Document Purpose & Objectives

1.2.Document Purpose & Objectives

The underlying idea of the Kosovo IT strategy is that fostering the Kosovo IT sector is a highly complex task and thus requires a collaborative approach involving all relevant stakeholders, such as IT companies, associations, ministries, universities and donors. Therefore, the Kosovo IT strategy was developed by a joint working group including representatives from all relevant stakeholders, based on the following motivation and rationale:

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  To jointly elaborate a strategy document which defines concrete policies, measures and actions to increase the international competitiveness of the Kosovo IT industry on a systemic and sustainable basis.
  
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  To develop the Kosovo IT strategy in order to provide a practical and target-oriented guideline and roadmap for results-oriented cooperation in the Kosovo IT industry.
  
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  To use the strategy development process and the resulting document as a coordination device that brings together all relevant stakeholders and fosters joint learning and collaboration within the Kosovo IT industry.
  
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  To collaboratively plan and implement tasks and activities which individual businesses could never tackle alone.
  
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  To improve stakeholder alignment, resource allocation and efficiency within IT sector promotion in Kosovo.
  

The strategy and the corresponding operational plan were prepared in accordance with the following documents and strategies of the Republic of Kosovo:

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  Administrative Instruction No. 02/2012 on the Procedures, Criteria and Methodology for the Preparation and Approval of Strategy Documents and Plans for Their Implementation.
  
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  National Strategy for Information Society Development of Kosova, for period 2006–2012.
  
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  Electronic Communications Sector Policy – Digital Agenda for Kosovo 2013-2020.
  
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  Electronic Government Strategy 2009-2015.
  
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  E-learning Strategy for Kosovo 2010 – 2015.
  

1.3.Industry Focus & Classification

There are many different classifications and definitions for the IT industry (e.g. ISIC Rev. 4, UNSPSC, etc.). A widely used and accepted one is the classification system of the European Information Technology Observatory (EITO), which will also be used for the purposes of this strategy. The following table provides an overview of the IT industry classification according to EITO:³

IT market segments	Sub-segments
Software	System Infrastructure Software Application Development and Deployment (D&D) Applications
IT services	Projects Outsourcing (excl.BPO) Support & Deploy BPO Services (incl. business consulting)
IT equipment	Servers, Storage, Workstations, PCs , Portable PCs, Netbooks, Consumer Portable PCs, Business Portable PCs, Desktop PCs, Consumer Desktop PCs, Business Desktop PCs, Media Tablets, Multifunction printers, Other IT equipment

The focus of the Kosovo IT strategy is on software and IT services due to the following considerations:

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  The majority of Kosovo IT companies are active in the area of software and IT services.
  
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  At present, there are basically no Kosovo companies producing IT equipment/hardware.
  
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  Software development and IT services are skill- and knowledge-intensive. The required capital investment, including hardware and software development tools, are comparatively low and do not constitute an entry barrier as in other areas of information technologies (notably hardware and telecommunications). Hence, software and IT services generate a high economic added value and enable economic growth, income generation and employment promotion and are therefore particularly relevant for the development of the Kosovo IT industry and overall economy.
  

With regards to the Kosovo IT Strategy, one should note the increasing difficulty of maintaining a clear differentiation between specific IT market segments and sub-segments, as software products are often closely integrated with IT services. As a matter of fact, many Kosovo IT companies provide software products and IT services. In addition to that technologies and market segments are converging, particularly in the areas of mobile computing, cloud computing and embedded software. Hence, boundaries between the different market segments and sub-segments are becoming increasingly blurred and are in a continuous flux. This convergence of different information and communication technologies as well as market segments is also reflected in the term “digital” which will be widely used in this document.

For the sake of clarity, the use of the term “IT industry” in this document will refer to both software as well as IT services.

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