Upload
others
View
7
Download
0
Embed Size (px)
Citation preview
1
2
1
Table of Contents:
I. Introduction.........................................................................................................................................2
A. AboutATIC............................................................................................................................................2
B. ComparativeAnalysisoftheWhiteBook2008-2012..........................................................................3
C.LogicsoftheWhiteBook……….………...………………….……………………………………………….7
D. GoalandObjectivesoftheWhiteBook................................................................................................7
II. Executive Summary............................................................................................................................8
III. Moldova ICT Development in Regional and Global Comparison....................................................9
A. NetworkReadinessIndex......................................................................................................................9
B. BusinessUsage...................................................................................................................................10
C. IndividualUsage..................................................................................................................................10
D. GovernmentUsage.............................................................................................................................13
E. Affordability..........................................................................................................................................13
IV. ICT Industry Competitiveness..........................................................................................................17
A. IndustryStructure................................................................................................................................17
B. ContributiontoGDP............................................................................................................................19
C. ForeignTradeofICT...........................................................................................................................21
D. ContributiontotheStateBudgetandtheSocialInsuranceBudget....................................................22
E. ImpactontheOtherSectorsoftheNationalEconomy........................................................................25
V. Potential for Growth..........................................................................................................................27
A. GlobalTrends......................................................................................................................................27
B. Changesonthelocalmarket...............................................................................................................27
VI. Competitiveness Factors..................................................................................................................28
A. HumanCapital-aCriticalFactorintheICTSectorDevelopment......................................................28
B. BusinessEnvironment.........................................................................................................................30
C. EntrepreneurialSkillsandInnovations................................................................................................34
VII. Recommendations for Short, Medium and Long Term Policies...................................................35
2
This White Book presents an analysis of the ICT industry and industry’s recommendations on short, medium and long term policies. The White Book was developed by the Moldovan Association of Private ICT Companies (ATIC), with the support of the Competitiveness Enhancement and Enterprise Development Project II (CEED II), funded by the United States Agency for International Development (USAID).
A. About ATIC
ATICisanumbrellaassociationoftheprivatecompaniesoperatingintheinformationtechnologyandcom-municationssector,setupin2008withthepurposeoffacilitatingthedialoguebetweenICTcompaniesandtheGovernmentofMoldova.
ATIC’smissionistofosterthedevelopmentoftheMoldovanICTindustrythroughviablepartnershipsbetweenprivatecompanies,similarorganizations,governmentbodiesandinternationalorganizations,tocontributetoincreasingindustrycompetitivenessandcompanies’capacities.Atthesametime,ATICaimsatexpandingthemarket,attractinginvestmentsinthesectorandparticipatingindecision-makingatnationalandinternationallevels.ATICcooperatescloselywith thegovernmentandeducational institutions topromote ITeducation,enhancelaborforceandsupporttheICTindustry.
Attheendof2012,ATIChad38membercompanies,whichemployedatotalof8000peopleandaccountedfor50%oftheoverallICTvolume.ThemajorgoalofATICistomaintainabusinessenvironmentfavorableforICTcompanies.
The main activities of ATIC are the following:
• improvetheimageofICTdomesticallyandabroad,
• cooperatewithgovernmentandeducationalinstitutionstoimprovethequalityofITeducation,
• supporttheestablishmentofpartnershipsinICT,
• getinvolvedinimprovingthebusinessenvironmentintheICTindustry,
• cooperatewiththegovernmentbodiesinidentifyingsolutionstoenhancethequalityandquantityofICTgraduatesandprofessionals,
• sustain thedialoguebetween the ICT industryand thegovernmentbodies to improve thebusinessenvironment,attractinvestmentsandsupporttheindustry.
I. Introduction
3
Actions Expected results Success Indicators Status
Establishclearprioritiesforpublic-privatepartnershipsandafocalpointforcommunicationwiththeGovernment(ICTAssociation)
Constructivedialogue ICTsectorhaswelldefinedpriorities Achieved
Strongprivatesectorcommitmenttoinformationsocietydevelopment
ICTsectorhasasinglepointforcommunicationwiththeGovernment
AchievedbyestablishmentofATIC
Aggregatethecurrenteducationalneedsandongoingprivateinitiativesinacomprehensivebusinesssectorprogramforpartnershipwiththeeducationalsystem.
Fasttrackforeducationmodernization
Majorprivateinitiativesintheeducationfieldarecoordinatedincommonprogramwithcleargoals
PartlyachievedthroughadditionalcoursesinitiativeNotachievedintermsofcurriculum.
DevelopanICTsectorprofilethatdemonstratesthecapacityandattractivenessoftheICTsector
IncreasedawarenessabouttheICTimportance.ImprovedICTsectorvisibilityandtopicality
AsoundICTsectorprofiledevelopedandusedbytheGovernmentandprivatesector
AchievedbyUSAIDCEEDII
Investinworldrecognizedtechnologies,qualitymodelsandstandards
Improvedinternationalcompetitiveness
Numberofcompaniescertified Unmonitored
Numberofpeoplecertifiedperrecognizedtechnology
Partlyachieved
ProvidepromptfeedbackanddataabouttheimpactofstrategicdecisionsintheICTsector
Strategicdecisionmakingprocessbasedondetailedimpactanalysis
PrivatesectorprovidesconstructivefeedbackaboutICTplansandactions
Ongoing
B. Comparative Analysis of the White Book 2008-2012
In2008,thefirstPolicyWhiteBookwasdevelopedbyATIC,withsupportfromUSAIDCEEDProject.ThegoalofthatpublicationwastoclearlydefinethenationalICTsectorasoneofthemostproductivesectorsoftheeconomy,toidentifyitsdevelopmentopportunitiesforthefollowing3years,andtomakestrategicrecommen-dationsforimprovingthebusinessenvironmentinthesector.
List of actions:
4
Actions Expected results Success Indicators Status
EstablishmentofrealisticgoalsandprioritiesforICTdevelopmentandinformationsocietybasedonalreadydevelopedstrategiesandtheactualneedsofthesocietyandbusiness
Stronggovernmentsectorcommitmenttotheinformationsocietystrategydevelopment
RealisticstrategicprioritiesfortheICTsectorestablishedandused
Achieved
InitiationofeffectivepublicprivatedialogueforICTsectordevelopment
Sustainableandefficientstrategyimplementation
Numberofmeetings.Numberofissuesdiscussed.Numberofissuessolved
Achieved
Prepareanactionplantoprotectintellectualpropertyrights,withinapublic-privatepartnership
Designasystematicapproachtosolvingtheissuesrelatedtointellectualpropertypiracy
Theplanadoptedin12months Unachieved
Modernizationofeducation: Fasttrackforeducationmodernization
• updatetheregisterofprofessions
UpdatedregisterofICTprofessionsusedbytheeducationalsectorwithin12months
Ongoing.Discussionstartedin2012
• formaworkinggrouptoaidincooperationbetweentheICTsectoranduniversities
SpecificactionsfromtheICTsectorincludedintheeducationalprocess
Ongoing
• identifyandaddressimmediateproblemsforinefficienteducationinput/output
Input/outputproblemsanalyzedandaddressed
Ongoing
• modernizetheICTcurriculum
CurriculumforICTuniversitiesmodernized
OngoingStartedin2012
ICT Sector Priorities for Government Intervention
5
EliminatebarriersforICTsectorgrowth:
Properfiscalandadministrativeenvironment
GrowthoftheICTsector
• effectivegrowthdrivenregulationaimingatreducinginterconnectfeesonthecommunicationmarket,toensurerapidmarketgrowth
Interconnectionfeestrend Achieved
• improveandeliminatebureaucraticproceduresthatregulatethebuildingofICTinfrastructure,i.e.theprohibitiononplacingICTinfrastructurewithin10kmofnationalborders
TimeandeffortstoobtainedapprovalforbuildingICTinfrastructure
Unachieved
• introduceaqualitybasedcriteriainstateICTprocurements
%ofstateprocurementsintheICTbasedonqualitycriteria
Unachieved
• eliminatethepossibilityforcrosssubsidiesofthestateownedenterprisesandtheirtransformationtobudgetsponsoredinstitutesorprivateenterprises
%oftheICTstateprocurementexecutedbyprivatecompaniesorindependentmarketentities
Unachieved
• eliminatetheadditionaltaxburdentothemobilecompanies(2.5%paymenttotheRepublicFundforSocialProtection,VATrefundtime,amortizationpolicyfortheSWandICTetc.)
Overalltaxburdenofthecommunicationsectorcomparedtotheaveragefortheindustry;timeandeffortsforVATrefundbytheICTcompaniescomparedtotheotherexportorientedsectors.AmortizationperiodforSWandICTalignedwiththeirlifecycle
Unachieved
6
The first White Book proposed a series of recommendations most of which have unfortunately not been implemented so far. However, a number of proposals have been put into effect:
1. Since2009,theNationalRegulatoryAgencyforElectronicCommunicationsandInformationTechno-logy(ANRCETI)haspublishedfinancialreportsonitsincomesandexpenses.ThisallowsforahigherlevelofconfidenceintheuseoftaxespaidbytheelectroniccommunicationsproviderstotheAgency’sbudget.ThepublicationofexpensesincreasesthetransparencyoftheAgency’sactivityandeventuallyraisesitsefficiency.
2. From2010to2011,theexcisetaxesforvideoandwebcameraswerereducedandthentotallyelimi-nated.Thus,mostwebcamsarenowimportedbylegalmeansandthepricethereofhasreducedsig-nificantly.
3. From2009to2011,concreteactionswereundertakenintermsoftheinterconnection,includingaccesstothelocalloopandcolocation,whichhascontributedsignificantlytoreducingthebroadbandinternettariffs.
4. NumberportabilityiscurrentlyunderimplementationandstartingwithMay2013itwillbeamandatoryrequirement.
5. In 2010, the LawonPreventing andCombatingCybercrimewaspublishedand is currently imple-mented.
6. ANRCETIhasinitiatedtheregulatoryframeworkforissuanceoflicensestousetheradiofrequencysub-band3750–3800MHz(forserviceprovision inWiMaxstandard).However, it isassumedthatlicenseswillbeusesbasedoncompetition,notforfreeasthe2008WhiteBookwassuggesting.
7. Thegovernmenthasextendedtheapplicationoftaxincentivesonsoftwarecompanies.
Strategic interventions
• StrategicallianceswithworldrecognizedICTuniversitiesandinstitutions
Directaccesstomoderneducation
Easedpenetrationofbroadband Ongoing
• Creationofexcellencecentersincooperationwithinternationalorganizations
Directaccesstomoderntechnologies
Numberofstudentswithworldrecognizeddiplomas
Unachieved
• Businessandtechnologyincubators
GrowingnumberofICTcompaniesandICTemployees
Numberofcompaniesandnumberofexpertstrainedin/appliedcertaintechnologies;numberofnewICTcompanies,numberofnewemployees
Partlyachieved.Intermsoftechnologicincubators,thereisonlyoneundertheMoldovanAcademyofScience
• TechnologyParksExcellentbusinessenvironmentformaturedomesticandinternationalICTcompanies
VolumeofdirectinvestmentinICTcompanies.NumberofcompaniesinTechParks
Unachieved
7
C. Logics of the White Book
This White Book has the following logics:
Chart 1 Logics of the White Book
D. Goal and Objectives of the White Book
ThisWhiteBookprovidesanoverviewoftheICTsectordevelopmentinMoldova.
ThedocumentisexpectedtostrengthenthedialoguebetweentheICTbusinessandtheGovernmentandtoallowsupportinggovernmentpoliciesbasedontherealneedsofMoldova’sICTindustry.
Thepaperintendstopresenttheexistingsituationinthesector,theachievementsandfailuresinimprovingthebusinessenvironmenttotransformitintoonewhichismoreattractiveforinvestments,andthebottleneckstosectordevelopment,aswellasrecommendationsintendedtocontributetoincreasingICT’sshareascom-paredtootherindustries.
8
In2011,MoldovahadasignificantincreaseofitsNetworkReadinessIndex:fromthe97thtothe78thpositionamong the total number of 140 countries. This enhancement was due particularly to the development oftelecommunicationinfrastructureinthepasttwoyears,whereMoldova’sranked41st.Businessusagehasanalarminglevel(120thposition),causedbytheweakcapacityofcompaniestoabsorbnewtechnologiesandmodesteffortstotraintheirstaff.
Mobiletelephonypenetrationratedoubledfrom2007to2011,exceedingthelevelof100subscribersper100inhabitants.Thenumberofinternetusersalsodoubledinthesameperiod.Theshareofhouseholdshavingacomputerandinternetaccessincreased,positioningMoldovaaheadofsomeCentralEuropeancountriessuchasBulgaria,in2011.Broadbandinternetaccessincreasedinthepastfouryearsfrom1.4to9.9subscribersper100inhabitants.
From2008to2010,thecostoftelecommunicationservicesreducedsignificantly,placingMoldovaamongthetop10countriesasregardsthedynamicsofpricereductionforsuchservices.Thus,in2011Moldovasteppeduptothe8thpositionamongthe142countriesasregardstheaffordabilityofICTservices.Thereductionoftheconsumptionbasketfortelecommunicationserviceswascausedparticularlybythedecreaseofthebroadbandinternetprice.ThecostsforfixedtelephonyinMoldovaarerathersymbolic,whilemobiletelephonyremainsoneofthemostexpensiveintheCIScountries.
Ofthetotal829enterprisesoperatinginthesector,about55%areICTservice-providers(K72accordingtoCAEM2005)involvedinsoftwaredevelopmentandcomputermaintenance.Thenumberoftheseenterpriseshad themost dynamic increase in the sector: over 17% annually from 2005 to 2001.Telecommunicationcompaniesaccountedforthebiggestshareofemployees-41%oftheoverallnumberofover22thousand.OvertwothirdsofthelatterareemployedbyS.A.Moldtelecom.
In 2011, ICT had a contribution of approximately 6.8% to theGDP,which decreased compared to 2009.Telecommunicationsaccountedforthebiggestshare(about80%),beingalsothesubsectorthatgeneratedthereductionofthevalueaddedinthesector.Accordingtoofficialestimates,slightlyover0.8%oftheGDPor about 12% of the value added in the sector is generated by the software development and computermaintenancecompanies.Inreality,thisfigurecouldbetwicehigher.
Foreign trade by ICT companies increased significantly in the past years. The export of information andinformaticsserviceshadimpressivegrowthtrends,increasingover13timesfrom2005to2011.
ICTcompaniesaccountforover5%ofthecontributionstothesocialinsuranceandhealthinsurancebudgets.
Unlikethetrendsobservedinotherregionalcountries,therateofenrolmentintertiaryeducationreducedinthepastyears.Apparently,thenumberofstudentsissufficienttosatisfythedemandexistingontheinformationtechnologymarket.However,inreality,onlyasmallnumberofgraduatesarecapableofperformingthecurrenttasks,most of them requiring preliminary training before employment.Most software companies organizetrainingsfor theirnewlyhiredstaff, thusreducingthegapbetweentheskillsof thecurrentemployeesandthoseofthefreshlyemployedgraduates.
From2009to2011,Moldova’srankasregardsbusinessenvironmentfellfromthe94thtothe106thposition.Thesituationintermsoftheeffectivenessoflegalbodies(Parliament),thelawonICTsector,legalindependenceandintellectualpropertyprotectionworsenedascomparedtoothercountries.
III. Moldova ICT Development in Regional and Global ComparisonII. Executive Summary
9
A. Network Readiness Index
TheeffortsundertakenintherecentyearstoboosttheICTsectorinfrastructurecontributedtoraisingMoldova’spositionininternationalrankings.
Followingaslowfallduring2007-2009,Moldovasteppedupto the78thposition in theNetworkReadinessIndex,gettingclosetoitsneighbors-RomaniaandUkraine,whicharemuchmoreeconomicallydeveloped.
Chart 2 Evolvement of countries ranking in the Network Readiness Index
Source: INSEAD, The Global Information Technology Report, 2012
Ananalysisof theIndexcomponentsrevealsthat thegrowthwasduetoasubstantial improvementof theICT infrastructure.Over threeyears,Moldovamoved69positionsup, ranking41st in termsof thenetworkreadinesscomponent.Thefalloftheenvironmental(political,regulatory,business,andinnovation)componentfromthe94thtothe106thpositionisalarming.
III. Moldova ICT Development in Regional and Global Comparison
NetworkReadinessIndex(NRI)measureseconomies’capacitytofullyuseICTforenhancingcountry’scompetitiveness.Since2002,NRIhasbeendevelopedbyWorldEconomicForum incooperationwithINSEAD and used by politicians and other stakeholders to identify the strengths andweaknesses tomonitortheeffectoftheundertakenactions.
NRIiscalculatedbasedontencriteriawhichincludefourareas:environment,capability,usageandimpact.Thestudypresentedin2012wasconductedin2011on142countries.
10
Chart 3 Evolvementof Moldova’s ranking in terms of Network Readiness Index components
Source: INSEAD, The Global Information Technology Report, 2012
B. Business Usage
Accordingtothe2012INSEADresearch,theweakestpillarofnetworkreadinessisBusinessUsage.Forthiscomponent,Moldovaranks120thoutof142countriesor33positionslowerthanin2009,behindCIScountrieswithsimilardevelopmentlevelssuchasArmenia(104),Azerbaijan(72),Georgia(109),Tajikistan(111),anditsneighboringcountries-Romania(91),Bulgaria(101),andUkraine(76).
Two factors have contributed significantly to diminishing this index:
1. Firm-leveltechnologyabsorptioncapacityreducedfrom4.26to3.9from2009to2012.Moldovaranked126th,leavingbehindonlytwoCIScountries:theKyrgyzRepublicandtheRussianFederation.
2. Investmentbyenterprisesinstafftraininganddevelopmentisoneofthelowestintheworld–118thpositionbehindRomania(79),Georgia(106),Armenia(105),andUkraine(117).Themainreasonbeingthatmostcompaniesdonotperceivetrainingasbringinganyvalue.
Theothertwofactors–CapacityforinnovationandExtentofBusinessInternetUse–havemodestscores,rankingMoldovaonthe107thand109thpositionsrespectively.
C. Individual Usage
Intermsofindividualusage,Moldovahadaslightprogressfromthe80thtothe71stpositionfrom2008to2011,accordingtotheINSEADresearch.
Mobiletelephonypenetrationratedoubledduringthepastfouryears,bringingMoldovaclosetoitsneighbors–RomaniaandUkraine,andaheadoftwoCIScountrieswithsimilardevelopmentlevels-ArmeniaandGeorgia.
11
Chart 4 Evolvement of mobile telephony penetration rate by countries
Source: International Telecommunication Union (http://www.itu.int/ITU-D/ict/statistics/)
Between2008and2011, theshareofMoldovanpopulationusing Internetalmostdoubled.Asimilar trendexistedintheneighboringcountries.Internetisusedbyapproximately38%ofthenationalpopulation.
Chart 5 Internet Users
Source: International Telecommunication Union (http://www.itu.int/ITU-D/ict/statistics/)
Remittancesfrommigrantscontributedtoincreasingtheshareofhouseholdhavingapersonalcomputer.This,alongwithfamilies’needtocommunicatecheaplywithmembersabroad,ledtoaconsiderableincreaseoftheshareofpeoplehavingaccesstoInternet.
Thus,from2007to2011,theshareofhouseholdshavingacomputerincreasedfrom23%to41.6%,andtheshareofthosethathaveaccesstointernet–from16%to41%.
12
Chart 6 Share of households having a computer and internet access in 2010
Source: INSEAD, The Global Information Technology Report, 2012; ITU, Measuring the Informa-tion Society, 2012
Inthepastfouryears,thenumberofbroadbandInternetusersinMoldovaincreasedsignificantlyfrom1.4to9.9per100inhabitants.Thehighrateofhouseholdsusingcomputerswillpromptbroadbandinternetexpan-sioninthefuture.
Chart 7 Broadband Internet access
Source: International Telecommunication Union (http://www.itu.int/ITU-D/ict/statistics/)
13
D. Government Usage
From2009to2012,Moldovamovedupfromthe103thtothe94thpositionintermsofusageofICTtechnologiesbythegovernment.TheimprovedratingwasdueprimarilytoanimpressivegrowthinthenumberofonlineservicesprovidedbytheGovernment–fromthe112thtothe82ndposition.However,Moldova’sperformanceintermsoftheimportancethattheGovernmentplacesontheICTsectorisweaker–108thposition.
IT-relatedexpendituresineducation,publichealthcareandpublicadministrationvariedinthepastfiveyearsbetween10%and18%ofthetotalexpensesoflegalentitiesinthecorrespondingareas.Thebreakdownofexpensesinthepublicsectordiffersfromtheoverallbreakdown.Therefore,legalentitiesotherthantheonesmentionedabovespent32%of the ITbudget forpurchasingcomputerequipmentand26%- forsoftware,whilepublicsectorentitiesspent48%oftheirtotalbudgetforequipmentandonly12%(orfortimesless)forsoftware.Only1%ofthepublicsector’sbudgetwasallottedforthedesignanddevelopmentofinformationsystems.
E. Affordability
From2008 to2010, thecostof telecommunicationservices reducedsignificantly.According toa researchbytheInternationalTelecommunicationUnion(ITU)conductedin2011,theICTPriceBasket(IPB)reducedbyapproximately50%,placingMoldovaonthe9thpositionamong165countries.ThepricereductionforthetelecommunicationserviceswasdueprimarilytoareductionofthepriceofbroadbandInternetby3.7times.
Accordingtothe2012INSEADresearch,Moldovaranks8thoutofthe142countriesintermsoftherateofincreaseofICTserviceaffordability.
Theabsolutecostoffixedtelephonyservicesislow–24%lowerthantheCISaverage.OftheCIScountries,onlyBelorussia,Kyrgyzstan,UzbekistanandTajikistanhavelowertariffsforthefixedtelephony.
Chart 8 Cost of fixed telephony basket
Source: ITU, Measuring the Information Society, 2011
InrelationtotheGrossNationalProduct(GNP),thiscostexceedsthecostaverageintheCIScountries,whilebeingmuchlowerthanthecostintheCentralEuropeancountries,eveninrelativeterms.
14
However,access tofixed telephony, including the low tariffsappliedbyoperators,havea lower impactoninformationtechnologydevelopment.Moreover,atinternationallevel,thelowdemandforfixedtelephonyhasdeterminedadecreaseinthenumberofsubscriberssince2007¹.
Chart 9 Cost of fixed telephony basket in relation to GNP
Source: ITU, Measuring the Information Society, 2011
Comparedto2008,thefixedtelephonycostinrelationtoGNPpercapitawentdownfrom1.8to1.15%.Thiswasduetoboththedecreaseofthebasketinabsoluteterms,andtheGNPgrowthpercapita.
TariffsformobiletelephonyprovidedbyMoldovanoperatorsareconsiderablyhigherthaninmostCIScountries.Chart 10 Cost of mobile telephony basket
Source: ITU, Measuring the Information Society, 2011
InrelationtoGNP,thecostofmobiletelephonyishigh:about3.5timeshigherthantheaveragefortheCIScountriesandalmosttwiceasmuchasinmostcountriesofCentralEurope.¹ITU,MeasuringtheInformationSociety,2011
15
Chart 11 Cost of mobile telephony basket in relation to GNP
Source: ITU, Measuring the Information Society, 2011
Comparedto2008,themobiletelephonycostinrelationtoGNPreducedbyonethird(from12%to7.64%),whichwasmainlycausedbyanincreaseintheGNPratherthanthereductionofabsolutecosts.
Absolute tariffs forbroadband internetare the lowest inCISand lower that inCentralEuropeancountriesexceptRomania.
Thecutoftariffsforbroadbandinternetledtoasignificantincreaseoftheshareofhouseholdshavingaccesstointernetfrom16%in2008to41%in2011.
Chart 12 Average monthly tariff for broadband Internet
Source: ITU, Measuring the Information Society, 2011
RelativetariffsforbroadbandInternet(inrelationtoGNP)arecomparabletotheonesinmanyCIScountriesandslightlyhigherthanthoseinCentralEurope.
16
Chart 13 Average monthly tariff for broadband Internet, in relation to GNP
Source: ITU, Measuring the Information Society, 2011
InrelationtotheGNPpercapita,thecostofbroadbandinternetdecreasedsignificantlycomparedto2008–from18.5%to3.9%.
17
A. Industry Structure
ThestructureoftheICTindustryisdiversified,comprisingthemanufactureofequipment,provisionofservices,wholesaleandtransport. Thus, intheClassificationofEconomicActivitiesofMoldova(CAEM)there isnoseparateICTsection.Thismakesitdifficulttoconductanalyses,evenatthelevelofsomegeneralindicatorssuchasthegrossvalueadded,theshareinGDPorthesales.
ThereisnocleardefinitionoftheICTindustry.Forpurposeofthisstudy,thefollowingsectorsofthenationaleconomy(accordingtotheCAEM2,2005)havebeenincludedinICT.
30000 Manufacturingofofficeequipmentandcomputers31300 Manufacturingofinsulatedwireandcable32000 Manufacturingofradio,televisionandcommunicationequipmentanddevices33200 Manufacturingofinstrumentsandappliancesformeasurement,verificationandcontrol33300 Manufacturingofindustrialprocesscontrolequipment51840 Wholesaleofcomputers,peripheralsandsoftware51850 Wholesaleofotherofficemachineryandequipment51860 Wholesaleofotherelectronicequipmentandcomponents64200 Telecommunications71330 Rentingofofficeequipmentandcomputers72000 Computerequipmentandrelatedactivities
Unlike the 2008White Book, this study does not include code 1543 – wholesale of electrical householdappliancesandradioandTVdevices.HavinganinsignificantshareintheoverallICTtrade,thissubsectorhasaweakinfluenceonthegeneraldata,whichallowsfordatacomparability.
Themainactivityofmostoftheindustrycompanies–829or55%–istheprovisionofICTservices,includingdevelopmentofsoftware,consultancy,andcomputermaintenance.From2005to2011,thenumberofsuchenterprisesincreasedbyapproximately17%annually.
Telecommunicationsispracticedbyabout460enterprises,withnochangecomparedto2007.ThenumberofenterpriseswholesaletradingICTproducts,particularlycomputers,peripheralsandsoftware,increasedbyapproximately10%annuallyfrom2007to2011.
ThenumberofenterprisesmanufacturingequipmentdesignedfortheICTindustrydecreasedin2011com-paredto2007,accountingforonly5%ofthetotalnumberofexistingICTcompanies.
IV. ICT Industry Competitiveness
18
Table 1 Structure of the Moldova ICT sector, number of enterprises
Source: National Bureau of Statistics
About22.3thousandpeopleareemployedinICTcompanies,slightly(5%)morethanin2007.ThenumberofICTprofessionalsemployedintheITdepartmentsofcompaniesthatcarryoutvariousactivitiesotherthanICTshouldbealsotakenintoaccount.ThenumberofsuchemployeesiscomparabletothoseworkingintheICTcompanies–about10-15thousandpersons.
Table 2 Number of employees in the ICT industry
Source: National Bureau of Statistics
Over41%oftheICTindustryemployeesworkintelecommunications,ofwhichtwo-thirdsareemployedbyS.A.Moldtelecom,and34%workinICTservices(softwaredevelopment,computermaintenance,etc.)
CAEM Code Sector 2005 2007 2011
Manufacturing 75 89 7730000 Manufacturingofofficeequipmentandcomputers 9 9 7
31300 Manufacturingofinsulatedwireandcable 3 5 4
32000 Manufacturingofradio,televisionandcommunicationequipmentanddevices 30 37 21
33200 Manufacturingofinstrumentsandappliancesformeasurement,verificationandcontrol 30 33 36
33300 Manufacturingofindustrialprocesscontrolequipment 3 5 9Wholesale 86 118 15951840 Wholesaleofcomputers,peripheralsandsoftware 77 103 13551850 Wholesaleofotherofficemachineryandequipment 5 7 1051860 Wholesaleofotherelectronicequipmentandcomponents 4 8 14Telecommunications 358 466 460ICT services 376 519 829TOTAL 895 1192 1525
CAEM Code Sector No. of employees
Manufacturing 372630000 Manufacturingofofficeequipmentandcomputers 67
31300 Manufacturingofinsulatedwireandcable 1859
32000 Manufacturingofradio,televisionandcommunicationequipmentanddevices 184
33200 Manufacturingofinstrumentsandappliancesformeasurement,verificationandcontrol 1522
33300 Manufacturingofindustrialprocesscontrolequipment 94Wholesale 171251840 Wholesaleofcomputers,peripheralsandsoftware 104351850 Wholesaleofotherofficemachineryandequipment 64251860 Wholesaleofotherelectronicequipmentandcomponents 27Telecommunications 9 157ICT services 7 664TOTAL 22 259
19
Chart 14 Breakdown of employees by sub-sectors
B. Contribution to GDP
TherearetworeasonswhyitisnotpossibletoestablishwithhighprecisiontheICTindustrycontributiontoGDP.Asmentionedabove,according toCAEM, the ICT in-dustry isbrokendownbysub-sectors:manufacturing,services, wholesale and communications. Therefore,thecalculationofthegrossvalueaddedatatwodigit-levelbytheNationalBureauofStatisticsistoosynthetictoallowestablishingtheICTindustry’scontribution.
Thesecondreasonisthehighshareofthe“grey”mar-ket,whichconsistsprimarilyoftheimportofequipmentwhichwasnotbeensubjecttocustomsclearanceandtheprovisionofundeclaredservices.
TheonlyICTsub-sectorthevalueaddedofwhichiscalculatedbytheNationalBureauofStatisticsisITserviceprovision(sectionK72ofCAEM2005),namelyconsultingoncomputerequipment,softwaredevelopment,computermaintenance,etc.Followingagrowthduring2008-2010,thesoftwaresectorsloweddownin2011.Althoughthevalueaddedinthisareaincreasedby3%in2011comparedto2010,intermsofcurrentprices,thisgrowthwaslowerthantheGDPgrowth.
Chart 15 Share of IT services in GDP
Source: Calculations based on the data from the National Bureau of Statistics
Telecommunicationservicesare included in thestatisticalcalculations togetherwith thepostalservices, insectionI64,accordingtoCAEM2005.However,knowingthattelecommunications(groupI642ofCAEM2005)accountforabout89-95%oftheICTservices²,wecancalculatewithahighprobabilitythegrossvalueaddedgeneratedbythissub-sector.
²The share of telecommunications reached its minimal value of 89.1% in 2009 and its maximal value of 94.6% in 2008
0,70%
0,60%
0,50%
0,40%
0,80%
0,90%
2008 2009 2010 2011
1,00%
0,81%0,86%
0,91%
0,82%
20
Chart 16 Share of telecommunications to GDP
Source: Calculations based on the data from the National Bureau of Statistics
In2011, theaddedvaluegeneratedbyenterprisesmanufacturing ITequipmentaccounted forabout0.34-0.37%oftheGDP,whichwashigherthaninthepreviousyears.However,itshouldbenotedthataround95%oftherespectivevaluewasgeneratedbytheenterprisesmanufacturingwireandisolatedcables(groupD313)andthemanufacturersofmeasuringdevicesandtools(groupD332).Theother5%orlessthan0.02%oftheGDPresultedfromtheactivityofenterprisesproducingcomputerandofficeequipment,radio,televisionandcommunicationequipmentanddevices,andequipmentforcontrolofindustrialprocesses.
UsuallytheICT’wholesalesub-sectoristhemostdifficulttoassess.Ananalysisofthesalesinthissector,admittingthat12-15%ofthemarevalueadded,revealsamodestcontributionofabout0.22-0.27%totheGDP,ofwhichthesaleofperipherals,computersandsoftwareaccountsfor96%.Thisindustrysegmentisthemostaffectedbytheblackmarketactions.However,evenadmittingthathalfofthecomputerimportsareunregis-tered,thecontributionofthissegmenttotheGDPwouldnotexceed0.5%.
Chart 17 Contribution of ICT to the GDP, by areas, 2011
Therefore, the overall contribution to GDP of thefour ICT sub-sectors – services, manufacturing,telecommunicationsandwholesale– isabout6.8%.Thisfigurerepresentstheregisteredvalueoftheindustryanddoesnotincludetheundeclaredactivitiesofbusinesses.Nevertheless,evenapossible “adjustment”of thevalueaddedfortheITsectorwouldnotchangeitsshareintheGDPbecause:
1)telecommunication,whichisafullytransparentsegment,accountsforthebiggestshare(5.4%);
2) in order to ensure data comparability, the increaseof the absolute value added for the industry should beaccompaniedbyanincreaseintheabsolutevalueaddedfor theothersectorsof thenationaleconomy.Thus, thesharecouldevendecrease.
Source: Calculations based on the data from the National Bureau of Statistics
2008 2009 2010 2011
5,50%
5,00%
4,50%
4,00%
6,00%
6,50%
5,89%
6,12%
5,79%
5,37%
21
C. Foreign Trade of ICT
Asshowninthetablebelow,theexportofICTservicesincreasedconsiderablyinthepastyears.Thebiggestsharebelongedtothecommunicationservices,whichalsoincludespostalservices.
Itshouldbementionedthattheinformaticsandinformationservicesincreasedover13timesfrom2005to2011;theirshareintheoverallexportofservicesincreasedfrom0.9%to5.4%duetothefactthatboththeactualvolumeandthedeclaredvaluedofexportsgrew.
Table 3 Foreign trade of IT and communication services, mln USD
Source: National Bank of Moldova
Importof ICTservicesalso increased, thoughlessthanexports.Thus, from2005to2011, foreigntradeofcommunicationservicesdoubledandthatofinformaticsandinformationservicesincreasedalmostninetimes.
Chart 18 Foreign trade of ICT services
Thefiguresaboveshowtheofficialexports.However,inthisindustry,theshareofundeclaredactivitiesissig-nificant.Usuallyinsuchcasesoutsourcingisdonethroughspecializedwebsiteslikewww.odesk.com,andthepaymentismadebywiringdirectlytotheprovider.Accordingtocertainsources,in2009,theIToutsourcingmarketvolumeinMoldovawasabout54mlnUSD³,twicehigherthattheofficialfigures.
³http://ceeoa.org/assets/Uploads/CEEITOReview2010.final.pdf
2005 2006 2007 2008 2009 2010 2011CommunicationservicesExport 59.37 71.19 85.67 114.56 105.21 126.05 133.96Import 27.28 29.00 37.55 47.37 39.15 38.13 42.46
InformaticsandinformationservicesExport 3.64 7.97 14.27 26.27 29.75 33.42 47.84Import 4.40 5.89 15.65 15.99 23.98 23.63 22.99
22
Becauseoftheissuesrelatedtothebookkeepingofforeigntradeofservices,alargeamountofserviceex-portsandimportsavoidbookkeepingandreportingtothegovernmentinstitutions.Inordertoregisterinthebookstheexpensesorrevenuesfromtheinternationaltradeofservices,companiesshouldsubmitsupportingdocumentsregardingthetransactionsmade,namelytoconcludeaStatementofdeliveryandacceptance.Usuallythisishardtoachieveandsometimesevenimpossible(i.e.forelectronictrade).Thus,itiseasierforbusinessestoregisteracompanyabroadtodeliversoftware,whiletheincomesaretransferredintothecoun-trybysemi-legalways,avoidingreportingtotheStateTaxService.
ItisalsodifficulttoassessthevalueoftheimportsandexportsofICTequipment.TheStandardInternationalTradeClassification(SITC)doesnothaveaseparatesectionforthissubsector.Ontheotherhand,thedatafromtheCustomsDepartmentarenotaccurate,giventhehighshareofunregistered imports.However, ispossibletofollowthetrendbyanalyzingthetwochaptersthatincludetheimportofICTequipment:75-Officemachinesandautomaticdata-processingmachinesand76Telecommunicationsandsound-recordingandreproducingapparatusandequipment.
Forbothchapters, imports,even ifpartly registered,exceedconsiderablyexports:44 times forchapter75and12timesforchapter76.Importsincreasedduringtheperiodof2003-2011butnotsignificantly,followingtheoverallimporttrendforthecountry.Theshareoftheabovementionedchaptersinthetotalimportsvariedbetween3.07%and3.74%duringthesaidperiod.
Accordingtosomeestimates,thehardwaremarketaccountsforabout100mlnUSD,inclusiveofVAT.Basedonthisdataonecanestimatethelevelofimports,whichsatisfiesthismarketvirtuallyentirely.
AnanalysisofthevalueaddedbythemanufacturingICTcompaniesandtheamountofVATtransferredtothebudget,wecanestimatethatatleast90%oftheindustryproductsareexported.Thebiggestshareofexportsbelongstotheenterprisesmanufacturinginsulatedwireandcablesandthemanufacturersofinstrumentsandappliancesformeasurement,verificationandcontrol.
D. Contribution to the State Budget and the Social Insurance Budget
ICTaccountsforabout5.4%oftheVATcollectedin2011totheStateBudgetorover577mlnlei.Thetele-communicationssub-sectorisresponsibleforthebiggestshareofthisamount–over55%.ThoughthevalueaddedintelecommunicationssuggestsabiggershareoftheVATpaid(about79%),theactualshareislower,giventhefactthatthevalueofexportsintelecommunicationsexceededbyfarthevalueofimports,theformerbeingVATexempted.
Trade,throughhavingamodestshareintheindustry’svalueadded,hasasignificantshareintheVATtrans-ferstothebudget,sincemostoftheproductssoldcomefromimports.
ManufacturingcompanieshavenotmadesignificantVATpayments,giventhehighshareofexports inthissubsector.
23
Chart 19 Share of ICT in the total VAT paid
Source: Calculations based on the data from the National Bureau of Statistics
TheshareofICTinthetotalVATpaidreducedsignificantlycomparedto2007–from9.7%to5.4%.Thiswasduetoboththereducedabsolutetransfersandtheincreasedtransfersmadebyotherindustries.
Chart 20 Evolvement of the level of VAT paid by the ICT sector
ThesituationoftheamountofsocialinsurancecontributionspaidbytheICTsectorissimilar:about5%ofthetotalforthecountry.Theshareofmanufacturingishighduetothebigshareofsalaryexpensesinthevalueaddedbythissub-sector.
In2011,theoverallamountofcontributionspaidbytheICTsectorwas330mlnMDL.
24
Chart 21 Social insurance contributions paid by the ICT sector
Source: Calculations based on the data from the National Bureau of Statistics
Thecontributionstothehealthinsurancebudgetin2011amountedto88mlnlei.ThesharethereofinthetotalhealthinsurancecontributionspaidinthecountryandthebreakdownbyICTsub-sectorsaresimilartotheonesexistingforthesocialinsurance.
Boththeamountofsocialinsuranceandhealthinsurancecontributionsincreasedbyapproximately74%com-paredto2007.
Chart 22 Evolvement of social insurance contributions and health insurance premiums paid by the ICT industry
Inadditiontotheabovementioned,theICTindustrypaidin2011about597mlnMDL.AbigpartofthesearepaymentstotheRepublicanfundandthelocalfundsforpopulationsupport.
25
E. Impact on the Other Sectors of the National Economy
Until2009,theconsumptionofinformationtechnologiesinthenationaleconomysectorsincreasedcontinu-ously,particularlyduetothegrowthofconsumptionintransportsandcommunications.However,in2010ITconsumptionstartedtodeclinemainlyduethereductionofITconsumptionbyhalfintransportsandcommuni-cationsfrom2009to2011.Fortherestofsub-sectors,thelevelofconsumptionremainedvirtuallythesame.
Thegrowthofinvestmentsintelecommunicationsduring2008-2009andthedecreasethereofduring2010-2011maybeexplainedbythefactthatmobileoperatorsmadeinvestmentsinthe3Ginfrastructure.
Chart 23 Expenses by the national economy sectors for information technologies
Source: National Bureau of Statistics
1. Impact on Enterprises (at micro level)
TheapplicationsdevelopedbytheICTsectorhaveanimportantimpactonenterpriseproductivity.
Theeconomicandfinancialanalysesorthetechnicalandeconomicfeasibilitystudiesenableaccuratede-cision-making,which leadstomaximizationofsalesandminimizationofexpenses. Inarapidlydevelopingworld,notonlytheaccuracyofactionsisimportant,butalsothetimeframeinwhichsuchactionsaretaken.Thedevelopmentofmanagementinformationsystemsenablesdecision-makinginatimelymanner.Informa-tionsystemsallowsignalingwhenadecisionisnotmadeontimeorisincorrect.
ThecostsforpromotionthroughInternet(e-mail,websites,socialnetworks,twitter,etc.)areconsiderablylowerthanthoseforpromotionthroughhardcopies.Inaddition,thescopeofadvertisingismuchwider.
Informationtechnologiesenableautomatingnotonlydecision-making,butalsotheproductionprocess.Highproductivityallowsreducingdirectunitarycosts,andthusincreasingenterprisecompetitiveness.
26
Informationtechnologieshavegeneratedastrongtrendofenterpriseactivitiesglobalization.Companiesarepermanentlylookingforinformationaboutvariousprovidersintheirsearchforcheaperandmorequalitativerawmaterials,betterlaborforce,cheaperfinancialsources,morepromisingmarkets,aswellasforinformationaboutthebestpracticesinthefield.Experience,asacriticalfactorforacompany’ssuccess,graduallyyieldsuptothecapacityofrapidlyfindingthenecessaryinformationandapplyingitadequately.
2. Impact on the Education System
TheuseofITmakesinformationmoreattractive,helpstheeducationprocessbecomemoreappealingandturnsitfromanobligationtoapleasure.Thus,studentsarethosewhorequestinformation,becomingactiveconsumersintheprocessofeducation.
Informationtechnologiesallowfindingthenecessaryinformationrapidly.Asaresult,theefficiencyoftheentireeducationprocessincreases.
Inthemodernworld,havingthecapacitytomemorizeinformationisnotasimportantashavingtheabilitytoeasilyfindinformation.Theuseofinformationtechnologiesincreasesconsiderablytheabilityofstudentstofindusefulinformationwhenneeded.
3. Impact on the Public Administration
Not less important is theuseof information technologies inpublicadministration.Thiseliminates theneedtosubmittovariousinstitutionspilesofdocumentsgeneratedbyotherentitiesorwhichhavealreadybeensubmittedtoothergovernmentbodies.Italsoallowsforamorerapidanalysisofdocuments(thereinnoneedforseveralagenciestoexaminethesamedocument)andsavesthetimeofbusinesses,whichwillnothavetogotodifferentgovernmentagenciestoaskforapprovalsandcoordination.Increasingtheefficiencyofcivilservantswillallowreducingthenumberthereofandincreasingthesalariesfortheremainingstaff.
Theuseofnewtechnologiesincreasessignificantlythecapacityofcitizensandofvariousentitiestogetin-volvedindecision-makingbythegovernmentbodies.
27
A. Global Trends
According toGartner Inc., the ITmarket will grow by around 3.5% annually in the following three years,reaching4.4trillionUSDin2015.AlthoughcurrentlytheyhaveaninsignificantshareintheoverallITmarket,“cloud”serviceswillincreaseby20%,reachingin2015asalesvalueofabout180billionUSD,accordingtothereportpresentedbyGartnerInc.GiventhefactthatthereislittleknowledgeaboutMoldovancompaniesontheinternationalmarket,thesalesincloudcomputingcreatefavorableconditionsforexport.Themarketingef-fortrequiredforcloudsalesislowerthantheoneneededforindividualproductsales.Thesoftwaredevelopedmaybeplacedincloudasservices.
Anotherrelativelyopensegmentthatrequiressmallinvestmentsarethemobileapplications.AnIDCreportestimatedthismarketat35billionUSDin2014.Thishoweverrequiresahighmarketingeffort.Theriskofcreatingsoftwarethatisnotsuccessfulonthemarketisrelativelyhigh.AccordingtotheestimationsoftheCentralandEasternEuropeanOutsourcingAssociation(CEEOA),therehasbeenatrendofoutsourcingmar-ketgrowth.Thismarketincludessmallprojectsforsmallandmediumcompanies,representingapromisingopportunityforMoldova.
Theshareofsoftwaredesignedforthebanking,financialandinsurancesectorsiscontinuouslygrowing.Cos-tumersappreciatehighlycompaniesthathaveextensiveknowledgeandexperienceinspecificareas.UsuallysoftwarecompaniesinMoldovaareactivelyinvolvedindevelopingsoftwareforthefinancial-bankingsector,whichisanimportantcompetitiveadvantage.ComparedtotheAsiancountries,MoldovaisclosertoEuropebothgeographicallyandculturally.LaborforceinMoldovaisconsideredofhigh-qualitywhilerelativelycheap.ManyforeigncompaniesconsidermovingtheirofficesclosetotheEU.SoftwarecompaniesintheEUandNorthAmericaseeCentralandEasternEuropeasamoreconvenientoptionthanAsiaduetoamuchmorecooperativeandresult-orientedlaborforce.AnotheradvantagefortheEuropeancompaniesisthesmalltimezonedifference,whichmakescommunicationeasier.
Followinganincreaseby43%ofthesoftwareexportsin2011,in2012thegrowthpaceisexpectedtoslowdowntothelevelof2009-2010–about12-13%peryear.
B. Changes on the local market
InNovember2012,ANRCETIgrantedtwolicensesforthe4thgenerationofmobiletelephonytoMoldcellandrespectivelyOrangecompanies,whichprovidemobiletelephonyservicesontheMoldovanmarketandwhichwillmodernizetheirexistingnetworksbasedontheLTEtechnology.Accordingtothetermsofthelicense,byDecember31,2015,thelicenseholderswillhavetocoveranareainhabitedbyatleast25%ofthepopulation.Therefore,inthefollowingtwo-threeyears,agrowthofinvestmentsintelecommunicationsisplanned.
Thenewgenerationoftechnologieswillenhancesignificantlythequalityofmobileinternetaccess,willfacili-tatetheinteractivityandthecapacityofdatatransfer,theorganizationofvideoconferencesonmobilephonesanduseothermodernmobileapplications.Recently,ANRCETIannounceditsintenttomakeavailabletothetelecommunicationproviderstheradiofrequencysub-band3750-3800MHzinordersecurepublicnetworksandservicesforelectroniccommunicationsviaterrestrialmobilenetworksforbroadbandradioaccess.Ac-cordingtotheproposalofANRCETI,companiesthatcurrentlyprovidemobilecommunicationserviceswillbeboundtosecurecoveragebyBWAservicesonatleast30%oftheterritoryofMoldova,within18monthsaftertheygettheBWAlicense.TheothercompanieswillbeboundtosecurecoveragebyBWAservicesforatleast30%oftheterritoryofMoldovawithin36monthsaftertheygettheBWAlicense.ANRCETIconsidersthattheissuanceofsuchlicensewillcontributetoattractinginvestmentsinthedevelopmentofnewInternetaccesstechnologies,which,intheirturnwillstimulatecompetitiononthemarketofpublicbroadbandInternetservices,particularlythoseprovidedintheruralareas.
V. Potential for Growth
28
A. Human Capital - a Critical Factor in the ICT Sector Development
TheICTindustry,particularlytheserviceprovisionsub-sector(softwaredevelopment,computerservice,etc.)involvesalotofhumancapital.AkeyfactorforthesectordevelopmentistheskillsandknowledgeoftheITengineersandprofessionals.
Traditionally,theenrolmentrateinthetertiarylevelofeducationinMoldovaisquitehigh.Inthepastfiveyears,following the establishment of limits for student intake in the tertiary education, the enrolment rates haveloweredcomparedtotheCentralEuropeandCIScountries.
Chart 24 Rate of enrolment in tertiary education
Source: INSEAD, The Global Information Technology Report
Similarly tootherspecialties, theenrolmentof studentsat ICT facultiesdecreased,while theshareof thelatterinthetotalenrolmentremainedvirtuallyconstant–11%.In2007,2623placeswereprovided,whilein2012thenumberofplacesdecreasedto2367.However,thenumberofplacesfundedfromthestatebudgetincreasedfrom618to762.
Thesefiguresincludethefollowingspecialties:electronics,optoelectronicsystems,tele-radio-communications,microelectronics and nanotechnologies, computers, information technologies, automatics and informatics,informationsecurity, informatics,cyberneticsandeconomicinformatics,appliedinformatics,andbiomedicalsystemsengineering.
However,eventheplacesavailablearenottotallyfilled.Thus,in2012,outofthe2367placesprovided,only1930havebeenfilled.
VI. Competitiveness Factors
29
VI. Competitiveness Factors Chart 25 Number of places approved for the ICT specialties
Source: Government Decisions on approval of the Education Enrolment Plan
Apparently, the number of graduates is sufficient to ensure the demand on the ITmarket. However, theteachingmethodsandthecurriculumareobsolete.Onlyasmallnumberofgraduatesareabletoperformthejob-relatedtasks,mostofthestudentsrequiringadditionaltrainingbeforeemployment.ThestrictrequirementsimposedbytheMinistryofEducation,thepoorfinancingandthelowflexibilityofteachersmaintainthisstatusquo,increasingthegapbetweenthedemandbycompaniesandthesupplybyeducationalinstitutions.ThecooperationbetweentheprivateICTsectorandtheteachingstaffisverypoor.
Chart 26 Evolvement of the share of places provided for ICT specialties
Mostsoftwarecompaniesorganizetrainingprogramsfortheirnewstaff,thusreducingthedividebetweentheexistingandthenewcomingemployee,intermsofknowledge.
Thereareveryfewspecializedtrainingcenters,butgraduatesareunawareevenofthese.
Alotoftheprogrammerschoosetoprovidesubcontractservicestoforeigncompanies.Unfortunately,mostoftenthoseprogrammersarenotfreshgraduates,butformeremployeesofsoftwarecompanies.Thisaffectsevenmoretheavailabilityofskilledhumancapitalforthelocalcompanies.
Accordingtosomesources,thenumberofMoldovanprofessionalsprovidingoutsourcedITservicesisabout1600.TheaveragerateperhourforprogrammersinMoldovaislowerthantheoneforthesameprofessionalsintheCentralEuropecountries.ThemostreasonableexplanationforthatisthelowawarenessaboutMoldova.
http://ceeoa.org/assets/Uploads/CEEITOReview2010.final.pdf
4
4
30
Chart 27 Average rate per hour for Moldovan programmers
Source: CEEOA, Central and Eastern Europe IT Outsourcing Review, 2010
B. Business Environment
As shown in the study presented by INSEAD, in the recent years Moldova’s rank in terms of “businessenvironment”fellfromthe94thtothe106thpositionfrom2009to2011.
Table 4 Moldova’s position by business environment components, as part of the Network Readiness Index
Source: INSEAD, The Global Information Technology Report, 2012
Thesituationintermsoftheeffectivenessofthelaw-makingbody(theParliament),thelawsrelatingtoICT,thejudicialindependenceandtheintellectualpropertyprotectionhasworsened.
1. Government Regulation
The continuous movement of the ICT sector to the grey economy, as well as the awareness about theopportunities thatmightarise if thissector issupportedhavepromptedtheGovernment tostart reforms in2005toreducesignificantlythefiscalburdenforsoftwaredevelopers.Theresultsdidnottakelongtoappear:investmentsinthesectorhaveincreasedandmostsoftwarecompanieshavestoppedhidingthesalariestheypaytoprogrammers.Asaresult,from2005to2011,theregisteredexportsofsoftwareservicesincreased13times.
Mostof the interviewedcompanieshavementioned thereductionof thefiscalburden.On theotherhand,the fiscal regulations are not stable, which creates problems for the tax administration and reduces theabovementionedadvantage.
INSEAD,TheGlobalInformationTechnologyReport,2012
5
5
Component Position in the 2009 Report
Position in the 2012 Report
Effectivenessoflaw-makingbodies 76 99LawsrelatingtoICT 91 101Judicialindependence 111 132Intellectualpropertyprotection 70 110No.ofprocedurestoenforceacontract 27 18No.ofdaystoenforceacontract 25 20
31
Telecommunicationcompaniespay2.5%fortheirrevenuesfrommobiletelephonyservicestotheMinistryofLabor,asthesearestillconsideredluxuryservices.
Ingeneral,thelegislationonelectroniccommunicationsisalignedtotheEUregulationframeworkof2003.Currently, theEU2009regulation framework is inprocessofadoption.Themaindocumentregulating thisareaistheLawonElectronicCommunicationsNo.241-XVIof15/11/2007.Basedonthislaw,ANRCETIwasestablishedasanindependentregulatingauthorityonthemarketofelectroniccommunicationandinformationtechnologyservices.
According to therespective law, theprovisionofelectronicnetworksandservicesmaybe initiatedwithoutanypriorapproval,justuponthenotificationofANRCETI.Withinsevendays,ANRCETIinformsthesupplierwhetherornotitmeetstherequirements.
ByLawNo.241,theUniversalServicewasdefined,aswellastherequirementsandthewayinwhichsuchserviceissecured.Theservicesincludedintheminimalsetoftheuniversalservicearethefollowing:
• accesstopublicelectroniccommunicationnetworksatafixedlocation;• informationonthesubscribersandavailabilityofsubscriberregisters;• accesstopaidpublictelephones,includingfreeaccesstoemergencyservices.
The Decision of theANRCETIAdministration Council No. 12 of 31/01/2009 sets forth the principles andproceduresregulatinginterconnection,includingaccesstothelocalloopandcolocation.FromMay2013,thenumberportabilitywillbecomearequirement.
CurrentlytheMoldovanlawprovidesfortwotypesoflicenses:
1. LicensegrantedbytheLicensingChamberforimport,export,design,manufacturingandsaleofcryp-tographicandtechnicalmeansforinformationsecurity,ofspecialtechnicalmeansforsecretobtainingofinformation,provisionofservicesinthefieldofcryptographicandtechnicalsecurityofinformation.
2. LicensegrantedbyANRCETIforservicesofdevelopment,implementationandsecuringoperationofnationallyimportantautomatedinformationsystems,includingsoftware.
Followingthereformsundertakeninthepasttwoyears,theproceduresattheLicensingChamberhavebeenorganizedaccordingtotheone-stop-shopprinciple.AsreportedbymostenterprisesholdingalicenseinICT,theproceduresexistingatthisagencyarefluidizedanddonotcreateanyproblems.
However, enterprises face difficulties when obtaining the license from ANRCETI. On the one hand, thenationallyimportantactivitiesarenotwellestablished,andontheotherhand,theproceduresareburdensome,a lot of additional documents certifying the capacity of the enterprise to perform the licensed activity arerequested.TheDecisionof theANRCETIAdministrationCouncilNo. 33of 04.11.2010 sets forth only therequirementswhichthelicenseholdershouldmeet,withoutindicatingspecificallythelistofdocumentstobesubmittedinordertogetthelicense,andtheactivitiesconsideredasnationallyimportant.Theambiguityindefiningtherespectiveactivitieshasledtothefactthatlicensesarerequiredfortheparticipationinanytenderorganizedbypublicinstitutions.Accordingtotheinterviewees,contrarytotheprovisionsofthelegislationinforce,theproceduresusedbyANRCETIdonotfollowtheone-stop-shopprinciple.
Theservice-provisionorretail/wholesaletradeactivitiesmaybeperformedonlybyenterprisesholdingspecificlicenses.Contrarytothelegislationinforce,theprocedureforobtainingpermitsfromlocalpublicauthoritiesisnotorganizedaccordingtotheone-stop-shopprinciple.Beforesubmittingtheirdocumentstothemayor’soffice,enterpriseshavetoobtainsignaturesandapprovalsfromdifferentbodies, includingfromthedistrictmayor’soffice.Anotherproblemfacedbyenterprisessellinghardwareistherequirementtoholdbothatradeauthorizationandamaintenanceauthorization.Thisisnonsensebecausebothactivitiesarecarriedoutwithinthesamespace,whiletheenterprisehastoobtainapprovalsfromtheNationalPublicHealthCentre,theCivilProtectionandEmergencySituationsService,aswellasfromothergovernmentbodiestwotimes.
32
2. Infrastructure
Ninetypercent (90%)of the internetand transport servicesareensuredby threeoperators:Moldtelecom,StarnetandOrange.Thehighcompetitionhasdeterminedaconsiderablereductionofpricesinrecentyears.ICTcompaniesaregenerallysatisfiedbothbytheavailabilityofnetworksandtheratesperceived.
Therehavebeennocomplaintsaboutthepowersupply;however,onlyinveryfewcasesfacilitieshavebackuppowersources.Formanyoftheinvestorsthisconditionisunacceptable.
The high supply of spaces for rent determines low rental rates. It is relatively easy, particularly for smallcompanies,tofindspacesforrentequippedwiththenecessaryinfrastructure.However,somecompaniesfinditusefultocreateanITparkthatwouldsecureaccesstohigh-speedInternetandotherservicesusefulfortheICTcompanies.
3. Access to Finance
Theexistingfundingsourcesarebank loansandowner’s investments.Generally, it isrelativelydifficult forcompaniestoaccessloansbecauseofthelackofcollateraltosecurerepaymentoftheloan.Thisisevenmorecomplicatedforsoftwaredevelopingcompanies,whichinvestmoneyintheformofwagesanddonotowncurrentorfixedassetstobepledgedascollateral.Evenforthehardwarecompanies,thepurchasedgoodsmaybepledgedascollateralatjust40%oftheirmarketvalue.
TherearenogovernmentprogramsorfundstosupportfinancingoftheICTbusinessbythebanks.
4. International Bodies
OfalldonorsoperatinginMoldova,onlytheWorldBank;USAID,throughitsCEEDIIProject;andtheEBRD-haveshowninterestinsupportingtheICTsector.
Theobjectiveof theCompetitivenessEnhancementandEnterpriseDevelopment II (CEEDII)Project is tosupportMoldova’s efforts of creating a strong, diversified and export-oriented economy by increasing thecompetitivenessandefficiencyofthekeyindustries.CEEDIItargetssixindustries:apparelandtextile,fashionaccessories,homefurnishings,informationtechnology,wineandtourism.SomeoftheprojectactivitiesaimatimprovingthedialoguebetweentheabovementionedprivatesectorsandtheGovernmentofMoldovaandsupportingtheassociationsandunionscreatedwithintherespectiveindustries.Thefollowingactionshavebeenestablishedas important for increasingcompetitiveness: improvebusinessprocesses,useadvancedtechnologies,improveproductandservicequality,develophumanresourcesandpromoteproducts.
ThegoaloftheWorldBank(WB)istoreducepoverty.OneofWorldBank’sprojectsfocusedone-governance,havingtwocomponents:
• e-leadershipcapacityandenablingenvironment,thatprovidessupporttotheE-governmentCentre,whichwasrecentlyestablished,and
• e-servicesdevelopment,thatprovidessupportfor1)establishingandimplementingtheM-Cloudand2)developingaselectednumberofe-governmentservicesandsharedapplicationstobedeliveredthroughmultiplechannels,includinggovernmentportalsandmobilephones.
Itisexpectedthatmostapplicationsusedfortheabove-listedpurposeswouldbedevelopedbylocalcompanies.
Intherecentyears,theEuropeanBankforReconstructionandDevelopmenthasbecomethebiggestinvestorintheCentralandEasternEurope,supportingeconomiesbybearingtheinvestmentriskwhenitistoohigh,inordertomakecertainsectorsattractive.
33
EBRDhasactivelysupportedANRCETI.TheBASprogram fundedpartlybyEBRDsupportedprojects forimplementationofmanagementinformationsystems(about46%ofthetotalnumberofprojects).
5. Market Changes
The globalization of the programming services’ market has considerably changed companies’operation. The developing markets such as Apple App Store, Android market, Amazon Marketplace,oDesk.com, freelancer.com and others provide new export opportunities for local companies. “Cloud”sale has become a common practice in Moldova, used both for selling and purchasing products.
6. Public Procurement
ICTcompaniesconsiderthatpublicprocurementslacktransparency.MostofthemarketplayersbelievethattheTechnicalSpecificationsarepreparedinsuchwayastofavoraspecificbidder.AnotherissueisthefactthatthePublicProcurementsAgencytendstoselectthelowestpricedbideventothedetrimentofquality.InthiswaytheAgencymakessureitwouldnothaveanytroubleslatteron,aftertheauditbytheCourtofAccounts.
There is no database with the ICT projects implemented by the government institutions. This engenderssituationswhenTechnicalSpecificationsare implemented form thescratch,withoutbenefiting fromsimilardevelopmentsperformedearlierintherespectivearea.
Nopost-saleauditsareperformed;thereforeitisnotensuredthattherequirementsaremet.Itisoftendifficultevenforthebeneficiariestoestablishwhethertheprovidedprogrammingservicemeetsthetechnicalrequire-ments.
7. Intellectual property protection
As shown in the study presented by INSEAD, Moldova’s rank fell from the 70th to the 110th position intermsof “Intellectualpropertyprotection”.Thesurveyfindings revealasoftwarepiracy rateofabout90%.ThisvirtuallydoesnotdifferfromthepiracyratesintheCIScountries,exceptRussia.ThechartbelowshowsahugedifferencebetweenthepiracyratesinMoldovaandintheCentralEuropeancountries.
Chart 28 Software piracy rate in the CIS and Central European countries
INSEAD,TheGlobalInformationTechnologyReport,2012
6
6
34
TheNationalAssociation of Private ICTCompanies has already proposed a draft Law on amendment ofcertainlegalacts,particularlytheLawNo.139of02.07.2010onCopyrightandRelatedRights.ThedrafthasbeendevelopedwiththeparticipationofthetwinningprojectexpertsoftheNationalCopyrightsAssociationandotherprivatesectorrepresentatives.
Theinitiativeisnowunderdiscussions;itsmainprovisionsareasfollows:
• excludetheminimalratesestablishedbytheGovernmentforthequantumofremuneration• changetheprocedurefordeterminingthequantumofremunerationforthereproductionofworkson
personalinterest• excludethemandatoryconditionof indicatingthedistributor’s identitywhenreleasingequipmenton
themarket• exclude theneed topresentanevidence regarding thepaymentofcompensatory remunerationby
importers• excludetheprovisionregarding“theuseofsoftwarebypublicauthoritiesbasedonunique licenses
negotiatedbytheGovernmentwiththeholdersofsoftwareatareasonableprice,withoutprejudicetotheinterestsoftheintellectualrightsholder”
• changethewayofprotectionofcopyrightsandrelatedrightsthroughcomputernetworks,namely,holdthewebpageownerandthehostingserviceprovideraccountableandeliminatetheaccountabilityofcompanieswhichonlyprovidedatatransferservices(Article66).
C. Entrepreneurial Skills and Innovations
Oneoftheissueshinderingtheintegrationofcompaniesintheglobalflowisthepoorentrepreneurialskills.Onlyasmallnumberofenterprisesare ledbypersonswith international relationsexperience.Mostof thesmall companiesdonothavesufficiententrepreneurial skills; this leads to investments insoftware for theinternationalmarket,whichdonotgeneratesufficientsalesforareturnoninvestments.
Nocasesareknownwhenlocalcompaniesconductresearchanddevelopmentactivities.Usuallycompaniesusesolutionsexistingontheinternationalmarket,byintegratingthemintheirownproducts.
35
No Recommendations Issue Institution Term Outcome
Strategic
1.
CreatepremisesforICTsectordevelopmentaccordingtothefollowingindicators:
• Numberofindustryprofessionals
• Export• Investment• Programsaimed
atkeepingprofessionalsinthecountry.
Sofar,theICTsectorhasdevelopedbyitself,withasupportinsomenarrowareas,withouthavingaclearnationalstrategicvisiontoencourageinformationtechnologiesandcommunicationsinitscontinuousdevelopmentinMoldovaandwithoutimplementingprogramsthatwouldcontributetoenhancingthequalityandnumberofindustryprofessionals,ortoincreasingindustry’ssharedomesticallyandintermsofexports.
MinistryofInformationTechnologyandCommunications,MinistryofEconomy
Medium
•IncreasethenumberofITspecialiststwotimesin5years.
•Increaseexportsupto200mlnUSDin5years.
•Createaninvestmentfundofminimum10millionin5years.
•Increasetheindustryvolume4timesin5years.
Education
2.
CreateaworkinggroupofrepresentativesfromeducationalinstitutionsandtheICTsectorthatwillexamineandapprovethecurriculafortheICTspecialties.
Theindustryenterprisesaredissatisfiedwiththeknowledge,skillsandcapacitiesoftheMoldovanICTgraduates.Ontheonehand,graduates’knowledgeispoorandontheotherhandthecurriculuminthehighereducationalinstitutionsisoutdated.
MinistryofEducation Medium
•Curriculabroughtinlinewiththetechnologiesonthemarket.
•Lowercostsfortrainingofnewemployees.
3.
Includeinthecurriculaforprogrammerssubjects,which,thoughnotrelatedtothetechnicalfield,arerequiredforbusinessdevelopment,suchasprojectmanagement,marketing,andcommunication.
ICTgraduateshavepoorknowledgeinbusinessdevelopmentorprojectmanagement.ICTisaveryspecificindustryandrequiresdeepknowledge;thereforegraduatesofotherfaculties(i.e.economy)areunlikelytostartbusinessinthisarea.Thesmallnumberofprofessionalshavingbothgoodhardandsoftskillshindersentrepreneurshipdevelopmentintheindustry.
MinistryofEducation Medium
•Increasednumberofenterprisesintheindustry
•Increasedefficiencyofindustryenterprises.
4.Createmechanismstostimulateinternshiptrainingofstudents.
Managersarenotinterestedtotrainstudentswhodointernshipattheircompany,mainlybecausetheyhavenoguaranteesthatthosestudentswouldgetemployedwiththeircompanylater.Evenifcompaniesacceptstudentsforinternship,on-jobtrainingisratheraformality.
MinistryofEducation,MinistryofFinance
Medium
•Graduateswillbecomemorefamiliarwiththeactivitieswithinenterprises
•Graduateswillhavebetterknowledge.
VII. Recommendations for Short, Medium and Long Term Policies
36
5.
Createfiscalandnon-fiscalmechanismstostimulateICTenterpriseswhichco-fundstudenteducationatICTspecialties.
Thechangeofcurriculawillhaveaminoreffectaslongasteachers’salariesarelow;therefore,theteachingmethodwillremainunchanged.Mostteachersarenotstimulatedtoapplyproperteachingmethodsorevenlackthenecessaryskills.
Enterpriseshavenosayintheselectionofstudentsforenrolment,andeducationinstitutionsarenotparticularlyinterestedinselectingthosewhoreallyhavetheskillsandinterestforIT.
MinistryofEducation Medium
Increasedrateofgraduates’“acceptability”.
6.
CreatepremisestoencourageprivatesectorICTprofessionalstoteachITsubjectsatuniversities
Currently,themotivationofprivatesectorprofessionalstoparticipateintheeducationoffuturespecialistsisincomparabletotheirmotivationfortheworktheyperformattheircompanies.
However,inordertoensureaccesstothemostrecenttrends,itisnecessarytofindawaytoencourageprofessionalstoparticipateintheeducationoffuturespecialists.
MinistryofEducation,MinistryofInformationTechnologyandCommunications
Medium
Numberofprofessionalsfromtheprivatesectorinvolvedinteachingatuniversity.
Taxes and Fees
7.
RedirecttotheICTSupportFundthe2.5%taxcurrentlypaidtotheRepublicanandlocalfundsforsocialsupportofpopulationbycompaniesprovidingmobiletelephonyservices.
LawNo.827wasapprovedatthebeginningof2000,whenmobilephoneswerealuxury,beingusedbylessthan3%ofMoldova’spopulation.Therefore,thecreationofaFundformaterialsupporttothesociallyvulnerablepopulation,towhichthemobiletelephonyuserscontributedaswellwasjustifiedbothfromsocialandeconomicviewpoint.
In2012,whenthemobiletelephonypenetrationrateexceeds100%andmostofthevulnerablepopulationusesmobilephones,thistaxisnotrelevantanymore.Currentlymobilephonesarenotaluxurybutratheratoolwhichhelpssavingtimeindecision-makingoraccessinginformation.
MinistryofFinance Medium
Themobiletelephonyserviceswillbeevenmoreaffordable.TheFundforsocialsupportofpopulationwillbefilledfromthesaleofluxurygoodsthatdonotcontributedirectlytoeconomicdevelopment.
37
8.
ProvideincentivestotheBPOcompanies,similartothoseexistingforthesoftwarecompanies.Namely,calculatethedeductionsrelatedtostaffremunerationbasedonantheaveragemonthlysalary.
ItiswellknownthattheBPOsubsectorismostexposedtothetemptationof“hiding”apartorevenitsentireactivity.Thereasonsarethefollowing:
•CostumersofthissectorareforeigncompanieswhichhavenorelationtothefiscalsystemofMoldova.
•VirtuallytheentireamountofsalesrepresentsthevalueaddedbytheBPOcompanies;therefore,BPO’seconomicrelationswithotherlocalcompaniesareminimal.
•Insignificantassetsareneededfortheactivities;thereforeitisdifficulttoidentifythem.Suchcompaniesoftenrentapartmentsfromindividualsandaredifficulttotrack.
•Employeesofsuchcompaniesareyoungpeople,upto40years,whicharenotmuchconcernedabouttheirfutureretirementpensions.
MinistryofFinance Long
•Increasedrevenuestothebudget,duetocompanieswhichwillgiveupservicesprovidedbyoffshorecompaniesandwilllegalizetheiractivity
•Increasedexports,giventhefactthatcompaniesoperatingoffshoreandhavingaspace“hidden”frompeopleareunlikelytobesubcontracted,thuslosingalotofcontracts.
9.
EliminateVATonsoftwaredesignedtoincreaseenterprises’efficiency,improvetheeducationprocessortheresearchanddevelopmentactivities.
Thehighcostofsoftwareisoneofthereasonswhytheseareoftennotused,althoughtheycouldincreasecompanies’efficiencyandbringreturnoninvestments.Thepiracyrateis90%.
MinistryofFinance,MinistryofInformationTechnologyandCommunications
Long
•Increasedenterpriseefficiency,improvedprocessofeducationandofresearch-developmentactivities
•Reducedpiracyrate.
10.MaintainafiscalenvironmentfavorableforITcompanies.
MoldovawouldbecomeuncompetitiveinrelationtootherregionalcountriesiffiscalincentivesenforcedfortheITcompaniesarecancelled.Tomaintain,stimulateandgrowthesectoritisnecessarytodevelopandmaintainanattractivefiscalpackageforICT.
MinistryofFinance,MinistryofEconomyMinistryofInformationTechnologyandCommunications
LongAttractivefiscalpackageforICTcompanies.
38
Regulatory framework
11.
NotifytheMunicipalCouncilofChisinauabouttheinconsistencybetweentheDecisionoftheMunicipalCouncilNo.13/4of27.12.2007andthelegislationinforce,particularlytheLawNo.231of23/09/2010.Inaddition,MITCwillrequirethatthenewregulationstipulatesexpresslythatonlyoneauthorizationmayberequestedbothfortradeandforservices.
a.Themayor’sofficeobligescompaniestoattachtotheapplicationforauthorizationapprovalsfromthedistrictmayor’soffice,theNationalPublicHealthCentre,theCivilProtectionandEmergencySituationsService,etc.
b.Mostcompaniessellinghardwareprovidemaintenanceservicesduringthewarrantyandpost-warrantyperiodonthesameaddress.Itispointlessthatanenterpriseappliestwiceforthesameauthorization/approvalfromtheresponsiblebodies.
MinistryofInformationTechnologyandCommunications
Short
Fluidizationandtransparencyoftheauthorizationobtainingprocess,whichwillleadto:
•savingmanagers’timeinfavorofotheractivitiesaimedatcompanydevelopment
•reduceunofficialpaymentsbycompaniestosimplifytheproceduresforobtainingauthorizations.
12.
Makeitpossibleforthesoftwareexporttoberegisteredbasedonsupplier’sdeclaration,withoutrequestingStatementsofdeliveryandacceptance.
TheTaxStateServicerequirescompaniestohaveStatementsofdeliveryandacceptanceforservicesprovided,includingabroad.ItisunreasonableandusuallynotevenpossiblefortheproviderstoaskcostumerstosignStatementsofdeliveryandacceptanceinthecaseofsoftwaresale.Consequently,manyenterprisessetupcompaniesabroad,whichsellsoftwareandreceivethemoney,thusavoidingthebureaucraticprocedures.
MinistryofFinance,MinistryofInformationTechnologyandCommunications
Medium
Apartoftheserviceexportconductedthroughe-commercewouldbecome“official”iftheywererecordedinthecompany’sbookkeeping,andwouldpayalltheduetaxes.
13.
Eliminatelicensesforservicesofdevelopment,implementationandsecuringoperationofnationallyimportantautomatedinformationsystems,includingsoftware.
ANRCETIhastheauthoritytoissuelicensesfordevelopmentofnationallyimportantinformationsystems.However,thereisnoregulationdefiningthetermnationally important information system.Therefore,thelicenseisrequiredforvirtuallyanytenderforprocurementofsoftware,regardlessofwhetherthelattermay“damagepeople’srightsandhealth,theenvironmentorthestatesecurity”.
Initiative–MinistryofInformationTechnologyandCommunicationsMinistry,MinistryofEconomy
Short
ReducedbureaucracyandtimespentbyICTcompaniestoparticipateintendersorganizedbypublicadministrationauthorities.CompanieswhichwillprovidetherespectiveserviceswillnotifyANRCETIinwriting.
One of the criteria to determine the types of activities subject to licensing, Art. 4, Law No. 451 of July 30, 20017
7
39
14.
Allowforthecustomsclearanceofelectronicproductsimportedbyairlineattheairport’sCustomsOffice.
Theairportcustomsofficeisnotauthorizedtoclearelectroniccomponents.Whentheyimportcomponentsbyairline,companieshavetorentavehiclewithtrailerthatcanbesealed,topreparethetransitdocumentsontheterritoryofMoldovaandtopayforboththeAirportterminalandtheCricovaterminal.
CustomsDepartment Short
Theneedforatransitdeclarationwillbeeliminatedandthetimeandresourcesofimportersofelectronicproductswillbesaved.
15.RevisetheNationalOccupationsRegister(CORM).
IThasdevelopedandadvancedrapidlyinthepastdecade,creatingnewoccupations/positionswhichimplydifferenttasksthanthoseapprovedtenyearsagoinCORM,whosedescriptionoftherightsandobligationsofemployeesareoutdated.
TheformalapprovalofthenamesofIToccupationsisalsonecessaryinordertoconsistentlyusepositionnamesinIT,thestandardizationaccordingtothewidely-acceptedITnorms,theoccupationsontheITlabormarket,andtosecurepermanentprofessionaldevelopmentofthecorrespondingspecialists.
MinistryofLabor Medium
CORMwillbeadjustedtoincludeoccupationscurrentlyexistinginthesectorwhichhavenotbeenincludedintheregister.Asaresult,HRmanagementinICTcompanieswillbesimplified.
16.
ApprovethemechanismforrevisionoftheTechnicalSpecificationsbythecivilsocietyandthelineorganizations.
ThePublicProcurementAgency(PPA)doesnothavesufficientabilitiestoassesICTbids.MostICTcompanieshavecomplainedaboutalowtransparencyinPPA’sactivity.
MinistryofInformationTechnologyandCommunications
Short
•TechnicalSpecificationscomplyingtorequirements
•Moneysavingstothebudget.
Public Procurement
17.
CreateandmaintainacentralizedelectronicregisterwithinformationontheITprojectsimplementedforgovernmentinstitutions.
Variousgovernmentinstitutionsrequestsoftwarefortheircurrentactivity.Theissuesfacedbythoseinstitutionsareoftensimilar.Thus,somesoftwarecouldbecreatedbysimplyadjustingtheexistingones.
MinistryofInformationTechnologyandCommunications
Short
Reducedeffortsincaseofsimilarprojects;smallerbudgetresourcesnecessary.
40
18.
SelectagroupofexpertswhowillbecontractedbyPPAwhentechnicalexpertiseisrequired.
PPAhasnosufficientskillstoassessbidswhenitcomestoICTproducts,particularlyprogramming.Ontheotherhand,anymistakeinselectingthesuccessfulbidmaybeconsideredbytheCourtofAccountsanattempttoprotectcertaincompetitors.Asaresult,usuallythelowestbidsareselected.
MinistryofInformationTechnologyandCommunicationswithsupportfromATIC
Short
Thebidswiththebestprice/qualityratiowillbeselectedwithintenders.Corruptioncaseswithinpublicprocurementswillbediminished.Experts’advicewillbeaconsultativeone.Itisrecommendedthatexpertsareselectedrandomly,observingtheconfidentiality(i.e.thebeneficiaryandthesoftwarecompaniesshouldnotknowtheexpert(s)).
19.
ApproveaGovernmentDecisionsimilartoGDNo.834of13.09.2010“OnApprovaloftheRegulationonPublicProcurementofWorks”,whichwouldincludesoftwareprocurementrulessimilartothoseforprocurementofconstructionworks,includingtheguaranteeforsecuringcontractexecution,monitoringofprojectsbyPPAuntilthesignatureoftheStatementofdeliveryandreceipt.
PPAdoesnotmonitorsuchprojectsafterimplementation.TheimplementedprojectsoftendifferfromtheTechnicalSpecificationsattachedtotheContract.Sometimesthebeneficiarymayfindsuchinconsistenciesandsometimesonlytheproviderisawareofthem.
Initiative–MinistryofInformationTechnologyandCommunications
Short
NumberofprojectsthedeliverablesofwhichareinconsistentwiththeTechnicalSpecificationsshalldiminishsignificantly.
Foster Sector Development
20.
CreateaframeworkfavorableforICTcompanies’participationinresearchanddevelopmentactivities.
Moldovansoftwarecompanieshavenosufficientresourcestolaunchsuchactivitiesbecauseoftheirlimitedhumanandfinancialcapacitiesandthehighrisks.
ITtechnologydevelopmentisduetodailyhardworkoftalentedpractitionersratherthantoamazingdiscoveriesbyresearchers.Onlypersonswhoreallyfeelthemarketandhaveextraordinaryabilitiestofindvarioussolutionsmaybetheengineofresearchanddevelopmentactivities.Thecurrentapproachusedinthestate-fundedscientificresearch,whichiscoordinatedprimarilybytheAcademyofScience,deterstheparticipationofcompaniesthatdonothaveonstaffpeoplewithscientificdegrees,eventhoughtheymighthavetalentedprogrammers.
MinistryofInformationTechnologyandCommunications
Long
Theresearchanddevelopmentactivitiescouldbringhugebenefitstothecountryaswecouldexportintellectualpropertywithconsiderablevalueadded,ratherthanjustlaborforce,evenifhighlyqualified.
41
21.
CreateanITincubatorforstartups.InformationabouttheincubatoranditsbenefitswillbewidelydisseminatedamongfreshgraduatesofITfaculties.Theincubatorcouldbeco-fundedbyforeignfundersandthestate.
Usuallystartupshaveneitherfinancialresourcesnorexpertiseorskillstogetinvolvedininternationalsoftwaretrade,thereforetheystarttocrowdonthelocalmarketinanattempttowinabiggershareortrytowinprojectsontheEuropeanmarket.Inbothcases,companiesarenotgrownenoughtobeabletoimplementdevelopmentactivities.
MinistryofInformationTechnologyandCommunications
Medium
TheincubatorwillprovideinformationabouttheWesternmarketswhicharecurrentlythemostpromisingones,includingaboutthemarkettrends,informationonthemostdemandedproducts,thewaycostumersoperate,etc.theincubatormemberswillhavethepossibilitytogainadvancedskillsofmarketing,entrepreneurship,fiscaladministration,etc.
Inaddition,theywillhavebetteraccesstothebestpracticesintheindustry.Theywillbeabletodeveloptheirbusinessideasandgetfeedbackfromindustryexperts,includingfromabroad.
22.Searchandproposeviablefinancialproductstofinancetheindustry.
ItisdifficultfortheICTcompaniestocontractbankloansbecauseofthelackofcollateraltosecuretheloan.Thisisevenmoreseriousaproblemforthesoftwarecompanies,whichinvestmoney(assalaries)todevelopsoftware,buthavenofixedorworkingcapitaltopledgeassecurity.
ThereisnogovernmentfundorprogramtosupportfinancingofICTbusinessesbythebanks.
ATIC,NationalBankofMoldova,MinistryofInformationTechnologyandCommunications
Long
Additionalfinancialresourcescouldallowcompaniestonotonlygroworbestableonthemarket,butalsoinvestinprojectsfordevelopmentofbothproductsandprocessesingeneral.
42
NOTES
43
NOTES
44
NOTES
45
46