Technology of success

Unique legal regime, co-operation with key IT players, export of services worth billions of dollars: HTP top manager on the development prospects of the Park

The Hi-Tech Park has become one of the key projects of independent Belarus. The HTP was established with the support of the President back in 2005. Key IT giants from all over the world co-operate with the Park residents. During the work of the HTP, IT solutions have appeared in the country, which have become widely known. All this became possible thanks to the unprecedented and constantly improving conditions that all HTP participants receive today. Deputy Director of the Hi-Tech Park Kirill Zalessky said in an interview with MT about how the project is developing, overcoming growing competition, and what are its immediate prospects.

The Hi-Tech Park is a vivid example of an effective and economically successful model of interaction between the state and the IT community
Photo by REUTERS

— For many years, news bulletins featuring the Hi-Tech Park have been of particular interest to specialists and the business community both in our country and abroad. In your opinion, what makes the Park unique today?
— HTP today is not just a technology cluster. This is a powerful driver of economic growth, which makes a huge contribution to macroeconomic stability and the development of our state. In numbers: by the end of 2021, the HTP took almost 5 percent of GDP, more than 30 percent of exports of services, and its foreign trade surplus amounted to more than 70 percent of the balance of foreign trade in goods and services of the entire country. At the same time, only 2 percent of those employed in the economy work in the Park’s companies. Therefore, HTP today is one of the most effective sectors. In 2022, exports for nine months will make $2 billion. Due to this, the budget received more than Br595 million (about $245 million) in taxes, the share in the export of services amounted to about 30 percent.

Photo by Aleksandr Kulevsky

Objectively, the figure is noticeably different from any other sector of the economy. Indeed, to create software, digital solutions, neither raw materials, nor machine tools, nor components, nor a significant amount of energy resources are required.
The main resource in this ‘production process’ is intelligence. The main foundation for the success of the HTP is the most powerful educational base that exists in Belarus. It is people who are the main and most valuable resource of our country in terms of digital production.
An important factor for the development of the IT sector of any country is stable access to broadband Internet. It is needed to deliver an IT product to the customer — unlike physical products, this happens instantly and without additional costs for logistics and customs clearance. Belarus has always attached great importance to the communications infrastructure, so there is simply no problem with the issue of high-quality Internet access in our country. And this, in turn, made it possible to develop the HTP on the principle of extraterritoriality, without investing budget funds in buildings, offices and without driving companies into a limited area.
— What real effect do HTP residents have on the economy of Belarus?
— It is difficult to name a sphere of everyday life where the solutions of our residents are not presented, from education and healthcare to industry and agriculture.
There are solutions on the market that allow us to pay for purchases in stores and marketplaces, pay for parking and travel in public transport, and book tickets.

Photo by Aleksey Vyazmitinov

Most of the developments of our residents are designed for use by small and medium-sized businesses, which simplifies their interaction with customers. Many large Belarusian enterprises order developments that meet their requirements from HTP residents. All Belarusian banks use software developed by our residents.
Therefore, now we can safely say that our IT-sphere is not only an independent branch of the Belarusian economy, but also has a significant impact on other industries and the daily life of our citizens.
— What needs to be done by the state, companies and other players to involve residents more in the digitalisation of economic sectors?
— The Hi-Tech Park is a vivid example of an effective and economically successful model of interaction between the state and the IT community for the introduction of high technologies in the economy and social sphere. In 2021 alone, the volume of sales of IT products and services by HTP residents in the domestic market of Belarus amounted to Br1.3 billion (about $534 million). This is an impressive amount and far from the limit.
Belarusian IT companies have all the necessary skill sets for the large-scale digitalisation in Belarus. An urgent task for us today is to make this process fast and efficient, to establish a productive dialogue between digitalisation customers represented by enterprises and contractors represented by HTP companies. — Today we see how competitors in Kazakhstan, Armenia, Poland, Lithuania are actively developing their IT sites, creating favourable conditions for them. How to compete in such a situation?
— This issue evokes a lot of emotions. On the one hand, pride in our country, in our Park. Most of the new IT clusters and technology parks in the post-Soviet space one way or another are guided by the Belarusian experience and copy the HTP model or its individual elements. This is confirmation that we are on the right track.
Pride for our people, for our companies, which have grown in Belarus so much that other states almost change their laws in order to strengthen themselves at the expense of our specialists.
On the other hand, this suggests that in no case should we relax. Representatives of the countries you have listed, like many others, have been studying the HTP and the potential of our residents for years. All countries are striving to rely on digital. It is natural that competition in this area will only increase.
In this situation, it is important for us to maintain the stability of the functioning conditions in the Park. This is the most important factor for any business. If necessary, we will promptly respond to growing competition.
— Recently you noted that the global IT industry is now operating in a perfect storm. The largest players are losing capitalisation, laying off employees. Among them are the customers for whom the residents of the Park work. How can this affect the operation of the HTP?
— The Belarusian IT sector is closely intertwined with international co-operation: more than 85 percent of the Park’s income comes from work in export markets. Undoubtedly, the global trends in the industry in recent months are not encouraging — the global figure is rapidly moving towards some significant shocks, and, unfortunately, they will not bypass us. But we learned a long time ago: the word ‘crisis’, written in Chinese, consists of two hieroglyphs — ‘danger’ and ‘opportunity’.
Today, HTP is well positioned in the premium markets. This, by the way, is our mark of quality. In highly competitive markets, we win by quality, that’s a fact. In today’s conditions, the situation gives us a signal: we need to move on. To new markets, to new countries, to new customers. I am convinced that we are ready for this.
— HTP became the initiator of educational initiatives. Could you tell us more about them?
— Quality education is the key to our success. The Hi-Tech Park is actively involved in the development of a continuous system of personnel training for the IT industry in Belarus: kindergarten — school — university. Together with the Education Ministry, we are conducting a comprehensive work on the development of digital skills, covering all levels of education.
Of course, not everyone should strive to become IT specialists. But one thing is certain — the digital future has already arrived. Here and now. We must be ready for this and use all the possibilities of digital world to strengthen the prosperity of our native Belarus.

By Ilya Kryzhevich