The IT export of Uzbekistan: the path to global success through the Irish experience

Uzbekistan is striving to increase the export of IT services and products. In this pursuit, the country is examining the experiences of other nations, including Ireland, which stands as one of the global leaders in this domain.

Within the visit to Ireland on November 21-22, a delegation from the Ministry of Digital Technologies of the Republic of Uzbekistan, led by Minister Sherzod Shermatov, studied the development experience of Irish IT exports.

Meetings with export-oriented companies such as Abtran and Ergo Group, as well as representatives from organizations like Cork Chamber, Enterprise Ireland, IDA Ireland, Skillnet Ireland, and Saviday, facilitated discussions on development strategies, partnership approaches such as the creation of joint projects and even new organizations, as well as attracting foreign companies to Uzbekistan with the aim of augmenting the countryʼs IT export.

Ireland: Leadership in Global IT Export

Ireland, long-established as a global hub for IT export, has presented unique methods for the development of the information technology sector. Key elements contributing to its success include an English-speaking environment, excellent communications, technological infrastructure, a skilled workforce, governmental support, and an investment climate providing tax incentives, fostering investment inflow.

Notably, according to World Bank data, Irelandʼs GDP reached $529 billion in 2022, with $144 billion attributed to the export of IT technologies. This achievement is particularly impressive considering Irelandʼs population of 5.1 million, with a per capita GDP of $104 thousand.

For comparison, the per capita GDP in the United Kingdom is $54 thousand, in the United States — $55 thousand, and in Germany and France — $76 thousand.

Ireland boasts over 500 thousand specialists engaged in IT export, constituting nearly 10% of the countryʼs total population.

Thanks to comprehensive measures implemented, global technology giants such as Apple, Google, Microsoft, Dell, Meta, Amazon Web Services, Cisco, IBM, and Intel have settled in Ireland, serving the entire European Union.

Meetings with Abtran, Ergo Group, and Skillnet Ireland

As part of the delegationʼs visits, strategic meetings were conducted with Abtran and Ergo Group, companies that have established themselves successfully in the global outsourcing market, as well as with Skillnet Ireland, an educational funding organization in Ireland. Discussions with Skillnet Ireland focused on the creation of educational projects aimed at enhancing the skills of Uzbek specialists.

Abtran, founded in 1997, currently employs approximately 1600 personnel with an annual revenue of around $340 million. Their Managing Director, Cormac Walshe, emphasized that Uzbekistanʼs support programs, such as Zero Risk and the Regional HQ, coupled with tax incentives, render the country unique and attractive for IT businesses.

Ergo Group has been providing IT services since 1993, with an annual revenue of $170 million. Frazer Furlong, the companyʼs Commercial Director, was impressed by Uzbekistanʼs infrastructure and the governmentʼs support for the development of IT export.

The delegation discussed collaboration opportunities with Abtran and Ergo Group and reached agreements on their participation in the Offshore Outsourcing Tour in Uzbekistan. This event, scheduled for the first quarter of 2024, will enable them to gain a closer understanding of the business environment and consider opportunities for establishing a representative office in our country.

Support Ecosystem Cork Chamber, Enterprise Ireland, IDA Ireland

Strategic meetings with representatives from Cork Chamber, Enterprise Ireland, and IDA Ireland provided the delegation with valuable insights into how FDI companies are attracted and local export companies are stimulated in Ireland. The country effectively leverages flexible tax policies and investments in education to foster the development of its IT sector.

A meeting took place with Cathal McSweeney, Director of International Relations at Cork Chamber. The parties discussed the possibility of initiating the establishment of an Uzbekistan-Ireland joint Trade and Industry Chamber through their head office at Chambers Ireland. This could serve as a platform for the development of exports and support for Irish companies in the Uzbek market.

The delegation also met with David Byrne, Head of Digital Technologies at Enterprise Ireland. Agreements were reached, including the creation of a catalog of Irish companies interested in the Uzbek market.

Enterprise Ireland, an organization supporting and financing the growth of Irish companies, has had a significant impact on the Irish economy, creating over 200,000 job opportunities.

Ken Whitelaw, Head of Emerging Markets Management at IDA Ireland, expressed readiness to actively share expertise in legal regulation, labor legislation, cybersecurity, and intellectual property to attract major IT companies to Uzbekistan.

IDA Ireland, the agency for attracting foreign direct investment, has successfully attracted over 1800 companies and contributed to the creation of more than 300,000 jobs in Ireland.

Studying Irelandʼs Experience with Saviday

A pivotal moment in scrutinizing the Irish experience was the meeting with Saviday, consulting experts in IT outsourcing. Savidayʼs CEO, Seán McEllin, led a seminar expressing readiness to formulate proposals aimed at increasing global interest in the Uzbek market and attracting foreign outsourcing companies to the region.

The parties will also consider options for improving legislation to make the region even more appealing to technology companies.

Conclusions: Prospects for Uzbekistan

As a result of meetings and knowledge exchange with leading companies and organizations in Ireland, the Uzbekistan delegation has acquired valuable insights and unique experience in the development of IT exports. This knowledge has the potential to become a key component of the strategic advancement of the IT sector in Uzbekistan. Business-friendly conditions, innovative practices, successful examples from global companies, and government support collectively create a promising foundation for strengthening Uzbekistanʼs position in the global IT outsourcing industry.