INFORMATION AND COMMUNICATION

INFORMATION AND
COMMUNICATION
TECHNOLOGIES
SECTOR IN İZMİR
2016
WHY İZMİR?
İzmir is the “smartest” choice for your next investment, offering a rare but a great
match as an investment location: High quality and cost friendly living environment.
With its unique geographical position between Europe and Asia, creating a link
between three continents with over 1.5 billion population and a GDP of 25 trillion,
İzmir has been a center of trade and investment.
Located on the western side of Turkey, İzmir is an Aegean legend that has been
mesmerizing everyone for centuries now. Thanks to our multicultural and stressfree living environment, qualified work force has been choosing to live in İzmir,
making her the pioneer of foreign investments.
01
ICT SECTOR IN TURKEY
NATIONAL TARGETS
The Information and communication technologies (ICT) sector has become
an essential part of the economy, in particular social life, since it is directly or
indirectly affecting the ever-changing business world. Turkey is well aware of
the fact that this sector will have a much more influential role in the future
than it currently has.
Developments in the ICT sector in Turkey are results of determination and long term targeting. National
Turkey offers investment and business opportunities to foreign investors in
various sectors including ICT. Stable economic growth and recent data on the
correlation between increasing GDP and ICT spending in Turkey shows that
the ICT sector has a promising future. Turkish ICT sector has grown at a rate
of 12.1% in 2014.
2,032 Company
2013
69,4 billion
ICT share in GDP targeting from 9,2 billion USD in 2012 to 23 billion USD in 2018.
•
Software and Services share in ICT from 2.05 billion USD in 2012 to 8,05 billion USD.
•
ICT exports from 0,5 billion USD to 2 billion USD in 2018.
•
ICT employment rate from %1,7 in 2012 to 2,6 and ICT related graduates up to 70.000 in 2018 from
34.900 in 2012.
•
Number of Living Labs in City from 2 in 2012 to 30 in 2018
Potential FDI’s to ICT sector in that respect are considered within the plan. Special attention is given to
to FATIH project, renewing tenders with the condition to produce the requested technology locally.
Turkish government has set a national ICT strategy for 2023, included in a general development policy
2014
Turkey has already been chosen as a regional hub by many market leaders
including Microsoft, Intel, Hewlett-Packard as well as others. These companies
chose Turkey as a hub not only because of geographical reasons, but also
because of its demographic advantages.
The young Turkish population’s motivation to work in the ICT sector will
provide a quality workforce for investors. Both the number of university
students pursuing studies within the field and the number of job offerings in
the ICT sector are increasing in recent years.
•
As the young population increases and online market expands, the total
number of mobile phone subscribers is expected to reach 75 million by
2017.
•
IT spending on hardware, software, IT services and telecommunication
services in Turkey is expected to increase to USD 25 billion by 2016.
•
More than half of all households in Turkey have computers with internet
access, which is expected to rise to 65.6 percent over the next five years.
•
The percentage of internet users in Turkey is around 42 percent and this
is forecast to rise to above 47 percent in 2017.
02
•
targets aiming to increase the number of R&D activities with special incentives to FDI’s and include FDI’s
12,1%
61 billion
targets regarding ICT sector in 10th Development Plan 2014 – 2018 are as follows.
named “Vision for 2023”. Turkey’s vision of 2023, the centennial foundation of the republic envisions
ambitious targets for the ICT sector in Turkey. These targets include:
•
ICT sector size to reach 160 billion USD, requiring a market growth of approximately %15 each year
•
Reaching 30 million broadband subscribers
•
%50 of the ICT sector demand to be supplied by domestic products and services
•
%8 of GDP to be generated by ICT (to be increased from %2,9)
•
To become one of the top 10 countries globally in e-transformation
•
%80 of population to become computer literate
•
Provision of all public services electronically by 2019
The goals above can be traced to both public and private sector organizations, and to create opportunities
for all sub-sectors; namely services, software, hardware and telecommunications. Furthermore, the
goals also imply that ICT infrastructure and investment environment will be under development.
TURKISH ICT MARKET
Turkey is growing within ICT sub-sectors. Revenue growth in the mobile market was 10.5% in 2012,
while e-commerce transactions are expected to reach USD 170 billion by 2018. It is expected that the
software market will reach USD 1.2 billion from USD 719 million in 2012. Within all areas of ICT, the
hardware market corresponds to a significant portion of the sector.
Spending in the hardware market composes the majority of the investments in technology in Turkey,
corresponding to more than 2/3 of the Turkish information technology market. Total spending is
projected to increase to USD 53.5 billion in 2017 from USD 20 billion in 2009, with a compound annual
growth rate of 12.65%.
The services sub-sector in Turkey has grown %4.5 between 2013 and 2014. Sector size in 2014 has
been 3.6 billion TL . Business process outsourcing (BPO) is trending in Turkey, along with IT outsourcing.
Turkey is seen as an attractive location for outsourcing by European executives due to Country’s
increasingly multilingual labor force, contact center legacy, close proximity, investment-friendly climate
and attractive number of local consumers.
TURKISH MARKET SIZE
Source: Tubisad: “ICT Sector, Market Statistics”, 2015
03
DEVELOPMENT OF GOVERNMENT ICT SPENDING AND CONSUMERS
ICT expenditure in Turkey has been growing, driven by demand in various sub-sectors and is expected
to exceed USD 25 billion by 2016.
ICT Expenditure in Turkey 2011-2016
23
22
23
23
24
25
2011
2012
2013
2014
2015
2016
Source: Gartner
Corporate Software and IT Services Spending of Companies in Turkey (USD Billion)
Turkey being in a position as “newly developing” in terms of ICT, a high transformation in the near
future is expected, creating opportunities for investors. Apart from the government-led opportunities,
demand for ICT from companies from various sectors is high. Market for ICT products is estimated
as 1.5 million SME’s to implement ICT applications , such as sector-specific software, various business
solutions, CRM systems, ERP systems, MRP systems, web-based applications, software-as-a-service
applications etc.
The positive ICT sector dynamics originating from both supply and demand sides and future
expectations have been attracting foreign investors. The ICT sector in Turkey worth almost 70 billion
TL is below the EU average, but also represents an important investment opportunity for domestic
and foreign investors. Important players in software such as Microsoft, Intel, Huawei, Vodafone
Group and Ericsson have invested in Turkey.
Public Investments in ICT
3,0
2,5%
2,5%
2,2%
2011
1,3%
1,0%
2009
2010
1,1%
1,0%
2007
1,1%
2008
1,0%
2014
2013
2012
2011
Source: Ministry of Development, Public ICT Investments Guide 2014
2005
1,0%
2012
1,5%
0,5%
0%
04
TL Million
7,8%
7,8%
6,5%
3,9%
6,6%
3,9%
4,8%
4,8%
2008
2010
4,5%
2007
2009
3,9%
2006
5%
3,8%
Source: Gartner Enterprise IT Spending by Vertical Industry Market, Worldwide (2010-2016)
2016
2005
2015
2004
2014
2,9%
2013
3,0%
2012
2003
2011
2002
2010
CAGR 16%
2,0%
2006
10%
2003 0,6%
2,8
Percentage of Public ICT Investment to All Public
Investments
2,7
2,5
2,4
+5%
2,5
In light of the developments and strategic decisions, the Turkish Government increased the ICT
investments in 2013 and 2014, growing by %20 from 2012, and %69 for the period of 2010-2011. The
percentage of public ICT investments has increased between years 2002 and 2014.
2004 0,7%
1%
Western
Europe: 2.4%
Spain
2,8%
5,5%
Singapore
UK
6%
Russia
3,0%
6,8%
Poland
S.Korea
7,4%
Turkey
3,1%
7,5%
Mexico
Finland
7,6%
World: 4.8%
Source: EIU, Gartner: Emerging Marker Analysis: IT, Turkey, 2013 and Beyond
2,3
Government’s strategic objective is to double the size of the ICT sector by 2023, requiring a 15%
annual growth rate by 2023.
Parallel to the percentages, the amounts of public investments in ICT has also grown with a strong
rate of 16%, showing government’s support and determination for ICT sector development of Turkey.
The Middle
East & Africa:
9.6%
Czech Rep.
China
11,6%
ICT Spending 2012-2017 Forecast CAGR
Compared to other countries, Turkey is expected to grow faster in ICT spending than the world
average. Turkey has a large domestic market with sizeable potential in the ICT sector. Future sector
growth is expected at a CAGR of 7.4% between the years 2012-2017.
2002 0,6%
USD Billion
CAGR 2%
Source: Ministry of Development, Turkey, Information Society Strategy,
2014-2018
ICT SECTOR GROWTH SUPPORTED BY MASSES
Argentina
28
27
26
Vietnam
30
Chile
30
Brazil
33
Korea
Source: ComScore
Development of Mobile Phone Internet Subscriptions
100
82,9%
80
Millions of Users
Public authorities supporting the ICT sector development in Turkey are The Ministry of Science,
Industry and Technology, The Ministry of Transport, Maritime Affairs and Communication, The
Scientific and Technological Research Council and The Information & Communication Technologies
Authority. There are also more than 15 major NGO’s active in Turkey’s ICT sector.
33
Turkey
In addition to the factors stated above, another very important factor has been contributing to the
growth of ICT sector in Turkey. The sector has been shaped by various players in the sector, involving
government institutions, sectorial associations and global and local companies. The high activity
level with various players in the sector shows the high level of development and importance given
by the government. Sectorial associations are ambitious and capable of shaping the national policies
to develop the sector. This level of activity has been paving the way to attract global companies to
Turkey, which had important roles in the development of the sector and keeping up with the global
trends.
33
Holland
There has been rapid evolvement in the 3G market, which is expected to increase on-line operations
with a penetration ratio of 91.3% by 2017. Investors will have increased business opportunities in areas
such as m-commerce, mobile broadband, mobile banking services and mobile television services.
USA
Broadband internet subscriptions, mobile internet subscriptions and internet retailing also have
been increasing. The young population, increasing ICT products spending, increasing number of
broadband and internet subscriptions and increasing mobile internet access rates show an expected
future growth in the ICT sector.
35
Israel
40
UK
Developing infrastructure is expected to lead to an increase in internet subscriptions. It is forecasted
to rise above 47% in 2017.
Internet usage per user/month (August 2011)
Hours
Rapid development of the ICT sector in Turkey can also be attributed to the interest and demand
from its large population. Turkish citizens have embraced the Internet and information technologies
products. Ratio of Turkish citizens using the Internet in 2012 was identified as high, being close to
45%. Personal Internet usage levels of Turkish citizens placed Turkey in the third place in Europe,
after UK and Netherlands, with 33 hours per month and 10.2 hours per month on the social media.
88,1%
91,3%
76,2%
69%
60
61,9%
48,1%
40
31,4%
20
2017
2016
2015
2014
2013
Source: BMI (Graph data), Nielsen: The Mobile Consumer: A Global Snapshot, Euromonitor International: Technology, Communications and Media: Turkey
Broadband Internet Subscriptions
Source: Turkstat (2010-2012), Information and Communications Technologies Authority
2017
2016
2015
2014
2013
2012
2011
20
2010
Millions of Users
2012
3D market as % of entire mobile market
40
0
2011
2010
0
Development of (Broadband) Internet Subscriptions
Total Internet Subscriptions
05
ICT SECTOR IN İZMİR
ICT sector development in İzmir was not by chance, but was backed with a strategic approach, a base
of local offerings and directed efforts into the sector.
Development of İzmir in ICT sector can be dated back to the study Information Society Strategy (2006
- 2010). The main purpose of this document was to increase the productivity of companies by using
information technologies. The next upper scale strategy shaping the future of İzmir in ICT sector
was the International Trade Strategy Plan (2009 – 2013), which aimed to develop new applications
and regulations for e-commerce. This was followed by National Science, Technology and Innovation
Strategy (2011 - 2016) aimed at developing new products, services and processes and increasing
the R&D capacity. 2014-2023 İzmir Regional Development Plan also provided strategic priorities and
targets to be reached within the city by 2013.
MARKET OPPORTUNITIES FOR ICT SECTOR
Parallel to the development and growth of the ICT sector in Turkey, both local and foreign investments
in İzmir have also been increasing in the recent years. İzmir is host to 2,025 ICT companies, which
makes a 6.3% of all the ICT companies in Turkey. These companies employ 8.815 employees. The ICT
companies in İzmir generated annual revenue of around 500 Million USD and İzmir has attracted FDI,
amounting to 1.6 million USD (TURKSTAT, 2013).
The local economy is voluminous, with a multi-sectorial economic structure. Sectorial distribution is
wide and firms in İzmir have the competency to operate in high-added value sectors. In this multisectorial economy, ranging from construction to agriculture, from end consumption or finance to
logistics or service sectors and many others, particularly 8 key sectors are selected as the priority
areas, in which İzmir is attributed special advantage and long-term prospect.
These 8 sectors are given priority due to their share in İzmir’s economy and employment opportunities
they created. These sectors are; Chemicals Industrial Machinery, Food & Beverage, ICT, Renewable
Energy, Non-Automotive Transport Equipment, Motor Vehicles and Tourism.
Domestic market in general offers quite a lot of business opportunities for potential FDIs in ICT
sectors, both at local and international markets. The high density of the ICT demanding local sectors
within İzmir’s economy such as chemicals, manufacturing, tourism, motor vehicles and industrial
machinery presents a promising figure for future growth.
06
IT SERVICES
SOFTWARE
With national ICT sector targets set for 2023, services will be further developed and İzmir is expected
You can see some important highlights about software sector in Turkey and
to receive a high share from these developments with its large population. The opportunities
İzmir below:
originating from government projects and investments, namely FATIH, GEN6, Pardus, National
Satellite, national healthcare system, e-transformation etc. will have positive effects on IT services
•
Turkey (15%)
sector in Turkey and İzmir. In addition to those, İzmir municipality transformation projects also will
generate opportunities for İzmir. Government’s directives of attracting global ICT players to İzmir
in the past imposed positive effects on the market. You can see some information about IT service
•
There is a trend favoring FDI inflow to Turkey, as emerging markets growth (13%/yr) being
•
expected to develop fast.
trends of European companies.
İzmir being located centrally to markets, assigns it a role of a bridge between important
•
the country forward with its competition between Morocco, Egypt and Poland.
•
IT transformation, in addition to surrounding region (Denizli, Manisa,
Aydın, Muğla, Antalya etc.)
Turkey has a large domestic market and a promising future in this area. It is the largest ICT
segment in Turkey (29,7%) and is expected to grow, driven by growing software market, putting
•
in computer programming. Almost 90% of the ICT companies in İzmir
technology development zones are developing software.
of call center employment share in Turkey, second after Istanbul but higher than Ankara and
•
•
Human resources supply suitable for technical assistance centers with high availability, low cost,
High availability of technology development zones (4) compared to local
competing cities make software houses investments very attractive in
İzmir has proven experience with existing investments such as Avea, Vodafone, CCH, CCC, Arvato,
terms of modern office space, close university support and incentives.
Turkcell Global, HSBC,etc.
•
A strong footprint in İzmir: 730 software companies in the subsector
(65% of ICT companies in the metro-area), a half of them specializing
İzmir has already been attracting high amount of call center investments, taking a share of 29%
cities located in the zones with higher incentive rates.
Being an industrialized and big city, software companies located in
İzmir are expected to grab opportunities from surrounding companies
companies in Europe and Middle East, North Africa and Russia.
•
With relatively low existing development level for companies in other
sectors in terms of ICT, Turkey has a promising software market
expected to be three times higher than global average (4,3%/yr) and increasing BPO near shoring
•
National level government projects and investments will generate
opportunities for software houses in İzmir.
sector in Turkey and İzmir below:
•
Promising future being sub-sector with the highest growth rate in
•
İzmir’s location in Turkey and high accessibility will enable software
companies to export to large markets of Middle East, North Africa and
low attrition rate and adequate quality; puts İzmir forward in attractiveness in the region for
Russia.
FDI’s.
•
Lifestyle offerings in İzmir are suitable for software development,
boosting creativity and productivity, therefore putting İzmir ahead of
competing local regions.
07
MAJOR PROJECTS
İzmir has several government supported projects that are expected to support the local ICT sector.
A major buyer currently is the İzmir Metropolitan Municipality, spending immensely on the ICT
infrastructure and services improvement.
İzmirNET Project:
City Guides:
It is the first investment in the city on fiber in-
This is among the long-run projects of the Mu-
frastructure connecting the metropolitan mu-
nicipality. Includes 3D modeling of important
nicipality with the other local municipalities and
buildings in the city, located on the city map. The
public institutions. It spans 180 km length. Cer-
guides are available online.
tain public services including traffic signaling,
geographical information systems, city terminals, crisis management and e-municipality services are organized through İzmirNet.
Redevelopment Information System:
Graveyard Information System:
Part of the E-Municipality services, includes an
Software application, developed in order to pro-
automation system, a database and a desktop
vide ease to citizens for finding specific grave
application software for tracking redevelop-
locations. Will be covering all the graveyards in
ment processes between the Metropolitan Mu-
İzmir Metropolitan area.
nicipality and District Municipalities.
08
BPO AND ICT INVESTMENTS IN İzmir
Foreign company activity in ICT sector in İzmir has been
increasing recently. Examples of foreign ICT companies and their
establishment years are presented below:
Some BPO Companies Operating in İzmir
Company Name
Description including customers
Investment Area
Operation in İzmir
Employee
Number
VIPTEL
Communication
International Service Provider
Technical assistance
Call center
260
TSC
Communication
Works with companies from Germany
on defense systems
Consulting on security
and safety measurements
Call center
30
IBM Turkey
Provides IT services and software
development in Turkey.
Data center
Data center, disaster recovery center, technical
assistance center
30
ADB24
Communication IT
Work with Sunexpress International
Technical Assistance
Call center
80
Kod-A
Develops document archival and
management technologies and provides
document processes, records management and archival outsourcing services
for the global market.
Technical assistance
Business at Menderes
Organized Industrial
Zone
750
CCC
Works with companies from Germany
Technical Assistance
Call Center
150
Arvato
Works with companies from Germany
Technical Assistance
Call Center
100
Assist
Works with Turkish giants such as
Turktelekom, Turkish Airlines
Technical Assistance
Call Center
250
CCH
Hosts many call centers
Office Provider
Office Provider
50
Turkcell Global
Provides service to Turkcell
Technical Assistance
Call Center
500
Xerox
Xerox acquired a company called
Unamic/HCN in 2011 in order to expand
its global customer care capabilities
by adding regional market expertise in
Western Europe, Turkey and Suriname.
Technical Assistance
Press center in İzmir
10
EVB
Provices servicesto their customers in
Germany in energy / electricity
Technical Assistance
Technical Assistance
Center
200
Veripark established in İzmir in 2008 and has a software house,
employing 200 personnel. Xerox was one of the first companies
established in İzmir in 1983. IBM has a data center. Ericsson has
an R&D center responsible for MENA region, employing 200 R&D
personnel. Arvato, Turkcell Global, CCC, Assist are some examples
for call centers in İzmir. Avea, Turkcell, Vodafone and Turk Telecom
are the main players in communication sector. The number of
software companies is greater than the other ICT areas, so
software is one of the main investment areas in ICT, technical
assistance companies and data centers are also common in İzmir.
There is already a relative but strong existing footprint in software
(65% of all ICT companies in İzmir) and IT services (2nd employer
for call centers in Turkey after Istanbul).
Some ICT Companies Operating in İzmir
Company
Name
Description including customers
Investment
Area
Operation in İzmir
Employee
Number
Company
Name
Description including
customers
Investment
Area
Operation in
İzmir
Employee
Number
Accenture
Global management consulting,
technology services and outsourcing
company.
Software,
outsourcing
Software delivery
center (development,
testing)
50
İZTEK
Technology
Software
Software house in
İZTEKGEB.
35
Monitise
Providing software solutions to
Turkish Giants such as İşbankası, Yapı
Kredi, Ziraat Bankası
Software
Mobile implications
and software
30
Defense and security technologies,
mining and technology, software,
manufacturing, agricultural
technology, food technology
Software
CRM Solutions
50
Software,
technical
assistance
35
ERP, CRM, and CPM software
solutions
Software developers for data
collection, energy measurements,
machine processes
Technical assistance
center in İZTEKGEB.
Atlantic
Technologies
Siskon
Automation
Systems
Univera
Software
Produce solutions on the subjects
of AD/DC (Automatic Defining/Data
Collecting) Technologies and Mobile
Practices.
Unıvera has developed solutions for
especially sales-distribution, logistic
systems, labeling applications and
other AD/DC technologies with its
personnel consisting of approximately
90 people.
Univera has been determined to
move its successful projects, which
have been executed especially for the
companies with foreign capital across
Turkey since 1992, to Europe, Asia,
Middle East and African countries
(JTI; Dimon Tobacco, Unilever, Nestle
Software
Mobile implications
and software
90
Netsis
End-to-end business automation
Software,
testing center
Software
development office,
including testing
activities.
60
Bimar
(Arkas)
Software development company in
the field of sea transportation and
agency services, logistics and port/
warehouse operations
Software
R&D center in İzmir
TDZ
50
Olgu
Computer
Software developers for the local
municipalities of Turkey
Software
Security Internet
access, located in
İzmir TDZ
40
Teknokom
Elektronik
Software developers for Industrial
Applications like warehouse
management, e-trade, RFID
applications
Software
Storage automation,
software developer
in İzmir.
25
Ericsson
Ericsson provides communication
networks, global telecom services and
multimedia solutions
R&D centers
MENA region R&D
center
200
Sade
Teknoloji
Embedded system design, software
technologies
Firmware
Embedded system
design
Relephant
Sites with large data and complex
workflows, requiring a clear user
interface, like e-commerce, vertical
search, CMS implementations and
sports-related communities are its
specialty.
Web
applications,
websites
Design, development
on website
applications, The
only subsidiary of
Relephant in Turkey is
located in İzmir.
45
Turkcell
One of the leading
telecommunications company.
Telecommunications
Mobile
communicationregional center
200
Vodafone
Turkey
Data center,
call center
Mobile
communication-data
center
80
VeriPark is leading global provider
of multi-channel delivery, customer
relationship management and loan
origination solutions for financial
institutions. VeriPark creates
technological innovations that
transform businesses worldwide
- Europe, Asia, Middle-East, Africa,
Turkey - including banks, credit
unions, insurance companies, pension
funds, telecom companies, brokerage
and investment firms
Software
Software house
200
Vodafone established the largest data
center in Turkey. Vodafone Turkey
Cloud Technologies Center is located
in Istanbul. Added data centers in
İzmir and Tuzla for IT services in order
to provide constant, uninterrupted
service.
Astron (Yaşar
Holding)
SAP Services, consultancy, local SAP
partner
Service
provider
Software
development,
communication/
network, hardware,
hosting, security,
consulting/training
100
Veripark
Company
Name
Description including
customers
Investment
Area
Operation in
İzmir
Employee
Number
Avea
Telecommunication, Internet
Telecommunication
CommunicationDistribution- Call
Center
850
Sade Grup
Electronic device manufacturing,
İzmir, Istanbul and offices in
Barcelona. R & D, design , software,
series production, installation and
after-sales service support.
Software &
R&D & Data
Center
Software & R&D &
Data Center
55
Cloud Ararat
Cloud Ararat is a global cloud services
and IT solutions company, capable of
delivering start-up to large enterprise
scale applications and technology
products. Cloud Ararat teams are
dedicated cloud services to help
organizations achieve their goals
business objectives by adopting,
managing and enhancing cloud
solutions
IT services
Headquarter, R&D
center
6
Broadangle
developing Software as a Service
applications for online video delivery.
Software
house
Software house
12
Avandel
Salesforce Consulting Partner
providing services for
implementation, application
development and support, powered
by experience and expertise.
It Services
Kentkart
Providing IT solutions to mostly
municipalities
Software&
Hardware
32
R&D Center
100
011
HUMAN RESOURCES
Labor Force in Turkey
Following Russia and Germany, Turkey hosts the 3rd largest population in Europe with 78 million
people. Also, compared to the overall median age, Turkey hosts one of the youngest workforces in
Europe.
Turkey contains a labor force of over 28 million people (%36 of the total population) and low median
age shows that this trend will continue in the future. In addition to the quantity of the labor force,
HR capabilities of Turkey’s labor force is on rise, owing to the growing level of education, increasing
schooling rates, policies supporting education, and increasing quality and quantity of higher education
institutions that recently proliferated across Turkey.
Labor Force Comparative Competitiveness Index (the higher score the better)
012
Skilled
Labor
Availability
of Qualified
Engineers
Availability of
Competent
Managers
Availability
of IT Skills
Average
Score
Denmark
7,57
8,03
7,15
8,60
7,84
Ireland
8,09
7,74
7,33
7,96
7,78
France
6,26
8,16
5,93
8,24
7,15
Singapore
5,46
7,41
6,23
8,20
6,83
Turkey
5,96
7,08
6,00
7,42
6,62
Spain
6,38
7,75
4,89
7,08
6,53
Germany
5,45
6,12
6,00
7,08
6,16
Poland
5,42
5,58
5,15
7,54
5,92
Source: IMD Yearbook, 2014
Apart from the skilled labor force, competitive cost of both skilled and unskilled labor is a crucial
indicator for investors where Turkish labor can provide more opportunities for the potential FDIs.
The cost of labor force in Turkey has a closer wage range to the Eastern and South Eastern European
countries and offers a comparative advantageous position.
Labor Costs in Different Sectors in Some Countries
2013 – Labor costs per
hour in €
Overall
Business
Economy
Industry
Construction
Services
Poland
7,6
7,4
7,6
6,4
7,5
Denmark
38,4
39,6
38,7
34,6
40,8
France
34,3
35,0
36,8
30,6
34,8
Germany
31,3
31,7
36,5
24,6
29,0
Ireland
29,0
27,6
30,7
25,5
26,7
Spain
21,1
20,9
23,3
20,3
20,1
Turkey
5,9
6,7
6,1
5,5
8,4
Singapore
23,6
34,9
32,3
26,0
22,6
Morocco
8,7
10,0
7,0
6,8
7,2
Source: Eurostat, World Bank, OECD and Turkstat (In 2012, TUIK/Turkstat published the labor costs in Turkey for different sectors. The costs for 2013 are
calculated by accordingly to the increment percentages).
013
LABOR LAW
According to Labor Law, labor period is at most 45 hours per week. Weekly
labor period may be distributed among the labored days of the week unless
it does not exceed 11 hours per day. Unless otherwise agreed upon by
parties, this 45-hour period is distributed evenly among the labor days.
Payments for labor that exceed the weekly 45 hours labor period are made
Employee Holidays
Holidays
# of Hrs / Days
Notes
Total Paid holidays
14,00
Weekly Holidays are not included in this
value. There are 52 days a year (one day per
week) weekly holidays.
Paid leave duration starts after the completion of employee’s first year in the company. Applies as follows:
14 work days (1 - 5 years), 20 work days (15
years), 26 work days (15 years or above)
National Holidays
14
There are a total of eight paid holidays
during a year, consisting of six paid national
holidays (1st of January, 23rd of April, 1st of
May, 19th of May, 30th of August and 29th
of October) and two paid religious holidays
(3.5 days and 4.5 days). Whether or not
labour shall continue during national and
general holidays is agreed upon in collective labour agreements or individual labour
agreements. Unless there is any provision
to the contrary, work may be carried out
during said days.
Sick Leave
1 Week
In accordance with article 46 ( c ) of the
Turkish labor law, all employees are entitled
to maximum one week paid sick leave upon
production of confirmative medical report.
Sick leave might be extended. Extended
sick leave is granted on unpaid basis. In the
case of sick leave that exceeds (6) six weeks
beyond the notice periods determined in
Labor Law, employment contract may be
terminated without notice.
within the context of “overtime labor duration” as a rule. Salary to be paid
per every one hour overtime is paid by increasing the normal hourly unit
salary by fifty percent. Instead of making payment to workers who realise
overtime work, it may be preferred to grant a 1.5 hour rest time for each
hour of overtime labor. For overtime labor realised during weekly holidays
and national holidays; an additional daily salary is paid to the worker. Such
fees may be increased based on collective labor agreements or individual
labor agreements signed between employees and employers. Total
overtime labor duration may not exceed 270 hours per year.
Work Hour Break up
# of Hrs
/ Days
Notes
Hours Present
9
Normal labor period is at most 45 hours per
week. Weekly normal labor period may be
distributed among the labored days of the
week unless it does not exceed 11 hours per
day. Unless otherwise agreed upon by parties, this 45-hour period is distributed evenly
among the labor days.
Lunch Break
1
Below 7.5 working hours per day, break time
will be lower.
Other Breaks
-
Included in the lunch break.
Net Available
9,0
Lunch break is not included in working hours.
Number of
work days per
week
6,0
One day per week must be provided as a
weekly holiday.
Salary Information
Pay Roll Contributions
Values
Minumum Wage As Legal Obligation
1.935,23 TL (cost
to the employer)
Turkey recently raised the
minimum wage by 30 percent to 1,300 TL (net wage)
(around $430) for workers.
Salary Inflation (Average)
8,0%
-
Annual Attrition Rate typical in
BPO
6,0%
The attrition rate is between
5% - 7%. The percentage changes
according to the size of the
company. In case the company is
a large corporate company, the
rate diminishes.
Overtime Charges
50,0%
-
Night Shift Differential
0,0%
Night shift working time cannot
exceed 7.5 hours. Overtime
payment is given in case working
time exceeds 7.5 hours.
Timing of the Night Shift
7,50
According to the Labor Law,
night time starts at 8.00 p.m.
and ends at 6.00 a.m.
Background check
-
Employee
Deduction
(%)
Employer
Contribution
(%)
Notes
Pension
9
11
-
Health
5
7,5
General Health Insurance
Retraining Labour fund
0
0
-
Professional Risk
0
2
Short term insurance premium
Severance
0
0
Compensation payment is calculated over the last 30-days’ gross salary of the employee multiplied by
the number of each full year passed
through the continuation of labour
contract, beginning with the starting date of employment. No contribution applies here. Please find
the details on this link: http://www.
investinİzmir.com/en/html/1130/
Labor+and+Social+Security
Holiday Bonus
0
0
Not mandatory
Employee deduction on Holiday
Bouns
0
0
Not mandatory
13th Salary
0
0
Not mandatory. If 13th salary is decided to be given to the employee,
all the percentages will be applied.
Social Contribution on 13th
Salary
0
0
Not mandatory. If 13th salary is decided to be given to the employee,
all the percentages will be applied.
Others 1
1
2
Unemployment Insurance Premium
Notes
Not mandatory. Free of charge.
Employee could provide it online.
Drug testing
-
Not mandatory. Paid by the
employee if needed.
Transport Allowance
-
Night Shift Transport Allowance
-
It is not mandatory. However, it
is a common practice in İzmir. Especially large companies located
outside of the city center provide
bus services for employees.
HUMAN RESOURCES AND LABOR POOL IN İZMİR
With a population of 4,113,072 in 2014, İzmir constitutes 5.3% of Turkey’s population and 39% of the
Aegean Region’s population. The young population under 30 makes up 42% of İzmir’s population.
İzmir provides a dynamic work force for investors.İzmir is in third place among the 81 provinces both
in terms of population size and socio-economic development.
While the unemployment rate in İzmir is above the data for Turkey, the participation in the work force
rate of İzmir is also above the average for Turkey. One of the reasons for the participation in the work
force rate being high is that women take an active place in the business market here.
İzmir is in third place among the 81 provinces with an average education term of 8.6 years and is also
over the Turkish average for literacy, another important indication of education levels. İzmir stands
out in terms of qualified human resources in Turkey with 9 universities, professional training high
schools and faculties and a higher level of foreign language skills.
In terms of education statistics, İzmir is performing over the national average. Additionally,
university graduation rate is also higher than the national average which provides İzmir a greater
competitiveness advantage in terms of a qualified labor force, especially for high value added sectors
such as ICT.
016
Increasing Number of Universities and Higher Education Graduates
As of 2016, there are 9 universities actively contributing to the development and sustainability of the
İzmir universities have a total of 24 different engineering departments, covering
local labor force in İzmir: Dokuz Eylül University, Ege University, Gediz University, İzmir University,
computer engineering, electrical and electronics engineering, mechanical
İzmir Economy University, İzmir High Technology University, Katip Çelebi University, Sifa University
engineering, civil engineering, industrial engineering, software engineering. The
and Yasar University.
education system continually improves on international standards and this is
attracting more foreign students to İzmir annually as well, both contributing and
partly stemming from/to the international presence of the city at the global level.
Statistical Information about the Universities in İzmir (2016)
Name of
University
Year
Founded
Number of
Faculties
Colleges
Institutes
Number of
Students
Number of
Graduates
Ege
University
1955
11
15
8
49.228
7.054
Dokuz Eylül
University
1982
14
9
6
69.183
8002
İzmir Institute
of Technology
1992
3
1
1
4.106
302
İzmir
University of
Economics
2001
7
4
3
8062
924
Yaşar
University
2001
Gediz
University
2007
5
2
2
7126
864
İzmir
University
2008
7
4
2
5394
996
İzmir Kâtip
Çelebi
University
2010
Şifa
University
2011
TOTAL
7
12
3
3
2
3
7.999
6162
Number of Graduated Students for Chosen Faculties
Faculty Of
Engineering
Faculty of
Science
Faculty Of
Economics and
Administrative
Sciences
Dokuz Eylül University
762
270
1355
Ege University
667
630
452
Gediz University
122
0
136
İzmir University of
Economics
128
0
247
İzmir University
155
0
158
İzmir Institute of
Technology
173
65
0
Yaşar University
83
0
136
TOTAL
2090
965
2483
818
198
3
1
1
2636
357
69
42
28
159.896
19.515
Source: İzmir Universities
Source: İzmir Universities
017
Number of Graduates and Students in Related Departments
Number of
Graduates
Number of
Graduates
Number of
Students
Universities
Faculty
2010-2011
2011-2012
2012-2013
2013/2014
Dokuz Eylül
University
Computer
and Software
Engineering
55
64
71
90
Electrical –
Electronics
Engineering
25
33
34
100
Computer
Engineering
100
103
105
108
Electrical and
Electronics
Engineering
60
50
80
82
Computer
Engineering
0
0
2
38
Electric and
Electronics
Engineering
0
0
0
44
Electronics and
Communication
Engineering
0
6
42
37
Software
Engineering
0
0
0
44
Computer
Engineering
0
0
0
39
Ege University
Gediz
University
İzmir
University
018
Number of
Graduates
Number of
Graduates
Number of
Graduates
Number of
Graduates
Number of
Students
Considering related statics, we see that on annual basis, the graduates from ICTrelated engineering departments are continuously on the rise – starting from 443
at 2011, 504 at 2012, 605 at 2013 and 1225 at 2014. This also means that İzmir
produces over 700 ICT-focused engineers annually by itself, showing that the city
produces have suitable qualifications for the RE sector specifically.
Universities
Faculty
2010-2011
2011-2012
2012-2013
2013/2014
İzmir
University of
Economics
Computer
Engineering
(UOLP SUNY
Fredonia)
54
53
52
42
Looking at the number of graduates from different engineering departments in
İzmir, computer engineering is among the most popular department preferred
by students. Especially with the new established universities, the city started to
produce quite well number of engineers relevant to ICT sector.
Electric and
Electronics
Engineering
0
0
0
56
Therefore, it represents quite good potential to see that the increasing attraction
of the high value added sectors through growing numbers of engineers on annual
basis and both sectorial and graduate growth is going parallel.
Software
Engineering
(UOLP SUNY
Fredonia)
45
53
46
58
Şifa
University
Engineering
Faculty
0
0
0
0
Yaşar
University
Computer
Engineering
38
65
67
68
Electric and
Electronics
Engineering
0
Software
Engineering
Source: İzmir Universities
These figures also gives a strong message that ICT is well recognized by the
education providers and further growth will be further supported for the sectorial
sustainability in İzmir.
İzmir also has extensive vocational and technical schools in the city which is also
a critical especially for high value added sectors. These vocational and technical
schools, dispersed across İzmir, are composed of electric and electronic, industrial
automation and mechanical technology departments, as indicated in the table
below.
Vocational and Technical Schools in İzmir
0
4
0
28
4
26
9
Related Areas of
Education
Sub-Areas Covered
Number
of Schools
Field of Information
Technology
Computer Technical Service
Database Programming
Web Programming
Network Operations
65 schools
Field of Electric and
Electronic Technologies
Electricity Installations and Beam Box Erection
Industrial Repair and Maintenance
Coil Winding
Communication Systems
Video and Audio Systems
36 schools
Field of Industrial
Automation Technologies
Industrial Control
Mechatronics
3 schools
Field of Mechanical
Technologies
Computer Supported Machinery Manufacture
Computer Aided Machine Design
Machine Maintenance and Repair
Interior Space Technical Design
18 schools
Source: Ministry of Education, Turkey
FOREIGN LANGUAGE EDUCATION
Language Education at Secondary Schools
Foreign language education is provided compulsorily at elementary schools,
There are 50 secondary schools and high schools providing education in foreign languages. Besides
secondary schools, high schools and universities in Turkey. Although foreign
these schools, there is also one secondary school where only foreign students can receive education.
language is compulsory, it varies depending on the types of schools, which
leads to different course hours. For instance, all courses are thought in a
specific foreign language at private elementary and high schools, while
foreign language education is given through foreign language courses at
public schools. There are also institutions where languages like Russian,
Japanese or Chinese are thought in addition to the leading European
languages like English, German, French and Italian, as well as formal
education.
Private Secondary School Level Educational Institutions Teaching in Foreign Languages
School
Website
Teaching Language
Approx. #
of Grads
TAKEV Private Anatolian
High School
Bornova Anatolian High
School
www.takev.k12.tr
German
(Second Lang.: English)
German
(Second Lang.: English)
120
English
(Second Lang.: German)
English
English
(Second Lang.: German)
English
(Second Lang.: German)
English
(Second Lang.: German)
200
Private Turkish High school
020
http://mebk12.meb.
gov.tr/meb_iys_dosyalar/35/06/164773/
www.ozelturkkoleji.com
140
Fatih Private High School
Camlaralti Private High
School
Ege Private High School
www.fatih.net
www.camlaralti.k12.tr
Yamanlar Private Anatolian
High School
www.yamanlar.k12.tr
Private İzmir American
Collegiate Institute
www.aci.k12.tr
English
(Second Lang.: German)
110
Cakabey Private High School
www.cakabey.k12.tr
English
(Second Lang.: German)
80
TED Aliağa College Foundation Private High School
www.tedaliaga.k12.tr
English
(Second Lang.: German)
90
MEV College Private Guzelbahce Anatolian High School
www.mevİzmirokullari.
k12.tr
English
80
Gelisim Private College
www.gelisim.k12.tr
English
100
Isikkent Private Anatolian
High School
www.isikkent.k12.tr
English
(Second Lang.: German)
100
Saint Joseph Private French
High School
www.İzmirsj.k12.tr
French
(Second Lang.: English)
90
İzmir Private Tevfik Fikret
High School
www.tfl.k12.tr
French
(Second Lang.: English)
90
www.egelisesi.k12.tr
Source: meb.gov.tr (Private Educational Institutions, List of Private Schools)
220
100
80
160
Language Education at the Universities
Private Courses
In the city of İzmir, there are nine universities in total by the year of 2014, four of which are public
There are also courses providing foreign language education, in addition to
universities and the remaining five are private ones. İzmir universities have 72 faculties and 42
the schools affiliated to the Ministry of National Education. With more than
colleges in total. It is compulsory to receive a one-year long foreign language education during the
130 courses operating as affiliated to the Directorate of Private Educational
preparatory first year of universities. In order to be exempt from this preparatory year, students
Institutions, an opportunity to learn foreign languages at different levels is
must achieve the minimum score from the foreign language proficiency exam. In addition to the
offered for all ages.
preparatory classes, 100% or partial English language education is also given at the universities.
Foreign Language Education Level in İzmir Universities
University’s Name
Faculty
Number of
Graduates
(2011-2012)
Foreign
Language
Dokuz Eylul University
Faculty of Business Administration
214
100% English
Faculty of Engineering
777
70% English
Economics and Administrative Sciences
430
70% English
Faculty of Engineering
783
70% English
İzmir University of
Economics
Faculty of Business Administration
409
100% English
Faculty of Engineering
161
100% English
Yasar University
Faculty of Business Administration
141
100% English
Faculty of Engineering
132
100% English
İzmir Institute of High
Technology
Faculty of Engineering
256
100% English
İzmir University
Economics and Administrative Sciences
57
100% English
Faculty of Engineering
84
100% English
Faculty of Business Administration
294
-
Faculty of Engineering
278
-
Faculty of Business Administration
-
100% English
Faculty of Engineering
-
100% English
Ege University
Gediz University
Katip Celebi University
Source: İzmir Universities
021
İZMİR’S QUALITY OF LIFE AND COMPETITIVE COSTS
İzmir’s life style and high quality of life is one of major features of İzmir across other Turkish cities.
Lifestyle specifications of İzmir are generally favored, being close to touristic attractions, offering
low stress level lifestyle, low urban traffic and adequate social life. İzmir is ranked as;
•
1st in Turkey in Quality of Life Index (MasterCard, 2011)
•
1st in Turkey in Social Capital Index (Ministry of Development, 2012)
•
2nd in the world among fastest growing metropolitan areas (Brookings Institute, Global Metro
Monitor 2014)
İzmir provides both quality of life and competitive living cost to its citizens. Goods and services that
constitute approximately the half of the households’ expenses are cheaper.
•
Education services are approximately 25% cheaper than those in İstanbul
•
Electrical or non-electrical household appliances are approximately 6% cheaper than those in
Ankara, 2% cheaper than those in İstanbul.
•
Rent, electric, water and gas expenses are approximately 18% lesser than those in İstanbul.
•
Health service and product prices are approximately 7% lower than those in Ankara, 1% lower
than those in İstanbul.
•
Entertainment and cultural activities are approximately 12% cheaper than those in İstanbul, 6%
cheaper than those in Ankara.
•
Food and non-alcoholic beverages are approximately 6% cheaper than those in İstanbul.
Consequently; there is the opportunity of providing higher purchasing power for employees with
the same amount of wage. There is the opportunity of lowering the production costs with cheaper
workforce. The average wages in İzmir are %20 to %30 less than the wages in İstanbul and %10 - %20
less than the wages in Ankara.
022
SUPPORTS – INCENTIVES
Technology Development Zones
(Technoparks/TDZs)
Incentives for R&D and
Design Centers
The enterprises, which are located in Technology Development Zones, may benefit from the
The enterprises which are located outside the technoparks but have more
advantages below:
•
and can utilize from the incentives below:
Profits made from software development and R&D activities are exempt from income and
corporate tax.
•
than 15 R&D personnel or Designer are considered as an R&D/Design Center
•
matter of discount in the determination of the commercial profit,
Sale of application software developed inside techno parks is exempt from VAT. These include
software used in system management, data management, business applications, various
•
Salaries of R&D and support personnel (salaries relevant to these tasks of theirs) employed
•
•
VAT
Personnel Costs
50 percent social security premium exemption for employers for a
period of 5 years
Tax Discounts and Exceptions in TDZ’s
Corporate / Income Tax
Income withholding tax exemption for employees (this item will be
effective until December 31, 2023.)
inside the zone are exempt from all taxes.
Tax Discounts and Exceptions in Technopark
Up to 50% of the increase in the R&D, innovation and design costs can
be a matter of discount in the determination of the commercial profit,
business sectors, internet, mobile telephones and military command controller systems.
•
100% of the technology and information based R&D costs can be a
Inside
Technopark
Outside
Technopark
0%
Corporate Tax 20%
Income Tax: 15%-35%
0%
8%-18%
Income Tax
0%
15%-35%
Social Security Premiums
(employee share)
14%
14%
Social Security Premiums
(employer share)
9.75%
19.5%
Unemployment Insurance
Payments
2%- 3%
2%- 3%
Stamp Duty
0
0.5%- 0.1%
•
Stamp duty exemption for applicable documents
•
Deduction from the tax base of certain funds granted by public bodies
and international organization
•
In case of the employment of the basic sciences graduates in R&D
centers, the gross minimum wage of their salaries will be payed by the
ministry for 2 years,
023
TUBITAK Supports for R&D Projects
Ministry of Economy Supports for ICT Sector
Enterprises can utilize from different funds to actualize their R&D projects.
Ministry of Economy gives several supports for the ICT companies
TUBITAK (Scientific and Technological Research Council of Turkey) and
•
Expenses for reports about the sector, international legislation and investment subjects
($100.000/year, %60)
•
Expenses for marketing the computer games in international markets (.$100.000, %50)
•
Commission expenses for the sales of computer applications ($50.000, %50)
•
Expenses for the promotion, sponsorship, advertisement and participation in the events, fairs,
conferences held overseas. ($300.000/year, %50)
•
Expenses for participation to the fairs, congress and conferences held overseas
($15.000/event, %70)
•
Expenses for advertisement and promotion on search engines ($100.000/year, %50)
•
Expenses for the rents of the offices/units of the company abroad for four years
($200.000/year, %60)
•
Expenses for the certifications for international legislations and international markets
($50.000/year, %50)
•
Expenses for consultancy services such as marketing strategies, accreditation. ($200.000/year, %50)
TTGV (Turkish Technology Development Foundation) both compensate or
grant R&D related expenses and capital loans for R&D projects.
Projects eligible for TUBITAK incentives:
•
Concept development
•
Technological research & technical feasibility research
•
Laboratory studies in the translation of a concept into a design
•
Design and sketching studies
•
Prototype production
•
Construction of pilot facilities
•
Test production
•
Patent and license studies
•
Activities concerning the removal of post-sale problems arising from
product design
İŞKUR supports for the training of personnel
ISKUR, the National Recruitment Agency, may support vocational training projects for a maximum
period of 6 months.
•
Direct salary support for interns, and unemployed candidates that are registered at ISKUR,
(partial wage=TRY 25/day) during the pre-employment training session
•
Social security premium expenses (Occupational accidents and occupational diseases) are
covered by ISKUR.
•
Program expenses such as the trainer’s fee, energy and water bills are partially paid to the
employer by ISKUR. The total amount is calculated by the cost per trainee and the employer
must bill ISKUR for the services given.
024
•
ISKUR considers the employer (company) the legal party in this training program.
•
A certain number (percentage) of trainees must be employed after the program.
Patent System
Companies can apply to both the International Patent System and the European Patent Convention
through the Turkish Patent Institute. Turkey is a member state of The International Patent System
(PCT) and The European Patent Convention (EPC). The Turkish Patent Institute (TPI) is Turkey’s official
patent application institution and offers three types of patent applications.
•
National Patent Application
•
European Patent Application (valid for up to 40 countries)
•
International Patent Application (valid for up to 147 countries)
Application for international patents (PCT) can made in two different ways:
•
It can be done through an online service at the World Intellectual Property Organization (WIPO).
The procedure is not same as the national patent procedure. It has one universal procedure that
is the same for all countries that are members of PCT.
•
The application process can also be done with the help of the Turkish Patent Institute (TPI). It
has the same procedures after the investigation report has been created. After the report is
generated, if the applicant desires, an interim review can be done. Then, the applicant chooses
the countries where the patent will be active.
•
For the EPC, two institutions are in charge of the application process in Turkey: The European
Patent Office and the TPI. Procedures to patent a product are the same for the PCT except the
time the countries where the patent will be in effect.
In Turkey, patent firms can help in the application process for any type of patent. They act as
consultants that help applicants gather the necessary information and documents for patenting.
025
INVESTMENT AREAS
The presence, availability and quality of the existing real estate infrastructure are providing the
necessary basis for the sectorial development through concentration of certain business activities
into a specific location where relevant specific infrastructural requirements together with certain
supporting mechanisms are intentionally designed and provided for the players.
These areas also show signs of existing business critical mass and existing available know-how of
a certain location. Simply by looking at the numbers of firm origins and activities, quite realistic
analyses can be formulated about the locations’ local economic activity structure and dynamics.
Therefore, real estate is positioned among the top decision making parameters for potential ICT
investments to a certain location.
These areas can be in form of a/an;
•
Technology Development Zones (TDZs): TDZ’s are designed for ICT activities and attract
investments to the technology zone. Incomes of software development and R&D activities
are exempted from income tax till 2023. The sales of software (system management, data
management, business applications, internet, mobile phones etc.) that are produced in the zone
are exempted from VAT. R&D employees are also exempted from all taxes. Companies can invest
to the products that are produced in the zone. At the end of 2024, for 5 years, %50 of social
security institution premium of the employer will be met by government.
•
Available modern office space: Office areas providing adequate quality internet connection,
outside TDZ’s and within urban zones are essential for ICT companies for their operations.
026
Technology Development Zones (TDZs)
Technoparks in which the companies that use advanced technology or have goals intended to
The Advantages offered by Technology Development Zones
develop new technologies, develop and produce technology &software by using the opportunities
İzmir hosts Technology Development Zones across the city. 4 Technology
of a specific university or high school, R&D centre or institute, function in order to turn a technology
product into a commercial one, a method or service; as a site in which academic, economic and social
structures unite.
Development Zones are present at İzmir which are IZTEKGEB, DEPARK, İzmir
Science Park and ideEGE
DEPARK
İZMİR SCIENCE PARK
Dokuz Eylül University Technology Development Zone (DEPARK) is a joint initiative between
İzmir Science Park is the most recently established TDZ in İzmir. The Park was
the university and private corporations of the city, giving signals that city’ university – industry
established by 16 partnering organizations, including the leading universities,
cooperation is at certain level of existence.
enterprises and institutions of İzmir such as İzmir University of Economics,
The zone is divided into two main campuses; the first is TDZ-1 located in Tınaztepe, covering a surface
area of 17.412 m2 and hosting the leading ICT companies. The second one is TDZ-2 in Inciraltı, covering
a surface area of 10.487 m2 and working as the first health TDZ operating within a hospital.
DEPARK is also considered a potential growth zone for Research and Innovation. TDZ-1 distance
to airport, Alsancak Port and City Center are 15, 20, 25 km respectively. It also enjoys a good
interconnectivity as the zone is located at the regional road crossings and connected to city beltway.
Complementing on the activity focus of IZTEKGEB, DEPARK companies mostly concentrated on
Informatics, Electronics, Material Technologies, Nanotechnology, Software, and Renewable Energy.
Prominent ICT players are already operating in DEPARK too. Some of the leading ICT FDIs and
engaged tenants in the zone include Ericsson and Bio İzmir Project.
ITOB Organized Industrial Zone, İzmir Chamber of Commerce, İzmir Exporters
Association and İzmir Commodity Exchange.
The distances of İzmir Science Park to Airport, city centre, İzmir Free Zone and
İzmir Alsancak Port are 18, 32, 24 and 35 km respectively. The park will cover
22.879 m2 surface areas and will be integrated to industrial plants. The focus
sectors of the Park will be about Informatics, Biotechnology and Agriculture.
The establishment of the İzmir Science Park is quite an important sign of the
growing attracting of ICT sector within the city, leading to an increasing demand of
necessary infrastructure due to the increasing number of ICT oriented companies.
TEKNOPARK İZMİR
ideEGE
Teknopark İzmir has an important role for Research and Development (R&D) in the region with
Located and owned by one of the biggest universities (Ege University) in İzmir.
its existing offerings and high profile members that are active around it. The zone hosts several
It’s a thematic teknopark on Life Sciences providing innovation ecosystem and
big players from high-tech sectors such as Accenture, Netsis and Siskon.
implementation and pilot plants for the companies. Technology Transfer Office
Located within the İzmir High Technology Institute, The zone covers a surface area of 218
(EBİLTEM TTO) also provides services for patents, international networks and projects.
hectares of main zone and 6.4 hectares of additional area and established with a specific focus on
The teknopark is strategically located with a distance of 12 km to the city center
Innovation and R&D are the main activities for Teknopark İzmir. The companies placed in the zone
and 25 km to the airport. The teknopark is just located inside the university campus
provide services in various areas, mainly including Software, Telecom services and Industrial
within two different areas. ideEGE started to accept its investors in 2015 in its first
design.
building with 50.122 square meter area. The companies can utilize from social spaces,
7500 m2 of office space in the zone is used by around 120 companies. Overall R&D and innovation
staff working in the zone reached around 600 meaning that a considerable amount of technical
and business know-how is existing and available at the zone.
The zone is easily accessible due to the transportation with shuttles and busses from/to city
center. Located 30 km to Çeşme Port with Ro-Ro facilities, 60 km to İzmir Adnan Menderes
Airport, 50 km to the city center and close to İzmir-Çeşme Highway, Teknopark İzmir is well
connected with local logistical offerings.
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conference rooms, library, exhibition areas,etc. There are many additional services
for the technology companies including laboratories, workshops, mentoring and
international service network.
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ACCESSIBILITY
Airports and Airlines
Turkish ICT companies export software to more than 70 countries, with
The Adnan Menderes Airport, which is 18 km from the city center, is the most important location
Germany, USA, United Arab Emirates, Libya, England, Azerbaijan and
for air traffic in the İzmir and surrounding region opened for service in 1987. Due to the increase in
Switzerland among the highest. İzmir in that respect provides easy
domestic and international passengers and cargo the international terminal was renewed in 2006
connections to these export partners.
and the domestic terminal opened for services in its new form in 2014.
Accessing these export markets is therefore of higher importance than
With the new domestic terminal the Adnan Menderes Airport reached a total capacity of 25 million
others for companies in İzmir. The number of international direct flight
destination countries from İzmir Adnan Menderes Airport is more than 36.
Most of the export markets stated above; namely Germany, Azerbaijan,
England and Switzerland are accessed by direct flights. To the rest of the
destinations can be travelled via Istanbul, which is the transfer hub of
passengers. The economic transformation experienced by İzmir in recent years also had an impact
on the number of passengers traveling to İzmir by air bringing the number of passengers carried to
nearly 11 million. Direct flights go from the İzmir Adnan Menderes Airport to 36 countries in three
different continents. While there are no direct flights from here to the continents of America and
Australia, some European capitals can be reached with a stopover in Istanbul. 55 different airline
Turkish Airlines, the airline company which was awarded as “the airline
companies have flights to 86 different foreign destinations from this airport.
company flying to most number of destinations”.
While İzmir Adnan Menderes Airport was in fifth place in Turkey according to number of flights, it is
This high accessibility to international markets and nationwide connectivity
with Europe, MENA and Central Asia gives a unique potential to new
investments directing towards Turkey, and İzmir, with a unique position
in fourth place according to number of passengers and freight (cargo, mail and luggage) transport. As
of the end of August/2015 14,042 international and 43,886 domestic, for a total of 57,928 flights took
place and about 8,073,282 passengers were transported on these flights.
offers extra leverages and strengths over its potential national and
international business competitors with its distinct and high quality
connections
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International Direct Destinations
Amsterdam
Hahn
Nuremburg
Dortmund
Verona
Athens
Hamburg
Oslo
Dublin
Warshaw
Baku
Hannover
Ostend
Dusseldorf
Wien
Barcelona
Helsinki
Paris
Eindhoven
Wroclaw
Basel
Jeddah
Poznan
Ercan
Zurich
Berlin
Katowide
Prague
Frankfurt
Cork
Billund
Liege
Rotterdam
Gothenburg
Tehran
Birmingham
Lile
Shannon
Milan
Toulouse
Bratislava
London
Skopje
Minsk
Medina
Bremen
Luxemburg
Stockholm
Moscow
Brussels
Lyon
Strasbourg
Munich
Cologne
Manchester
Stuttgart
Münster
Copenhagen
Marseille
St. Petersburg
Nantes
Highway Accessibility
İzmir has strong transportation connection both in the east-west and north-south directions. The
D300 Highway with a connection to İzmir extends all the way to Iran.
The D550 starts in the north-south direction at Edirne and extends all the way to Muğla.
In addition to the present roads, construction is continuing on the Istanbul-İzmir freeway, one of
the Republic of Turkey’s largest infrastructure projects. When the Istanbul-Bursa-İzmir Freeway is
completed (planned to be completed in 2019) the 8 hour trip from Istanbul to İzmir will be reduced to
3.5 hours. Thus İzmir’s land connection to Europe will be much stronger.
031
İZMİR DEVELOPMENT AGENCY
İzmir Development Agency (IZKA) is a government
organization, responsible for economic and social
development, along with the promotion of the city of
İzmir. IZKA acts as a one-stop-shop for investors aiming to
increase their competitive edge and open their businesses
to new markets by investing in İzmir. We serve investors
as “free of charge consultants” and we deal with all the
issues during their investment process. We are here to find
the most valuable choice for your company and actualize
your investment plans in İzmir.
CONTACT US
MAIL
[email protected]
PHONE
+90 232 489 81 81
ADDRESS
Şehit Fethi Bey Caddesi No:49/1 Birlik Plaza
Kat:3 35210 Gümrük İZMIR / TURKEY
THE BEST SERVICE FROM
THE TOP AGENCY
Site Selection Magazine (www.siteselection.com) has chosen the top
investment promotion agencies in its May 2016 issue. İzmir Development
Agency has been selected as “The Top Investment Promotion Agency”
in Eastern Europe and Central Asia. The editors of Site Selection, a
distinguished panel of global foreign direct investment experts and site
consultants selected agencies accumulated the most points in a set of
criteria that include:
• Most professionally responsive to investor inquiries
• Most knowledgeable and linguistically diverse staff
• Most access to user-friendly databases of sites and incentives, both
general and sector-specific
• Best information on timing expectations for permitting and other
processes
• Best access to recent investors in the region for testimonials
• Best reputation for protecting investor confidentiality
• Best reputation for after-care services
www.investinİzmir.com • www.izka.org.tr