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Wednesday 22.11.2017 | Name days: Aldis, Alfons, Aldris

IT company: lack of reforms leads to Monaco-like income and Norway-like taxes

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Baltic news, News from Latvia, BNN-NEWS.COM, BNN-NEWS.RU, SIA Komerccentrs DATI grupa Board Chairman Aldis Gulbis

SIA Komerccentrs DATI grupa Board Chairman Aldis Gulbis

Crisis combat boosted information and communication technology (ICT) sector recovery, however the government carries out poor structural reforms. Practically there are none, one of the leading IT companies in Latvia SIA Komerccentrs DATI grupa Board Chairman Aldis Gulbis told in an interview to the business news portal BNN.

What are the recent key events in IT sector?

Since ICT is regarded one of the most important sectors to promote national economy, more and more members of Latvian Information and Communications Technology Association, the leading one in the sector, are willing to take part in social processes, including in public administration projects. Currently, we are considering o-members aka organization members and i-members aka individual members involvement in the activities and decision making of the association.

What impact did the crisis have on the sector you represent?

It is possible to say crisis combat boosted ICT sector recovery. There is growing demand for optimization and efficiency promotion – an inevitable part of this sector. On the other hand, due to limited means of other sectors, we often discuss with these sectors representatives whether we should do this or that, because we see a need to reallocate resources allotted to the ICT sector. Moreover, the public administration still sees poor structural reforms. However, hopefully decision makers will look for the essence of the problems, instead of solving them merely formally.

When could your company reach its pre-crisis performance?

That’s not or main goal. It was already before the crisis when we started to consider how to proportionally change our key directions making up the turnover. Value added reseller formed the most of the turnover before the recession. It was already back then when we wanted our baseline revenue to come from systems integration, service, consultations and Service Desk, but it was difficult to reach the aim. The crisis finally allowed us to do that, because there was hardly any technologies sale. This year we plan considerable turnover climb, compared to the previous year. But still it will not be the pre-crisis performance, but we aim at our products bringing the most benefit, not turnover.

Do you lack qualified work force?

The demand for qualified workers did not exceed the supply all of a sudden. In terms of remuneration, we might have already reached the European level, because sometimes it is cheaper to pay for outsourcing services than employ a local.

What kind of amendments would you like to see in the legislation of Latvia?

Firstly, outsourcing procedure should be arranged, extended and strengthened. ICT sector has been offering outsourcing services for a while already, but they are little demanded. Similarly, procurement law needs amendments as well, namely, tender dialogue should be promoted. Currently, it is only possible if the offer seems to be complex. The very essence of the matter is quite simple in reality – the commissioner does not need to know all the technological specifications, this should be left in the responsibility of professionals. This way when there is a demand, the potential service providers could offer possible solutions, so that the client can choose what fits him best.

Speaking more globally, the government should carry out structural reforms on the public administration level, namely, it must undergo standardization.

What is your assessment of the government’s policy to improve the economic situation?

At the moment I must say there is not a single structural reform, which means the level of income will approach the one in Monaco, while we will pay taxes like in Norway. When this contradiction is done away with, only then businessmen will have a hope no sudden taxes or new burdens are introduced.




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