Download Document

LITHUANIAN ICT MARKET
TODAY AND TOMORROW
The president of INFOBALT
Vytautas Vitkauskas
Vilnius
2004
Lithuania ICT Market Trends
2003 year Lithuanian ICT market size
Total – appr. 1 237 million Eur.
Note: Data on communication equipment and complex IT solutions
market are tentative and approximate.
IT – appr.
Million Euro
300
327
610
Communications – appr.
Communication equipment,
other IT services and
complex solutions – appr.
2
Lithuanian ICT sector 2003 (preliminary results)

ICT sector compounds 7.5% of the Lithuanian GDP (2003)

About 500 of ICT and electronics companies

ICT wholesale market increased by 8, to 153 million EUR

15 000 high qualification specialists employed in the sphere of the
information technologies alone.

International recognition – in 2003 more than 40 Lithuanian ICT
companies exported their products and solutions to the EU, USA,
Asian and CIS countries.

During 2002–2003, Lithuanian ICT market has not only been
growing 27-30%, but also creating new quality and cheaper
products for its users

E-banking growth 50% (about 850 thousand e-banking users)

Mobile communications penetration about 75 %
3
Lithuanian ICT industry export





Exports from Lithuania in 2003 increased by 8.7%
The average volume of Lithuanian ICT companies
export is 7%
Lithuanian TOP 10 IT companies exports increased
from 40 to 80 percent in 2003
Export of IT services in 2003 – about 45 million Euros
The main Lithuanian ITT export markets: Germany,
Russia, Belarus, Finland, Denmark, USA, and Latvia
4
Lithuania R&D



In 2003, about 1950 ICT specialists studied in five
Lithuanian Universities; 1000 Masters of Science
About 500 ICT specialists are employed in Lithuanian or
foreign ICT companies every year
Lithuania’s ICT businesses and the Government have
initiated a program of investment into R&D seeking to
achieve that by 2008 up to 2.5-3 percent of State
budget funds are allocated for R&D projects and
enlargement of the related scope of work
5
Other intiatives of Lithuanian ICT industry






Knowledge Economy Forum, the cooperation
between science and High-tech industry
Private - public partnership: alliance “Window to
the future”, clusters
Copyright agencies to protect IPR
Lithuanian computer association (physical
members)
Lithuanian electronic industry association
Lithuanian laser and light science and technology
association
6
• Memorandum of Understanding between 7
political parties and Infobalt of importance of
building information society. Year1999.
• National agreement between 15 political parties,
nongovernment association of importance of
building knowledge based society, Year 2002.
• Infobalt initiated forming Information society
developing committees under Lithuanian
Parlament and Government.
• Participation in more than 30 working groups for
different Government legislatives and strategies.
7
Legal information





Law on Electronic Signatures
Law on Copyright and Related Rights
Law on Personal Data Protection
Law on electronic communications
Telecommunication market de-monopolised since
2003
8
Infobalt international initiatives
 Member of major international ICT associations (EICTA –
2004, WISTA – 2002)
 Participation in 5 EU ICT projects (Electranet, Telebalt, Econtent for SME’s BSP – 2000-2004)
 Participation in major Lithuanian ICT market research
projects (together with WTO, World Bank, Gartner group,
IDC).
 Multiple participation in main annual exibitions(CeBIT,
TIBO (Minsk), TINE (Amsterdam), Outsource World
London 2004, SYSTEMS (Munich) and others).
9
Alignment with EU-15
10
Expenditure for
researches and
development
(from GDP)
Infornation: Europian commission
GDP for one inhabitant (Eur.)
11
Evaluation of different countries according to index of
knowledge economy
Knowledge Economy Index
10,00
9,00
8,00
7,00
20002002 6,00
5,00
Sweden
Ireland Finland
Suomija Seedan
UK
EU15
15
VN
Netherlands
Netherland
Estonia France
Denmark
Slovenia
G7 Germany
Poland
Italy
Italy.
Hungary
Lithuania
Lithuania 12
EUCC12
ŠK
Portugal
Portugal.
Rep.
Latvia
Slovak Rep.Czech rep.
Slovakia
Cyprus
Greece
Ukraine
Bulgaria
Romania
Russia
Turkey
4,00
4,00
5,00
6,00
7,00
1995
8,00
9,00
10,00
12
Current activities of the
association of INFOBALT
1. Taxation easement for ITT sector
2. Initiatives for broadrband Internet
programs
3. Developing e-skills of population
4. E-government services for citizens
5. Support R&D financing
13
Lithuanian ICT market target:
In 2003, the ICT sector compounded 7.5% of the Lithuanian
GDP
17,50%
7,70%
6,10%
Services
Production
1,40%
2003
2015
14
eEurope 2005 Action Plan Goals
By 2005 EU member states should have:
• Modern online public services
* e-Government
* e-Learning services
* e-Health services
• A Dynamic e-business environment
• And, as an enabler for these
* Widespread availability of broadband at competitive prices
* A secure information infrastructure
15
The eEurope 2005 framework
eEurope Index
Component Indexes
Internet Indicators
Modern Online Public
services
eEurope
2005 Index
A dynamic e-Business
Environment
A Secure information
Infrastructure
Broadband
16
The eEurope 2005 framework
Component indexes
Sub indexes
Citizens’ access to and use of Internet
Internet indicators
Business access to and use of ICT
Internet access costs
eGovernment
Modern online public services
eLearning
eHealth
17
The eEurope 2005 framework
Component indexes
Sub indexes
Buying and selling Online
A dynamic eBusiness
environment
eBusiness Readiness
A secure information
Infrastructure
Internet Users’ experience
regarding ICT security
18
Sectors which will experience the biggest influence of the
integration according to made added value
(period of 2002-2009)
•
•
•
•
•
Consumer goods manufacturing (5,34 bln.Eur)
Wholesale and retail trade (2,6 bln. Eur)
Agriculture (2 bln. Eur)
Construction (1,1 bln. Eur)
Transport and telecommunication (0,9 bln.
Eur)
• Energy sector (0,8 bln. Eur)
19
Growth of GDP in union countries in 1988-2003
117
117,9
119,1 119,9
84,1
83,4
83,8
72,5
72,1
70,4
115,2
112,2
107
106,1
ES vidurkis - 100%
103,7
97
93,3
93,5
90,7
87
82,5
78,7
77
72,5
67
73,1
74,1
1988
78,1
58,5
79,9
79,3
73,3
69,5
69,7
70
65,2
65,9
66,6
67,7
63,8
59,4
59,1
78,2
74,7
66,3
59,2
58,3
78,1
71,1
63,8
57
78,4
77
82,1
64,8
64,2
65,9
82,2
79,2
72,2
71,9
68,2
66,9
68
67,7
69
69
64,7
61,9
60,1
57,4
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002*
2003*
* Prognozė
Graikija
Ispanija
Airija
Portugalija
20
EU enlargement: illustrative comparisons
Area, % EU-25
Population, % EU-25
CEEC-10,
16%
CEEC-10,
19%
EU-15,
81%
GDP size, % EU-25
CEEC-10,
5%
EU-15,
84%
EU-15,
95%
Source: Eurostat
21
CEEC productivity: a myth vs. hard reality
labor productivity per person employed, EU-15=100
1995
1996
1997
1998
1999
2000
2001
2002
EU-25
:
:
:
91.4
91.9
92.3
92.5
92.8
EU-15
100
100
100
100
100
100
100
100
CEEC-10
:
:
:
46.7
48.5
49.8
50.9
52.2
Malta
:
:
:
:
91.9
91.4
89.4
89.8
Cyprus
59.5
71.6
72.3
74.1
76
77.7
79.8
78.3
Slovenia
58.2
60.3
62.4
63.9
66.5
65.1
66.8
68.4
Hungary
53.7
53.7
55.2
56.2
56.3
57.6
60.9
62.6
Slovakia
42.9
43.7
46
47.4
49
51.7
53
56.2
Czech Rp.
:
:
:
:
:
52.7
53.1
53.7
Poland
:
42.3
40
42.5
45.8
47.6
47.9
48.8
Lithuania
28.6
29.2
30.6
32.7
32
34.3
38
41.9
Estonia
29.7
31
33.5
35.3
36.4
39.8
40.8
41.8
Latvia
28.2
29.3
30
31.1
32.3
35.1
36.4
37.1
22
eEurope 2005 Index and GDP/capita
DK
6
NMS and candidate countries
EU-15 countries
NL
FIN
eEurope 2005 Index
5
DE
EU-15 average score = 4,42
EE
4
PO
CZ
SL
UK
AT
IR
BE
MT
CY
3
SE
PT
IT
ES
FR
EU-15 lower limit = 2,97
LV SK
EL
TR
HU
BG
2
y = -2E-09x2 + 0,0002x + 1,8567
R2 = 0,7903
LT
RO
1
0
Source: INSEAD
5000
10000
15000
20000
25000
30000
35000
GDP per capita
23
Impact of the enlargement on industries
Survey Winners:
• Consumer goods retailing
• Financial services
• Pharmaceuticals
• Professional services
• Technology
• Telecommunications
• Transport
Survey Losers:
• Agriculture
• Automotive
• Consumer goods
manufacturing
• Mining and metallurgy
24
Project “Outsource2Lithuania”






Mission: to become number one choice for near-shore
outsourcing in Europe
Stable economy
Strong government support for knowledge economy
and developing the domestic ICT industry
Solid infrastructure
Strong ICT association
Extremely well educated and cost competitive labour
Fast growing economy and favorable legal
environment
25
Areas of Outsourcing
• Software and Engineering Administrative
support Network and Communication
Database Development Design and
Development Graphic Design and
Multimedia consultancy and Skill
Development.
26
Piešė A. Bunikis
27
■>)
Piešė A. Bunikis
28