Cuba’s Readiness for ICT Transformation by Nearshore Americas’ Research
- Cuba’s ICT infrastructure, where it lags behind that of other Latin American and Caribbean countries, and how recent changes in policy are affecting Internet connectivity.
- Survey of Cuba’s workforce, including software programming strengths, hubs of talent in Havana and outside of the capital, and prospects for engaging the Cuban IT talent pool.
- Analysis of IT modernization to 2018, including current technical problems, likely ICT partners, and the impact of normalizing relations with the United States.
- Positioned for global services: Assessing Cuba’s capacity to develop capabilities to export software, and provide offshore outsourcing services.
- BONUS: Purchase the report, and obtain – at no additional cost – an archived version of the one-hour long, “Cuba: Facts and Fiction Inside the Nearshore’s Newest Outsourcing Destination” webinar, recorded July 28th featuring the Nearshore Americas’ research team.
Cuba is one of the world’s least developed telecommunications markets. The government reports Internet penetration of 26%, but fewer than 4% of Cubans have home Internet access. The country’s mobile and fixed-line markets remain under the control of the state-owned telecom ETECSA, a major reason for the country’s poor connectivity. Yet changes are afoot. The Cuban government is currently undertaking steps to modernize the country’s ICT infrastructure by installing a fiber optic backbone that will reach out to over 20 cities and towns across the island.
The Cuban government is set to be the primary mover of change in the short-term. The expansion of Wifi hotspots and price cuts for use of domestic intranet and mobile telephony will improve connectivity in 2015 and 2016. As investors gain confidence in the market a key change agent will be Cuba’s workforce. This 65-page report by Nearshore Americas analyzes:
This report provides an overview of the trends and developments in the Cuba’s telecommunications markets. Subjects covered include:
- Country background;
- Foreign investment laws;
- Key ICT statistics;
- ETECSA’s leadership and organization
- Major partners (mobile and fixed);
- Regulatory environment;
- ICT workforce size and skills;
- Software developer strengths;
- Software development firms;
- Location of ICT talent countrywide;
- ETECSA fiber optic plans;
- Consumer cost trends for mobile, SMS text, intranet, Internet
- Telecom market scenario forecasts for subscribers (mobile, internet, fixed) for 2015-2017.
CHAPTER 1: BACKGROUND
- Education and Healthcare
- Economic and Technology History
- Foreign Investment and Private Enterprise
- Real Estate and the Mariel Special Economic Development Zone
CHAPTER 2: ICT INFRASTRUCTURE
- Telephone and Internet Metrics
- Expansion of Mobile Telephony
- Barriers to Access and Illegal Internet Connections
CHAPTER 3: SOFTWARE DEVELOPMENT MARKET
- Software Development Companies
- Networked Freelance Software Developers
- Universities and Research Centers of the Ministry of Higher Education
CHAPTER 4: ICT & SOFTWARE PROFESSIONALS
- Locating Talent
- Wages and Freelancing
- How Cubans Find Freelance Jobs and Receive Pay from Abroad
CHAPTER 5: FORECASTS
- Cuba’s ADSL Rollout
- University Bandwidth Upgrades Completed May 2015
- Cuba in 2018
The first comprehensive assessment of Cuba’s ICT infrastructure, telecom service partners and equipment providers, and the country’s IT workforce. This report is critical intelligence for those considering ICT-related investment in Cuba.
The report provides all the data and analysis investors need in order to understand how the country’s ICT sector is changing, what opportunities are opening up, and how to position in order to gain a competitive edge by incorporating Cuba into a global IT outsourcing services strategy.
Challenges and Risks
- Foreign investment climate Weighing investment in light of the foreign investment climate and changing regulations on workforce, real estate, and taxes.
- Tightly controlled market Government control over ISPs, equipment providers, and bifurcation between high-cost global Internet and domestic intranet.
- Payment Processing Difficulty in submitting payment to Cuban employees and the workarounds employed by Cubans to receive foreign pay.
Strengths and Rewards
- Size of IT Talent Pool A survey of 300-plus Cuban IT professionals informs assessment of strengths of Cuba’s IT workforce, including software development, and location of IT talent hubs across the island, which allows investors to tap into the largest surplus market of IT talent in the Americas.
- Position for modernization Allows investors to position for changes as Cuba’s ICT infrastructure modernizes and the government advances agenda of improving connectivity.
Cuba’s Readiness for ICT Transformation: Published July, 2015
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