NEWSROOM

Many new-generation technologies were discussed at ICTWEEK, which was held in Tashkent, the capital of Uzbekistan, between 24-27 October. Sherzod Shermatov, Minister of Digital Technologies of the Republic of Uzbekistan, also attended the outsourcing forum held on October 26 as part of the event and attracted great attention.

TURKEY — ICTWEEK Uzbekistan 2023, one of Central Asia's most important IT events, was held with intense participation, especially from the private sector and public institutions. As part of the event held in Tashkent, the capital of Uzbekistan, which aims to become a regional centre in the field of information technologies (IT), the Uzbekistan Outsourcing Forum, held on October 26, brought together foreign experts, local representatives and officials of international IT companies.

The forum focused on developing Uzbekistan's IT outsourcing and was very productive. In the opening speech, Sherzod Shermatov, Minister of Digital Technologies of the Republic of Uzbekistan, said, “We visited many countries, including the USA, Europe and developed Asian countries. Many companies worldwide are considering increasing their competitiveness by reducing costs and outsourcing. However, the first thing that comes to mind is countries like India and the Philippines. Today, we would like to share the message that Uzbekistan offers the best value for your business. We have a growing population. Interest and investment in education is very high in our country. Therefore, we will help you grow your business with us in terms of quality and quantity,” he said.

“Feel at home in Uzbekistan”

“In addition to all the legislative changes we are ready to make, the tax advantages we offer already include that IT companies do not pay any taxes and that employees in IT companies pay less tax compared to other countries,” said the Minister, addressing investors and concluding his words as follows: “There will be extra benefits such as making changes to our current legislation.” If we have to make an effort, we are ready. This is our commitment to you. Please feel at home and plan your long-term cooperation in IT with Uzbekistan.”

Making a presentation titled "Uzbekistan: A Center for IT Outsourcing" at the Uzbekistan Outsourcing Forum, Farhod Ibrahimov, General Manager of IT Park Uzbekistan, said that expanding international outsourcing opportunities for IT services will increase Uzbekistan's investment and export potential as well as foreign companies in the country. He gave information about unprecedented tax advantages and programs enabling them to enter the market easily and risk-free.

The target is to increase IT services exports to 5 billion dollars annually

Underlining that the primary goal of all programs and incentives is to increase Uzbekistan's IT services exports to 5 billion dollars annually, Farhod Ibrahimov said, “IT Park is focusing on two main goals starting from this year: Supporting local companies to open up to the international market and attracting foreign companies to Uzbekistan. Companies have access to the 'All in one' programme, representing a comprehensive package of privileged services. Program: It includes a special corporate manager, 24-hour support service, support in personnel recruitment, infrastructure, legal, accounting and banking services, and uninterrupted internet access. All IT Park residents are exempt from corporate taxes and pay a concessional income tax of only 7.5%. "Uzbekistan may be the most attractive country in the world in this regard right now," he said.

“English as a second language”

One of the important speakers of the Forum was journalist Loren Moss, who also advised on location selection. Pointing out that the transformation in Uzbekistan started in 2016, Loren Moss said, “The IT sector is becoming a strategic direction. There are qualified talents willing to work in the country.

“When I first came here, I thought I would need a translator, but English is already like a second language here. "Uzbekistan has an accessible workforce and a young and talented population," he said.

Other participants of the Uzbekistan Outsourcing Forum include entrepreneur and consultant Andrew Wrobel, UNIDO Korea President Maengho Shin, World Bank Senior Director of Operations Sandra Sargent, Ejada Systems COO Ahmed Atif Bashir, Revotech CEO Nodir Turdimatov, Analytec CEO, In addition to VMoney CTO and Amfora CTO Cenk Göktürk, Proje Dükkanı CEO Ali Cenk Gülce was present. The forum concluded with a productive panel where participants discussed Uzbekistan's talent reserves, strategies, opportunities and challenges.

Uzbekistan reached 82-fold growth in IT services exports in 5 years

Uzbekistan, one of the most remarkable countries in Asia in information technologies, has recorded an 82-fold growth in IT services exports in the last 5 years. Uzbekistan aims to earn $5 billion in revenue by exporting IT in 2030. Advantages such as a talented and young population and an affordable workforce are among the main reasons Uzbekistan stands out in this field. In a country where more than half of the population of 36 million is under 30, the number of people with foreign language proficiency is also relatively high. More than 5 million people in the country speak English. Another advantage for companies is that Uzbekistan's human resources costs are lower than developed countries.

The highest level of government support is provided to IT companies

Thanks to the comprehensive support of the government as well as the technology park IT Park Uzbekistan, companies residing here easily benefit from several essential benefits. Advantages such as total exemption from corporate tax, 7.5% nominal income tax rate, and zero customs duty on imported equipment attract companies. Additionally, benefits such as free office space for up to 12 months and, assistance with technical installation, a 3-year IT visa that facilitates obtaining residence permits and provides access to all social services make things easier for companies. Uzbekistan, which is not limited to these supports, offers many other facilitating opportunities such as assistance in all legal, accounting and banking issues that may arise, support in personnel recruitment and reimbursement of up to 15% of payroll expenses of Uzbek employees. Thanks to these conditions, 1,470 companies transitioned to established status in IT Park Uzbekistan.

2 Turkish companies took their place in Uzbekistan

There are 2 Turkish companies among the companies located in IT Park Uzbekistan. When we look at the companies' service areas here, it stands out that more than 650 companies have products in retail, fintech, education, medicine and other fields. In addition, nearly 450 companies provide services in the field of IT training, including outsourcing (BPO) services abroad, as well as technical support services, modifications and improvements to software products. More than 30 companies offer software products developed based on artificial intelligence.

Ali Cenk Gülce, CEO of digital communication agency Proje Dükkanı, said, “We also know about the IT Park in Turkey; we have previously applied to Turkey's IT park for our software company in Turkey. However, at this point, we were much more interested in the conveniences provided by the IT Park in Uzbekistan. Therefore, it enabled us to shift some of our plans, especially in software, to Uzbekistan. The incentives provided by IT Park motivate us more. We do not think about how we will invest and pay taxes simultaneously. "It is crucial that we produce and invest while producing."