IT SECTOR IN TURKEY
SOFTWARE INFLUENCES EVERY AREA OF OUR LIVES. THIS IS TRUE TO SUCH AN EXTENT THAT SOFTWARE INVOLVES NOT ONLY THE CONSUMER, BUT IS FOUND IN EVERY MACHINE, INSTRUMENT, AND TOOL WE USE TODAY.
While states, large companies, and universities discuss terms like the Fourth Industrial Revolution, 5G, the Internet of Things, artificial intelligence, and cybersecurity, consumers concern themselves with applications for their mobile devices, cloud technology, or developments in digital gaming. However, the origin of all of these is the information technology (IT) sector and software drives this sector. The IT sector, which keeps states, companies, and individuals functioning, is a strategic –in the fullest sense of the word–arena.
Efforts towards digitalization are increasing every day throughout the world, creating new technology and solutions almost every day and shaping the future. Turkey has also rolled up its sleeves and gotten to work in this area. The information sector has become important in state policies, in companies’ business targets, and education. The state aims to speed up its R&D efforts in software, in educational projects, and production by implementing various kinds of promotions and incentives.
Using local capital has increased the productivity of this sector, which provides added value far above the cost of expenditure for education and investment. Meanwhile, Turkey has also begun to lead in service exports.
While players in the Turkey’s information sector cooperate with all other sectors in the country to increase digital
transformation and productivity, the export rate is also increasing. The Turkish information sector, which supports Turkish mobile operators, bankers, and the defense industry -all of which are world leaders- has become a regional leader. This progress is demonstrated by the statistics and rankings.
In “Best Countries 2019” prepared by U.S. News & World Report,
Turkey ranks 34th; Turkey ranks 18th in terms of power and 36th in terms of entrepreneurship.
In the World Economic Forum’s “Global Competitiveness Report 2018” Turkey is in 61st place; however, when considering powerful research institutions and innovation performance, Turkey ranks in 19th place. In terms of growth of innovative companies, Turkey is placed in the 49th position, for Gdp/market growth Turkey is 13th, and Turkey is 86th in access to venture capital.
The young generation, which loves smartphones and widespread mobile communication as well as technology, feeds the entrepreneurial ecosystem. The three global buying sectors were worth more than $250 million in 2018, which indicates that interest has increased. Mobile broadband usage, which has reached 85% in large businesses, has helped the information market in Turkey to rise to $32 million in 2017. A total of 260,000 people, 1% of total employment, are working in Turkey’s information sector.
An important catalyst in the growth of the information sector was the $1.4 million spent on it by the public sector in 2018. The e-state, which was 80th on the Human Development Index in 2012, was 53rd in 2018 while Turkey moved from 124th on the E-participation Index to 37th.
CCT exports reached $1.3 million in 2017 while the leader in this growth was the video game sector, which is an important global market.
The Service Exporters’ Association, which includes software services in its operations, aims to transform the production potential in the Turkish information sector to exports. In light of this, it is taking steps in developing products and projects aimed at promoting the sector abroad among the public and private sectors, institutions, and organizations like NGOS.