This document provides a strategic roadmap for developing Moldova's IT sector. It summarizes trends that will shape global demand for IT services, including the rise of intelligent automation and cognitive technologies. It then outlines interventions needed across four pillars - capacity development, infrastructure development, business ecosystem development, and investment promotion - to achieve non-linear growth for Moldova's IT exports and employment in the sector. The document recommends a "synchronized and persistent" approach led by the government to capitalize on Moldova's strengths like its multilingual workforce and proximity to European markets to position it as a leading global IT destination.

1. © 2017 Avasant LLC. All Rights Reserved.
Proprietary and Confidential. No part of this document may be reproduced in any form or by any electronic or mechanical means, including
information storage and retrieval devices or systems, without prior written permission from Avasant LLC.
March 30th 2017
Blueprint for Moldovan IT Sector
IT Sector Strategic Roadmap
Development

2. 2
World Class Hospitality!
World Class Wine!
World Class Potential in IT
Avasant was engaged in January 2017 to
identify the best approaches to globally
position Moldova as the next IT
destination
What we embarked on? What we unearthed?

3. 3
To build a global positioning roadmap, it is important to understand trends that will
shape demand for IT Services and products in future…
Tectonic shift in US
Administration
Brexit: The Exit Process
Intelligent Automation +
Cognitive Takes off
Level 3 Autonomous
Vehicles Hit the Road
Augmented Reality for
B2B becomes a Reality
Platforms become a
commodity
Emergence of the
Cognitive Era
Connected Living
Transforms the Home
Mainstreaming of the AI
Personal Assistant
Drones Take Off
3-D Printing disrupts
supply-chain/logistics
The Industrial
Internet Play
Media Democratization
IOT Pivots To Sentient
Tools
Rise of the Alternate
Economies
Increasing Insularity,
Nationalism, and
Protectionism
Data as a Service
explodes
Socio-Economic Advanced Technology Business & Industrial Personal & Consumer

4. 4
There is a fear that the “Digital Age” is
making Human Factor irrelevant
Growth and employment is disconnected, the “jobless recovery” will be
the norm
Automation and robotics will replace 50% of
North American manufacturing and blue-collar
jobs
75% of all consumer transactions will be online,
with no physical interaction
Digital fulfillment, 3D printers and self-driving
cars/trucks will replace the physical supply chain
Advanced analytics and decision automation will
replace two-thirds of “knowledge worker” jobs
Birth of a New Digital Era
With each new age, technological innovation has lifted the burdens of
labor. The Digital Age has the potential to unlock unlimited human and
operational potential, if managed right
HiTechLowTech
Low Labor Impact High Labor Impact
Stone Age
Middle Ages
Industrial Age
Digital Age
Information Age
Renaissance
Machines replace Human jobs
Computers replace Human jobs
Automation replaces Human
jobs

5. 5
“We cannot solve a problem
by using the same kind of
thinking we used
to create the problem”
-Albert Einstein
@kevinparikh #empoweringbeyond
Today’s industry problems will not be solved by
traditional managed services, but through digital
solutions

6. 6
The first step while creating the strategic roadmap is to appreciate the trends in the global
marketplace..
ER&D Sourcing Destinations
$72-75Bn
$80-82.5
Bn
2015 2016
11%
29%
28%
15%
13%
15%
Europe
India
Americas
China
RoW
$636B
$650B
$370B
$386B
$951B
$1,075B
$574B
$680B
$159B
$186B
2015
2012
Business Process
Management
ER&D Services
Hardware
Packaged Software
IT Services
Global IT Spend
2015
2012
2015
2012
2015
2012
2015
2012
ER&D Sourcing Growth
Outsourcing spend & number of delivery centers opened in 2015
Source: NASSCOM, Avasant Research

7. 7
Global Impact on Jobs due to Digitalization
Source: ManPower Group

8. 8
Diversified Industry Footprint
Manufacturing
Favorable Business Environment
Consistent Growth
Moldova’s uniquely positioned to deliver ER&D & “High Value” IT Services
Proximity, Culture & Human Capital
(UTC+2)- Time Compatible with
both East & West Europe
Multilingual population
Romanian Russian
English
French
German Italian Ukrainian
Bulgarian
Cross Industry Expertise
Americas
21%
Europe
63%
ASPAC
10%MEA
6%
Global Export Spread
$42M
$57M
$80M
2010 2013 2016
Export Growth Export Breakup 2016
FTAs- Duty Free
Access to 880
Million Customers
Multiple Tax
Incentives
European
Neighborhood
Policy
Beneficial Business
Costs
E-Government
Excellence
Law on IT Parks-
Virtual IT Park
Approx. 8,000 core
software professionals
Airlines
Healthcare
Telecom
Banking
Government
IT Services,
$56M
ER&D,
$12M
BPO,
$8M
Others, $4M

9. 9
With targeted innovative market strategies Moldova can aim for non-linear IT industry growth
while sustaining traditional service lines…
User Personae
US & Canada
Disruptive
Technologies
Gaming & Animation
Localization
E-Government
Sub-Saharan
Africa
CIS Countries
Sweden,
Norway &
Germany
Robotic
Process
Automation
UK
Engineering
Research &
Development

10. 10
Interventions across 4 “Industry Pillars” required to achieve strategic outcomes…
Version Four
Capacity
Development
Strategic Interventions
1) Continue to address Skill Gaps for new-age digital product
development & ER&D
2) Continue to update curricula and align with the evolving
industry requirements
3) Train middle management
Infrastructure
Development
1) Develop & Operationalize IT Park
2) Promote the IT Park internationally
3) Develop regional Innovation Centers
Business
Ecosystem
1) Improve availability of industry data & statistics and create a
National Skill Registry
2) Update the IT industry policy
3) Enhance access to finance for startups and small firms
Investment
Promotion
1) Develop marketing strategy & collaterals
2) Target and attend relevant international trade shows and
events
3) Continue to organize local ICT conferences and summit for
potential international investors
Government Donors Corporate Academia
Prime Support CatalystLegend (Stakeholder Responsibility):

11. 11
“Synchronized & Persistent” pursuit of non-
linear growth strategy essential
Strong participation and leadership from the
Government and implementation of policies to cater
requirements of investors
Create and empower a nodal agency to coordinate
efforts and decision making
Invest in building infrastructure and enhancing skill
base
Work with International experts and thought leaders
to develop a unique differentiation for Moldova
Planned In Sync Persistent Focused
This approach can achieve 2.5x times outcome
compared to linear growth
42 46 51 57 64 71 80
96
115
138
165
198
238
140
196
274
397
596
5000 7260 11520
23888
2010201120122013201420152016201720182019202020212022
REVENUE (USD MN) & EMPLOYMENT (FTEs)
PROJECTIONS FROM PROPOSED INVESTMENTS IN
MOLDOVAN IT SECTOR
IT Exports - Linear IT Exports - Non Linear Employment

12. 12
Dr. Pradeep K. Mukherji
President & Managing Partner
Pk.Mukherji@Avasant.com
+91-98210-80841
We will be happy to further share further details and insights…
Pradeep is an internationally recognized management consultant and a global
sourcing thought leader. He heads Avasant’s operations in APAC & EMEA and
manages Avasant’s Globalization Practice. He is closely engaged with donor
organizations like the World Bank, Helvetas, USAID, Commonwealth Secretariat
and Rockefeller Foundation to provide advisory services for ICT/ BPO sector
development strategy in Europe, Africa & LATAM regions.
Chirag Rawat
Managing Consultant
Chirag.rawat@Avasant.com
+91-9717296555
Chirag has several years of ICT experience working with multilateral institutions
such as the World Bank, Commonwealth Secretariat, USAID, Helvetas amongst
other to enhance the ICT readiness and export competitiveness of the emerging
service providers in the funded countries. He has also worked with
organizations such as IMF and Fortune 500 corporations, helping them navigate
through their technology transformation journeys. His work primarily involves IT
performance improvement and providing strategic advice for socio-economic
development
GET CONNECTED
www.Avasant.com
Empowering Beyond

13. 13
Thank you!

14. GET CONNECTED
www.Avasant.com
Empowering Beyond
Washington DC
New YorkDallas
Los Angeles
(Headquarters)
Houston
Austin
Toronto
London
Trinidad & Tobago
Düsseldorf
Bangalore
Mumbai
Beijing
Tokyo
Delhi
Dubai
Hanoi
President & Managing Partner
Dr. Pradeep K. Mukherji
Pk.Mukherji@Avasant.com
+91-98210-80841
Chirag Rawat
Managing Consultant
Chirag Rawat
Chirag.rawat@Avasant.com
+91 9717296555