Chilean ICT Sector. Introduction. Chile-Taiwan. Raúl Ciudad President ACTi A.G.

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1 Chile-Taiwan Chilean ICT Sector Raúl Ciudad President ACTi A.G. Introduction

2 ACTI, the entrepreneurial community in action Chilean Association of Information Technology Companies (ACTI AG) Founded in 1984 Successive mergers ACTI includes all IT companies: hardware, software, e-learning, systems integration, Internet services. 150 members. Employment*: IT commerce: 11,684 IT services: 24,912 * Source: Economy Ministry of Chile and National Statistics Institute. ACTI s Mission Promotion IT development incentives Research Services to members Qualification (OTIC) CORFO Operator Agent Support to R+D+I entrepreneurship Contribution to the country's competitiveness Encourage country development through IT use

3 Summary of the Chilean Market 1st Fact: Chile stands out in the Region. It is an interesting platform for business and has received important long term investors (Telecommunications, Sanitary services, Infrastructure, Transportation, Ports, Energy, Mining, Finances and Services). 2nd Fact: There are good infrastructure and IT capabilities (for the current level of activity and demand). 3rd Fact: Companies in Chile invest in technology, on average, a third of what their competitors and peers in the world do. This situation is repeated in all Latin America (1.4 % GDP). 4th Fact: Chile spends approx. 0.7% of the Gross Domestic Product (GDP) in R+D. This represents 25% of the percentage spent by the nations with which Chile is competing in global rankings. Global Competitiveness Report Chile, ranked 27rd (of 125 countries) The World Economic Forum calls Chile by far the most competitive economic in Latin America, (with) the lowest corruption levels in the developing world 1-. Institutions (25) 2-. Infrastructure (35) 3-. Macroeconomy (7) 4-. Health and primary education (57) 5-. Higher education and training (40) 6-. Market efficiency (24) 7-. Technological readiness (35) 8-. Business sophistication (30) 9-. Innovation (39) Source: World Economic Forum, 2006

4 Global Competitiveness Report (2/2) Country Country Rank Rank Rank Rank Switzerland Spain Finland Czech Republic Sweden Portugal Denmark Italy Singapore India United States Indonesia Japan Costa Rica United Kingdom China France Mexico Ireland Colombia New Zealand Brazil Korea, Rep Argentina Chile Uruguay Source: World Economic Forum, 2006 ICT de Chile

5 Industry IT Industry IT Annual Sales, 2006 (MMUS$) 1.458,4 Source: ACTI A.G., US$1.458 Sales Annual growth: 8,4% IT companies active in Chile Size distribution (Anual sales,dollar) US$ Less than 852k 49% Small 853k to 3,5M 28% Medium 3,6 or more 23% Large Source: Corfo, ProChile, Fundación Chile Composition of IT Sales Services 33% Hardware 48% Software 19% Source: IDC, 2006

6 Sales by Industry and Costumers Transportation 19.2% Telecom 18.7% Financial Services Manufacturing Industry Business and Real Estate Services 9.1% 13.1% 17.7% Represents 56% of the total IT sales Commerce, hotels and restaurants 7.9% Health 5.1% Public Administration 2.1% Electricity, gas and water 1.5% Other Services 1.4% Construction Mining 1.4% 1.1% Source: Cuenta Satélite Agriculture 0.8% Education 0.8% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% Networked Readiness Index, The Global Information Technology Report Dinamarca Suecia Singapur Finlandia Suiza Estados Unidos Reino Unido Nueva Zelanda Chile España México Brasil Taiwan is in the 13 th. position. Source: World Economic Forum, 2007

7 Internet Use in Chile and the World 90% 80% 70% 60% 50% 40% 30% 20% 18% 25% 31% 47% 43% 36% 66% 61% 71% 81% 28% 37% % 0% Hungría Italia España Suecia Estados Unidos Chile Source: Encuestas Wip de los respectivos países. Cellphone Penetration (%) 120% 100% 80% 86% 93% 100% 102% Now: 86% 73% 75% 109% 60% 40% 20% 0% France Chile Germany Spain Taiwan United Kingdom Source: UIT: France, Germany, Spain, Taiwan, United Kingdom and Italy (2005) Chile: Ministry of Transport and Telecommunications, Italy

8 Offshoring Ranking Global Services Location Index The best countries to stablish services platform, of 40 countries. Ranking País 1 India 2 China 3 Malasia 4 Tailandia 5 Brasil 6 Indonesia 7 Chile 8 Filipinas 9 Bulgaria 10 México Source: A.T. Kearney, 2007 United Nations 2005 e-government Readiness Report (Selected Countries, out of 191) USA UK Canada Iceland Chile Mexico Brazil Argentina Chile leads Latin America in digital access to public information. The report indicates that the variety of information and services the Chilean government provides its citizens online make it the region's leader Source: United Nations, 2005 (

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