ICT Basics for Central and Eastern Europe Günther Krumpak ITBeurope For Michigan State University/Intl Study Programs, Prague

Geography

Economy Growth in % GDP New EU members+4.2 (´04) +4.4 (´05) EU 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 bn CEE ~ 50 bn Leading: 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.

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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: Slovakia Overall IT market volume 2.3 bn (3.4% of Slovakias 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 Software19,5% IT Services28,9%

Example: Slovakia cont`d.

Austria Viennas 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 Austrian Business Agency ABA ITBeurope