ICT Channel in Hungary

ICT represents one of the engines of the Hungarian economy, with a relatively high contribution to the country’s GDP (around 8%). Although a rather small market, it remains one of the most advanced in Eastern Europe and the very first to have made the transition from central planning to a market economy.

Resellers and service companies dominate the Hungarian ICT distribution system, with a proportion of 40% and 45% respectively, while manufacturers represent only 5%. Most activities are concentrated around the capital city Budapest, where the largest distributors' headquarters can be found. VARs account for 47% of the channel partners. B2C e-commerce remains under 1% of the total retail business revenue.

The demand in the Hungarian market currently concentrates on desktop and system hosting and operating services, as well as business applications. The software market is one of the fastest growing IT segments in Hungary; its proportion grew considerably in the past two-three years. The country has a strong position in IT data security and data protection and character recognition software as well as in bio-informatics. The demand has also been growing for business intelligence applications, data management applications and ERP solutions for SMBs.

The large outsourcing companies in Hungary offer more outsourcing services (by means of offshoring and nearshoring), especially in the telecommunications sector.

As regards the telecom sector, embedded mobile applications and software development for mobile devices are key drivers. The telecom market continues to expand, driven by strong demand. Wireless communication is also an important growth factor. The PABX market is rather mature as well, due to a strong presence of some well-known brands.

The following image shows the concentration of ICT partners in our database for Hungary.