IT Park at “Digital Almaty 2024”: sharing our experience in IT and BPO development

From February 1st to 3rd, 2024, a delegation from the Ministry of Digital Technologies, headed by First Deputy Minister Oleg Pekos, took an active part in the “Digital Almaty 2024” forum. During the event, they imparted insights into the nation’s digitalization efforts and the comprehensive advancement of the IT sector.

During the forum, representatives of IT Park Uzbekistan held negotiations with experts from leading companies, including SURETTER SOFTWARE, GROWTH VISION PRO, LEGAL CONSULTING COMMUNITY, TUSPARK BUSINESS INCUBATOR, INFOPARK, and TECH GARDEN. Discussions revolved around the opening of representations and the possibility of residency in IT Park, as well as the development of joint projects and partnerships.

 

 

During the exhibition, Farhad Ibragimov, CEO of IT Park Uzbekistan, highlighted Uzbekistan’s role as a significant player in the IT outsourcing industry. He presented impressive achievements and ambitious plans for the future, emphasizing the organization’s significant contribution to the country’s digital economy development.

The outstanding and multilingual workforce of Uzbekistan, poised to tackle contemporary challenges, has been underscored. Statistics substantiates this assertion: with a population exceeding 36.6 million, 60% of whom are under 30 years old, coupled with a high literacy rate and over 25,000 graduates from IT faculties annually.

Particular attention was drawn to the growth in residents — 1,652 residents by the end of 2023, alongside concurrent surge in the number of companies boasting foreign capital, totaling 426, and an escalation in service volume to 12.5 trillion sums. The number of companies in the regions has reached 523, once again demonstrating the interest in the development of IT in the regions.

 

 

One of the keynote topics of the presentation was the rapid development of IT services exports, which reached $334 million by the end of 2023, marking a 237% increase compared to 2022. This attests to the international competitiveness and potential of the Uzbek IT sector.

Moreover, during discussions on global collaboration, Farhad Ibragimov underscored the “Silkroad Innovation Hub” initiative.

 

 

The “Silkroad Innovation Hub” is a representation in Silicon Valley, USA, catering to entrepreneurs from Uzbekistan, Azerbaijan, Kazakhstan, Kyrgyzstan, Mongolia, Tajikistan, Turkmenistan, and Turkey. It was established by our compatriots from Kazakhstan and Uzbekistan with the aim of fostering the development of high-tech projects and their entry into international markets. The hub accommodates 40 startups and has hosted over 100 events aimed at enhancing the region's image and strengthening its position.

IT Park Uzbekistan continues its partnership with the “Silkroad Innovation Hub” and launches the “Uzbekistan Global IT Champions” program, aimed at increasing IT exports by entering the US market. This program includes training, organizing trips for practical experience, and establishing contacts with potential clients, partners, and investors.

Farhad Zairovich also shared plans and new programs aimed at attracting foreign companies and investors, as well as increasing local entrepreneurs’ interest in expanding their service exports to foreign markets. Specifically, he highlighted the following initiatives:

 

Tax incentives

The IT Park resident status ensures full exemption from all types of corporate taxes. For instance, non-residents are subject to corporate tax ranging from 4-12%, whereas residents are entirely exempt from this obligation. Social tax for non-residents stands at 12%, while for residents, it is zero. Personal income tax for non-residents is set at 12%, whereas for residents, it is established at 7.5%. Non-residents are required to pay VAT on imported services, whereas residents are exempt from this tax obligation.

It is notable that during the annual event “IT Park: Achievements & Vision”, an announcement was made regarding the extension of tax incentives for all IT and BPO companies until 2040, contingent upon the company exporting more than 50% of its total services.

 

“Regional Headquarters” Program

The new “Regional Headquarters” program provides assistance to international service companies operating in two or more countries and demonstrating a service export volume exceeding 50%. The program encompasses subsidies for establishing regional offices in Uzbekistan, fostering enhanced cooperation with local IT specialists.

Farhad Zairovich underscored Uzbekistan’s active expansion of its global presence, rendering the country appealing to foreign investors and partners. Collectively, these factors cultivate a distinctive environment conducive to the continued growth and development of the IT sector in Uzbekistan.