INFORMATION & COMMUNICATIONS TECHNOLOGY … · a steady recruitment base through its renowned ......

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HUNGARY IN INFORMATION & COMMUNICATIONS TECHNOLOGY SECTOR

Transcript of INFORMATION & COMMUNICATIONS TECHNOLOGY … · a steady recruitment base through its renowned ......

HUNGARYIN

INFORMATION & COMMUNICATIONS TECHNOLOGY SECTOR

OPENING DOORSFOR YOUR INVESTMENT

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14

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38

46

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ABOUT HUNGARY

ICT IN HUNGARY

LABOUR FORCE

INNOVATION

LOCATION

HUNGARIAN INVESTMENT PROMOTION AGENCY (HIPA)

Published by the Hungarian Investment Promotion Agency, HIPA

All rights reserved © HIPA, 2016www.hipa.hu

FORM OF GOVERMENT

PARLIAMENTARY REPUBLIC

HUNGARY

(Source: *HCSO = Hungarian Central Statistical Office)

AREA

93,030 km2TIME ZONE

GMT + 1 HOUR

CURRENCYFORINT

(HUF)

GDP (PPP)€ 183,989 MILLION

(2014)

UNEMPLOYMENTRATE6.8 %

(2015, HCSO)

INFLATION-0.1%

(2015, HCSO*)

MEMBERSHIP IN INTERNATIONAL ORGANISATIONS

EU, UN, OECD, WTO, NATO, IMF, ECEU member: since 2004

CLIMATETEMPERATE

(similar to the rest of the continental zone)

RISK OF NATURALDISASTERSVERY LOW

OTHER MAJOR CITIES

Debrecen (203,506)Szeged (162,593)Miskolc (159,554)Pécs (145,985)Győr (129,372)

CAPITALBUDAPEST

1,757,618(as of January 2015)

POPULATION

9,855,571(as of January 2015)

ICT Sector in Hungary 7

ABOUT HUNGARYMAIN FIGURES

ROMANIA POLAND SLOVENIACZECHREPUBLIC

SLOVAKIAHUNGARY

YOU CAN COUNT ON THE GOVERNMENT’S COMMITMENT TO FURTHER IMPROVE THE BUSINESS CLIMATE

Inward FDI stock amounted to 78% of the GDP (2014) the highest ratio in the region.

Source: wiiw FDI Database

78%

65% 57%

41% 40%

27%

Hungary is an open economy where particu-lar emphasis is placed on encouraging foreign investment. Partnership with potential inves-

tors is a national priority; special attention is paid to the needs of companies already settled in Hungary, and to the further improvement of the business climate.

ABOUT HUNGARYSTABLE ENVIRONMENT

ICT Sector in Hungary 9

IN ORDERTO IMPROVE THE

BUSINESS CLIMATE, THE HUNGARIAN GOVERNMENT…

ABOUT HUNGARYBUSINESS ENVIRONMENT

INV

ESTM

ENTS

IN F

OCU

S

…created one of the most competitive FLEXIBLE LABOUR

CODEs in Europe(in favour of employers).

…has reduced the CORPORATE TAX RATE

to the lowest level in the CEE region.

…has introduceda FOREIGN-TRADE

FOCUSED foreign policyto attract FDI.

…has doubled the amount of

financial support forR&D ACTIVITIES in the 2016-2020

period.

…has reduced the PERSONAL

INCOME TAX

to 15%.

…introduced a new act on a practice based DUAL TRAINING

in favour of business needs.

…has entered intoSTRATEGIC PARTNERSHIP

AGREEMENTSwith numerous companies,

giving fast access to the government via workshops and regular consultations.

ICT Sector in Hungary 11

INTERNATIONAL SCHOOLSExpatriates looking to stick with the curricula of their home countries can choose from a range of private international schools for their children. There are also many English, German or French public and private pre-schools for children aged from three to six. The school year starts in September and ends in June, and school buses are usually available at private schools. There are many opportunities to study in a foreign language at universities too.

EXPATS LIKE HUNGARYBudapest is a city full of surprises and wonders, with its lively centre, pretty parks, majestic river, tall church spires, and lavish spas. One of the most exciting cities in the world, Budapest is full of secrets, hidden spots to explore, and old favourites to revisit. This is the city where being bored is not an option.According to TripAdvisor, Budapest is offering the best price-value ratio in the world. Accord-ing to Condé Nast Traveler readers, Budapest is the second best city on earth.

EXPLORE THE COUNTRYSIDEHungary’s diverse countryside offers a wide range of outdoor activities: 11,000 kilometres of hiking routes; more than 2,500 kilometres of cycle paths; 17 golf courses; ten national parks; and many protected nature reserves for those in love with fresh air. The protected Puszta-region, the Great Plain, the romantic Danube Bend with its historic sites, and pretty baroque towns, such as Eger, attract visitors all over the year. Lake Balaton, the largest fresh water lake in Central Europe, is a perfect holiday resort.

2.BUDAPEST

IS THE

BEST CITYON EARTH

(Condé Nast Traveler,2015)

ICT Sector in Hungary 13

ABOUT HUNGARYQUALITY OF LIFE

For a number of years, Hungary has ranked among the top performers in the CEE region in the area of IT spending per capita, reaching

€223.4 in 2014. Companies and public institutions in Hungary are closing the gap on their counterparts in most devel-oped EU markets in terms of IT development, with the share of ICT spending as part of GDP increasing to

4.2% in 2014 – among the highest in CEE. The Hungarian IT market represents 8.3% of the total CEE IT market and is the fourth largest in Central Europe. According to IDC, the Hungarian IT market has proven to be quite resil-ient to the recent global and local economic downturn. Between 2009 and 2014, it increased by more than 24%, reaching €2.21 billion in 2014. Hardware accounted for 51.7% of the total market, while the software segment gained a 21.4% share, and services made up the remain-ing 26.9%. The Hungarian IT market is expected to expand at a compound annual growth rate (CAGR) of 3.8% between 2015 and 2019, with an accelerat-ing growth trend toward the end of the forecast period.

Gabriella SzentkutiCEOMicrosoft Hungary

"It is a smart move to bring an ICT company to Hungary for both quantitative and qualitative reasons. Among the hard facts, of course, are unique geopolitical conditions such as the bridge role Hungary plays between the West and the East, the North-Atlantic sphere and Asia, which makes the country an ideal location from which to establish presence in more than one region from one strategic location.One also ought to mention that not only is a highly trained and highly skilled workforce already available here in abundance, but also that the country has a steady recruitment base through its renowned technical higher education system. Above all, however, is the spirit – the eagerness of Hungarians to succeed and recreate the successes of the current and former generations of inventors, entrepreneurs, and dreamers. Hungary is destined through its traditions to innovate – not just to adopt and embrace but to discover new solutions. I believe Hungary is a natural born ICT country."

THE ICT MARKETIN HUNGARY

ICT IN HUNGARY

ICT Sector in Hungary 15

9.00%

8.00%

7.00%

6.00%

5.00%

4.00%

3.00%

2.00%

1.00%

0.00%

7.00%

6.00%

5.00%

4.00%

3.00%

2.00%

1.00%

0.00%

HUNGARY CZECHREPUBLIC

SLOVAKIA SLOVENIA POLAND

Sour

ce: O

ECD

, 201

4

BROADBAND PENETRATION GROWTH IN CEE 2014 VS. 2013 (%)

7.8 7.36.36

4.93

0.01HUNGARY CZECH

REPUBLICSLOVAKIA SLOVENIA POLAND

Sour

ce: O

ECD

, 201

5

VALUE ADDED OF ICT SECTOR AND SUB-SECTORS, 2013 (%)

2.32.5

2.3 1.81.4

1.40.10.4

1.71.5

1.6 1.70.1

0.2

0.1 0.02.0 1.60.9 0.8

IT and other information services

Software publishing

Telecommunications

Computer, electronic and optical products

ICT IN HUNGARY GENERATING HIGH VALUE FOR CUSTOMERS

HUSLO

CZ

PL

SK

ICT Sector in Hungary 17

ICT IN HUNGARY

30.724.1 21.9 19.6 17 15.7

AgcoAvayaCitigroupComputacenterGetronics EMEAGreifGrepton InformaticsHPIBMIGateIT ServicesKBCLegoMerlinOraclePacteraSAPSystemaxTata Consulting ServicesT-SystemsUnisysZTE So

urce

: IDC,

201

5

IT support

IT support, customer services

IT support

IT support

IT support

IT support

IT services, Outsourcing

IT consulting, implementation, support services

Operating systems support

Systems support

IT services, Outsourcing

Datacentre services

IT support

IT support

IT consulting, IT support

testing, IT support

SAP support, Cloud support

IT support

Support

Remote support services

IT outsourcing, Application support

Network operation centre

COMPANY SERVICES PROVIDED

35.0%

30.0%

25.0%

20.0%

15.0%

10.0%

5.0%

0.0% Sour

ce: O

ECD

, 201

4IT OUTSOURCING SPENDING VS IT SERVICES SPENDING IN CEE, 2014 (%)

HUNGARY CZECHREPUBLIC

CROATIA POLAND SLOVAKIA ROMANIA

The Hungarian IT outsourcing market is by far the most advanced in the Central European region. In 2014, the outsourcing services

primary market in Hungary totaled €182.80 million, making it the second largest primary market in the country, with a 30.7% share. The share of IT out-sourcing spending within the overall IT services spending is significantly higher in Hungary than in other countries of the CEE region like in the Czech Republic, Croatia, Poland, Slovakia, and Romania, where these shares are 24.1%, 21.9%, 19,6%, 17% and 15.7% respectively.

IT OUTSOURCINGCENTRES

ICT IN HUNGARY

ICT Sector in Hungary 19

R&D CENTRESBluebird International Custom Application Development

Cognizant Custom Application Development Application support

EPAM Software development

Ericcson Development of network management software, R&D centre

Evosoft CAD

Huawei Technologies Software development, network related R&D

Lufthansa Systems Development of applications for the air transport industry

Morgan Stanley Application development

MSCI Application development

National Instruments Systems development

Nokia Application development, R&D

Oracle CAD, IT consulting, IT support

Pactera CAD, testing, IT support

SAP Development of SAP SCM applications, SAP support

Sysdata PSE Applications for Siemens solutions for the mobile and fixed telecom operators

Tata Consulting Services CAD Support

T-Systems Software development Remote support services

COMPANY SERVICES PROVIDED

Sour

ce: ID

C, 2

015

ICT IN HUNGARY

Hungary is an ideal location for R&D centres, large pool of local professionals are available with reasonable cost and exceptional knowl-

edge of the industry. The majority of these centres has shown a significant and gradual expansion since their establishment.

ICT Sector in Hungary 21

DATACENTRES

T-SYSTEMSLocal/international

Sites: 4 Open

Telecom/IT

INVITELLocal/international

Sites: 3 Open

Telecom/IT

WIGNER (VALUE ADDED

HOSTING FOR CERN)Local/international

Sites: 1 Captive

Research

KBCLocal/international

Sites: 2 Captive Finance

NISZLocal

Sites: 2 Captive

Government

DOCLERNET HOSTING

Local/international Sites: 1 Open

Professional Services

GTSLocal/international

Sites: 3 Open

Telecom

TELENORLocal/international

Sites: 2 Open

Telecom

PROSERVERLocal/international

Sites: 1 Open

Telecom

MVMLocal

Sites: 2 Captive Utilities

OTPLocal/

international Sites: 2 Captive Finance

ALCOALocal/

international Sites: 2 Captive Discrete

Manufacturing

MOLLocal/

international Sites: 2 Captive Process

Manufacturing

CITIBANKLocal/

international Sites: 2 Captive Finance

14400 m22820 m22000 m21920 m22000 m2600 m2600 m2590 m2300 m2200 m2N/A N/A N/A N/A

ICT IN HUNGARY

ICT Sector in Hungary 23

The strategic directions and development priorities for the domestic infocommunica-tions and telecommunications sector in the

2014–2020 period are set out in the National Info-communications Strategy harmonized with the Digital Agenda of the European Union. The frame-work of the strategic action plan is determined in the Digital Nation Development Program (DNDP).

strengthening(via digital technology) togetherness of local communities and the

entire Hungarian society

DNDP adjusted to the National Infocommunications Strategy frames

the following main goals:

DIGITAL NATIONDEVELOPMENTPROGRAMDevelopment of the Hungarian ICT Sector in 2014-2020

"In Hungary, political decision makers pay special attention to the development of industries that generate significant added value, such as ICT, as is clear from the Infrastructure Development Program, which will enable the completion of full broadband coverage in Hungary two years prior to the EU Digital Agenda deadline year of 2020. It is necessary to underline the importance of the human capital Hungary has: Hungary’s traditional engineering talent and the roles played by Hungarian experts in the history of information technology guarantee that even IT companies making long-term plans can achieve business success in the country."

Tibor RékasiCEOT-Systems Hungary

ICT IN HUNGARY

By 2018 at least 30 Mbps internet network throughout the countryNetwork connection of local public institutions

Providing digital devices (laptop, tablet)Smart city servicesRegional economic development programsLocal SMEs IT developments (equipment, software, service)

·

·

···

·

·

·

·

·

Creating integrated customer points: contact with citizens and enterprises through 260-280 one stop governmentBy 2020 all public services should be electronic and the use of them should be mandatory for enterprises

Adult education, e-inclusion, mentoring those without digital competenceIntroduction of new educational program, that includes use of digital devices and extra IT lessons apart from the lessons in public educational institutions

making superfast internet available throughout the

country

developing governmental

services

improving the quality of life in all lifecycles

by supporting the spread of digital applications and

services

increasing the country’s competitiveness by fostering the spread

of digital services and digital competences

Superfast internet

Digital community and economy development

E-government services

Digital competence

ICT Sector in Hungary 25

HUMAN RESOURCES Over 35,000 ICT companies in Hungary (HCSO).

App. 400,000 jobs related to digital economy in Hungary (IVSZ).

Produces 20% of the Hungarian GVA (IVSZ).

Higher ICT employment ratio than in other CEE countries.

Cost effective labour force: average gross monthly earnings in this sector in Hungary were € 1,435 — the lowest in the region (IDC CEE Comparative Country Analysis, IDC, 2014).

The Hungarian Association of IT Companies estimates that every new job added in the ICT sector creates 2.25 new jobs in other sectors, indicating the high significance of ICT professionals in the Hungarian economy.

HUNGARY

HUNGARY

CZECHREPUBLIC

CZECHREPUBLIC

SLOVAKREPUBLIC

SLOVENIA

SLOVENIA

SLOVAKREPUBLIC

POLAND

POLANDROMANIAAUSTRIA

Sour

ce: O

ECD

, 201

5So

urce

: Eur

osta

t, 20

14

5.0%

4.0%

3.0%

2.0%

1.0%

0.0%

30%

20%

10%

00%

Computer, electronic and optical products Software publishing Telecommunications IT and other information services

EMPLOYMENT IN THE ICT SECTOR AND SUB-SECTORS, 2013 (%)

SHARE OF BUSINESSES THAT EMPLOYED ICT/IT SPECIALISTS IN 2014 (%)

27 24

1.41.5

1.6 1.5 1.0

0.50.4 0.5 0.6 0.6

0.10.1 0.0 0.0 0.01.90.9 0.7 0.7 0.5

21 20 18 12 10

LABOUR FORCE

ICT Sector in Hungary 27

Four universities in Hungary appear in the respected QS World University Rankings (which claim to be the most widely read univer-sity comparison of the world’s top 800 universities).

ACADEMIC YEAR

2014/2015

NO. OF INSTITUTIONS

67

Undergraduates (BA/BSc) and Postgraduates (MA/MSc)

271,480of which 203,576

are fulltime.

Source: HCSO

TERTIARY EDUCATION IN HUNGARY

YOU CAN RELY ON GLOBALLY ACKNOWLEDGEDHUMAN CAPITAL AT A REASONABLE COST

"EPAM Hungary is the main pillar of EPAM’s global operations, as it is the biggest and oldest EU Delivery Center. We have been operating in the region for more than a decade now [15 years]. We developed our business here because of the high quality of education and talent in the country."

Bence VinkoManaging DirectorEPAM

YOU CANLABOUR FORCEEDUCATION

ICT Sector in Hungary 29

In 2015 the total number of IT students was 20,945.Hungary's system of higher education produces top-quality ICT professionals. A large number of

multinational and local IT companies actively coop-erate with universities to ensure that new generations of Hungarian IT engineers enter the labour market with the latest knowledge and the relevant practical skills to immediately start work in the private sector.In 2015, in cooperation with IBM, CEU Business School and the CEU Department of Economics launched a new one-year MSc programme in business analytics. The programme focuses on data scientist competencies, the first of its kind in the region.

ITEDUCATION

ALTERNATIVE IT EDUCATION PROGRAMMES

• CodeCool – a private school offering 18-month courses for software developers

• Blend Your Solution/IT Career Programme – a three-to-four-month course for individuals with professional backgrounds other than informatics

• Green Fox Academy – offers a similar fast course in informatics with personal mentors

• Ruander Education Centre – offers various programming and IT courses

• PentaSchool – offers a very comprehensive IT and application development educational portfolio

• Masterfield Training Centre – offers basic IT and programming courses + specialized training programmes, such as banking informatics

• Training360 – offers various IT, programming and IT management courses

• IT factory – offers online courses primarily in the field of programming

Budapest• Eötvös Loránd

University• Budapest

Technical University• Budapest

Business School• Óbuda University

• Corvinus University of

Budapest• Gábor Dénes

College

SzegedUniversity of

Szeged

DebrecenUniversity of

Debrecen

GödöllőSzéchenyi István

University

VeszprémPannon University

KecskemétKecskemét College

MiskolcUniversity of

Miskolc

DunaújvárosCollege of

Dunaújváros

PécsUniversity of Pécs

LABOUR FORCEEDUCATION

ICT Sector in Hungary 31

Hungary has adopted the well-working GERMAN MODEL

in medium & higher education

CURRICULUM is customized

to company needs

Long term market-ready WORKFORCE

DUAL EDUCATION

TRAINING of young engineers on internationally

approved standards

Participation on real INDUSTRIAL

PROJECTSduring studies

Participation in STUDENT

COMPETITIONS

CLOSE COOPERATION

between corporate partners

& universities

CUSTOMIZED CURRICULUMS & DEPARTMENTS

strongly linked to the actual needs of

the industry

The cooperation of academia and the corporate players resulted in a customized education at the Universities / Colleges of

Győr, Veszprém, Miskolc, Kecskemét, Debrecen.

WHAT DO WE DO TO MAKE THE REQUIRED

LABOUR FORCE AVAILABLE FOR YOU?

LABOUR FORCEDUAL EDUCATION SYSTEM

THE MEETING POINT OF CORPORATE CULTURE

& EDUCATIONAL POTENTIAL

ICT Sector in Hungary 33

There will be large numbers of students leaving the higher education who can immedi-ately enter the world of work, without years of education and additional financial investment. It will be important to reduce the drop-out rates, to encour-age practice-oriented training and to ensure real labour mar-

ket-oriented diplomas.

In the 2015/2016 academic year, higher education in the dual form in Hungary is provided in the agricultural, economic, engineering and information technology areas, thus highly qualified young graduates will continue to be available

for companies.

Throughout the country, with student contracts and in the framework of cooperation

agreement more than

educational institutions are engaged in extracurricular vocational and secondary school (or both) "dual" training

at various faculties.

In 2015, the government pro-vided support to institutions

through tenders worth

specifically for the purpose of developing trainings, training materials and teaching aids, as well as to enhance cooperation-based relationships between educational institutions and part-

ner organisations.

The number of students in the 2013/2014 academic year who were engaged in extra-curricular vocational "dual" training in the 9th-11th grades of secondary schools and

vocational schools was

20,500.

400HUF 2.2 billion

7058.55

HU

NG

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IND

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GREAT NUMBER OF AVAILABLE PRODUCTIVE LABOUR

WITH COMPETITIVE COSTS

CZ

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605040302010

The EF English Proficiency Index 2014 (%)

PROFICIENCY ENGLISH LANGUAGE SKILLS

• 91.8% of fresh graduates has English language skills• 2nd most popular foreign language: German (67%)• Followed by: French (14%), Russian, Italian, Spanish• All degrees include foreign-language certificate

and computer skills

+

LABOUR FORCEDUAL EDUCATION SYSTEM

LABOUR FORCELANGUAGES

ICT Sector in Hungary 35

High level language skills are indispensable for successful ICTs. Young Hungarians understand that, in order to be successful in today’s Europe,

linguistic skills are essential. In 2013/2014, more than 532,000 Hungarian primary school students and 340,000 secondary school students were learning foreign languages, mostly English and German. Hungary has approximately 200 bilingual primary and secondary educational institutions where 37,000 young Hungarians study in English, German, French, Italian, Spanish, Russian, Chinese and in Hebrew. Since Hungary’s EU accession, there has been

a growing number of native language speakers at our universities, and an increasing number of Hungarians study abroad. Since 1997, Hungary has been part of Erasmus, EU’s largest and most successful mobility programme. Hungary is also an active participant in the Life Long Learning programme which helps to provide international internships for students.

PART OF ERASMUS INTERNATIONAL STUDY PROGRAM

200

BILINGUAL PRIMARY & SECONDARY EDUCATIONAL INSTITUTIONS

IN ADDITION TO THE MOST COMMON EUROPEAN LANGUAGES, STUDENTS CAN ALSO STUDY EXOTIC

LANGUAGES (SUCH AS SWEDISH, NORWEGIAN, FINNISH, DUTCH, JAPANESE, CHINESE, PORTUGUESE

AND ARABIC) ARE ALSO AVAILABLE.

"Hungary’s strategic resources include well-educated young adults who speak multiple languages and possess a spirit of performance and perseverance. The country is an ideal place for companies looking for a site for their service and support centre activities."

Balázs AblonczyManaging DirectorSAP Hungary Ltd.

LABOUR FORCELANGUAGES

ICT Sector in Hungary 37

Zoltán GyörkőCEOBalabit

INNOVATIVE HUNGARIANBREED ICT COMPANIES

“Balabit was established in Budapest, Hungary, in 2000. The company focuses on delivering technology-leading security software solutions to the global market. Our research and development centres are based in Budapest and Veszprém, and we work closely with the biggest technology universities in Hungary. We have 23 clients from the Fortune 100 List and offices all over Europe — in the U.K., France, Germany, BeNeLux, Poland, and Hungary — and we recently opened a representative office in the U.S. But our R&D centres remain in Hungary.

I think the strengths that make Hungary a good choice for local and global organizations as a target of their investments are the traditionally high levels of scientific education; EU membership and its unified administrative environment; the hot startup culture and community in Budapest, of which Balabit is a member; excellent communication and transportation infrastructure; and beautiful capital city, Budapest, which is a great place to live and has a rich cultural life and thus attracts foreign experts.”

ICT Sector in Hungary 39

INNOVATION

The innovative capabilities of the Hun-garian ICT sector are best illustrated by the high number of local innova-

tive companies that have emerged in recent years. Many of them operate on interna-tional markets and are regarded as leading innovators in their respective fields world-wide. Some of the most innovative compa-nies are listed above.

CLOUD SERVICES

LogMeInPrezi

UstreamNeostratus

BIG DATAGravity

Radoop/RapidMiner

HungaryStarschema

SECURITYBalabit

KürtNavayo

TechnologiesCrySys Lab

TresorIT

3D ANIMATION AND VIRTUAL

REALITYDigic Pictures

Dolphio Technologies

Leonar3doTEXT AND

SPEECH RECOGNITION

AITIANextent

WEB DEVELOPMENTCarnationGroup/

PossibleCEEIsobar Budapest

MOBILITYInfomatiX

MobileEngineCellum

IND Group/MisysNNG

INNOVATIVE HUNGARIANBREED ICT COMPANIES

ICT Sector in Hungary 41

INNOVATION

INNOVATION

Hungary’s competitiveness in scien-tific and research activities, as well as in knowledge-based activities is

supported by the outstanding cooperation between universities and industry players. Several businesses collaborate with organi-zations in the higher education to carry out R&D activities.

Sour

ce: W

EF, 2

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Sour

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Score4.54.03.53.02.52.01.51.00.50.0

Score

6.0

5.0

4.0

3.0

2.0

1.0

0.0

World Ranking9080706050403020100

World Ranking

70

60

50

40

30

20

10

0

UNIVERSITY–INDUSTRY COLLABORATION IN R&D

QUALITY OF SCIENTIFIC RESEARCH INSTITUTIONS IN CEE

HUNGARY

HUNGARY

CZECHREPUBLIC

SLOVENIA

SLOVENIA

CZECHREPUBLIC

POLAND

POLAND

SLOVAK REPUBLIC

SLOVAK REPUBLIC

4.3

5.1

4.0

4.7

4.0

4.5

3.4

3.9

3.5

3.9

Score World ranking

Score World ranking

ICT Sector in Hungary 43

INNOVATION

COOPERATION BETWEENHIGHER EDUCATION INSTITUTIONS

AND PRIVATE ENTERPRISES

UNIVERSITIESIN BUDAPEST

UNIVERSITIESIN OTHER CITIES

Alcatel-Lucent, Cisco, GTS Hungary Ltd., HP, Microsoft, SAP, Symantec, VMware

MorphoLogic, Ericsson

4D Soft, AdNovum Hungary Ltd., Alerant Informatikai Ltd.,

Areus Ltd., Atigris informatikai Ltd., Balabit IT security, Conet

Ltd., Deverto Ltd., Ericsson, IBM, Infomatix Ltd., IT Services Hungary, Lufthansa Systems,

Microsoft, Morgan Stanley, Nokia, Samsung, Siemens

A20 Ltd., General Motors, IBM,

Microsoft, Multisoft, Noreg, Sárkány Informatikai Ltd.,

Számalk Ltd.

UNIVERSITY OF ÓBUDA PÁZMÁNY

PÉTER UNIVERSITY

Andtek GmbH, Corecomm SI, IBM, IT Services, Lionis,

Nokia, Pressflex Ltd., Sense/Net

PANNONIA UNIVERSITY,

VESZPRÉM

Nokia

COLLEGE OF DUNAÚJVÁROS

CAS Software, EPAM Systems, Morgan Stanley, Nokia, Régens,

Tata Consulting, T-Systems

UNIVERSITY OF SZEGED

IBM, HP, Microsoft, Tata Consulting

UNIVERSITY OF MISKOLC

IT Services Hungary

COLLEGE OF NYÍREGYHÁZA

IBM, Tata Consulting

SZENT ISTVÁN UNIVERSITY,

GÖDÖLLŐ

Tata Consulting

UNIVERSITY OF PÉCS

Tata Consulting

UNIVERSITY OF WEST HUNGARY,

SOPRON

EÖTVÖS LÓRÁND UNIVERSITY

GÁBOR DÉNES BUDAPESTBUDAPEST

TECHNICAL UNIVERSITY

Cisco, HP, IBM, Microsoft, Nokia, SAP,

Tata Consulting

ICT Sector in Hungary 45

YOU CAN MAKE THE MOST OF THE COUNTRY’S STRATEGIC LOCATION: EASY ACCESS TO BOTH WESTERN AND EASTERN EUROPEAN COUNTRIES FROM THE HEART OF THE CONTINENT

Hungary is within two hours by air from most major European capitals, and provides a key link between Europe

and the rapidly expanding markets of the East. The 6 hour time difference from New York and the 7 hour time difference from Tokyo enable SSCs to provide services to the East and West simultaneously.

AN IDEAL LOCATION FOR YOUR INVESTMENTEasy access to both Western and Eastern European countries

"Each market is equally important for Oracle Corporation. Being a global company, however, it has always given priority to those countries in which business leaders and professionals welcome innovative technologies. Hungary is among those countries. Due to its high level of applied information technologies, as well as its market size, it is a great choice for companies seeking to invest. We've found young and motivated professionals with European values, low attrition rates, and fairly low salaries for IT workers compared with the West.”

-6 HOURS +7 HOURS

Csaba Reményi Country LeaderOracle Hungary

ca.120 min

ca.60 min

NEW YORK BUDAPEST TOKYO

LOCATION

ICT Sector in Hungary 47

"Nokia operates at the forefront of telecommu-nication industry with state-of-the-art software, hardware and services for any type of networks. The open-minded and collaborative Hungarian ecosystem supports our research and develop-ment centre dealing with future ready technologies like Telco Cloud, Big Data Analytics, VoLTE and 5G."

Béla ZagyvaCountry Senior OfficerNokia

CORVIN SCIENCE PARKThe largest science park in CEE. The park was established by two universities - the Semmelweis University and the Pázmány Péter University, and the Hungarian Academy of Sciences (MTA).

GRAPHISOFT PARKLocated close to the University of Óbuda, the park places a lot of emphasis on knowledge transfer. The most notable residents are SAP, Microsoft, Canon and Graphisoft.

LOCATION

Science parks are home to both subsidiaries of international IT vendors and Hungar-ian companies and play a special role in

facilitating cooperative R&D among them. One result of the improving cooperation between IT companies and entities such as universities is a growing pool of available IT human resources. The most important IT-related science parks are as follows:

OUTSTANDING LOCATIONS OF KNOWLEDGE/SCIENCE PARKS

INFOPARKEstablished as the first innovation

and technology park in CEE, it is located closely to the Budapest University of Technology. Park

residents include, among others, Hungarian subsidiaries of IBM, Intel

and IT Services Hungary.

BUDAPEST

PÉCS JÁNOS SZENTÁGOTHAI

RESEARCH CENTREIt covers all aspects of education,

research and innovation in the fields of biomedical, natural and

environmental sciences. The centre hosts 25 research groups.

ZSÁMBÉKTALENTIS BUSINESS

PARKThe park offers more than 100,000 m2

of Class A office space just outside of the city of Budapest's borders.

DEBRECEN SCIENCE PARKThe aim of the park is to foster R&D activity in the region through cooperation of the University of Debrecen and businesses.

SZEGEDELI SCIENCE PARKThe Hungarian facility of the Extreme Light Infrastructure (ELI) project is being established in Szeged, to be completed by mid-2016. Parallel to the construction of the laser-research facility, a science park is also being built.

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HOW DO WE SUPPORT YOURICT PROJECT?

HIPAOUR SERVICES

BEFORE YOU MAKE A DECISION

WE OFFER YOU….

AFTER YOU HAVE CHOSEN

HUNGARY

PLEASE CONTACT USAddress: 1055 Budapest, Honvéd utca 20. Customer service: [email protected]

Telephone: +36 1 872 6520Web: www.hipa.hu

We support your further expansion

and plans.

….meetings with HR & real estate agencies,

law firms and other consultants

based on your needs.

….tailor-made incentive offers and information

packages on the business environment,

labour market, tax regulations, etc.

….reference visits at companies that are

already established in Hungary.

…. location search & evaluation

+site visits.

….assistance with your incentive

application.

….one-stop-shop management

consultancy services to address your business needs.

We are open to your feedback and offer mediation

between government and business based

on your inputs.

ICT Sector in Hungary 51

SOUTHERNTRANSDANUBIA

CENTRALTRANSDANUBIA

WESTERNTRANS-

DANUBIASOUTHERN

GREAT PLAIN

CENTRAL HUNGARY, Budapest

NORTHERNGREAT PLAIN

NORTHERNHUNGARY

Pécs

Szeged

Debrecen

Miskolc

Győr

Székesfehérvár

25%

35%

0 / 20 / 35%

50%

35%

HIPAINCENTIVES OVERVIEW

The maximum available aid intensity decreases if the investment is a large investment (exceeding €50 million): 50% of the maximum aid intensity determined in the regional aid map is available for investment between €50 and €100 million, with 34% of the maximum aid intensity for investment over €100 million.For information on up-to-date and individual incentive packages please contact HIPA directly.

Regional grants are the most typical forms of incentives for greenfield / brownfield investments or reinvestments. The maximum amount of regional incentive is shown on the regional aid intensity map. The map above illustrates that regional aid available for investment for a large enterprise may be up to 50% of the eligible costs of the investment, depending on the region. For investments not exceeding €50 million, the maximum intensity ratio can be increased by 10 percent for medium-sized and by 20 percent for small enterprises.

As a member of the European Union, Hungary’s regulations on incentive opportunities are in accordance with the EU rules. One

of Hungary’s competitive advantages over other countries in the region is the Government’s strong commitment to increase the competitiveness of SMEs and large enterprises in Hungary.Alongside the regulatory tools that contribute to the competitive business environment of local companies, Hungary offers wide-ranging incentives to facilitate foreign direct investments and reinvestments by local enterprises. Subsidies may be granted as regional aid or specific aid, such as R&D subsidies.

VIP Cash Grant may be available in case of creating 50 new jobs.

GOVERNMENT INCENTIVES

CASH SUBSIDIESfor investments,

training, job creation

and R&D

TAX INCENTIVESreduction of

corporate tax, social tax, or for

encouraging R&D activities…

LOW-INTEREST LOANS

SPECIAL INCENTIVES

of the free enterprise zones

THESE INCENTIVES INCLUDE, BUT ARE NOT LIMITED TO

50

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