The developing ICT industry here has the potential to be a key economic engine for modernization and regional growth, providing significant investment and trade opportunities along the “Virtual Silk Road.” One of the industries in the Kyrgyz Republic that is expanding the fastest is the IT sector. This beautiful and promising nation outperformed Uzbekistan, Tajikistan, and Turkmenistan in terms of innovation and digital adoption activities The majority of these enterprises are distributors and dealers because the market is still controlled by global ICT hardware manufacturers and their local agents and distributors.
The “Digital Kyrgyzstan 2019-2023” strategy was adopted by the Kyrgyz government in 2019 with the following objectives:
- Improving internet connectivity and digital infrastructure
- Promoting home employment options through promoting “digital literacy” and IT education
- Creating e-government platforms and services
- Fostering economic growth by digitally transforming the banking and financial technology industries
Leading sub-sectors
Since its foundation just over 10 years ago, the Kyrgyz IT industry has grown steadily, making it one of the most profitable and autonomous sectors of the economy. The High-Technology Park of the Kyrgyz Republic was established by the Kyrgyz government and the Kyrgyz Software and Service Developers Association (KSSDA) in 2011. The High Technology Park (HTP), which was modeled after the (HTP) in Belarus, is a tax-free economic region dedicated to promoting exporting IT services and goods to international customers. Software and other IT exports reach over 30 other markets, including Japan, Canada, Ukraine, Kazakhstan, India, and Germany, with the remaining nearly 38% going to the US. Residents of HTP are experts in interactive technical service, gaming, and the development of mobile and software applications.
Opportunities
The Kyrgyz government aims to update ICT infrastructure and digitize several citizen services, including customs and logistics agencies, healthcare service centers, educational institutions, and transportation hubs. Potential export markets include consumer electronics, educational software, fintech and banking services and hardware, analytical software, ICT equipment, cyber security solutions, and legal and financial services. Services for cloud storage are very popular.
There are several chances for some countries’ goods and services in the expanding eCommerce market. By 2023, the ECommerce Association of Kyrgyzstan projects that the market would increase by 14% to $185 million. Clothing, electronics, food (from restaurants and supermarkets), furniture, appliances, and toys are the main products sold through eCommerce. Kyrgyz eCommerce still requires the development of both its physical and digital infrastructure, including consulting, building, software development, digital payment methods, and data protection and privacy rights.
IT average salaries in Kyrgyzstan
Here, a person employed in information technology typically makes roughly 19,600 KGS per month. The lowest average pay is 10,100 KGS, and the highest is 31,900 KGS (the highest average, the actual maximum salary is higher).
This is a typical monthly income that includes not only food and shelter but also transportation and a variety of other amenities. The pay for the many different types of jobs available in the field of information technology varies greatly.
How the state supports beginners in IT business
There are specific events of the government supporting the IT industry.
The High Technology Park, established in 2013, is one example. This organization is a unique tax system for businesses and people involved in the IT industry. However, to live in the Park, one must be a significant enterprise, which is not the case for the groups of energetic young men.
The second state priority is for departments of information and communication technology at state institutions to offer state-funded positions. Most IT professionals surveyed by the Soros Foundation in Kyrgyzstan said they took additional courses or undertook independent study since institutions didn’t give enough information about their professions.
