INFORMATION TECHNOLOGY
The Republic of Kazakhstan, Taraz
State Pedagogical Institute
Satybaldieva Aliya, Orazymbetova
Gulaim
The Kazakhstan
Information Technology (IT) sector represents a growing and dynamic market that
is especially attractive for the International market players in view of the
slowdown in the global telecommunications sector. Although still relatively
small at about$220 million, the Kazakhstan IT market grew by 25 - 30% in 2002.
It is expected to reach $275 million in 2003. The major factors for its growth
in Kazakhstan were low dependence of the IT sector on fluctuations of the
international economy, the increase in the home demand due to the rise of
international prices for Kazakhstan’s mineral commodities and growing demand
for customized solutions in the private sector.
The times
when Kazakhstan’s IT market looked like the Americas of Columbus’ times have
passed. However local demand is extremely price-sensitive. Average consumers
generally prefer a low-cost computer to a globally recognized brand.
Nonetheless, the Kazakhstan market remains one of the promising emerging
markets.
A
considerable increase in state purchase of computers and software within
government regional procurement programmes has
facilitated the spread of the Internet in the sphere of education. According to
research conducted by Actis Systems Asia, each third
Internet user in the country is a student.
Kazakhstan’s
government has realized the importance of the internet and information
technology in improving the efficiency and effectiveness of government bodies,
enhancing political transparency, and improving quality of life in general.
Laws and
regulations on IT sector were not a priority for the Kazakhstan authorities but
during the last two years a number of important regulatory papers were
developed. Some of them adopted by the Majlis and
came into force.
The laws On
Electronic Document and Electronic Digital Signature and On Informatizaton
were passed in January and May 2003, respectively. These acts are supposed to
improve the legal aspects of the activities of Internet providers and to spur
up the spread of the Internet in the country. At the same time there are some
legal problems in the IT sector of Kazakhstan, in common with the whole
International Community. These are pirated software and “gray import” issues.
For example
actual demand for IT products is difficult to determine due to the high level
of pirated software products. Also, the International Planning and Research
Corporation (IPR) estimate “gray” imports (shipments through third countries
unauthorized by the original supplier) to be as high as 89% of the total
market. In recent years, the Kazakhstan government has taken steps to improve
enforcement against piracy, but pirated consumer software remains readily
available on street markets. Poor IPR enforcement is likely to severely limit
the sales potential of legitimate software suppliers in Kazakhstan.
The
foundation in 2001 of the Kazakhstan IT Industry Association is perceived as an
important step in the industry’s development and promotion of legal
improvements to the Kazakhstan IT market. Around 12 companies both Kazakh and
local representatives of foreign companies have become the founding members.
The goals of the association are to represent the interests of the Kazakhstan
IT industry domestically and internationally, to foster conditions for the
future growth of the IT market and to protect the corporate interests of IT
companies. Among the association members there are as well as the Kazakhstan
companies BIPS, ALSI, Actis Systems Asia and GLOTUR.
The ambitious
state program named “Formation and Development of National Informational
infrastructure Kazakhstan” was launched in 2001 and was aggressively followed
to stress the IT sector’s importance for the national authorities. The
estimated cost of the program for the period 2001 – 2003 is about $130 million.
The target is to create key elements of a national information infrastructure
that are able to provide independence and security for the country.
Current Kazakhstan
Government priorities for the sector are as follows:
• to make internet
access easy for private individuals and public sector organizations.
• to support IT
investments stressing support to domestic developers.
• to proceed with
legislative and regulatory grounding of the IT sector
Step by step
realization of the state doctrine in this field should be achieved through
accomplishment of the following programs:
• Information and
Telecom Systems monitoring
• Data exchange
standardization
• E-Commerce
promotion
• Development of
information infrastructure for the state authorities
• State finance
information and telecommunication integration
• Development of
the state databases covering personalities, legal entities and “Kazakhstan
Resources”
• Monitoring of
social and economic environment in Kazakhstan
Several
state-supported projects were implemented in 2001 including the presidential
program ”Computerization of Secondary Schools”. According to the Statistical
Agency of the Republic of Kazakhstan, around 81 thousand PCs were bought for
8200 schools in this program. There is 1 PC per 40 students on average in
Kazakhstan, compared with Russia with only 1 PC per 80 students. The winners of
the tender for this project included ALSI, GLOTUR, etc.
State orders
have become an important demand driver for IT products. Increased government
spending on computers contributed to the growth of the sector with more tenders
held for government projects and budget-funded public schools in rural areas.
In 2001 government and educational institutions accounted for 35-40% of
computer demand. Another factor that boosted PC sales was major IT investment
projects in mining, banking, financial services and manufacturing.
Software Kazakhstan’s
rapidly expanding software market in 2001 was estimated at $16-20 million, and
growing at an annual rate of 25%. The best sales prospects are for Data
Management products, which currently account for 35% of the software sector and
Enterprise Resource Planning (ERP) – 15%. There are no means for accurate
evaluation of software demand due to the high level of pirate software that
some industry estimates put as high as 80%.
The packaged
software sector experienced a major boost during 2002, rising by 18-20%.
Growing demand has been reported for basic operating systems, integrated ERP
and application tools for database development and management.
Kazakhstan
companies spent around $65 million on information technology services in 2002.
Kazakhstan companies BIPS, ALSI, Imanali-soft, AlphaTech, ActisSystems Asia and PlusMicro are mentioned as leading local players with 10%
of the market. But the maturity of this segment is pending still.
Electonics and LG Electonics work vigorously in Kazakhstan.
Enterprise management systems services
are among the most requested IT services in Kazakhstan. A steady rise in demand
for these services is forecasted for the next five years. The ERP/CRM segment
has steady development in Kazakhstan due to the progress towards a clearer
strategic IT vision of the management among local companies.
The following
are the major groups of IT end-users in Kazakhstan:
• Multinationals
• Government
agencies and institutions
• Kazakhstan
exporters of raw materials and commodities.
• Kazakhstan
companies, with progressive management seeking to increase operational
monitoring/control efficiency (banking, telecom companies, freight industry,
food processors)
• Small and
medium size Kazakhstan companies, which are growing in number and becoming an
economic force in the country.
Almaty, Atyrau and Astana are the
most important computer markets to date. However there are heavily populated
industry centers in western oil-producing regions that start to become a
focusing interest of IT products and services suppliers and distributors. The
longer-term opportunities for expansion in the regions under the healthy
economic conditions are more than promising.
References
1.
June J. Parsons and Dan Oja, New Perspectives on
Computer Concepts 16th Edition - Comprehensive, Thomson
Course Technology, a division of Thomson Learning, Inc Cambridge, MA, COPYRIGHT
© 2014.
2. Lorenzo Cantoni
(University of Lugano, Switzerland) James A. Danowski (University of Illinois at Chicago, IL, USA)
Communication and Technology, 576 pages.
3. Craig Van Slyke Information Communication Technologies:
Concepts, Methodologies, Tools, and Applications (6 Volumes).
ISBN13: 9781599049496, 2008, Pages: 4288