Bucharest Business Week readers consider SIVECO Romania „the fastest growing company of the year” | SIVECO Romania

Bucharest Business Week readers consider SIVECO Romania „the fastest growing company of the year”

Thursday, October 6, 2005

Bucharest, October 6th 2005 - The traditional event organized by Bucharest Business Week „IT& Telecom Conference and Awards 2005” took place recently.

The conference, split into two sessions, has as main subjects outsourcing and broadband strategy. The speakers, representatives of public and private sector, IT and telecom industry professional associations analyzed the development strategies adopted by the Romanian market players.

The presentation held by Ms. Irina Socol, SIVECO Romania General Manager focused on Romanian software companies capabilities of bringing added value to the international business environment. SIVECO Romania strategy has ambitious long term and global scale objectives.

„We truly believe that Romanian specialists have a word to say in high technologies and that a sustainable development can only be assured by constant investments in research and development. Our evolution is a typical example for the local software industry. Our main strong points on the international market are quality of the products, specialists’ value and management system quality. Yet, it is unproductive and unrealistic to consider outsourcing a source of business increase on the long run”

The present trends on the European and global IT&C market confirm the justice of such an approach.

According to IDATE analysis and consultancy centers (http://www.idate.org/), the global IT&C market grew up with 6,1%, reaching Euro 2.30 billion. IT was the fastest growing segment, with a 7% increase in hardware and 8.5% in software and services. This way the gap between equipment and services areas was reduced dramatically.

From the point of view of evolution by regions in 2004, IT&C market rate in Western Europe was just 2,9% (below the global average), compared to 3,9% in North America and 10% in Asia Pacific (which is half of the global increase). In the top of countries that incorporated IT&C in the economy, we can count:  South Korea, USA, Finland, Japan, France, Germany, Sweden and UK.

The areas where Europe stays leader are: nano-electricity, integrated systems, web services, cognitive systems, research and development centers, communications, and standards.

As concerns investments in research and development for IT&C, we now register annual 5% increase at global scale (whereas in regions such as India and China the increase percentage is ten times higher), Europe holding a 40% of the global total.

The countries that allocate the most significant budgets to R&D (as percentage in GDP) are: Finland, South Korea, Netherlands, Germany, France, UK, Italy and Spain. Except for Finland and Sweden, European countries are far behind South Korea, Japan and USA

The level of investment in R&D per inhabitant is 80 Euros in Western Europe, 350 Euros in the US and 400 Euros in Japan. In order to reach the objective set in Barcelona (3% of GDP for R&D), Europe has to increase considerably the level of investments in this area.

All over the world, investments in the private sector are much higher than those made by the public sector. Actually, public sources financing is 17-18% of the total expenditures in R&D in European Union and USA, and less than 10% in Japan and South Korea.

Form the point of view of interest areas, research oriented to finding new integrated solutions, easy use of IT&C and security solutions for IT systems are anterior.

Unfortunately, when it comes to investments in R&D in Romania, statistics are poor. Investments hold a small percentage in GDP.

The good news is that, according to the studies performed, the IT&C market registered significant progresses, which allows, and even imposes an increase in expenditures for R&D.

EITO (European IT Observatory) believes that in 2004 the IT&C market reached 3,637 billion Euros, anticipating 4,153 billion Euros for 2005.

Regarding the software industry, EITO estimates that in 2005 168 million Euros will come out of systems, applications and software products, and 116 million Euros out of services.

Under these circumstances, Mr. Zsolt Nagy, the Minister of Communication and Information Technologies statement, according to whom „ the Romanian IT&C market is the most prepared to join the UE” seems perfectly righteous.

An extra acknowledgement of this fact is SIVECO Romania evolution, the international awards received by its products (especially the eLearning platform) and its quality management system, as well as the recent investment made by the strategic funds, Intel Capital and Enterprise Investors.

Recognition of the company extraordinary performance and remarkable potential came from the Bucharest Business Week readers, who designated SIVECO as „Fastest growing IT company of the year”.

The event moderator, Mr. Varujan Pambuccian, IT Commission President within the Romanian Parliament, handed in the BBW awards.

„Thank you Bucharest Business Week and its readers for the award received today. It honors us ad I want to assure you in the next years we’ll grow even faster”, says Irina Socol, SIVECO Romania General Manager.