Announcement
The ICT sector may be one of the main sectors of the Hungarian economy, as it accounts for more than 7 percent of domestic gross value added and employs nearly 250,000 people, Századvég Konjunkturakutató Zrt concluded based on its research at the end of 2022. was supposed to give a comprehensive picture of the functioning of the Hungarian ICT sector (information and communication technologies), its current and expected role in the national economy. The study also included 190 randomly selected companies with at least 3 employees, classified in the ICT sector based on their core business.
Based on this, it was found that over the past three years, the sales revenue of Hungarian ICT companies as a whole has increased by 30%, which clearly demonstrates the crisis resilience of the sector. Fifty-three percent of businesses blamed increased operating costs (e.g. rising energy prices, adverse exchange rate effects) on the lack of revenue growth, but more than a third of those surveyed felt that Hungary’s volatile regulatory environment and disruptions in supply chains also contributed to this.
They also pointed out that several factors simultaneously hinder the further development of the sector – the regulatory and innovative environment, feverish changes in tax legislation, fragmentation of supply chains. However, among them stands out the lack of IT staff, which has long plagued the industry and is growing in its dynamics. They added that although business and the education system (higher education and adult learning) are trying to alleviate the deficit in many ways, the gap between output and the real needs of the labor market, in fact, is still not closing; within a few years, according to some forecasts, tens of thousands more IT specialists may be absent from the Hungarian labor market.
Because of all this, business primarily expects from government policy a predictable and stable regulatory and tax environment, a significant reduction in the administrative burden, and the creation of an education system that provides the required number and quality of specialists. The stable vision of the industry in the future is evidenced by the fact that more than 70 percent of the companies surveyed in the study plan to invest in their core business in the next 3-5 years, but developments focused on digitalization (including those of Industry 4.0) have also reached the level of over 50 percent – read Sazadweg’s study.
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