Dominican Republic - Information and Communication TechnologyD.R.-ICT
This is a best prospect industry sector for this country. Includes a market overview and trade data.
Overview
The Dominican market for computers and peripherals and IT services, has experienced continuous growth over the past years and anticipate that the market will continue to increase due to a combination of price reduction, availability of attractive financing packages, and technology changes that characterize this sector.
|
|
2017 |
2018 |
2019 (Estimated) |
|
Total Local Production |
0 |
0 |
0 |
|
Total Exports |
0 |
0 |
0 |
|
Total Imports |
6.0 |
6.8 |
7.0 |
|
Imports from the US |
3.85 |
4.25 |
4.3 |
|
Total Market Size |
6.0 |
6.8 |
7.0 |
Unit: (Millions of U.S. Dollars)
Exchange rate: RD$50.30 – US$1
Sources: U.S. Census Bureau, Economic Indicators Division
Although US has most of the market, the recent increase in DR – Chinese negotiations, could steer a bigger market share towards China.
The Medina administration has announced an ambitious initiative, “Republica Digital,” with the objective of overhauling the country’s education sector nation-wide through technology. There are plans to provide a computer for every student in the public-school system, create a national digital library, reduce internet access costs, as well as educate teachers and students on many different technology areas (multimedia, web development, software, social media, e-commerce, etc.). This project offers an opportunity for US companies in the areas of hardware, software, cloud computing, infrastructure, communications, etc. to enter the Dominican market
Leading Sub-Sectors
The most promising sub-sectors within this sector are:
Cloud storage
Dominican companies and the government are in the early stages of adopting this technology creating numerous opportunities for US companies. The biggest challenge to market entry is convincing IT executives and company owners that the cloud is just as safe (if not more) as having physical storage on their premises. Local businesses are wary of placing confidential / important information on the cloud, so it is important to inform them of security measures offered so they can become familiar with the advantages.
Peripherals (power supplies, keyboards, card key and magnetic media entry devices):
The Dominican market for computers and peripherals has experienced a continuous growth over the last three years and the market will continue to increase due to a combination of price reductions, attractive financing packages, and technology changes that characterize the sector. The market is dominated by American brands and this trend will likely continue due to the free trade agreement (CAFTA-DR) that allows for duty free imports of computers and peripherals. There is also a market for used / refurbished equipment in the market.
Other Sub Sectors:
Software
Enterprise Software (payroll management, IT Service Management, etc.)
Middleware
Opportunities
The key to sustained sales is a partnership with a local distribution company that is familiar with the market and has access to contacts in the industry. A local distributor is invaluable for after-sales services and maintenance.
Specific to cloud services, it is very important to show potential customers that their data is safe, confidential, and encrypted. Some companies may still want to have a physical mean of storage at their premises, and only use the cloud for non-sensitive data.
The three most important factors in selling computer hardware and peripherals in the Dominican Republic are price, service support, and timely supply of spare parts.
U.S. manufacturers of computers and peripherals interested in the Dominican market need a competent local agent, distributor or representative, unless they plan to open their own branch office or subsidiary. A good agent should be able to provide technical assistance and local servicing and be well acquainted with local political dynamics and business customs.
Web Resources
Javier Suarez, Commercial Specialist; javier.suarez@trade.gov
Official Government website of the Republica Digital Project: https://www.presidencia.gob.do/plan-de-gobierno/republica-digital
Website of the Dominican ICT Chamber: http://www.camaratic.org.do
Website of the Government (Presidency) ICT office: http://www.optic.gob.do