Uzbekistan: A Rising Star in Software Development

Why Uzbekistan

Maybe you already know about the post that our COO Barbora Thornton shared on her LinkedIn. If not, give it a shot because she made a great intro to this topic.

As Barbora mentioned in the post, we have been officially invited by the governors of the Kashkadarya region office. But how did that happen?

I am proud that I can call Moravio a remote-first company. So far, we have been working with people from 12 nationalities and different countries, who help/ed us to deliver quality projects to our customers. Among these people, you can find Javlonbek Kakhramonov. A senior engineer from Uzbekistan who is a team lead on one of our biggest projects for the client Nonstop Consulting. After a few conversations with Javlonbek about his country and the possibilities there, we discovered the great potential in IT services in Uzbekistan. And thanks to him and his partner in business, Davlat Ganiyev (Foreach.Soft), the official invitation from the governor happened.

But why Uzbekistan? 

I will be talking about my own experience before we met Javlon. Uzbekistan was for me a country that I have just basic knowledge about and I thought that the IT sector is not so evolved. But the truth is that is exactly the opposite. 

Let's take a look at some facts.

1. Rapidly Growing IT Sector:

• Uzbekistan's IT sector is experiencing significant growth, with a reported revenue of $1.7 billion in 2024.
  The export of IT and telecommunications services exceeded $900 million by the end of 2024, showcasing a strong upward trajectory from the $344 million reported in 2023.
• The government has set ambitious goals to transform Uzbekistan into a regional IT hub, aiming for $5 billion in IT service and software exports by 2030. This commitment signals strong future development and opportunities.  

2. Young and Skilled Workforce:

• A significant portion of Uzbekistan's population is young (60% under 30) and increasingly educated, with a strong focus on IT education.
• The government is actively supporting IT education through initiatives like the "IT Nation" project.  
• While it is not the #1 English-speaking nation in Central Asia, there are efforts to improve English proficiency, and a considerable number of young professionals are proficient in the language. This can facilitate communication for Czech and other European companies.

3. Cost-Competitive Environment:

• The average salary for IT outsourcing specialists in Uzbekistan is attractive for international companies.  
• Overall operational costs and the cost of living are relatively low, making it a cost-effective destination for IT operations.  

4. Government Support and Incentives:

• The government provides comprehensive support to IT companies, particularly those registered with IT Park.  
• Resident companies of IT Park benefit from substantial tax incentives, including exemptions from corporate income tax, social tax, and VAT (until 2028).  
• There are also customs benefits for imported equipment and software needed for their own use. The "One-Stop-Shop" system simplifies business registration.  
• Initiatives like the "Zero Risk" program offer benefits, like rent exemptions in regions outside Tashkent.  

5. Strategic Location and Time Zone:

• Uzbekistan's strategic location between Europe and Asia can provide access to new markets in the CIS and beyond.  
• The time zone difference with Europe (3 hours ahead) can be advantageous for certain operational models.

6. Developing Digital Infrastructure:

• Uzbekistan is actively improving its IT infrastructure, with increasing internet bandwidth and nationwide coverage.  
• Significant investments are being made in establishing IT centers and technology parks across the country.  

And up to that, you can count on an unbelievable hospitality that is something I haven't experienced before in my life. This is why we chose Uzbekistan among other countries to spread the activity of Moravio.

Lessons from Uzbekistan for Moravio

We have been impressed by how far Uzbekistan has come. I believe that they are really prepared to be the IT HUB for Europe and Asia software development services. Their support for foreign companies working in IT industry is hard to find in any other country in Europe or Asia, and if you are looking for some place outside Europe, I think this is the right place to start.

Next steps for Moravio in partnership with Uzbekistan universities

The universities are the foundations of software development in Uzbekistan. The students are hungry for knowledge, they are interested in what is happening in the IT world, and they are willing to learn from foreign companies and experts. 

As we visited and presented the vision and purpose of Moravio at Axborot texnologiyalari va menejment universiteti qarshi and Karshi state university, it was clear that there is a big potential in the students.

We will continue to explore opportunities for collaboration with the universities, including the potential establishment of student internship programs and we are looking forward to the future of Uzbekistan in the IT Sector.