilingual workforce. The country estimated at 454 euros, an annual
dollars in 2017 to 4.7 billion US dollars holds the 15th position in the increase of about five per cent. Egypt
2015 2016 2017 2018 2019 2020 2021 TopCoder ranking, which is higher is competitively offering services
in 2020.
forecast
As the Covid-19 pandemic than most countries in the emerging ranging from multilingual contact
continues to take an escalating toll Europe region. This workforce, which centers to high-value niche services
CLUTCH TOP PROVIDERS* on economies across the world, Egypt can contribute to all levels of the such as product development 2.50%
has proven its resilience by effectively value chain at competitive costs, and R&D.
mitigating the impact on businesses has caught the attention of several
Top Software Top Mobile
No. Top IT Services and propelling them into digitisation.
Development Development
In 2019, the government invested two 2.27%
1 Blink22 Enozom Software
UTrust for Software billion US dollars in infrastructure EXPORTS**
Testing Services upgrades; this has played a key role
in sustaining the surge in demand
2 Rubikal Blink22 Sceel.io GmbH caused by the pandemic. Egypt 2018 2019
has been cited by the International
3 WPExperts Intcore Seven Dynamic ICT services (millions,
Monetary Fund as the only country 637.2 728.9
in MENA to witness positive real GDP euros)
4 Pharaoh Soft Rubikal Azdan
growth in 2020. of which computer
The Ministry of Communications 173.8 256.8
5 MobileStudio Pharaoh Soft Sumerge services (millions, euros)
and Information Technology is
* SOURCE: Clutch Leaders Matrix ** SOURCE: ITC, UNCTAD, WTO based on IMF statistics for 2018 and estimated for 2019
IT Landscape Report 2021 |
PA R T NER CO N T EN T
Page 104
the Middle East, Africa, America, has been a leading example for
and Asia in over 14 languages, demonstrating resilience and
taking advantage of the unique driving business continuity. The
opportunities Egypt offers as government’s investment in
a leading destination for technology continuously improving the IT
innovation and services. Our team infrastructure over the past decade
is driving programmes with global has also been a key enabler of our
impact related to quality, process success and ability to continue
improvement, Design Thinking, Lean to serve our customers without
Six Sigma, Automation, RPA and Data disruption. The sector has been
Analytics in emerging technologies lauded by the International Trade
including Cloud, AI/ML, 5G, IOT, Administration as a very robust and
Security and Edge Computing. top prospect industry sector.
MAGUED MAHMOUD
VICE PRESIDENT & GENERAL MANAGER,
DELL TECHNOLOGIES CENTRE OF
EXCELLENCE IN EGYPT
EMERGING TECHNOLOGIES NEARSHORE TO EUROPE
AND YOUNG TALENT AND GATEWAY TO AFRICA
COMING TOGETHER AND THE MIDDLE EAST
ESTONIA
ICT STUDENTS ICT GRADUATES
1.329 702,600 28,112 21,153 292% 2,720 bachelor and short-term bachelor and short-term
master's and doctoral master's and doctoral
Estonia’s position in international rankings
Index of
Social Progress PISA Human EF English
Ease of Doing Economic
Index Mathematics Development Proficiency
Business (of 190) Freedom
(of 163) (of 78) Index (of 189) Index (of 100) internet use skyrocketed from 28.6 by the success of the industry, more ICT EXPORTS
(of 180) per cent of the population in 2000 to and more students are enrolling in
over 90 per cent as of 2020. These ICT programmes at universities and
18 10 24 8 29 25
investments have paid dividends — average ICT salaries have outpaced
now the ICT industry employs almost the general average in how quickly
five per cent of the labour force and they grow. Estonia is undoubtedly
ICT GROSS SALARY IN 2015-21 Since independence in 1991, generates almost seven per cent of one of the world’s biggest ICT success
Estonia has taken major strides to the country’s GDP. stories and looks set to continue its 3.21%
180%
Gross salary 172%
179% becoming one of the world’s most These achievements are meteoric rise. 2.99%
in ICT as a 166% 166% exciting nations in the ICT sphere. reinforced by impressive innovations Estonia has also managed to
percentage of 162%
gross salary
The development of pioneering in digital identification. Most become an attractive destination
2,752
telecommunications service Skype ubiquitous of these is e-Estonia, for international companies. Low
2,549
overall
2,342
in 2003 made waves throughout an ambitious project seeking to and stable corporate tax rates lure
2,172
2,094
salary in ICT, Estonia has developed a deserved Electronic identification cards were expenditures, while the simplicity of
euros introduced in 2002 as the first stage the registration process — conducted
reputation as a hub for innovation
2015 2016 2017 2018 2019 2020 2021 2.70%
forecast and entrepreneurship. Now the of this project. Since then, over 600 entirely online and lasting under
nation boasts Europe’s third-highest government functions have been 20 minutes, thanks to e-Estonia —
number of start-ups per capita, six made accessible to the population removes so much of the hassle of
ICT EMPLOYMENT IN 2015-21 times higher than the European online. Voting, paying taxes and international commerce. Starting in
% of GDP
average. Over 400 start-ups - utilities, signing contracts, making 2017, Estonia also offers a generous
including international behemoths bank transfers, applying for welfare one and a half year-long start-up 2019
5.2%
4.8% 5,0% Wise (formerly TransferWise), Bolt - all of these vital functions can be visa for non-EU nationals, allowing 2018
Percentage 4.7% 4.5%
employed 4.4% and, of course, Skype — were set up done with the click of a button, it a pick of the world’s brightest
in ICT
4.1%
by Estonians. Furthermore, Estonia hugely simplifying the processes. talents, with the visa process 2017
34,420
32,870
has the distinction of hosting four These innovations have reportedly characteristically straightforward,
32,300
29,800
unicorns — companies that reach a saved the state two per cent of its quick and high-tech.
28,300
26,300
Number
of people valuation of over one billion dollars. GDP, freeing up vital resources from In the IT Competitiveness Index,
working in ICT This is all in a nation with a smaller administrative trivialities. Estonia ranks second in emerging
2015 2016 2017 2018 2019 2020 2021
population than the Bronx. Estonia’s ICT exports have been Europe. At 2,342 euros, the average
forecast Savvy government investments consistently rising for years, seeing salary in the ICT sector is the third
and policies created the environment a 96 per cent increase between 2015 highest in region, after Slovenia
for ICT companies to flourish. and 2019 and coming to contribute to and Czechia.
CLUTCH TOP PROVIDERS* Upon independence, Estonia’s over three per cent of GDP. Inspired 6.61%
young administration banked on 5.47%
Population GDP nominal GDP per capita GDP change Inward FDI
Labour force
(million) (millions, euros) (euros) 2000-2019 (%) (millions, euros) 7,227 90% 10% 2018 1,147 83% 17% 2018
7 12 56 66 61 47
taxes. In 2020, the government which provides funding to innovative
announced an even bigger tax businesses in the country.
ICT GROSS SALARY IN 2015-21 seen in the West. And the relative
break for ‘international companies’,
particularly in the ICT sphere: now
According to Stackoverflow data,
the number of developers in Georgia
underdevelopment of the start-up such companies only pay five per was estimated to be 8,100 in 2019. 0.65%
Gross salary 148%
142% 143% 139% 144%
148% 147% scene presents promising prospects cent in corporate profit tax. This As far as the IT Competitiveness 0.48%
in ICT as a for growth. initiative is undoubtedly aimed at Index is concerned, Georgia ranks
percentage of
gross salary The internet penetration attracting more international capital 16th across emerging Europe.
529
514
512
rate, although lower than most to give a boost to the country’s Georgia is a welcoming country
503
498
overall
475
471
21,758
21,335
reliable statistics on the information as “Start-up Georgia” and “Georgia On a more positive note, the
20,905
technology subsector and the 2020” put special emphasis on the country has the most competitive
17,860
17,090
Number
of people characteristically small size of many development of the ICT industry. average salary in ICT across
working in ICT firms, it is not possible to estimate Finally, USAID also operates the emerging Europe region. It
2015 2016 2017 2018 2019 2020 2021
the number of firms providing a “Growth in Georgia” programme amounted to 514 euros in 2019.
forecast products and services (e.g.,
estimate software and mobile application
Although Georgia is a relative development, electronics and
latecomer to the ICT industry, hardware, software sales and 2.69%
recent government initiatives have integration, support, and IT services) 2.42%
shown a promising commitment to in the market but the nascent ICT
developing the industry. Situated community in the country is ready
at the crossroads of Europe and to take advantage of its strengths EXPORTS
Asia, Georgia has long straddled the and existing opportunities to reach
line between competing spheres EU markets. 2015 2016 2017 2018 2019
of influence. Since independence, Georgia also welcomes
the country has been moving in an investment in the sector. Company ICT services (millions, 2.46%
increasingly pro-Western direction, registration takes just a day in 40.5 50.8 79.6 71.6 101.7
euros)
opening itself up to outside Georgia — in fact, it is ranked
influences and investments. This among the most business-friendly of which computer
4.1 6.5 35.5 36.0 55.9
underscores Georgia’s eagerness to nations in the world. Georgia also services (millions, euros)
create a similar environment for the operates an incredibly simplified
development of ICT industries as is tax regime, with just six types of
Population GDP nominal GDP per capita GDP change Inward FDI
Labour force
(million) (millions, euros) (euros) 2000-2019 (%) (millions, euros) 21,084 92% 8% 2018 3,101 81% 19% 2018
and went on to play a major role in training to innovative start-ups, not as quickly as average salaries
1,879
1,761
1,652
the Manhattan Project. The floppy particularly with young or female in general. While recent tensions
1,540
1,485
Average gross disc was also birthed in Hungary by founders. between the government and the
salary in ICT, inventor Marcell Janossi. Business registration takes four tech world may throw some doubts
euros
Since the fall of communism to five working days in Hungary. into the future of Hungary’s ICT
2015 2016 2017 2018 2019 2020 2021 1.70%
forecast in 1989, Hungary has managed to Furthermore, ICT companies enjoy a industry, the underlying statistics
develop rapidly, with GDP per capita special tax regime of nine per cent nevertheless remain promising.
rising by 75 per cent between 1996 corporate tax, among the lowest In the IT Competitive Index,
ICT EMPLOYMENT IN 2015-21 and 2017. ICT played a big part in in the European Union. Hungary Hungary ranks fourth across
% of GDP
this: during the 2009 recession, it also allows fledgling companies to emerging Europe and first in the
3.3% was the only sector in the Hungarian only register a virtual office in lieu talent component. The annual 2019
2.9%
3.1% economy to not take a major hit. of a physical office. This frees up growth of both students and 2018
Percentage
employed 2.7% 2.6% Hungary has been an EU member funds in the vital early stages of graduates — both nominally and
2.4% 2.5%
since 2004, giving it unfettered 2017
in ICT development. Hungary also offers per 100,000 inhabitants — is the
145,800
access to the European market. residency to foreign entrepreneurs, highest in the region. However,
137,430
ICT now contributes 10 per normally lasting one or two years the number of ICT graduates per
119,624
116,304
109,850
Number
102,564
of people cent of Hungary’s GDP. Hungary with the option of extension. 100,000 people amounts to 31 and is
working in ICT is a regional leader in computer In 2020, Hungary unveiled its lower the emerging Europe average
2015 2016 2017 2018 2019 2020 2021
assembly and communications ambitious plan to develop its AI of 42. However, the country can
forecast equipment manufacturing. industry, projecting that by 2030 boast the second highest position
Although standards of living are this would account for 11-14 per cent in the EF English Proficiency Index,
virtually on par with those in of GDP. 14th globally.
CLUTCH TOP PROVIDERS* Western Europe (at least in urban 4.14%
areas), the costs of labour are still 4.14%
Population GDP nominal GDP per capita GDP change Inward FDI
Labour force
(million) (millions, euros) (euros) 2000-2019 (%) (millions, euros) 6,164 91% 9% 2018* 407 84% 16% 2018*
57 53 - 75 - -
and institutions which are either efforts of civil society and western
dedicated to developing the ICT governments, Kosovo still has many
ICT GROSS SALARY IN 2015-21 the country is heavily supported industry, or have projects and issues to surmount. Unemployment
201%
by NGOs and predominantly initiatives with this goal. The remains high at nearly 30 per cent. 0.95%
Gross salary 191% western governments due to its biggest of these is the Kosovo Average salaries in ICT have also 0.83%
178%
in ICT as a strategic value, which ensures a ICT Association (STIKK), which decreased from the early 2010s,
percentage of 160% 158%
gross salary 149% continued flow of aid and finance for was established shortly after while average salaries in other
712
686
684
development, as well as a guarantee independence. This institution sectors have slowly and steadily
672
overall
593
of policy uniformity. helped establish the first tech increased. At the same time, the
570
545
Average gross The ICT sector is one of the only park in the country, in the capital value of computer services exports
salary in ICT, sectors of Kosovo’s economy which of Prishtina. STIKK also operates rose from 8.8 million euros in 2014
euros
records a positive trade balance. Just the Innovation Centre Kosovo, to 33.9 million euros in 2019.
2015 2016 2017 2018 2019 2020 2021 0.73%
forecast over 78 per cent of ICT companies the biggest integrator for start- Kosovo is ranked 18th in the
in the country export products or ups in Kosovo. UNICEF also has a IT Competitiveness Index. Kosovo
services and the sector represents programme called Innovations Lab, has highly competitive average
ICT EMPLOYMENT IN 2015-21 over 22 per cent of Kosovo’s service where they fund innovative and ICT salary, amounting to 593 euros
% of GDP
exports. Central Europe, USA and sustainable business plans created in 2019, which is the third lowest
UK have the highest potential by Kosovo’s youth. figure in the region. Furthermore, 2019
4.2% to export to, namely Switzerland Reflecting the successful status the number of ICT specialists per 2018
Percentage 3.9%
employed 3.5% and Germany, followed by North of the ICT industry in Kosovo, the 100,000 people has been rising
in ICT
3.2%
2.7% America (the US and Canada), and percentage of ICT students and at a double-digit rate over the 2017
2.2%
14,700
United Kingdom. East Asia, and graduates in Kosovo has been last three years. There is a room
14,100
14,000
Middle East and Africa are seen with steadily increasing, along with for improvement in mathematics ICT VALUE ADDED
7,300
12,000
Number
of people little or no potential for export. the proportion of ICT workers in proficiency, as Kosovo is ranked
9,600
9,500
working in ICT This makes the ICT sector a the workforce. Now there are 13 lower than other countries in the
2015 2016 2017 2018 2019 2020 2021
reliable source of much-needed higher education institutions, some region in the PISA Mathematics
forecast income in the fledgling country. subsidised from abroad, which offer ranking and International
The government has recognised ICT classes. However, despite the Mathematical Olympiad.
Kosovo is a country with vast this potential and even operates
growth potential, especially in the a specific ministry of innovation, 1.75%
ICT industry. The second youngest which has the improvement of the 1.86%
country in the world, with Europe’s country’s ICT infrastructure as a
youngest population (over 40 per major goal. A low, flat corporate
cent of the population is under 25), tax rate of 10 per cent encourages EXPORTS
Kosovo’s government has recognised business activity in the country.
the potential ICT can have for its The most popular local
2015 2016 2017 2018 2019
rapid development. Due to the horizontal markets are document
circumstances of the creation of management, followed by data ICT services (millions, 1.81%
the country, a large proportion warehousing, business process 54.8 48.4 46.6 55.8 67.2
euros)
of the population is proficient in optimisation, e-commerce and
English. The official currency is euros, product maintenance, support and of which computer
14.3 13.1 15.4 21.4 33.9
which greatly eases the process of customization. services (millions, euros)
conducting business with European- There is a wealth of non-
based partners. Furthermore, governmental organisations
KOSOVO’S IT SECTOR
The hidden diamond
Raiffeisen Bank International’s competence centre for strategic
initiatives proves that while Kosovo may be small, its IT sector
has big potential.
B
ack in 2012, Raiffeisen Bank impressed with their technology
International’s (RBI) branch in stack, with their agile delivery
Kosovo needed a mechanism methods, but what made me tilt the
to centralise and tailor its services. balance and decide to go for their
Six years later, the IT competence services was the team.”
centre for strategic initiatives (CCSI) Many at RBI value the CCSI
has proven itself to be a diamond because of its innovative mentality.
in the rough, offering the banking Finding a group of individuals with
group a talented workforce and IT skills may prove easy, but finding
smart solutions. individuals who can then apply this
Now, as the CCSI’s manager knowledge to complex problems, Technology (UBT), the Innovation However, for Mr Halili, while a markets and trends. However,
Kreshnik Halili tells Emerging initiative and thinking outside the Centre Kosovo (ICK), and two good education in IT is important, projects like the CCSI are beginning
Europe, it supplies RBI group with box proves moves difficult. Yet, this sponsored IT labs, one at UBT and it is not the be all and end all. to shift this climate towards
a streamlined approach to data PHOTO: KRESHNIK HALILI, is exactly what the centre has been once at Cacttus Education, as well as Rather, what he looks for is attitude. becoming stronger and more
warehouse, digital technologies, HEAD OF THE COMPETENCE able to achieve. an Elevator Lab Fintech Partnership An ambitious, competitive talent, established.
CENTRE AND STRATEGIC INITIATIVES,
governance risk, and compliance RAIFFEISEN BANK KOSOVO
According to the centre’s programme - sponsored by the willing to go the extra mile is what The PwC report also found that
solutions. manager, this is partly down to bank – are aiming to foster this lies at the heart of the recruitment the rate of start-up failure in Kosovo
This success goes to show that “It was very challenging at the nature of the IT sector in Kosovo. talent pool. process. This cannot be taught, remains high, with around two-thirds
Kosovo, despite its size, should not beginning,” explains Mr Halili. “It “When it comes to IT in Kosovo, I While earlier this year a PwC whereas skills can be. requiring more financial support,
be overlooked for its skill in the IT is not by default that you would compare our IT talents to diamonds. report found that formal and It is these core attributes which which Covid-19 will accentuate.
sector. As the maxim goes, ‘quality expect IT services from Kosovo.” Diamonds are made under pressure vocational IT education in Kosovo Kosovo’s unique environment offers, Nevertheless, the same report found
over quantity.’ However, after proving their and usually are found in uncharted is below the needs of some and one which the CCSI encourages. that “the ICT sector is among the few
Prior to the establishment of CCSI, talent with the first few projects - territory,” Mr Halili explains. “It’s the companies, these institutions are “If the proprietary technologies sectors within the Kosovo economy
RBI was looking for ways in which it such as delivery of a GRC platform same here, despite a challenging seeking to change this and break are there, with attitude and basic that is characterised by a positive
would foster competences from its to the group’s security department environment in Kosovo, our IT expectations. logical knowhow, then we will trade balance,” where around 78 per
network units for the development - they quickly moved on to bigger talents have proven that they are As the ICK’s director, Uranik Begu help with processes and learning, cent of already existing companies
and enhancement of their IT services. competences and the RBI group very competitive with their know- explains, fostering this ambition for allowing them to grow with us,” export their services.
After extensive planning with the came to realise the CCSI’s true how.” learning, particularly in sales and explains Mr Halili. “Hands on The government is further trying
local COO Shukri Mustafa, and potential. “Kosovo is not on the top lists of marketing, is key to the sector’s training, online training, coaching to aid the development of the
along with the support of RBI and “After the first project, RBI HO and IT sourcing destinations, that’s why I longevity and to overcome regional with senior developers, that is what country as a hotspot, building upon
local management, the decision some sister banks wanted to open-up say it is uncharted, but for Raiffeisen competition. is most important. We offer a lot of strong IT and language skills. This
was made to prepare a proposal for and try new projects, up to the point and some other companies to enter “Given the untapped potential freedom, a lot of labs. This allows spells good news for Kosovan IT,
a competence centre exclusively that we have now become one of this uncharted territory proved to be of our youth, this centre [ICK] has talent to experiment, learn to break where the success of the CCSI may
dedicated to RBI’s services. the preferred partners for delivering very rewarding.” become a home to many young things and truly learn to think be just the beginning, if financial
group solutions,” says Mr Halili. people who see it as an opportunity outside of the box.” constraints can be overcome.
BEYOND to develop their ideas into Fostering this agile environment Kosovo’s very young population,
AN UNCONVENTIONAL sustainable businesses. Basically, has paid off for the centre. As RBI’s and its increasing focus on the
STREAMLINING CHOICE
EVOLUTION they come to us with an idea, and Martin Köb from group information IT sector means that this trend
The primary aim was to ensure we offer them tailored services and and cybersecurity explains, of innovative thinking is likely to
a more efficient, structured and Of course, growing up in a programs to help them accelerate “colleagues are always coming up continue. With almost every young
tailored approach to service delivery Now, the CCSI team stands at country that has been unrecognised their businesses,” he says. with solutions, I haven’t heard once person fluent in English, and many
for the bank. However, as Mr Halili 41 employees and growing, an by many international players, and that ‘this is not possible’.” becoming fluent in German, as more
explains, this allowed for the CCSI evolution done in sync with the suffered economic and political German companies are entering the
to go beyond streamlining, and group head office. And it is this upheaval significantly inhibits A DYNAMIC, SHIFTING market, it appears as though young
provide the right ecosystem and group of employees that appears to access to opportunity, and makes SECTOR AN IMPORTANT Kosovans have indeed proven their
resources for growth, where strong have consistently been the centre’s it an unconventional choice for IT EXPORTER worth as diamonds in the rough.
foundational knowledge in IT met point of difference. focus. Moreover, the sector is dynamic
disruptive thinking, ensuring smart “I went to RBKO CCSI with tight Yet paradoxically, this hardship and always shifting, so staying More broadly, Kosovo’s IT sector
strategic solutions to services deadlines and high expectations, is fostering Kosovo’s unique talent, in close contact with the stream must still counteract the struggles
beyond the conventional. asking them if they will build for us partly stemming from young of talent coming out of these of a younger industry, where
When starting out, the team of nothing less than a customer centric Kosovans’ ambition and the need to institutions is paramount. A close many stakeholders lack in-depth
just three found it difficult to gain lending platform,” says Vasilica- prove themselves above and beyond connection with universities and knowledge and resources, and more
the trust of the group head office Valentin Pantazi, international expectations. programmes therefore aims to efforts are needed to establish a
to delegate their operations to leasing steering and product Universities in the country like ensure a sustainable talent pool strong institutional framework,
the centre. management at RBI. “Yes, I was the University for Business and in Kosovo. including relationships regarding
Population GDP nominal GDP per capita GDP change Inward FDI
Labour force
(million) (millions, euros) (euros) 2000-2019 (%) (millions, euros) 5,467 81% 19% 2018 721 78% 22% 2018
10th globally as of 2019), near- a sizeable proportion of first-year ICT studies are women, who account
1,828
overall
1,731
universal wi-fi in the capital of Riga, students study IT-related subjects. for 27 per cent of all graduates. 11
1,592
1,477
and 84 per cent of the population The Investment and Development per cent of all first-year students
1,364
Average gross
1,316
salary in ICT, using the Internet daily, Latvia has Agency of Latvia, a state organ, choose to study ICT, 63 per cent of
euros
all the vital infrastructure for the ICT runs 15 ‘incubators’ in the country. those are in computer sciences.
2015 2016 2017 2018 2019 2020 2021 2.31%
forecast industry to flourish. These are institutions which provide In general, the ICT sector
State and private sector initiatives funding, mentoring, guidance and contributes to technological
provide funding, guidance and facilities for new companies, all progress, output and productivity
ICT EMPLOYMENT IN 2015-21 infrastructure for up and coming for free. In 2017, this programme growth. The industry has shown 30
% of GDP
companies, while business-friendly was bolstered by a 15 million euros per cent profit growth year-on-year.
legislation has been passed, acceleration fund for early-stage Latvia is ranked eighth in the IT 2019
3.2% underscoring the government’s start-ups. Competitiveness Index. The country 2018
Percentage 2.9%
employed 2.7% 2.8% commitment to innovation and Latvia also offers a start-up visa offers higher ICT salaries than both of
prosperity. Furthermore, Latvia 2017
in ICT for non-EU ICT professionals. Up to its neighbours. With 297 ICT students
29,000
28,300
has the lowest costs of living in the five start-up founders can get this per 100,000 people, the country is
ICT VALUE ADDED
26,000
25,600
25,170
25,020
Baltics, giving it an edge over its three-year visa at once, giving a ranked significantly higher than the
23,800
Number
of people neighbours. unique opportunity for international regional average (200). At the same
working in ICT While not quite as pioneering as ICT talent to showcase their skills in time, Latvia scores lowest in the
2015 2016 2017 2018 2019 2020 2021
its northern counterpart Estonia, an EU nation. Although the process Baltics in the human development,
forecast Latvia has managed to catch up in isn’t quite as straightforward, social progress and economic
many ways. Following the global lighting-quick and high-tech as in freedom indices.
economic recession of 2008, the Estonia, it is six times cheaper. Such
CLUTCH TOP PROVIDERS* Latvian government decided to 4.87%
bank on the growing ICT industry 4.80%
Top Software Top Mobile and start-up scene. Since 2011, the
No. Top IT Services number of ICT companies more
Development Development
than doubled, illustrating this EXPORTS
1 Chili Labs DIGIS Advascale initiative. Now, over 400 start-
ups operate in the small nation,
2015 2016 2017 2018 2019
2 Diatom Enterprises Chili Labs Arkbauer primarily engaged in fintech, deep
tech and SaaS. Latvia also hosts ICT services (millions, 4.53%
3 Intechnic Mediapark Telia Latvija several annual meetups, hackathons 360.0 532.0 624.0 780.0 846.0
euros)
and tech conferences, such as
4 Arkbauer Diatom Enterprises Autentica Tech Chill. of which computer
235.0 298.0 386.0 442.0 499.0
A member of the EU since 2004 services (millions, euros)
5 UNECOS SOLUTIONS DEGO VerticHost
and the eurozone since 2014, Latvia
* SOURCE: Clutch Leaders Matrix also has the added advantage of
Population GDP nominal GDP per capita GDP change Inward FDI
Labour force
(million) (millions, euros) (euros) 2000-2019 (%) (millions, euros) 3,437 88% 12% 2018 976 84% 16% 2018
2,546
1,447
Average gross nearby Estonia. Starting in 2017, Lithuania joined tripled from 214 million euros in
salary in ICT, Now, Lithuania already has the the ranks of countries offering 2014 to 680 million in 2019. Lithuania
euros
most start-ups in the Baltics: 1,021 start-up visas, allowing it to generates more value added in the
2015 2016 2017 2018 2019 2020 2021 1.16%
forecast operated in the nation as of 2020, compete in attracting international ICT sector than Latvia. However, it
even more than in Estonia, home ICT talent. The visa offers a one-year lags behind its neighbours in the
of Skype and Bolt. In fact, 13 out residency with the possibility of a PISA Mathematics index.
ICT EMPLOYMENT IN 2015-21 of the 20 largest ICT companies in further year’s extension. On top of Lithuania ranks 10th in the IT
% of GDP
the Baltics are based in Lithuania. this, the government also offers Competitiveness Index. The number
In 2019, the nation hailed its first a weeklong ‘workation’ visa, where of ICT specialists per 100,000 2019
3.0% unicorn: secondhand clothes selling prospectors can get a taste of the people is growing faster than in the 2018
Percentage 2.7% 2.8%
employed 2.0% 2.1% 2.3% app, Vinted. This is hoped to be a country’s start-up ecosystem. Such neighbouring countries, amounting
major milestone in the development 2017
in ICT programmes indicate Lithuania’s to 9.1 per cent in average from
41,450
As with the other Baltic nations, industry, and with a streamlined has lower number of ICT students
32,300
Number
28,700
28,100
of people bureaucratic process and high-tech and graduates per 100,000 people
working in ICT initiatives to make the country infrastructure, the country looks set than the regional average, which
2015 2016 2017 2018 2019 2020 2021
amenable to business. This included to continue its recent progress in may affect the future state of ICT
forecast removing bureaucratic barriers and the sector. employment.
simplifying tax and registration With the largest population in
procedures. Now, it takes just the Baltics, Lithuania predictably
CLUTCH TOP PROVIDERS* three days to register a company 3.43%
in Lithuania. 3.34%
Population GDP nominal GDP per capita GDP change Inward FDI
Labour force
(million) (millions, euros) (euros) 2000-2019 (%) (millions, euros) 3,627 84% 16% 2018 731 83% 17% 2018
overall a half times. This is a far cry from international ICT talent. contributing to a three decade-
891
the beginning of the millennium, Moldova also has the distinction of long population decline. Although
802
501
455
when just over one per cent of the being one of the few countries in the compared to other European
686
Average gross
577
salary in ICT, population had internet access. Now world to have free trade agreements countries with similar economic
euros
Moldova has an internet penetration with both the European Union and conditions, Moldova has a high
2015 2016 2017 2018 2019 2020 2021 1.82%
forecast rate of 76 per cent and some of the the Commonwealth of Independent number of ICT specialists per capita,
cheapest high-speed internet costs States. This gives the country access and a solid seven per cent increase
in the world, averaging just under to vast markets in diverse countries, in export revenues over a five year
ICT EMPLOYMENT IN 2015-21 10 dollars a month. This growth presenting an enticing opportunity span, the country still has some
% of GDP
has been fuelled by government for growth. As a result, Moldova’s ICT obstacles to overcome before it can
3.6% 3.7% reforms in corporate laws, alongside industry is heavily export-oriented: realise its potential in the ICT sphere. 2019
3.4%
initiatives to make the country’s ICT 80 per cent of ICT products in the Moldova ranks 23rd in the IT 2018
Percentage 3.1% 3.2%
employed 2.9% 3.0% companies more competitive. country are designated for the Competitiveness Index. At 802 euros,
In 2016, the Moldovan 2017
in ICT export market, with two-thirds of the country has highly competitive
31,470
30,247
30,160
this going to Western Europe and the salaries in the ICT sector, which are
29,830
29,675
Population GDP nominal GDP per capita GDP change Inward FDI
Labour force
(million) (millions, euros) (euros) 2000-2019 (%) (millions, euros) 1,222 96% 4% 2018* 203 94% 6% 2018*
1,062
overall
has been moving towards closer ties feet in the ICT industry. Because a stable investment environment.
Average gross to the western world, and is in the of this, ICT exports in 2019 still Creating conditions for the dynamic
salary in ICT, process of applying for European represented only 1.14 per cent of development of new generation
euros
Union membership. It was accepted GDP, down from 1.64 per cent networks; continuous improvement
2015 2016 2017 2018 2019 2020 2021 1.25%
forecast into NATO in 2017, taking a big step in 2015. The sheer volume of ICT of e-services; and wide application
towards strengthening ties with exports has also slightly regressed of ICT in the work of public
the West. in this time period. Even relative administration, economic activities
ICT EMPLOYMENT IN 2015-21 Montenegro’s main limitation to its size, Montenegro still has and society as a whole, are the
% of GDP
is its tiny population — it is the few ICT specialists and its internet medium-term programme goals of
smallest country covered as penetration rate of just under the government. 2019
2.4%
2.3% part of this series. Five faculties 74 per cent is lower than the Montenegro is ranked 19th 2018
Percentage 2.0% 2.1% 2.2% 2.2%
employed teach ICT subjects, a significant European average. Average salaries in the IT Competitiveness Index.
number in such a small country. 2017
in ICT in ICT have also risen by only eight The average salary in ICT is fairly
5,400
5,300
Now, some 400 ICT companies per cent between 2014 and 2019, competitive. At 1,105 euros, it is
5,030
5,000
5,000
operate in Montenegro, primarily although this is at a higher rate lower than the regional average and
Number
of people engaged in software development. than the general average salary. similar to that in North Macedonia,
working in ICT Since accession to NATO in 2017, However, Montenegro should get while annual growth is smaller than
2015 2016 2017 2018 2019 2020 2021
Montenegro has also greatly a tangible boost to its ICT industry in North Macedonia. The number of
forecast strengthened its cybersecurity with the opening of the Podgorica ICT graduates per 100,000 people
capabilities. International Technological Park. With savvy (37) is lower than the Western
heavyweights like Microsoft, Telenor policies, it can subsequently see Balkans average (46).
and Deutsche Telekom all have quick development in the industry. 3.66%
offices and research centres in 3.69%
the country. In 2018, plans were
unveiled to construct Podgorica
Technological Park, following the EXPORTS
example of similar institutions in
other countries. Set to be opened
2015 2016 2017 2018 2019
in 2021, this will undoubtedly
provide a boost for start-ups and ICT ICT services (millions, 3.72%
companies. 59.8 55.2 53.8 69.2 56.3
euros)
Montenegro is known to have
an entrepreneurially-minded of which computer
8.2 11.5 12.7 20.0 29.5
population, ranking 2nd in aspiring services (millions, euros)
entrepreneurs, according to RS
Components. Local start-ups like
Population GDP nominal GDP per capita GDP change Inward FDI
Labour force
(million) (millions, euros) (euros) 2000-2019 (%) (millions, euros) 5,951 95% 5% 2016 567 80% 20% 2016
161%
organically over the past few years. rate for ICT companies. However, for coordination between state
1,211
overall
1,105
North Macedonian economy to and straightforward process, taking and the private sector, where
873
843
Average gross
salary in ICT, record a significant trade surplus, just 24 hours. these growth opportunities would
euros
making it a reliable source of foreign ICT exports have been be strategically evaluated and
2015 2016 2017 2018 2019 2020 2021 1.47%
forecast currency and employment. consistently increasing in North acted upon.
Now, there are 1,957 active ICT Macedonia, both in terms of sheer North Macedonia ranks 22nd
companies operating in North numbers and in proportion to GDP. in the IT Competitiveness Index. The
ICT EMPLOYMENT IN 2015-21 Macedonia, up from 1,296 in 2016, Between 2014 and 2019, ICT exports country is ranked high in the Ease of
% of GDP
according to the Macedonian increased from 121 million euros doing business ranking, holding 17th
Chamber of Information and to 218 million euros, contributing position which is the third highest in 2019
2.4% 2.4% Communication Technologies to nearly two per cent of GDP. ICT the region. Nonetheless, it is ranked
Percentage 2.1% 2018
employed
1.9% 1.8%
1.7%
1.9% (MASIT). In 2019, the total revenues salaries have been increasing at 111th in the Corruption Perception
of the ICT industry were estimated 2017
in ICT nearly double the rate of average Index, which is the fourth lowest
19,330
19,120
at 880 million euros, 17 per cent up salaries in the country, a good position in the region. With 739 ICT
compared to 2016. indication of the strength of the specialists per 100,000 people, the ICT VALUE ADDED
15,348
Number
14,525
In 2019, the number of people industry. However, North Macedonia country ranks significantly lower
13,600
13,587
12,995
of people
working in ICT working in ICT amounted to 15,348, still has a high unemployment rate. than the region’s average of 1,044
2015 2016 2017 2018 2019 2020 2021
of which 8,516 were employed in the Despite this, the increasing number specialists per 100,000 people.
forecast software and IT services sector. This
subsector rose by 69 per cent from
2016 to 2019. Moreover, according to
Stackoverflow, there are some 11,600 3.70%
developers in the country. 3.42%
North Macedonia, like many
other countries in the region, has
an ideal combination of a low-cost EXPORTS
yet highly-educated workforce. With
19 higher education institutions in
2015 2016 2017 2018 2019
a country of just two million, there
is ample opportunity for people to ICT services (millions, 3.39%
learn vital skills. Over 80 per cent 129.8 150.0 147.5 183.8 218.1
euros)
of households have high-speed
internet access. of which computer
71.6 93.1 122.4 153.9 187.4
North Macedonia has a low services (millions, euros)
corporate tax rate of just 10 per cent.
In fact, the country has universally
Population GDP nominal GDP per capita GDP change Inward FDI
Labour force
(million) (millions, euros) (euros) 2000-2019 (%) (millions, euros) 76,989 81% 19% 2018 12,080 67% 33% 2018
overall Polish video game market is now specialists per capita. But all the signs
1,964
1,891
global financial crisis. In 2017, the worth some 470 million euros, the are promising: Poland can safely be
1,754
1,618
1,598
Average gross country was classified as a developed home of gaming giants such as CD considered to be a regional leader in
salary in ICT, market by FTSE Russell. Projekt, PlayWay, 11 bit studios, and ICT. According to Stackoverflow, there
euros
An EU member state since 2004, Ten Square Games. Currently, there were some 295,300 developers in the
2015 2016 2017 2018 2019 2020 2021 1.21%
forecast Poland has successfully revamped are around 440 game development country in 2019.
and modernised its economy, studios, making everything from Poland is ranked first in the IT
allowing it to rise from one of so-called AAA games (an industry Competitiveness Index, leading the
ICT EMPLOYMENT IN 2015-21 Europe’s poorer nations to one of term to denote the games with the region in terms of ICT employment, % of GDP
the fastest growing. In recent years, highest budgets) to indie efforts and ICT value added and exports in
venture capital investment in the ICT smaller games played on mobile 2019. The high positions in the 2019
2.5% 2.6% 2.7% industry has skyrocketed and Polish phones. These studios employ nearly International Mathematical Olympiad 2018
Percentage
employed
2.3%
2.2%
2.3% companies have made waves around 10,000 people and release almost 500 (6th worldwide, the highest in the
the world. 2017
in ICT new games annually: numbers that region) and PISA Mathematics
443,060
433,000
430,500
Poland has impressively managed even just a couple of years ago would ranking (10th, second highest in
ICT VALUE ADDED
409,250
379,000
369,000
to retain both continuous economic have been unthinkable. the region) proves the quality of
360,000
Number
of people growth and lower salaries and costs Exports of ICT services have been the technical background. There is
working in ICT of living compared to the rest of growing very strongly. In 2019, Poland however room for improvement in
2015 2016 2017 2018 2019 2020
Europe. Now, there are dozens of reported 7.7 billion euros in ICT export terms of the number of ICT students
forecast incubators and accelerators for revenues — up from 3.2 billion euros and ICT graduates per 100,000
start-ups. The biggest of these is in 2014. ICT’s contribution to GDP has people – at 131 for students and 23
Reaktor X, based in Warsaw. Start-ups been steadily increasing as well, now for graduates it is one of the lowest
CLUTCH TOP PROVIDERS* are beginning to appear all over the coming to represent 1.45 per cent in the region. 3.79%
country as well, not just concentrated of GDP. Unemployment has been 3.73%
POLAND
the IT DESTINATION Stay ahead of the game
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CO UN T RY PR O FIL E S CO UN T RY PA R T NER S
Page 130 Page 131
Population GDP nominal GDP per capita GDP change Inward FDI
Labour force
(million) (millions, euros) (euros) 2000-2019 (%) (millions, euros) 36,662 79% 21% 2017 7,349 66% 34% 2017
55 38 45 52 49 17
in Romania, the Liberty Technology internet penetration rate at 74 per
Park. In 2017, Romania saw its first cent. These are issues that Romania
ICT GROSS SALARY IN 2015-21 Romania has been experiencing
major ICT success story when the
locally-designed Vector smart watch
must tackle before it can fully realise
the potential it has shown in the last
an ICT boom for some time. Since was bought by US company Fitbit. decade. Nevertheless, the progress 2.50%
Gross salary 198% 202% 2000, Romania has managed Just a year later, the robotic process made has been impressive.
191% 186% 189% 185% 2.35%
in ICT as a to capitalise on its STEM-heavy automation company UiPath The Romanian Software Industry
percentage of
gross salary
education system to become a became Romania’s first unicorn, Association (ANIS) says that the local
2,234
major outsourcing hotspot. This set reaching an estimated value of IT industry's objectives for Digital
2,067
overall
1,899
the ball rolling for the development over seven billion US dollars since Romania in 2025 are for the ICT
1,786
Average gross of the ICT industry. Between 2007, then. In 2018, Romanian universities sector to reach 10 per cent of GDP.
1,348
1,264
salary in ICT, when Romania joined the European graduated almost 8,000 students in Romania is ranked fifth in the IT
1,137
euros
Union, and 2019, the top 50 ICT ICT, another 39,000 were studying Competitiveness Index. The country
2015 2016 2017 2018 2019 2020 2021 2.13%
forecast companies in Romania saw their ICT in 2019. is the third largest in the region in
turnover quadruple. Few countries Between 2014 and 2019, terms of number of ICT students
can compare with the combination Romania’s ICT exports increased and graduates, after Ukraine and
ICT EMPLOYMENT IN 2015-21 of quality and quantity in Romania’s by 142 per cent, with the computer Poland respectively. Romania is % of GDP
ICT workforce, whose average salaries services sub section growing second only to Poland in terms
remain considerably below Western particularly quickly at 173 per cent. of value added created in the ICT 2019
2.2% 2.1% 2.1% Europe’s average. Furthermore, ICT exports have come to contribute sector and ICT services exports. In 2018
Percentage 2.0% 2.0%
employed over 80 per cent of Romanian ICT 2.5 per cent of GDP, with the ICT the meantime, Romania’s position
specialists are proficient in English. 2017
in ICT industry as a whole making up 5.5 in the Ease of Doing Business
186,962
185,417
179,430
per cent in 2019. The industry has ranking needs improvement, as the
ICT VALUE ADDED
172,840
168,349
half of those in Berlin, Romania looks further flourished as a result of the country is ranked 55th — the sixth
Number
of people set to continue its rapid growth in the Covid-19 pandemic-induced surge in lowest position in the emerging
working in ICT ICT industry. demand for e-commerce. However, Europe region and the 2nd lowest
2015 2016 2017 2018 2019 2020 2021
For years, the Romanian Romania ranks poorly in corruption among the EU member states from
forecast government has provided generous indexes, and has a relatively low the region.
subsidies to up and coming
businesses in the ICT sphere,
CLUTCH TOP PROVIDERS* demonstrating a commitment to 5.52%
the development of the industry. 5.32%
CLUJ-NAPOCA
bottom-up approach, both at local through the smart and ethical Cluj-Napoca as a finalist in the
and regional level, bringing forward use of the most advanced digital European Capital of Innovation
and addressing relevant needs technologies. 2020 competition, along with
C
luj-Napoca has for several and the strong internal migration of growth of 0.7 per cent and 0.6 per
years been on the fast track
towards becoming one of the
young adults looking for education
and professional opportunities.
cent respectively.
As the consequences of the
We create tools that enhance testing and
most attractive cities in Central and
Eastern Europe, as an academic,
Across Romania as a whole, the IT
sector has proven to be a powerful
pandemic continue to generate
cascade effects in many layers of deliver more efficient solutions.
tourist and cultural centre. The city’s engine of the country’s economic our society, we see ourselves, both
lively and positive vibe is based on development and has been as communities and organisations
a strong business orientation, a among the few to have registered as well as individuals, needing We organize the most extensive and
developing start-up ecosystem and positive growth during the Covid- to become more resilient and
on the high potential for innovation
across many industries and sectors.
19 pandemic. The industry is also
growing in terms of relevance to
adaptable to change. This is where
innovation clusters step in, and scientifically based software
It is no secret that one major Romania’s Gross Domestic Product, in Cluj-Napoca’s case, they have
component of the city’s recent
advancement is the booming IT
as revealed recently by the country’s
National Institute of Statistics’
transitioned from promoters to
champions of digital transformation,
testing courses.
industry, which has found fertile analysis of the first two quarters of offering solutions for the private and
ground to quickly emerge and 2020. The IT sector contributed 7.2 public sectors alike.
become the backbone for job
creation, increased quality of life
per cent in Q1 2020, and 7.4 per cent
in Q2, numbers which translate into
Cluj IT Cluster has always
been an avid practitioner of the altom.com
IT Landscape Report 2021 |
CO UN T RY PR O FIL E S
Page 134 Page 135
Population GDP nominal GDP per capita GDP change Inward FDI
Labour force
(million) (millions, euros) (euros) 2000-2019 (%) (millions, euros) 22,339 89% 11% 2018 2,816 79% 21% 2018
44 65 52 46 64 15
the government proposed a Law on a slow but steady decline for nearly
Digital Assets in 2020. In 2019 and 30 years now, due to emigration
ICT GROSS SALARY IN 2015-21 Serbia is another nation which
2020, Serbia placed fifth worldwide
in sheer number of blockchain
and low birth rates. Now, from fifth
grade, computer science classes
has come a long way in the developers. Serbian blockchain are compulsory in the Serbian 3.09%
Gross salary development of its ICT industry company MobileGo reached a curriculum. In 2015, the first bit 2.65%
196% 200%
in ICT as a 188% 190% 192% and looks positioned to become valuation of 56 million US dollars of innovation infrastructure was
percentage of 180% 185%
gross salary
a powerhouse. Even today, Serbia in 2020. unveiled with Belgrade’s Science
1,485
overall is arguably the ICT leader of the In 2017, the Serbian government and Technology Park. Novi Sad’s
1,376
Western Balkans. As with many unveiled a strategy for the further technological park was unveiled
1,232
1,104
other countries in the region, development of the ICT industry, in early 2020, and two more are
1,023
Average gross
954
salary in ICT, targeting 1.5 billion euros in ICT currently under construction in
euros
technical fields. exports by 2020 and promising Nis and Cacak, with a collective
2015 2016 2017 2018 2019 2020 2021 2.29%
forecast Microsoft opened just its fifth to increase the numbers of ICT investment of 70 million euros.
estimate global development centre in specialists produced, improve Serbia is ranked seventh in the IT
Serbia in 2005, recognising the infrastructure and create more Competitiveness Index. The country
country’s potential. Since then, favourable legal frameworks for has the second highest number of
ICT EMPLOYMENT IN 2015-21 Serbian ICT companies have found ICT companies. In 2019, the Serbian ICT students per 100,000 people in
% of GDP
particular success in the gaming government was very close to its the emerging Europe region and 2019
3.4%
3.5% and blockchain sub sectors. goal of generating 1.5 billion in ICT the fifth highest number of ICT 2018
Percentage 3.2%
employed 3.0% 3.1% Dozens of well-known international export revenues, when it reported graduates per 100,000. The high
2.9%
companies like Adobe and Siemens 2017
in ICT 2.8% over 1.4 billion euros, a nearly level of English competence ranks it
101,910
98,260
have joined Microsoft in maintaining threefold increase from 2014. Now fourth among the countries of the
ICT VALUE ADDED
93,166
88,240
84,295
offices in the country. these contribute to more than three region and 15th globally, improving
78,581
Number
72,076
of people Serbian gaming development per cent of the country’s GDP. its position by three notches
working in ICT companies like Nordeus have Serbia’s proportion of ICT compared to 2018. Nevertheless,
2015 2016 2017 2018 2019 2020 2021
produced chart-topping games students among the general there is a room for improvement in
forecast such as football management student population has also been the amount of value added in ICT
estimate simulator Best Eleven, which has increasing. However, Serbia’s per capita.
some 200 million downloads on the population has been experiencing
CLUTCH TOP PROVIDERS* app store. In 2018, Serbian gaming 4.87%
companies brought in more than 4.80%
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We have developed software, web and mobile solutions
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CO UN T RY PR O FIL E S
Page 138 Page 139
Population GDP nominal GDP per capita GDP change Inward FDI
Labour force
(million) (millions, euros) (euros) 2000-2019 (%) (millions, euros) 6,984 72% 28% 2016 1,763 57% 43% 2016
2,130
Czechia in 1993, Slovakia has begun Science Park at the University of cent. Furthermore, Slovakia ranks
2,086
overall
1,940
1,896
1,846
moving away f rom its industrial Bratislava. These offer guidance, high in the English proficiency
Average gross roots to becoming yet another mentoring, networking events index, with some 95 per cent of
salary in ICT, outsourcing destination in the ICT and talks to start-ups. Although school age students learning the
euros
field. Since joining the European the development of the start-up language. These factors, along with
2015 2016 2017 2018 2019 2020 2021 1.62%
forecast Union in 2004 and the eurozone in scene has been hampered by more the undeniable growth of the ICT
2007, Slovakia has gained access to stringent bureaucratic regulations industry, bode well for the future of
European Union funds and markets, than normally seen in European Slovakia.
ICT EMPLOYMENT IN 2015-21 greatly accelerating its progress. Union countries, there are still Slovakia is ranked 13th in the IT
% of GDP
Now, Slovakia’s ICT industry some success stories. One of the Competitiveness Index. The state of
employs 2.9 per cent of the most exciting Slovakian start-ups talent and its further enlargement is 2019
3.6% 3.7% workforce yet creates the value is Aeromobil, which is attempting the key for ICT sector development. 2018
Percentage 3.0%
employed 2.7% 2.6% added equal to three per cent of to develop a ‘roadable aircraft’ or The country is ranked the second
GDP. As of 2019, there were 76,600 2017
in ICT flying car. lowest in the emerging Europe
94,340
92,700
people employed in the ICT The game development industry region in terms of the number of ICT
sector. The number of developers in Slovakia has been gaining pace students per 100,000 people, but the ICT VALUE ADDED
76,600
Number
67,600
of people
working in ICT according to Stackoverflow. This rapidly growing market is among the highest in the region.
2015 2016 2017 2018 2019 2020 2021
Almost 90 per cent of which nearly doubled revenues The quality of potential future ICT
forecast Slovakians are fluent in at least over the past two years is the talent is proved by the fairly good
two languages, giving the country result of the world's top industry position in the PISA Mathematics
an adaptable and multicultural professionals teaming up with ranking – sixth in the emerging
workforce. Furthermore, salaries are relevant educational programmes, Europe region and 32nd globally. 3.28%
predictably lower than in most of 3.59%
the rest of Europe, making Slovak
companies competitive, particularly
within the European Union. EXPORTS
Seven faculties at six universities
give classes in ICT subjects as well
2015 2016 2017 2018 2019
as support platforms for innovative
business ideas. Slovakian ICT ICT services (millions, 4.19%
companies have been particularly 768.8 1,087.1 1,369.3 1,499.4 1,526.8
euros)
successful in the gaming sub
sector, where between 2017 and of which computer
456.9 744.9 957.6 1,084.3 1,089.1
2019 revenues increased f rom 36 services (millions, euros)
million euros a year to 51 million
euros. One of the most successful
Population GDP nominal GDP per capita GDP change Inward FDI
Labour force
(million) (millions, euros) (euros) 2000-2019 (%) (millions, euros) 3,842 85% 15% 2018 586 73% 27% 2018
overall
2,324
2,234
2,221
2,207
A member of the European Union Although Slovenia’s ICT exports technologies and firms active in the
Average gross since 2004 and the eurozone since have been slowly increasing over provision of ICT services. The value
salary in ICT, 2007, Slovenia is well-integrated the past few years, the proportion added generated by the overall ICT
euros
into the European economy and of the GDP they represent remains sector also rose, by 12 per cent to 1.6
2015 2016 2017 2018 2019 2020 2021 1.26%
forecast has benefited greatly from this stagnant at around 1.3 per cent. billion euro in 2019.
partnership. Now hosting two world- While this could be because of the Slovenia ranks sixth in the IT
renowned universities, an impressive impressive growth of the rest of Competitiveness Index. The country
ICT EMPLOYMENT IN 2015-21 feat in a country of just over two the economy, it is also an indicator ranks second among the emerging % of GDP
million, Slovenia has the foundation that the industry isn’t growing fast Europe region in terms of the
to become another major location in enough. This is reflected by how number of people employed in ICT 2019
3.8% 3.7% the world of ICT. average salaries in the ICT industry
Percentage
3.6%
3.3% 3.5% 3.4% per 100,000, with 1,598 ICT specialists 2018
employed Since 2000, Slovenia’s percentage of (which are highest in the Western compared to the emerging Europe’s
Internet users increased from fifteen 2017
in ICT Balkans) are outpacing average average of 1,044 in 2019. The country
36,700
36,400
per cent to over 83 per cent. The salaries in the rest of the economy. has the highest position in terms of
ICT VALUE ADDED
33,500
33,500
33,250
33,000
overall it one of the world’s most popular to be completed by the end of 2021, volume, moving the “online service”
444
647
606
401
outsourcing destinations. this complex will hold a residential sector to second place. The volume
337
A government working group area for ICT specialists, creating a of TOP-10 transactions has almost
293
Average gross
salary in ICT, involving leading economists and self-contained ‘village’ of sorts for like- doubled to 456 million US dollars.
euros
business representatives is currently minded professionals. The completion Ukraine is ranked 11th in the IT
2015 2016 2017 2018 2019 2020 2021 2.46%
forecast developing a National Economic of these ambitious projects will Competitiveness Index. The country
Strategy that will identify the vectors undoubtedly propel Ukraine’s quickly- is the second largest in emerging
of economic development with clear growing ICT industry to new heights Europe in terms of the number of
ICT EMPLOYMENT IN 2015-21 KPIs by 2030, with the digital economy and help the country realise its vast people employed in the ICT sector. % of GDP
being one of the key components. potential. In 2019, there were about 289,200 of
With the nation moving towards Both in sheer numbers and per people working in ICT. Nevertheless, 2019
1.7% 1.7%
1.8% greater integration with the European capita, Ukraine dwarfs most of its the number of ICT specialists per 2018
Percentage
employed Union, Ukraine has undoubted neighbours in ICT specialists and 100,000 people is the fifth lowest,
potential in becoming an ICT 2017
in ICT students. This is down to its relatively which means there is room for
289,200
284,740
280,300
280,710
there between 450 and 550 start-ups population, which can be considered The number of ICT students and ICT VALUE ADDED
Number
of people both based and founded in Ukraine. one of the country’s biggest strengths. graduates is the highest in the
working in ICT Ukraine’s ICT sphere is synonymous However, Ukraine still has work to emerging Europe region, which
2015 2016 2017 2018 2019 2020 2021
with outsourcing. Out of the Top do in creating a viable business gives hope of a further increase in
forecast Global Outsourcing 100 list published environment, with corruption and ICT employment. However, Ukraine
by the International Association of inefficient governance hampering does not perform well in either the
Outsourcing Professionals (IAOP), what progress has been made. Ease of Doing Business ranking (64th
CLUTCH TOP PROVIDERS* seven companies are headquartered Ukraine is also strengthening globally) or the Corruption Perception 4.51%
in Ukraine, far more that in any its position on the global tech Index (117th globally). 3.90%
T
that will eventually emerge as your
he Ukrainian tech industry Ajax Systems, Reface, Preply, Allset spot in Europe based on the volume strategic tech partner.
is booming. You’ve probably and many more. Over the past six of IT service exports. Leading Sigma Software is ready to be
heard about Readdle, MacPaw, years Ukrainian start-ups raised two international companies have set your reliable and trusted guide to
Depositphotos or Petcube: these billion US dollars in venture capital up over 110 R&D centres, while 21 this promising market.
are all Ukrainian companies. The investment, creating Ukraine’s Ukrainian service companies are
local IT sector is growing five first two unicorns — Grammarly included in the Global Outsourcing
times faster (25 per cent) than the and GitLab. 100 list.
CENTRAL ASIA
OVERVIEW % of GDP
0.12% 1.54%
2019
Population GDP nominal GDP per capita GDP change Inward FDI 0.12% 1.58%
Labour force 2018
(million) (millions, euros) (euros) 2000-2019 (%) (millions, euros)
2017
* estimate
74.317 31,800,000 267,053 3,593 328% 7,139
0.13% 1.68%
develop digital technologies in key clients. By the end of 2019, the parks’ start-up Alif Sarmoya, founded by Uzbekistan recently published its As with the other Central
522
517
509
Average gross sectors, expanding infrastructure, residents generated 14 million US Tajiks studying in the US, which now Asian countries, Uzbekistan has a
salary in ICT, creating favourable conditions dollars in annual total revenue, a 65 employs some 250 people and has goals the country aims to achieve population proficient in Russian,
euros
for entrepreneurs through active per cent increase from 2018. revolutionised Tajikistan’s banking to accelerate its digital readiness. as well as a significant part of the
2015 2016 2017 2018 2019 assistance in the development Nearly 30 per cent of software system. This sets a good precedent Improved digital infrastructure and population currently learning English
estimate
of e-commerce and increasing and other IT exports go to the United for the development of the industry, the adoption of digital solutions and Turkish.
the overall digital literacy of the States, while the remainder reach although the government should play across industries will support According to the International
population, which will contribute to over 30 other markets including a more active role in supporting it. Uzbekistan in its efforts to diversify Labour Organisation, there are
the development of the domestic IT Japan, Canada, Ukraine, Kazakhstan, According to the Tajik Agency of its economy away from commodity 62,200 people employed in the
ICT EMPLOYMENT sector, as well as improve the quality India, and Germany. By 2024, Statistics, the average salary in ICT exports. Despite the government’s sector, which accounts for 0.5 per
IN 2015-21 of education and healthcare in the park is expected to generate amounted to 244 euros in 2019. commitment, we are of the view that cent of all people employed in the
Kazakhstan. 200 million US dollars in annual Turkmenistan has the smallest attracting private investment will be economy. The figure has remained
Since 2010, Kazakhstan’s aggregate revenue and employ up to population of the Central Asian vital to a successful implementation of stable since 2015. According to the
Percentage 0.9% 1.0% 0.9% 1.0% 0.9%
employed percentage of internet users has shot 10,000 people in IT-related jobs. states, despite covering a fairly large the strategy. However, risks remain for country‘s Statistical Committee, in
in ICT up from 30 per cent to over 80 per Despite the dynamic development territory. Although steadily rising, the private investors, especially in relation 2019, the average gross salary in
282,000
277,200
275,500
rate of internet access remains at just to corruption and cybersecurity. ICT amounted to 383 euros. Due
271,000
cent. More than 97 per cent of the of the Kyrgyz IT sector, a key barrier
267,500
population is estimated to be fluent to the expansion of the IT sector 21 per cent, hampering development. Throughout the next decade, to the instability of currency rates,
Number
of people in Russian. is the lack of trained IT specialists Furthermore, the lack of democratic Uzbekistan will seek to power its the average salary in ICT changes
working in ICT In 2017, the government launched and attrition of talented Kyrgyz processes isolates the country from digital transformation and achieve significantly year to year (483 euros
the Digital Kazakhstan Initiative developers to overseas employers. In the rest of the world, again limiting the goals set out in its digital strategy, in 2014, 623 euros in 2016, 319 euros in
2015 2016 2017 2018 2019
estimate whose goals include digitising the last six years, the Kyrgyz Republic the development of the ICT industry. which include increasing internet 2018 and 383 euros in 2019).
the economy, transitioning to has risen in the rankings of the Global Despite this, it has been building access for the population, improving In 2019, the export of ICT services
e-governance, developing ICT Innovation Index from 117th in 2013 closer ties with Turkey to develop IT literacy and the digital skills of was worth 147.8 million euros, of
The five countries of Central Asia infrastructure and stepping up ICT to 90th in 2019 among 129 countries, the industry and in 2019 launched the local workforce, developing which only 6.2 million euro accounted
retain a strong Russian influence, education in primary and secondary outperforming Uzbekistan, Tajikistan, the Concept for Development of e-government services, expanding for computer services. The ICT value
from their histories as part of the schools. and Turkmenistan in innovation a Digital Economy, which aims to the country’s open data portal and added accounted for 1.44 per cent of
Russian Empire and later the Soviet In 2019, there were 161,750 digital adoption activities. increase business and investment investing in cloud infrastructure. GDP and fell from 1.87 per cent in 2017.
Union. However, in recent years, specialists employed in ICT sector, In 2019, similar to Kazakhstan, the
some of these countries have 1.8 per cent of total employment in Kyrgyz government adopted a Digital
been pivoting away from Russia the economy. The average monthly Kyrgyzstan 2019-2023 strategy,
in favour of China, or taking a nominal wage in the sector equals 612 which aims to improve digital EXPORTS
more independent path. One way euros, which accounts for 140 per cent infrastructure and digital literacy, and
of asserting this independence of average salary in the economy. digitise the banking and financial 2015* 2016* 2017* 2018* 2019*
is through developing the local The export of ICT services amounted sectors.
ICT industry. to 116 million euros, which makes up Tajikistan is another country ICT services (millions,
All five countries are ranked only 0.07 per cent of the GDP. which could benefit from developing 410.4 370.6 312.4 291.9 309.2
euros)
relatively low in the EF English Kyrgyzstan is territorially the its ICT industry. A landlocked
Proficiency Index. Uzbekistan scores smallest country in Central Asia. mountainous country with few of which computer
21.8 22.0 22.8 28.2 35.7
best (88th position) while Tajikistan While the country has lagged natural resources, it has a 70 per services (millions, euros)
is ranked 100th — the lowest both in behind its regional neighbours in cent fluency rate in Russian as a * estimate
the region and globally. ICT access and digital infrastructure foundation to develop the industry.
emerging-europe.com/fdi-destinations
ADDITIONAL
RESOURCES
ME T H O D O LO G Y A ND R E S O UR CE S ME T H O D O LO G Y A ND R E S O UR CE S
Page 152 Page 153
Slovenia
ABC Accelerator
Katapult
Ljubljana University Incubator
Mladi podjetnik
DEFINITIONS OF
Export of computer services refers to the export of from the national statistical authorities and the Eurostat
‘Computer services’ (EBOPS 2010 code 9.2). database.
IN THE RESEARCH
GDP in current prices. field 06 ‘Information and Communication Technologies’
Population refers to the resident population at the by population and multiplied by 100,000.
end of the year. Bosnia and Herzegovina’s population Number of bachelor and short-term students/
refers to the mid-year present population. graduates refers to the number of students/graduates
Average salary in the economy – average gross salary, Average salary in ICT as percentage of GDP per GDP nominal refers to the gross domestic product in in the 5th and 6th level of education according to the
average gross wage, average gross earnings or average capita is calculated by dividing the average gross salary current prices. Calculation based on the gross domestic International Standard Classification of Education
nominal wages in the economy. in ICT in the individual economy by the GDP per capita of product in local currency divided by the official average (ISCED) 2011.
ICT gross salary – average gross salary, average the respective country. exchange rate of the local currency unit to the euro Number of master’s and doctoral students/
gross wage, average gross earning or average nominal Number of people working in ICT – number of in the respective year. In case of calculation based on graduates refers to the number of students/graduates
wages in NACE Rev. 2 section J ‘Information and persons employed in NACE Rev.2 section J ‘Information US dollars, the cross rate of the USD to euros is used in the 7th and 8th level of education according to the
communication’. The terms ‘average salary in ICT’, and communication’. The terms ‘number of people based on the official average exchange rates of the local International Standard Classification of Education
‘average ICT salary’, ‘average wage in ICT’ are used working in ICT’, ‘number of persons employed in ICT’, currency to the US dollar and the euro. (ISCED) 2011.
interchangeably and characterise the abovementioned ‘ICT employment’, ‘number of IT specialists’ and ‘number GDP per capita is calculated by dividing the nominal
concept. of ICT professionals’ are used interchangeably and GDP by the population of the country.
Labour data are collected according to the Labour characterise the abovementioned concept. GDP change 2000-2019 is calculated as the difference
Force Survey data (according to the methodology of the Number of ICT specialists per 100,000 of population between the gross domestic product in international
International Labour Organisation). This approach refers is calculated by dividing the number of people working dollars (converted using purchase power parity rates) in
to the data of the number of employed persons, number in ICT by population and multiplied by 100,000. percentages. The source of the data is the World Bank
of unemployed persons, number of economically active ICT value added refers to the value added of NACE database.
persons / labour force, number of persons employed by Rev. 2 section J ‘Information and communication’ in Inward FDI refers to the value of inflows of foreign
the sector or field of the economy. current prices used in the gross domestic product direct investments in 2019. The source of the data is the
Average regional ICT salary is calculated as weighted calculation by production approach. Data in the local UNCTAD database. Kosovo’s inward FDI figure is based
average of average gross ICT salaries in the individual currency are converted to euros using the official on the data from the Central Bank of the Republic of
economies considering the number of persons exchange rate of the central bank of the respective Kosovo. Data in US dollars are converted to euros using
employed in ICT in the individual economies. country in the respective year. Data in US dollars are the cross rate based on the official exchange rate of local
Labour force refers to the sum of employed and converted to euros using the cross rate based on the currency to US dollars and euros of the central bank of
unemployed persons. official exchange rate of the local currency to US dollars the respective country in the respective year.
NOTES IT COMPETITIVENESS
INDEX METHODOLOGY
Missing figures are modelled for the regional overview based on the annual
change of parameter in the available years.
Number of ICT students per 100,000 of population and number of ICT graduates
The IT Competitiveness Index consists of three sections:
per 100,000 of population in the regional overview section represents the latest
1. Talent – 60 per cent, which is composed of 16 elements:
available data. The figure for the whole region is for 2019 and based on factual and
A - Number of people working in ICT. Based on the data for 2019. Weight: 7 per
modelled figures.
cent.
In case of a break in series due to changes in the national methodology data were
B - Number of people working in ICT per 100,000 people. Based on the data for
adjusted. In case of changes related to the change in taxes or contributions that
2019. Weight: 5 per cent.
affected the gross wage no adjustments were made.
C - Annual growth of the number of people working in ICT per 100,000 people.
Forecasts that are included in the country profiles are based on available
Based on the data for 2019. Weight: 5 per cent.
information for 2020 and our own analysis.
D - Average salary in ICT. Based on the data for 2019. Weight: 8 per cent.
Data that are included in the profile of Central Asia are based on available
E - Average annual growth of average salary in ICT as a percentage of the average
information about the countries of the region, which means that the figures may not
regional ICT salary. Based on the calculation of average gross salary in ICT in the
represent the average or sum of all the countries.
economy divided by the average gross regional ICT salary, and annual change of
that parameter between 2015 and 2019. Annual change figures between the years
that are not representative due to regulatory changes were excluded from the
calculation. Weight: 7 per cent.
F – EF English Proficiency Index rank. The EF EPI ranking for 2020 was used. The
number of points assigned to Slovenia is based on the analysis of the result in the
2018 ranking. The number of points assigned to Bosnia and Herzegovina is based on
the analysis of the result in the 2016 ranking. Weight: 6 per cent.
G – International Mathematical Olympiad place. Based on the data for 2020. In
case of Egypt the figure is based on the data for 2019. Weight: 3 per cent.
H - PISA Mathematics rank. Based on the data for 2018. Weight: 3 per cent.
I - Number of ICT students. Based on the latest available data. Data for 2017 are
used for Czechia, Croatia, North Macedonia, Slovakia. Data for 2019 are used for the
rest of the countries. Weight: 2 per cent.
J - Annual growth of the number of ICT students. Based on the average annual
change of parameter between 2015 and 2017 for Czechia, Croatia, North Macedonia,
Slovakia; between 2016 and 2019 for Armenia; between 2017 and 2019 for Moldova;
between 2015 and 2019 for the rest of the countries. Weight: 2 per cent.
K - Number of ICT graduates. Data for 2018 are used for Albania, Croatia, Czechia,
North Macedonia, Romania, Slovakia. Data for 2019 are used for the rest of the
countries. Weight: 2 per cent.
L - Annual growth of the number of ICT graduates. Based on the average annual
change of parameter between 2015 and 2018 for Albania, Croatia, Czechia, North
Macedonia, Romania, Slovakia; between 2016 and 2019 for Armenia; between 2017
and 2019 for Moldova; between 2015 and 2019 for the rest of the countries. Weight:
2 per cent.
M - Number of ICT students per 100,000 people. Based on the latest available year
for the data on number of ICT students. Weight: 2 per cent.
N - Annual growth of the number of ICT students per 100,000 people. Based on
the average annual change of parameter between 2015 and 2017 for Czechia, Croatia,
North Macedonia, Slovakia; between 2016 and 2019 for Armenia; between 2017 and
2019 for Moldova; between 2015 and 2019 for the rest of the countries. Weight:
2 per cent.
O - Number of ICT graduates per 100,000 people. Based on the latest available
𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉 − 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣
𝑃𝑃𝑃𝑃𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖 = (10 + ∗ 90) ∗ 𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊ℎ𝑡𝑡
𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣 − 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣
year for the data on number of ICT students. Weight: 2 per cent. 1. Country with the highest rank in the region is assigned 100 points.
P - Annual growth of the number of ICT graduates per 100,000 people. Based on 2. Country with the 8th rank in the region is assigned 70 points.
the average annual change of parameter between 2015 and 2018 for Albania, Croatia, 3. Country with the 15th rank in the region is assigned 40 points.
𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉 − 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣
Czechia, North Macedonia, Romania, Slovakia; between 2016 and 2019 for Armenia; 4. Country with=
𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 the 23rd
(100 − rank in the region is assigned ∗ 90) ∗10𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊ℎ𝑡𝑡
points.
𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣 − 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣
𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉 − 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣
between 2017 and 2019 for Moldova; between 2015 and 2019 for the rest of the For the countries
𝑃𝑃𝑃𝑃𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖 =from
(10 +the 1st to 8th position number ∗ 90) ∗of𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊ℎ𝑡𝑡
points is calculated as
countries. Weight: 2 per cent. following:
𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣 − 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣
2. Sector – 25 per cent, which is composed of 4 elements:
V - Value added of ICT. Based on the data for 2018 for Albania. Based on the data 𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉 − 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣1
𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃1 = (100 − ∗ 30) ∗ 𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊ℎ𝑡𝑡
for 2019 for the rest of the countries. Weight: 7.5 per cent. 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣 − 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣1
𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉 −1𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣
𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 = (100 − ∗ 90) ∗ 𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊ℎ𝑡𝑡
W - Value added of ICT per capita. Parameter is calculated by dividing the value 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣 − 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣
𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉 − 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣
added of ICT by the population of the country. Based on the data for 2018 for Albania. where: 𝑃𝑃𝑃𝑃𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖 = (10 + 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣 − 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣 ∗ 90) ∗ 𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊ℎ𝑡𝑡
Based on the data for 2019 for the rest of the countries. Weight: 7.5 per cent. Max value1 - lowest rank in the first group of countries;
𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉 − 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣2
X - Export of ICT services. Based on the data for 2019. Weight: 5 per cent. 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃
Min value1 2 = (70
- highest − in the first group of countries;
rank ∗ 30) ∗ 𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊ℎ𝑡𝑡
𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉 −2 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣
𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣 − 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣
1 2
Y - Export of ICT services per capita. Parameter is calculated by dividing the value 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃
Weight – weight 1 = (100 −
of the parameter. ∗ 30) ∗ 𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊ℎ𝑡𝑡
𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣 − 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣1
𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉 −1𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣
of ICT export by the population of the country. Weight: 5 per cent. For the countries from −
𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 = (100 the 9th to 15th position number ∗ 90) ∗ of points is calculated as
𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊ℎ𝑡𝑡
𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣 − 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣
3. Business climate – 15 per cent, which is composed of 5 elements: following:
Q - Ease of Doing Business rank. Based on the data from the Doing Business 2020 𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉 − 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣3
𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃3 = (40 − ∗ 30) ∗ 𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊ℎ𝑡𝑡
report. Weight: 3 per cent. 𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉 −3𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣
𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣 − 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣
2 3
𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃2 = (70 − ∗ 30) ∗ 𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊ℎ𝑡𝑡
R - Index of Economic Freedom rank. Based on the 2020 Index of Economic 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣 − 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣
𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉 −2 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣1 2
𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃1 = (100 − ∗ 30) ∗ 𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊ℎ𝑡𝑡
Freedom ranking. Weight: 3 per cent. 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣1 − 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣1
S - Social Progress Index rank. Based on the 2020 Social Progress Index ranking. where:
Weight: 3 per cent. Max value2 - lowest rank in the second group of countries;
𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉 − 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣3
T - Human Development Index rank. Based on the 2020 Human Development 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃
Min value2 3 = (40rank
- highest − in the second group of countries; ∗ 30) ∗ 𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊ℎ𝑡𝑡
𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣 − 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣
𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉 −3𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣2 3
Index ranking. Weight: 3 per cent. Weight 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃
– weight 2 =of
(70
the−parameter. ∗ 30) ∗ 𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊ℎ𝑡𝑡
𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣2 − 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣2
U - Corruption Perception Index rank. Based on the 2020 Corruption Perception For the countries from the 16th to 23rd position number of points is calculated as
Index ranking. Weight: 3 per cent. following:
If the figure is unavailable due to the absence of the country in rankings, the
weighted average figure for other components within the section is applied. 𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉 − 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣3
𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃3 = (40 − ∗ 30) ∗ 𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊ℎ𝑡𝑡
Countries are assigned between 10.00 and 100.00 points for each parameter. 10.00 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣3 − 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣3
points are assigned to the country which has the worth figure in the region, 100.00
points are assigned to the country which has the best figure in the region. where:
Calculation for the parameters A, B, C, I, J, K, L, M, N, O, P, V, W, X, Y is done using Max value3 - lowest rank in the third group of countries;
the following formula: Min value3 - highest rank in the third group of countries;
Weight – weight of the parameter.
𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉 − 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣 For the calculation of the number of points for Egypt the same methodology
𝑃𝑃𝑃𝑃𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖 = (10 + ∗ 90) ∗ 𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊ℎ𝑡𝑡
𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣 − 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣 was used, based on the thresholds used for the countries from the emerging
Europe region. In case the country scores more than 100 points, then 100 points are
where: assigned. If Egypt scores less than 10 points, 10 points are assigned.
Max value – the highest figure in the region;
𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉
𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉 −
− 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣
𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣
𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃
Min value – the=lowest
𝑃𝑃𝑃𝑃𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖 =(100
(10 −
+figure in the region; ∗ 90) ∗ 𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊ℎ𝑡𝑡
𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣 − 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣 ∗ 90) ∗ 𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊ℎ𝑡𝑡
Weight – weight of the parameter. − 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣
𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣
Calculation for the parameters D and E is done using the following formula:
𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃1 ==(100
𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃
𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉
𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉−−𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣
𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣1
(100−−𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣1 − 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣1 ∗∗ 90)
𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣 − 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣
30) ∗∗ 𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊ℎ𝑡𝑡
𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊ℎ𝑡𝑡 CLUTCH TOP PROVIDERS
where:
The rankings are based on the Clutch Leaders Matrix and retrieved
Max value – the highest figure in the region;
𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉
𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉−−𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣
𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣
2 in December 2020.
Min value – the
𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃21 = (70
(100−−
=lowest figure in the region; 1 ∗ ∗30) 30)∗ ∗𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊ℎ𝑡𝑡
𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊ℎ𝑡𝑡
𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣2 1−−𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣
𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣
21
Weight – weight of the parameter.
Parameters F, G, H, Q, R, S, T, U are rankings, so the following methodology is used:
𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉
𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉−−𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣
𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣32 IT Landscape Report 2021 |
𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃
𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃32==(40
(70−−𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣 − 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣 ∗∗30)30)∗∗𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊ℎ𝑡𝑡
𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊ℎ𝑡𝑡
𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣32 − 𝑀𝑀𝑀𝑀𝑀𝑀𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣32
ME T H O D O LO G Y A ND R E S O UR CE S ME T H O D O LO G Y A ND R E S O UR CE S
Page 164 Page 165
Eurasianet
European Commission
African Business
Eurostat
Agenda Georgia
Ernst & Young
Albanian Business Services Association
Financial Times
Albanian Investment Development Agency
Forbes
Armenian Weekly
Foreign Investment Promotion Agency of Bosnia and Herzegovina
Asian Development Bank
Foreign Policy
Astana Times
Future of Life Institute
Atlantic Council
Georgia Today
Atomico – State of European Tech
Georgian National Investment Agency
Automotive News Europe
German Corporation for International Cooperation (GIZ)
Azerbaijan Export and Investment Promotion Foundation
German Outsourcing Association
Balkan Insight
Global Sourcing Association
Baltic Times
Go Vilnius
Bit Alliance
Heritage Foundation
Bloomberg News
Hungarian Investment Promotion Agency
Caucasus Business Week
IBM
CEE Legal Matters
India Times
CIS Legislation
Information Technology Industry Development Agency (Egypt)
CNBC
International Association of Outsourcing Professionals
Croatia Week
International Centre for Defense and Security
Czech Invest: Investment and Business Development Agency
International Federation of Robotics
Deloitte
International Mathematical Olympiad
Development Agency of Serbia
International Monetary Fund
Digital Kazakhstan
International Telecommunication Union
Digital TV Europe
International Trade Centre — TradeMap
Economist Intelligence Unit
Invest Lithuania
NASDAQ UiPath
OECD — Organisation for Economic Co-operation and Development UNEP — United Nations Environment Programme
OECD — Organisation for Economic Co-operation and Development — Programme United Nations Conference on Trade and Development – UNCTADstat
for International Student Assessment United Nations Educational, Scientific and Cultural Organisation database
PricewaterhouseCoopers ZDNet
Raifeissen Bank
Reuters
Romania Insider Emerging Europe’s own news site and previous reports and analyses
ABBRIVIATIONS
AND ACRONYMS
BiH – Bosnia and Herzegovina STEM – Science, Technology, Engineering, and Mathematics
BPM6 – Sixth Edition of the Balance of Payments and International Investment UNCTAD – United Nations Conference on Trade and Development
EBOPS – Extended Balance of Payments Services Classification USA – United States of America
EMEA – Europe, the Middle East and Africa UVCA – Ukrainian Venture Capital and Private Equity Association
IT – Information Technology
ACKNOWLEDGEMENTS ACKNOWLEDGEMENTS
The IT Landscape: The Future of IT in Emerging Europe was prepared by the Emerging Emerging Europe would like to express appreciation to its partners:
Europe Market Intelligence Team, led by Andrew Wrobel, head of editorial and research, and • Global Tech Advocates and London Tech Advocates
Oleksii Toporkov, research analyst, in close collaboration with the Editorial Team, led by Craig • Clutch
Turp-Balazs. It was designed by Karolina Antipenko. • Global Sourcing Association, International Association of Outsourcing Professionals,
German Outsourcing Association
We would like to extend our appreciation to our supporters, without which we would
not have been able to complete the research:
• Arobs Transilvania
• Cluj IT Cluster
• EIT Health InnoStars
• Future Processing
• Information Technology Industry Development Agency (ITIDA) Egypt
• Markit
• Raiffeisen Bank Kosovo
• ScaleFocus
• Sciant
• Senla
• Sigma Software
• Unity Group
• Warsaw Stock Exchange
• Zesium
Finally, we would also like to extend our thanks to external and internal reviewers, as
well as all the national and international organisations and governmental entities
that helped us collect the statistics.