1. LITHUANIAN ICT MARKET TODAY AND TOMORROW The president of INFOBALT Vytautas Vitkauskas Vilnius 2004

2. 2 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.

3. 3 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 %

4. 4 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

5. 5 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

6. 6 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

7. 7 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.

8. 8 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

9. 9 Infobalt international initiatives  Member of major international ICT associations (EICTA – 2004, WISTA – 2002)  Participation in 5 EU ICT projects (Electranet, Telebalt, E- content 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).

10. 10 Alignment with EU-15

11. 11 Expenditure for researches and development (from GDP) Infornation: Europian commission GDP for one inhabitant (Eur.)

12. 12 Evaluation of different countries according to index of knowledge economy

13. 13 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

14. 14 Lithuanian ICT market target: In 2003, the ICT sector compounded 7.5% of the Lithuanian GDP

15. 15 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

16. 16 The eEurope 2005 framework eEurope IndexComponent Indexes eEurope 2005 Index Internet Indicators Modern Online Public services A dynamic e-Business Environment A Secure information Infrastructure Broadband

17. 17 The eEurope 2005 framework Component indexesSub indexes Citizens’ access to and use of Internet Business access to and use of ICT Internet access costs Internet indicators Modern online public services eGovernment eLearning eHealth

18. 18 The eEurope 2005 framework Component indexesSub indexes A dynamic eBusiness environment A secure information Infrastructure Buying and selling Online eBusiness Readiness Internet Users’ experience regarding ICT security

19. 19 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)

20. 20 Growth of GDP in union countries in 1988-2003

21. 21 Area, % EU-25Population, % EU-25GDP size, % EU-25 Source: Eurostat EU enlargement: illustrative comparisons

22. 22 CEEC productivity: a myth vs. hard reality

23. 23 eEurope 2005 Index and GDP/capita

24. 24 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

25. 25 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 Project “Outsource2Lithuania”

26. 26 Areas of Outsourcing Software and Engineering Administrative support Network and Communication Database Development Design and Development Graphic Design and Multimedia consultancy and Skill Development.

27. 27 Piešė A. Bunikis

28. 28 ■>) Piešė A. Bunikis