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Croatia's ICT lags behind competition, says IDC

ZAGREB, July 8(Hina) - Croatia's information and telecommunications sector (ICT) lags behind the ICT in Slovenia, the Czech Republic, Hungary and Slovakia due to poor privatisation, lack of policy, sluggish overall economy and limits of a small economy, according to an analysis of the Croatian ICT industry from 1999 to 2004.
ZAGREB, July 8(Hina) - Croatia's information and telecommunications sector (ICT) lags behind the ICT in Slovenia, the Czech Republic, Hungary and Slovakia due to poor privatisation, lack of policy, sluggish overall economy and limits of a small economy, according to an analysis of the Croatian ICT industry from 1999 to 2004.

The analysis, presented on Tuesday, was carried out by the IDC agency for the Croatian Employers Association based on official data on the business of Croatia's ICT companies.

The Croatian ICT sector is fragmented, companies lack financial power and most are oriented to resale, the sale of basic services, assembly of computers and development of software for clients, according to the study.

Few companies have signed partnership with global players, which have not directly entered Croatia.

The ICT revenue in Croatia in 2004 was 27.4 billion kuna and it was generated by 1,415 companies with 23,763 employees. The share of the IT industry in the overall revenue was 32 per cent and that of telecommunications was 68 per cent.

The study revealed that Croatia fares poorly in terns of computer and similar activities when compared to selected countries.

Generally, it may be said that Croatia ranks alongside Romania and Bulgaria, and lags behind other ex-socialist countries, the exception being telecommunications services.

Croatia's 82,300 euros in revenue per employee put it ahead of all countries of Central and East Europe, with the exception of Slovenia.

(EUR1 = 7.25 kuna)

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