​​​​​​​​​​​​​Turkey’s information and communication technologies (ICT) sector has become an essential part of the economy with exports surpassing USD 1 billion to the EU, MENA, Asian, and North American regions. Turkey’s primary export destination, the EU, receives over 75 percent of Turkey’s IT and CT exports in software, hardware, equipment, and services.

With an estimate of USD 16 billion worth of international investments attracted since the early 2000s, Turkey’s employment in the sector has surpassed 139,000. Today, over 20 percent of employment in the ICT sector is R&D personnel, and nearly 70 percent of those employed in the sector are younger than 35.

Turkey’s talent pool is further supported by an increasing number of university graduates in engineering and ICT fields. In 2018 alone, the number of graduates in the specified fields passed 52,000. The availability of a qualified workforce and modest labor costs continue to make Turkey a competitive country in the region.

As the ICT sector is considered a priority sector by the Turkish government, various initiatives have been taken to promote investments in the area. The greatest indicator of these efforts is the R&D Law, first introduced in 2008 and then revised in 2016, entailing the government’s support areas in R&D and introducing an incentives package. The incentives package includes corporate tax exemptions, VAT exemptions, social security premium support, and more.​​​​

For further information, you can visit: https://www.invest.gov.tr/en/sectors/pages/ict.aspx

Source: Republic of Turkey Investment Office / link: https://www.invest.gov.tr/en/sectors/pages/ict.aspx
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• As the young population increases and online market expands, the total number of mobile phone subscribers is expected to reach 75 million by 2017, up from 73.2 million in 2015.
• IT spending on hardware, software, IT services and telecommunication services in Turkey is expected to increase to USD 30 billion by 2017.
• ICT spending in Turkey is expected to grow faster than the world average. With regard to its large domestic market with sizeable potential in the ICT sector, sector growth is expected to grow with a CAGR of 7.4 percent during the 2012-2017 periods.
• 69.5 percent of all households in Turkey have internet access.
• The percentage of internet users in Turkey is around 56 percent and this is forecast to rise to above 60 percent in 2017.

Turkey’s ambitious vision of 2023, the centennial foundation of the republic envisages grandiose targets for the ICT sector in Turkey. These targets include:

• Reaching 30 million broadband subscribers
• Providing internet connection for 14 million houses at a speed of 1,000 Mbps
• Increasing the sector’s share in GDP from 2.9 percent to 8 percent
• Becoming one of the top 10 countries in e-transformation
• Having 80 percent of the population computer literate
• Increasing the number of companies to 5,500; employees to 65,000; and exports to USD 10 billion in TDZs
• Increasing the ICT sector’s size to USD 160 billion, with a market growth of around 15 percent each year
• Increasing the R&D expenditure to GDP ratio to 3 percent from 1 percent

Date: 13 March 2017

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.