Moldova ICT

Sector outlook

The Moldovan ICT market is at an early stage of development. It is among the most dynamically developing sectors of the national economy. Double digit growth was recorded in the number of Moldovan Internet connections in 2009 and 2010, with increased provider efforts to cover the market as fast as possible.

In terms of offshore/ nearshore activities, Moldova became one of the preferred outsourcing locations across the South Eastern Europe (SEE) region in the past years. This was heavily reflected in the volume of exports of services, which has been growing tenfold between 2004 and 2010. Most of the projects are commissioned from the U.K. and the US, followed by France, Germany, and Romania.

As for the telecommunications sector, Moldova has one of the highest Internet connection speeds in the world, especially in Chisinau, where most offshore/ nearshore companies are located. Competition in this market is becoming fierce; investment in network infrastructure can therefore be expected to grow rapidly.


Strategic direction/ specific schemes and incentives

Two strategies are being designed: "Digital Moldova 2020" and "ICT Competitiveness". The main objectives of the current ICT Strategy 2011-2014 are to:

  • Increase Moldova’s ICT sector position within the global value chain: exports of ICT products and services to increase from EUR 100 million to EUR 180 million over the 2011-2014 period;
  • Upgrade the national infrastructure through greater involvement of the private sector;
  • Strengthen IT skills through education to ensure adequate resources for the ICT sector development.

Other major objectives and schemes include:

  • Creation of technological parks and incubators in the ICT field and attraction of international companies;
  • Sector stimulation through public procurement;
  • Specific advantages for ICT companies: 0% corporate income tax, 0% income tax on all IT staff and a low flat rate for social welfare payments for employers;
  • e-Government Centre initiative (2010), aiming at improving access for citizens to public information.

Special incentives for Moldovan IT companies for the period 2012-2016 include:

  • Personal income tax incentives for employees;
  • Limitation of monthly social security contributions for employers.


Business opportunities

In terms of IT services, Moldova is well positioned for:

  • Software development: specialised outsourcing activities around high-and value services such as analysis & design, software development and testing;
  • Support activities (call-centres): competitive workforce with high levels of language proficiency.

In the telecommunication sector, the main opportunities are:

  • Mobile telephony: penetration still well below potential (70% for fixed and 120% for mobile);
  • Moldtelecom, among the most important state-owned companies to be privatised in the near future.


Some success stories

Endava (UK) is an IT services company, with over 700 full time employees working across our European development centres. It opened an affiliate in Chisinau to provide nearshore IT outsourcing services for large corporations in Great Britain and the United States.

Pentalog (France), a leader in the IT offshore sector, opened its third offshore office in Chisinau in 2005. It now has over 650 employees, with two business lines: information systems and embedded systems.

Q Systems (UK), Tacit Knowledge (USA), Computaris (UK), and Amdaris (UK) can be mentioned among the smaller players in terms of local business size (up to 50 employees).


Useful links and contacts

Moldovan Association of ICT Private Companies (ATIC)

Chamber of Commerce and Industry of the Republic of Moldova

MIEPO

European Business Association in Moldova

This publication has been produced with the financial assistance of the European Union. The contents of this publication are the sole responsibility of EUROCHAMBRES and can in no way be taken to reflect the views of the European Union.

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