Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Digital Development: Faring Well, but Room for Improvement

Digital Development: Faring Well, but Room for Improvement

According to Microsoft’s Digital Futures Index, a data model that maps digital development using a wide range of parameters, Hungary has an average ranking in the CEE region. Game changers would include tech-savvy leaders and a digital-first government to significantly boost the country’s competitiveness.

Microsoft’s model analyzed data from, among others, Eurostat, the World Bank, the OECD, Euromonitor, and the Digital Economy and Society Index (DESI) to create 55 parameters that describe the digital maturity of the Hungarian economy.

The purpose was to give a snapshot of the size of the digital sector and to see how businesses, the labor market, digital public services, infrastructure, and human capital compared to other CEE countries and some of the European digital frontrunners. Microsoft says that the insights provide an overview of Hungary’s strengths as well as development opportunities and can serve as a basis for making critical business and national economy-level decisions.

Hungary ranks way above the average, set at 100 points by the Digital Futures Index, in several categories. For one, proportionally, Hungarian businesses employ most IT professionals. The country also scores particularly high on connectivity, smartphone usage and remote working maturity, Christopher Mattheisen, managing director of Microsoft Magyarország, highlighted.

Furthermore, relatively low living costs and well-developed digital infrastructure are attracting digital nomads in record numbers. The size of the digital economy surpasses that of automotive, accounting for 6% of GDP, and a McKinsey report estimates that it can add some EUR 9 billion to the economic output by 2025.

As far as businesses are concerned, the Digital Futures Index finds that more investment leads to more innovation, and cloud technology boosts not only innovation but also productivity.

Drive Transformation


“It is more important than ever that senior managers in the age group 45-64 are digitally-savvy and can drive digital transformation within their organization,” Mattheisen said.

Part of the long-term success is hybrid working. Team collaboration is typically boosted by flexible working conditions that help retain talent as well.

“A new generation of workers take the existence of hybrid working culture and infrastructure for granted,” Gabriella Csanak, director of marketing and operations at Microsoft Magyarország, explained.

Training is another issue of which the importance can’t be emphasized enough. Return on investment into technology has substantial yields only if skilled labor is available that adopts and runs it across the entire spectrum of the operation, Microsoft says. Employing “learning managers,” who arrange technology-related training, should be prioritized. This can be part of the life-long learning concept that still needs to be embraced on a larger scale.

Adult training and reskilling should involve as many people as possible at the workplace since knowledge transfer can enhance productivity. The most successful businesses adopt technology such as AI, the Internet of Things and the Cloud in their everyday practices.

“In Hungary, there are great IT specialists, but even more companies need to invest in Cloud and training,” Csanak said. He added that this is indispensable for better exploiting digital solutions and minimizing worker fluctuation.

Room for Improvement


In some areas there is definitely room for improvement. Gender diversity, for one, is 40% lower than the average, which screams for making IT more attractive for women. The number of students with STEM studies is 27% lower than the CEE average. The level of digital skills in the 16-29 age group is similarly alarming. On the other hand, the ICT-related labor shortage is at a record high. In addition, less than 10% of businesses provide compulsory IT training for their workforce. For the sake of comparison, in Estonia, the figure is 35%.

The level of digitization of public services received a score of 84; its improvement is important because it triggers an entire cycle of processes. People get used to using digital services, which affects their needs and demands in general and that, in turn, creates more demand for digital services.

“The result is bigger digital wealth,” Mattheisen said.

Digital literacy goes hand in hand with better quality of life. The findings of the Digital Futures Index indicate that quality of life is higher where the elderly and women have better digital skills. This is also connected with sustainability: the more mature society is in terms of digital knowledge, the more sustainable lifestyles can be maintained.

Harnessing the power of data can accelerate positive trends. As Mattheisen noted, no business is immune to change, and those that have regarded their data assets as a strategic tool all along have fared better. Sophisticated data analytics will provide added value on all levels, from the government to businesses and citizens.

All in all, those countries that are better off in terms of digital transformation also score better on indicators that reflect economic and social development. In other words, they are “greener,” more innovative and competitive, and they have a higher living standard. In Hungary, the continuous cooperation of government and the market is a precondition for progress, Microsoft says.

Newsletter

Related Articles

0:00
0:00
Close
Unelected PM of the UK holds an emergency meeting because a candidate got voted in… which he says is a threat to democracy…
Farmers break through police barriers in Brussels.
Ukraine Arrests Father-Son Duo In Lockbit Cybercrime Bust
US Offers $15 Million For Info On Leaders Of Cybercrime Group Lockbit
Apple warns against drying iPhones with rice
Alexei Navalny: UK sanctions Russian prison chiefs after activist's death
German economy is in 'troubled waters' - ministry
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
Tucker Carlson says Boris Johnson wants "a million dollars, in Bitcoin or cash, from Tucker Carlson to talk about Ukraine.
Russia is rebuilding capacity to destabilize European countries, new UK report warns
EU Commission wants anti-drone defenses at Brussels HQ
Von der Leyen’s 2nd-term pitch: More military might, less climate talk
EU Investigates TikTok for Child Safety Concerns
EU Launches Probe Into TikTok Over Child Protection Under Digital Content Law
EU and UK Announce Joint Effort on Migration
Ministers Confirm Proposal to Prohibit Mobile Phone Usage in English Schools
Avdiivka - Symbol Of Ukrainian Resistance Now In Control Of Russian Troops
"Historic Step": Zelensky Signs Security Pact With Germany
"Historic Step": Zelensky Signs Security Pact With Germany
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
Tucker Carlson grocery shopping in Russia. This is so interesting.
France and Germany Struggle to Align on European Defense Strategy
‘A lot higher than we expected’: Russian arms production worries Europe’s war planners
Greece Legalizes Same-Sex Marriage and Adoption Rights
Russia "Very Close" To Creating Cancer Vaccines, Says Vladimir Putin
Hungarian Foreign Minister: Europeans will lose Europe, the Union's policy must change drastically
Microsoft says it caught hackers from China, Russia and Iran using its AI tools
US Rejects Putin's Ceasefire Offer in Ukraine
The Dangers of Wildfire Smoke and Self-Protection Strategies
A Londoner has been arrested for expressing his Christian beliefs.
Chinese Women Favor AI Boyfriends Over Humans
Greece must address role in migrant vessel disaster that killed 600: Amnesty
Google pledges 25 million euros to boost AI skills in Europe
Hungarian President Katalin Novák Steps Down Amid Pardon Controversy
Activist crashes Hillary Clinton's speech, calls her a 'war criminal.'
In El Salvador, the 'Trump of Latin America' stuns the world with a speech slamming woke policing after winning a landslide election
Trudeau reacts to Putin's mention of Canadian Parliament applauding a former Ukrainian Nazi in his interview with Tucker Carlson.
The Spanish police blocked the farmers protest. So the farmers went out and moved the police car out of the way.
Volodymyr Zelenskiy fires top Ukraine army commander
Tucker Carlson's interview with Vladimir Putin raises EU concerns
Finnish Airline, Finnair, is voluntarily weighing passengers to better estimate flight cargo weight
Russia's Economy Expands by 3.6% Due to Increased Military Spending
Ukraine MPs Vote To Permit Use Of Dead Soldiers' Sperm
German Princess Becomes First Aristocrat To Pose Naked On Playboy Cover
UK’s King Charles III diagnosed with cancer
EU's Ursula von der Leyen Confronts Farmer Protests Amid Land Policy Debates
Distinguishing Between Harmful AI Media and Positive AI-Generated Content: A Crucial Challenge for the EU
Tucker Carlson explains why he interviewed Putin
Dutch farmers are still protesting in the Netherlands against the government, following the World Economic Forum's call for 'owning nothing.'
Hungarian Prime Minister Viktor Orbán stands up for European farmers and says, 'Brussels is suffocating European farmers.
×