While the global economy’s prospects are still uncertain, on the positive side, many believe the best place to be is in emerging economies like Mongolia, with some foreseeing healthy growth for the next 20 to 30 years. Mongolia’s information technology entrepreneurs are looking to prove this is the case. The country has made great strides in improving e-government – jumping from 82nd place to 53rd in the UN e-government survey 2010 – and is now aiming to become an Asian software and IT services outsourcing powerhouse.
A Northeast Asian nation sandwiched between Russia and fast-growing China, Mongolia grapples with the combination of a large territory, a small population (2,641,216) and limited transport infrastructure connecting it to its neighbours. Historically, it is a nomadic nation with a strong animal herding tradition. But during the Communist period, it industrialized and became more urban. After the collapse of Communism at the beginning of the 1990s, the country experienced a terrible economic and social crisis, with rapidly rising poverty rates and high unemployment.
Despite its infrastructure obstacles, Mongolia has been able to develop a lively information technology sector, often with the assistance of the United Nations. During the late 1990s, as the internet revolution exploded, the UN led on supporting infrastructure, skills development, innovation and legislation.
Information technology consulting and services company Intec (www.itconsulting.mn) , founded in 2004, has been able to thrive through the global economy’s ups and downs by identifying an under-serviced niche as a consulting, research and training company. Intec now has five full-time staff and works with a broad network of Mongolian and international consultants.
As is often the case with new businesses, Intec initially found that many doors were closed to start-up enterprises.