ICT Basics for Central and Eastern Europe

Günther KrumpakITBeurope

For Michigan State University/Int‘l Study Programs, Prague

Geography

Economy

Growth in % GDP New EU members +4.2 (´04) +4.4 (´05)

EU-15 +2.0 +2.4

Leading:Baltic "Tigers" Lithuania (6.9/6.6), Latvia (6.2/6.2) Estonia (5.4/5.9)Slovakia (4.5/5.0), Poland (4.5/4.5), Hungary (3.5/3.9), Slovenia (3.4/3.5) und die Czech Republic (3.0/3.5).

ICT

• Market shares (´02)North America 31%Europe 29% ~ € 590 bnCEE ~ 50 bnLeading: Poland ~ 15 bn (pop. 40 mill.)(Austria ~ 20 bn; pop. 8 mill.)

Example: Siemens Austria€ 3.7 bn (+1.4 % in ´03, but + 23 % to € 750 Mio. in CEE (Slovakia, Slovenia, Croatia, Bosnia-Hercegovina, Serbia-Montenegro and Romania.

One of the few remaining playgrounds for global players

This information is reproduced with the kind permission of the European Commission, from http://www.ispo.cec.be/esis according to the copyright note stated there

Poland and Czech Republic leading

Compare Slovenia to Poland

+73% mobile lines

Conventional vs. Mobile 3:2

PCs: Business to come

PCs: +38% in 2 years

PC penetration: Slovenia 27%

PC penetration: Average 10%

Internet: Estonia leading

Internet growth: Czech Republic +400%

ICT Industry

• Widespread presence of multinationals(IBM, MS, HP, Oracle etc.)

• Growing no. of local business

Example: SlovakiaOverall IT market volume € 2.3 bn (3.4% of Slovakia’s GDP) IT 42.1%Telecom 47.9%Annual growth 20%

Example: Slovakia

• > 50% of overall volume from Slovak IT companies• Multis outsource considerable part of production• Increasing transfer of production into the country

• IT Spending by Technology 2001 in %

Multi user systems 15,7%

Single User systems 29,0%

Data communications equipment 6,9%

Packaged Software 19,5%

IT Services 28,9%

Example: Slovakia cont`d.

Austria

• Vienna‘s Part in CEE IT Business

Most major multis handle CEE IT markets from Vienna (HP, IBM, EMC, Canon, Sony DADC, Siemens, Philips, Hitachi DS, SAP, CSC, Cognos etc., ~ > 50)HP handling > 90 countries from Vienna

• Overall volume ~ € 10 bn = 20% of CEE IT market

No. 1 location in CEE market know how (market research, services, law, tax, headhunting, offices, PR etc.)

More information

• Vienna Business Agency WWFF www.wwff.gv.at

• Austrian Business Agency ABA www.aba.gv.at

• ITBeurope www.itbeurope.org