Information Technology in HUNGARY

Impacts on the Non-IT Globally-Competing Firm

 

 

It appears as though the main drivers of Hungary's most recent changes and advancement are: their desire to be accepted into the EU and their recent WTO trade agreements.

Competition within Hungary's market is growing. With competition, will yield efficiency and better uses of resources, which in turn, will increase the profitability of those involved. Therefore, Hungary is looking to be a favorable market with potential long-term benefits. The initial growth of the IT sector began when MATAV began to privatize. The further privatization and deregulation within the country will only lead to more investment and growth. Competition leads to growth and better products in a general sense. Companies try to produce the best products in hopes of gaining market share and revenues. Hungary's growth is just beginning and the potential is enormous. Unfortunately, the potential of Hungary needs to be tapped into in order for them to become the information society that they desire. The only question is whether or not there are enough people who are willing to risk new ventures and invest in new aspects of the market. Foreign investment is not enough; Hungary must establish more areas for production of IT related products within its various territories.

Therefore, it is up to the inhabitants, government, state officials and key leaders to provide the necessary tools in order for Hungary to continue to grow in the telecommunications area. Foreign investment is already in place and MATAV's monopoly will be over in 2002.

Although IT support-services and IT training are not the best at this time, the future will be better. With the continued growth and interest in the IT sector, schools, businesses and the government will be sure to foster the required elements of a successful IT society. There are already some of these elements in place and the future is bright.

Investment in Hungary is worth the risk and the potential return should be great.  

 

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Last update: May 11, 1998 by Jennifer L. Houley