New Report Shows That Local Start-Ups Recognize The Potential Benefit of ICT

Doha, June 03 (QNA) - From 2008 to 2012, information and communication technology (ICT) usage among businesses in Qatar has continued to grow substantially on all basic measures, including computer penetration, Internet penetration, broadband usage, and Web presence, according to Qatars ICT Landscape 2013: Business, released today by the Supreme Council of Information & Communication Technology (ictQATAR). Specifically, Internet penetration among businesses with 10 or more employees is now on par with the top ICT players in the world, including Australia, Japan, Korea, and the EU countries. And among those establishments that are logging on, there is growing use of online activities, including email, e-commerce, and e-government services. However, the report also shows that small businesses lag behind larger establishments on nearly all ICT indicators. In addition, at the employee level, there is lower computer and Internet penetration in Qatar compared to other countries, with only 28 percent of employees routinely using computers and 27 percent using the Internet on the job at least once a week. Most important, data in the report demonstrates that local start-ups are blazing the ICT trail. While these young companies lack the financial capacity to heavily invest in ICT, they recognize its potential benefits in greater numbers than do businesses overall, and tend to have stronger technology foundations, employing a significantly higher percentage of skilled in-house technology specialists than businesses across the board. The study suggests that new businesses are making investments only in those aspects that are considered essential for business success. Business use of broadband is now universal, according to the report. Every business in Qatar that is connected to the Internet is using either a fixed or a mobile broadband connection, up from 80 percent in 2008. While SMEs tend to lag behind on other ICT measures, they have made sharp gains in broadband usage. Nonetheless, the speed of broadband is still an issue in Qatar, particularly among large businesses. In addition, businesses of all sizes currently using the Internet are by and large happy with services offered in Qatar but are far more satisfied with factors such as reliability and adequacy of options than with the cost of Internet services and the value of money spent on Internet services. Cloud computing has yet to catch on in Qatar, with awareness of cloud computing still very low among businesses. Almost 9 out of 10 businesses reported that they had never even heard of the cloud. Among those establishments that are cognizant of the cloud, only 3 percent are actually using cloud services, and not surprisingly, awareness and usage are highest among larger businesses. Looking forward, among those aware of cloud computing but not currently using it, one-fourth of small establishments, 36 percent of medium, and 47 percent of large establishments indicated they intend to use cloud services for email, website, ERP (enterprise resource planning), security, and other applications. This landscape report is based on a survey of 1,003 businesses in Qatar, with a representative sample based on size, sector, ownership, and geographic location. This research was carried out in partnership with the Qatar Statistics Authority (QSA) and the Ministry of Business and Trade. This publication is a companion to the recently released Qatars ICT Landscape 2013: Households and Individuals. Throughout the report, the data is reported for all business establishments in Qatar and where appropriate, broken down by size of establishment, main economic activity, and ownership. There are 30,793 businesses in Qatar employing 1,037,023 employees. Small businesses (defined as those having 19 employees) represent 70 percent of all companies in Qatar, but employ only 7 percent of the workforce. In contrast, very large establishments (defined as those with 250 or more employees) employ 57 percent of the workforce but represent only 2 percent of establishments. Together, small and medium-sized companies (with up to 49 employees) constitute more than 90 percent of the total businesses in Qatar. Other trends that have emerged from the survey include: - The number of ICT professionals is projected to grow. In 2012 there were an estimated 27,000 technology specialists working across all businesses in Qatar, representing 2 percent of the total workforce, according to the report. Overall, nearly half (43 percent) of companies report they employ ICT specialists. Though the information and communication industry employs just 1 percent of the total workforce in the country, it contributes the highest proportion of ICT professionals (26 percent) to the total ICT workforce, followed by the construction and wholesale and retail trade sectors, by virtue of their size. Business establishments plan to add 8 percent more ICT professionals in 2013 contributing to Qatars goal of doubling its ICT workforce to 40,000 by 2015. - Appreciation for the need for ICT security is on the rise. The number of businesses in Qatar with an ICT security policy has jumped substantially in just two years, from 37 percent in 2010 to 61 percent in 2012, including nearly half of small establishments and even more medium and large companies. Thirty-five percent of all companies also have and IT official or security officer charged with handling technology security concerns, up from 20 percent in 2010. - More businesses are using the Internet for commerce. Overall, 42 percent of all businesses in Qatar report having a Web presence, more than double the number of companies with a Web presence in 2010. A quarter of all establishments in Qatar use one or more social media networks for promoting their products and services or for providing customer service and support, up from just 3 percent in 2010. Thirty-seven percent of all companies now receive online orders, and 35 percent place orders online up from 12 percent and 17 percent, respectively, in 2010 - Businesses are increasingly satisfied with the governments ICT support but would also benefit from more backing. A relatively high and growing number of establishments in Qatar report that they are very satisfied with government support for ICT integration and usage. However, companies operating in Qatar believe that increased government funding and assistance can help boost ICT penetration and usage across the board, similar to findings in 2008 and 2010. Half of all businesses would like to see the government improve the ICT infrastructure in Qatar, while 42 percent report that they need assistance in technology skills training and development. Other areas where government support is desired include easing regulations for attracting IT resources into the country, creating policies for promoting ICT use, and promoting new ICT businesses. - Business use of e-government services continues to grow. Overall, 80 percent of all businesses in Qatar are aware of at least one government online service. Awareness of Hukoomi, Qatars e-government portal, has risen from 53 percent in 2010 to 79 percent in 2012. Use of e-government services has also significantly increased since 2010, with 58 percent of businesses using at least one e-government service through either Hukoomi or the appropriate ministrys website compared with 37 percent in 2010. Even small establishments, which tend to lag behind on most ICT indicators, have a very high rate of awareness for Hukoomi (73 percent), although their usage of e-government services lags behind other segments due to the relative lack of computers and Internet access in this segment. Companies using online government services report high levels of satisfaction. (END)