Uzbekistan aiming to become world’s IT outsourcing hub

(MENAFN- Montfort Communications) - The Central Asian country plans to increase its export of IT services to $5 billion by 2030 (compared to $344 million in 2023).
- A special economic zone, IT Park, has already attracted over 400 foreign firms to base themselves there thanks to attractive policies implemented by the Uzbekistan Government.
- The Ministry of Digital Technologies and IT Park of Uzbekistan jointly hosted their first US event this week to attract more American companies to outsource their IT needs to the country.

Uzbekistan is planning to become the world’s IT outsourcing hub, displacing traditional locations India and China, delegates heard at the first Uzbekistan Outsourcing Conference on 7 March in New York.

In India, escalating labor costs and high levels of employee churn are eroding its competitive edge while China's outsourcing landscape is fraught with regulatory complexities and intellectual property concerns, casting a shadow of uncertainty over foreign investments.

In contrast, Uzbekistan offers a stable and welcoming environment, underpinned by a supportive government and a burgeoning tech workforce. Its strategic location, competitive labour costs, and proactive business incentives present an attractive proposition for foreign companies seeking to optimize costs and access top-tier talent. Uzbekistan plans to boost the export of IT services to $5 billion by 2030 (compared to $344 million in 2023).

The event, jointly hosted by The Ministry of Digital Technologies and special economic zone IT Park of Uzbekistan, outlined to an array of US firms the special incentives Uzbekistan’s government has put into place that have already attracted more than 400 foreign firms to IT Park.

International companies already based at IT park include Esokia, Optimo, AMCBridge, Dyninno, Vention, Gcore, and Reasunta Technology.

Minister of Digital Technologies of Uzbekistan Sherzod Shermatov said “We are pleased to continue strengthening our cooperation with the technology sector of the United States and present the unique opportunities offered by our country. Uzbekistan is fast positioning itself as a reliable partner ready to compete with recognized IT hubs such as.

Alongside the comprehensive support we have introduced, our main asset is out educated and talented youth. Of a population of Uzbekistan's population of 36 million, 60% are young people with an average age of 29. We already have more than 1800 companies at IT Park, and we look forward to welcoming new US companies.

Incentives already being offered to foreign companies who choose to base their IT outsourcing needs at IT Park include exemption from corporation and social tax (up to 25%), 7.5% income tax (as opposed to 12%) and a VAT waiver on import or services.

In 2024, the Uzbekistan government also launched "Enterprise Uzbekistan", a special legal regime designed to further encourage digital innovation and R&D.

Key areas covered include customs and taxation, labour relations, finance and banking, data use and protection, intellectual property protection, and the resolution of commercial and civil disputes.

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