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Friday 03.04.2020 | Name days: Daira, Dairis

Experts: Latvia has no ICT aims

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BNN news from Latvia, Baltics

Latvia has not defined clear aims in the information and communication technology (ICT) sector. The fierce competition and shrinking orders have added to businessmen having to make more effort to carry out projects and see whether their are capable of introducing them successfully, ICT specialists told the business news portal BNN.

The unstable and unpredictable economic situation of Latvia is leaving a considerable impact on the ICT market that has been changing its directions to meet the current market needs, according to Lattelecom Technology executive director Rinalds Sproģis.

It was just recently when the majority of producing companies invested huge funds in modernization of their equipment. The current IT infrastructure and processes do not provide the necessary support for the management of a company, says, Sprogis adding that at the moment the market calls for a quality software development. He stresses these processes require businessmen to be flexible and adjust to market trends. Fierce competition has pushed out of comparatively smaller companies, operating only, for example, technical assurance, Lattelecom Technology executive director indicates.

Similarly, Baltic Data Head Aivars Arums stresses many companies went bankrupt due to the crisis in Latvia – Lithuanian BMS Megapolis, Topo center, Latvian EET and a number of companies in smaller towns. The same happend with various Internet shopping stores. For the most part it was companies operating only on the basis of loans, Arums says, adding that the situation improved in 2010, compared to 2009.

SIA Komerccentrs DATI Group Board Chairman Aldis Gulbis believes 2008 was the most critical year for the ICT sector. 2009 was not that tough already, while 2010 was a year of stabilization. Optimization measures and different arrangements will be topical in the following five to ten years as well. From the market perspective, Latvia can expect growth. However, much depends on the next European financial planning period from 2013 to 2020, says Gulbis, indicating that a lot of effort must be put for Latvia to mature, because only arranged processes can become automatized.

Regarding project financed by the state, there is practically none, says Gulbis, stressing that most of the funding comes from Europe or international sources. Similalry, he points out the ICT sector is integrating within other sectors. It is already closely linked with construction, also energy, learning and public administration. Several public officials have announced it is exactly through the ICT sector how they see the public sector cuts. This will guarantee the development of the sector, Arums is convinced.

With respect exactly to SIA Komerccentrs DATI Group, Arums indicates this year will be more successful than the previous one. Currently there are already tendencies suggesting that the performance could grow considerably, he told BNN.

Sprogis forecasts companies will keep searching for ways to optimize costs, including IT. Global experience shows IT infrastructure renewal is becoming more and more topical, switching from the purchase of servers to renting them or the so called Infrastructure as a Service (IaaS). He states these trends are entering Latvia as well, however at the moment they are still on an early stage, namely, the service is mostly used by large and average-size companies, dealing with gradual existing servers consolidation and transferring of their content to virtual servers.

He believes there is a similar tendency also with respect to licenses that clients are offered to rent if they place centralized IT infrastructure in specialized Data Centers. This service became especially topical during the economic downfall, because its permits companies to abandon unnecessary licences as a result of optimizing work force or narrowing the business environment, Sprogis says.

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  1. Erwin_U says:

    Not a wise decision, because this sphere could bring more revenues.

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