HUNGARY’S PRACTICAL BUSINESS BI-WEEKLY SINCE 1992 | WWW.BBJ.HU
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BUSINESS JOURNAL BUDAPEST
VOL. 25. NUMBER 16
3
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Budapest Business
Journal | September
8 – September
SEPTEMBER 8 – SEPTEMBER 21, 2017
21, 2017
eport ial R s Spec s Integrator IT & System Inv Incentives,
estments, and
Intrigue
As the digital revolution enters of a new phase with development ns disruptive solutio of in the field ence Artificial Intelligt and the Interne to of Things, soon 5G by be powered the technology, sector domestic ICT to ride is gearing up growth. the wave of
the race for Systems in integrators IBM Data Storage license As far as system acquired a is still on top, supremacy. Valley, had T-Systems like on public and Silicon are concerned, and IBM, just driving tests of EUR 30 Invitel, HP performance for autonomous California and Hungary. followed by in worth a minimum A remarkable HIPA will, development has ballooned roads in Finland, Group the year before. envisaged that to provide whose staff made by Delta million. It is wned The company, within the past year, is was, in turn, with the right and biggest Hungarian-oup to the for training. time, be vested from 20 to 140 algorithms Holding, the to EUR 2 mln which climbed featured by Nokia self-driving market fully funds of up not developing system integrator, recent investments of hardware to though it had One of the on the benefits AI-optimized as possible, fifth place even10 the year before. Skypark cars as fast top learning is already capitalizing autonomous Its 25,000 sqm been stirred among the of using deep market has in May, and it the new measures. and its approach embraced by ever more The telecoms ICT sector, which opened being in the entire as the office building, 2,000 engineers and methods is up the most was acting some the that locally. to Digi efforts home is earlier this IT businesses the current was yet again first, it announced its own, perfectly depicts with. Research will focus ers disruptor. At launch busy would finally which Hungary industry is year that it service in the networks, of Software Develop striving ted mobile partly on 5G retail and of the largest with the country centers long-anticipa it bought the of fact, one July in matter is a big promoter, a Group for As fall. Then in the country, of the development clients of Invitel is to become one a partnership software developers The new network small business 43 bln. The transaction announced automation once for the technology. Qualisoft Zrt. to buy a minority share a reported HUF approval, but IoT set to take industry year standard is market 4.0), and the earlier this which specializes subject to regulatory as Industry by Q1 of 2018, Stúdió Kft., experts (also known of Arteries change. creative solutions. it is done probably level. At Nokia, by Lists, the will significantly to a whole new an intelligent system in IoT and AI-based BBJ Book of statistics of conditions to last year’s to the latest Authority behind and devices aim to establish According According to second place networks, data learning, should National Media control 16% connecting Qualisoft jumped on the list of software Hungarian help of deep ent and Invitel Hungary Digi grow that, with the adapt to, your habits and to IT Investm evosoft internet (NMHH), very and and is expected alliance. The the fixed-line The deal recognize, scene has been developers, new and 10.1% of of sixth sense. result of the pretty much respectively. The IT investmentof the shortage of skilled needs as a sort further as a access to high-speed service market, Digi ahead of rival UPC, players on to active, regardless says it is deeply and right The widespread the point remaining leading NEXON holding would catapult of the market, and further lower Zrt. that are labor. The government digitalization 22% networks will kept their positions: by R&R Software now holding leader Magyar Telekom to supporting smaller businesses With followed committed key incentives. of entry for third place, boost it via behind market game is on in the to in the IoT field. cheaper, the Nyrt. is aiming to the already active are now entitled R&D it will be and Klucs-Soft smaller and (35.5%). So, rankings, everything segment, and For one, enterprises taxes double their will hardware getting is expected to increase In terms of for digital hardware internet services against competition solutions this year, of players the unchanged write down to see how number January AI-based leading of remained as still soon. fascinating very as well. Samsung is expenses. And Investment Promotion dramatically s producers. is PCE Paragon react. from the development the Hungarian able to fund technology and breakthrough can benefit pack, the runner-up been is no by LG, Huawei year’s important Agency has AImotive, a One of this where eligibility Solutions, chased the fact that it suffices intensive projects in Budapest was certainly to job creation; headquarters longer subject existing number of jobs startup with the R&D to maintain for implementing in exchange
LEVENTE HÖRÖMPÖLI-TÓ
TH
directly provides employment, people The sector to some 400,000 of the 13.7% or indirectly, and makes up data of the ICT in Hungary, to the 2016 total GDP, according (IVSZ). The of Hungary amounted to Association by the sector 400 value produced last year, of which HUF HUF 3.45 billionout by software and services of bln was carved equates to 7.5% a latter figure represents exports. The exports, and total Hungariana year-on-year basis. on if there were 23% growth be eclipsed And that could around. However, an enough specialistspositions are vacant, growth estimated 22,000 further dynamic which hinders that bottleneck to trillion greatly. Overcoming add HUF 1 could potentially IVSZ estimates. And GDP, the country’s digital economy, which the total, the share of to 21% of the is already equivalent dramatically. would expand
SPECIAL REPORT
IT & Systems Integrators NEWS
Industrial Output Overshadows Growth Hungary’s automotive sector deflated somewhat in July, which had an immediate impact on the latest industrial performance figures. Analysts believe the setback is only temporary, but the great dependence on a single sector is a concern.4 NEWS
Budapest Airport to get Improved Links Most commentators see an improvement in the transport infrastructure as essential for the continued development of the Ferenc Liszt International Airport, and plans for a high-speed railway link between the airport and Budapest have now been announced.5 SOCIALITE
Bar Worship and Nonalcoholic Revelations
Enabling The 5G Revolution
David Holzer goes in search of ginger beer ( a must for the nonalcoholic tired of fruit juices) and great Budapest bars with a near-religious fervor.22
R IAL SPEC
RT EPO
Invitel Group CEO David Blunk talks about purchase by the China-CEE Fund, the sale of the residential business to Digi, and future B2B acquisitions.14
BUDAPEST
BUSINESS JOURNAL congratulates
Hegymegi-Barakonyi és Társa Baker & McKenzie
30
on celebrating
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2017. 09. 06. 18:21
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Budapest Business Journal | September 8 – September 21, 2017
BBJ
THE EDITOR SAYS
EDITOR-IN-CHIEF: Robin Marshall EDITORIAL STAFF: Sonja Bencze, Zsófia Czifra,
David Holzer, Levente Hörömpöli-Tóth, Gary J. Morrell, Claudia Patricolo, Rob Smyth. LISTS: BBJ Research (research@bbj.hu)
BACK TO SCHOOL, BACK TO WORK
S
Book of Lists 2016-2017:
o, Budapest gradually shakes off its summer torpor, and heads back to school and back to work, and for some not a moment too soon, I am sure. In newspaper terms, the summer is known locally as uborkaszezon (cucumber season), because the paucity of news means many more frivolous stories are given an airing. The price of watermelons is a sure sign you have entered cucumber time. It is called silly season in the United Kingdom, for fairly obvious reasons. Our bbj.hu colleagues, working on the daily updates of our online publication, have complained that this year’s uborkaszezon was particularly hard going. Had it not been for the FINA World Aquatic Championships, it might well have felt like there was nothing going on in Hungary at all at times. The economic news, for one, is certainly picking up, as indicated by our Macroscope piece on page four, looking at the second quarter GDP data, and July’s industrial production numbers, which were only released on the morning we went to print. The political scene is also coming back to life, and with it the depressingly early opening maneuvers around the general election campaign. I have nothing against elections, you understand, but the idea that we are already talking about an event that will not take place until next spring is a little dispiriting.
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We do not “do politics”, in much the same way that Tony Blair’s New Labor party in the United Kingdom did not “do God”. We accept the fact that it is there, but it is not part of our bread and butter coverage, unless it directly impacts the business and economic life of the country. Most parties have now named their prime ministerial candidates, and will begin outlining their manifesto priorities. But don’t expect too much economic detail, especially from Fidesz, because that is not, generally, the way it conducts its campaigns. The ruling party has already talked about making “protection” a cornerstone of its election; protection of its border fence (the same one about which it has asked the European Commission to meet half of the construction costs), the country, and its pro-work and family-friendly agenda. If that sounds faintly militaristic, you should not be surprised. Fidesz election campaigns tend to be “wars”. An enemy is identified and rigorously attacked. It becomes a very binary “them” and “us” process. Much, I am sure, will be made of the government contribution of HUF 1 million for every third or more child to be taken off a family’s mortgage. Expect pensioners to be offered some financial support (a bonus has already been promised for yearend if GDP growth exceeds 3.5%), because of the weight they carry as a voting bloc. But much of the rest will be attacks on immigrants, Brussels (Wednesday’s announcement that the Court of Justice of the European Union had rejected the calls from Slovakia and Hungary to drop the mandatory migrant housing quotas will surely add fuel to that particular fire), financier George Soros and the radical rightwing Jobbik party. This latter is the closest to Fidesz in the polls, and the party with which it is most likely to share some potential voters. By the end of eight months of all that, you might well be wishing it was uborkaszezon once more.
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2017.04.10. 14:09:37
2017. 09. 06. 18:21
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1 News | 3
Budapest Business Journal | September 8 – September 21, 2017
Hungarian Biotech Firm Sees a Secure Future in the Palm of Your Hand Leading Japanese global information and communication technology company Fujitsu has entered into a partnership agreement with Hungarian biometrics corporation BioSec Group Ltd., aiming to bring a new generation of security technology to the Europe, the Middle East, India and Africa (EMEIA) region. BBJ STAFF
The partnership focuses on BioSec’s palm vein recognition-based security solutions, which will be available in the Fujitsu
product portfolio, and including physical access control-, IT security- and stadium security solutions. Part of the agreement is that Fujitsu will sell BioSec solutions in the EMEIA region, where there is a significant interest for innovative high security technology, such as biometrics, which provides a convenient alternative for passwords, PIN codes, keys, cards and tokens, just to mention a few. “The magic behind biometrics is that it is something the user is, therefore people do not have to remember complicated passwords or searching for keys and access cards all the time,” the company said in a press release sent to the Budapest Business Journal.
Unique Characteristic
According to BioSec, the future’s security is in our hands, more precisely in our veins, as our vein pattern is an absolutely unique physical characteristic, which provides the perfect “material” for secure authentication. “As people are getting more familiar with biometric solutions, they see that there is great difference between technologies,” says CEO Péter Györgydeák. “Even fingerprint recognition, the most widely adopted technology currently, is not necessarily the most secure one. There is no 100% security solution of course, but palm vein recognition is quite close to it,” he insists. BioSec has been developing biometric solutions based on Fujitsu’s PalmSecure™ technology for almost a decade, combining
“As people are getting more familiar with biometric solutions, they see that there is great difference between technologies. Even fingerprint recognition, the most widely adopted technology currently, is not necessarily the most secure one. There is no 100% security solution of course, but palm vein recognition is quite close to it.” high security with convenience. According to the company, its worldwide references include a European soccer arena. Despite large numbers of people of different ages and abilities, the BioSec stadium system has shown that high security does not need to compromise the user experience in providing secure, fast and easy to use security solutions for crowds of more than 100,000, the company says. And it adds that the situation is the same, whether it is a high security premise, an ATM, a computer, hospital or any other place, whether one person is screened, or a million.
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1 News
News
///macroscope
Industrial Output Overshadows Growth Expectations
Hungary’s automotive sector deflated somewhat in July, which had an immediate impact on the latest industrial performance figures. And while analysts believe that the setback is only temporary, the great dependence on a single sector does concern some experts.
Industrial production in Hungary: 2001-2017 (Jan-July)
Volume index change as compared to the same period a year earlier
Somewhat Slowed ZSÓFIA CZIFRA
Hungary’s GDP grew by an annual 3.2% in the second quarter, slowing from 4.2% in Q1, the Central Statistical Office (KSH) said in a second reading of data on September 5, which was basically identical with the first reading. The primary contributor to the growth was market-based services. According to seasonally and calendar adjusted and reconciled data, the performance of the economy was up by 3.5% compared to the corresponding quarter of the previous year and by 0.9% compared to the previous quarter. In the first half of 2017, the volume of GDP grew by 3.6% compared to a year earlier. The value added of industry grew by 3% on a yearly basis, within which that of manufacturing grew by 3.6% compared to the same period of the previous year. Within manufacturing, all branches with relatively large weight expanded, with the exception of the manufacture of transport equipment. Within industry, the increase of the performance of nonindustrial activities exceeded that of industrial production. The performance of construction rose by 29%, with the highest increase within the division recorded for civil engineering. The value added of agriculture fall by 13% compared to the high base a year earlier. The gross value added of services was up by 2.8% in total.
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The latest data suggests that the pace of growth is still fast, although somewhat slowed from the previous quarter. Strong external and internal demands define growth, which is also influenced by the low base of 2016, when, between funding cycles, European Union money was scarce. The overall European economy is performing relatively well, but it is still thought Hungary’s growth rate might be some 1.5-2 percentage points higher than that in the eurozone. In terms of the structure of growth, there have been some notable changes in the past quarters. This year, unlike in 2016, construction is contributing significantly to GDP growth, and industry has also had a bigger impact on expansion than last year. Services are still stable drives for growth, but this year agriculture is hindering the performance of the Hungarian economy. In the first quarter of the year, GDP growth was stimulated by the private sector, in addition to the increasing EU funding. However, the activity of the private sphere seemed to slacken in Q2, with the economy once again dependent on EU money. Whether the anticipated 4% economic growth for the full year can be achieved greatly depends on the temporary nature of the aforementioned shift in the growth pattern. Even if the Hungarian economy can maintain a higher growth rate in the coming years, it will still take decades to catch up with the average EU GDP per capita based on purchasing power parity, experts warn.
Expectations Still High
While expectations for economic growth for this year are still high, the latest industrial production data might overshadow such hopes. According to the KSH, Hungary’s industry increased by only 0.2% yearon-year in July 2017, and the volume of industrial production in July – according to seasonally and workingday adjusted indices – was below the level of the previous month by 4.2%. Year-on-year, output went up by 4.8% in the first seven months of 2017. The data disappointed many analysts. Erste Bank chief analyst Gergely Ürmössy said the July increase was well under expectations of a rise of around 7%. The slowdown may have been caused by scheduled summer shutdowns in the automotive industry, he said. According to Ürmössy, industrial output might be stabilized by the end of September and the upswing seen in the first half of the year is likely to continue. He expects a 5% increase for the full year. TakarékBank analyst Gergely Suppan also suggested that shutdowns at local automotive plants may have taken place in July, rather than August. If this is the case, output could pick up markedly in August, he added. “This data is the worst we had seen in the past three years, and when looking back to the last five years, there was only one month when the Hungarian industry showed a weaker performance,” Péter Virovácz, head
analyst of ING Bank opined. He added that the poor July data, paired with the not very impressive retail trade figures, implies that we are likely to see worse than expected economic activity in the third-quarter of the year. If detailed industrial figures justify that a setback in the automotive sector had indeed caused the poor performance of the industry, then we should start to worry about the country’s serious dependence on the automotive sector, Virovácz emphasized. The sector represents a 30% share in Hungary’s economy, so its swings have serious impacts on the GDP. “This reveals the dangers deriving from the one-sided nature of the Hungarian industry,” Virovácz added.
Numbers to watch in the coming weeks Inflation picked up a bit in the past few months, and KSH will reveal whether the trend continued in August on September 9. A few days later, a second readings of July’s industrial output will be released, from which we’ll learn how big of a role the automotive sector played in the poor industrial performance. On September 15, the KSH publishes construction data for July.
2017. 09. 06. 18:21
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Budapest Business Journal | September 8 – September 21, 2017
REAL ESTATE NEWS
1 News | 5
Budapest Airport to get Improved Transport Links Most commentators see an improvement in the transport infrastructure as essential for the continued development of the Ferenc Liszt International Airport, and plans for a highspeed railway link between the airport and Budapest have now been announced. GARY J. MORRELL
In addition, proposals for redevelopment of the road link between Határ út and Terminal 2 of the airport are at the permitting stage. Gábor Szarvas, director for community affairs and environment at Budapest Airport Zrt., the operator of Ferenc Liszt, commented that an improvement in transport links is central to improving the airport infrastructure and its development as a regional hub. The proposed 22 km rail link from Kőbánya-Kispest metro station to
Passenger numbers at the airport are expected to rise to 12 million for 2018 and 14.3 million in 2022, representing an annual growth rate that is outperforming most European airports. The goal is for Ferenc Liszt to become a regional hub to rival Vienna airport, which currently has around double the number of passengers. Budapest has 124 flight destinations with 43 airlines. The upgrade and redevelopment of the major road linking Budapest and the airport is seen as important as 70% of airport journeys are by road, through private cars, bus and taxi. The existing four lane highway creates something of a bottleneck for traffic to and from the Artist’s rendering of the Budapest airport rail station. airport and therefore there are plans to expand the road into three lanes in each direction. said the cluster. “BARC sees airports Full permitting for the project is Vecsés-Monor via the airport’s Terminal as vital infrastructures that have a expected to be completed by the end 2 will have a speed of 160-200 km per clear impact on their regions. The of 2018 and construction is planned hour. The permitting process for the improvement of transport links between to commence in 2109. The first HUF 9 rail link is underway and is expected to the airport and the center of Budapest billion phase of the project will receive be completed by the end of 2018, said municipal and possibly state finance Zoltán Budai, project manager at Nemzeti and regional cities is seen as central to this,” said BARC. according to Gábor Bátori, project Infrastruktúra Fejlesztő Zrt. (NIF or The Cluster consists of local manager for strategy at Budapesti National Infrastructure Development municipalities in the airport area, the Közlekedési Központ (BKK, the Center Corporation), in a presentation to the Pest County Municipality, the National for Budapest Transport). Liszt Ferenc International Airport Region Air Traffic Management and Budapest Plans for a high-speed rail link Development Cluster (BARC). Airport. have been put forward by various The estimated development period is developers in recent years. Although four-to-five years and the projected cost the current plans would see a significant will be HUF 130 billion, financed by the Two-platform Station improvement in connectivity, a direct Hungarian state and possibly EU sources, high-speed rail link to the airport from according to NIF. In addition to the redevelopment of one of the central Budapest railway “The aim is to enhance the profile the railway track, the plans include stations with airport check-in facilities of the airport and strengthen its the development of a two-platform is seen by many as the best, albeit more competitiveness in CEE and to foster railway station at Terminal 2 in close expensive solution, one that would be economic growth in the region by proximity to the passenger terminal, more convenient for passengers and coordinating spatial planning, public and redevelopment of the train station at raise the profile of the airport. investment and development initiatives,” Kőbánya-Kispest.
Office Market Continues to Favor Landlords
Budapest is set to continue as a landlord’s market when it comes to offices, with a limited pipeline for the remainder of the year on one hand, and high demand on the other. However, pipeline is predicted to rise significantly for 2018, according to the Budapest Research Forum (comprising CBRE, Colliers International, Cushman & Wakefield (C&W), Eston International, JLL and Robertson Hungary). GARY J. MORRELL
“The Budapest office space market continues to enjoy a healthy amount of occupation and activity and historic low vacancy rates,” said C&W. Development activity is accelerating: new supply is estimated at 700,000 sqm for 2017-2019 in the Budapest quality office market, with a total stock of 3.35 million sqm as of the end of the first half year according to C&W. The consultancy has traced 390,000 sqm of space under construction. “New entrants and expanding occupiers are turning to pre-lease agreements as the most popular locations are practically fully
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let,” the firm added. Forecasts continue to be positive with healthy occupancy, as take-up for the first half year reached 98,700 sqm (net take-up represented 60% of this total). Vacancy stands at a historic low of 8.6%.
Strong activity “Occupier activity is strong, and given the fact that there is very limited new space coming through during the remainder of 2017, the market continues to be landlord favorable,” said Orsolya Hegedűs, head of research and consultancy at Cushman & Wakefield Budapest. “We expect 2017 levels of take-up to be similar to 2016,
District XI’s Office Garden.
as there are several large occupiers active on the market. Pre-leases and new leases continue to account for the largest transactions in terms of deal size.” In south Buda, the Hungarian GRT Group is set to complete the third 18,500 sqm phase of the Office Garden office park in District XI in the third-quarter; the complex is around two thirds let. Construction of the 18,000 sqm Office Garden IV is planned to commence in September with a handover date of Q3 2019. Elsewhere, Atenor is scheduled to deliver the 15,500 sqm Building D (fourth phase)
of the Váci Greens office project in Váci út in Q4 2017/Q1 2018. Wing is due to complete the Ericsson research and design headquarters at the Nobel Prize Winners Research & Development Park located in south Buda. Rents currently stand at EUR 22 per sqm per month in the central business district and EUR 15 in the Váci corridor. “Headline rents will continue to decrease further for grade “A” product as availability continues to reduce. Tenant flexibility and incentives are expected to reduce further,” concluded C&W.
2017. 09. 06. 18:22
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Business
2
Business
Budapest Cooperage Brings Hungarian oak to the World
Picky About Timber
It is early August, and on the sun-bleached streets of south Pest, itʼs one of the hottest days of the year: yet, in the dimmed light of the toasting room at the Kádár Hungary cooperage, a small team of craftsmen shrug off the heat, continually adjusting their gas burners to produce an even singe inside the latest batch of the factoryʼs oak barrels. “Toasting” the barrels. KESTER EDDY
“Just smell this,” says Georgina Garai, Kádár’s sales manageress, leaning into a freshly toasted vessel being left to cool. “Itʼs beautiful, like a bakery.” The uninviting industrial zone of Pesterzsébet may seem an unlikely location for high-quality barrel production, but the order book is full, and these 225-liter, Bordeaux-style casks are much needed to ferment some of this yearʼs best grapes at wineries from Tokaj to California to the Adelaide Hills. “All our seasoned wood is sold. Growth this year has been around 20%, across all markets, a bit more perhaps in the Central and East Europe region,” András Kalydy, managing director of Kádár Hungary, tells the Budapest Business Journal. By industry standards, the cooperage is not large: revenues in 2016 came to HUF 700 million (USD 2.7 mln). The 60-strong workforce – split roughly equally between the seasoning plant in northeast Hungary ADVERTISEMENT
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and the cooperage in Budapest – expects to produce 5,500 barrels this year. Yet 85% of output is exported, 40% alone to the United States.
Global Success In a sector dominated by American and – especially – French firms, how has a small Hungarian barrel maker achieved such global success? Kalydy is momentarily silent: “Naturally, in a word, quality,” he says, “but there are a number of explanations behind this.” Firstly, as he puts it, “most winemakers do not know too much about barrels. They have a lot of work with the grapes, fermentation, cellar works, in many cases, with sales.” So Kalydy seeks to make their lives easier, by consulting each customer before making any attempt at a sale. This is “to discover their particular needs and aims, to know the kinds of wine they seek to make from their grapes. We do
not just produce a barrel, and then sell it afterwards.” Then there is the oak. Kádár uses only carefully selected wood from Hungary’s northern hills – the geologically young volcanic range stretching from the Börzsöny to the Zemplén – with some trees sourced from the Slovak side of the border. “We have spent a lot of energy and money on research, working with Hungarian universities, and independent French and American laboratories, and it’s clear how important the [oak’s] origin is,” says Kalydy. “We don’t purchase, for example, from Transdanubia, or anywhere else. Those are beautiful forests, but that oak is not suitable for the very fine style and consistency we think is best.”
Even in the selected range, the cooperage is picky about its timber, shunning trees close to streams, for example, because they grow faster. This leads to a reduced ring density in the trunk, and greater variation in barrel characteristics. “It [tree selection] is not easy: just imagine, these areas are very rocky. The trees need to be 120-130-year old, with a diameter of just 33 cm. Production from small-diameter oak is much more costly, but we think the taste profile is worth the extra money spent,” says Kalydy. “It means our barrels are always consistent.” It helps that Kádár, a workers’ cooperative in the communist era, now has Taransaud, a prestigious French cooperage, and the Molnars, a California-based American-Hungarian family of winemakers, as majority owners. But Kalydy insists that while the Molnars’ winery is an important customer, the vast majority of sales in the United States are to independent wineries via the cooperage’s appointed sales reps. The Kadar team clearly gets a kick from selling Hungarian barrels in France, the country responsible for 75% of global wine barrel production. “There are some excellent French cooperages, of course. But there are also many ordinary ones,” says Kalydy. “But they have a reputation. We have to be a minimum twice as good as a French cooperage to be considered similar.”
Winemaker Mixes Drinks to sell Barrels It may sound trite, but the best way to sell wine barrels is to drink wine. The right wines, of course, and in the right (small) quantities. Georgina Garai, who joined the Kádár team 18 months ago as sales manager for the Central East European region, says when meeting a potential client – she prefers the word “partner” – she always tries their wines. Garai, who is herself a winemaker, describes meeting new customer Rok Jamnik, chief vintner with the P&F Jeruzalem Winery, in Ormož, Slovenia, for the first-time late last year. “We tasted his wines, so I had an impression about his personal style. For example, he likes light oak, to [enhance] the taste of the grape, but he doesnʼt want it to kill off the freshness.” Although P&F is one of the largest wineries in Slovenia, Garai was initially wary. “Sometimes the biggest doesn’t make the best, but I tasted his wines, and thought: ‘I wanna work with this guy’. He’s looking for the kind of taste that we could give him.” In return, Garai poured a Hárslevelű from Tokaj winemaker Zoltán Demeter, fermented and aged in Kádár barrels. “It was a light and elegant oak, and Rok was like: ‘Oh, my God, I’ve been looking for this taste for years!’ It’s most important that they taste wine [from our oak],” she says. To find a partner in the barrel business, “You have to catch the guy and reach his mind, understand what he wants to create with his wine,” says Garai, “It’s not like selling washing powder.”
2017. 09. 06. 18:02
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Budapest Business Journal | September 8 – September 21, 2017
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Edina Schweizer Joins Noerr as Partner in Budapest Dr. Edina Schweizer has joined Noerr as associated partner in Budapest and head of the local banking and finance team. She will also assume the role of co-head of Noerr’s CEE Banking and Finance Practice, which works across the core CEE countries of Czech Republic, Poland, Romania, Slovakia and Hungary. Schweizer has gained professional experience working for major international law firms across a broad spectrum of legal areas for more than 15 years. Most recently, she was Counsel at Kinstellar and left the law office after eight years, having earlier worked at Linklaters and Freshfields. According to a Noerr statement sent to the Budapest Business Journal, Schweizer has built a reputation as a leading lawyer acting for both lenders and borrowers on a variety of complex domestic and cross border banking and finance transactions. These have included syndicated and club loans, project finance, real estate finance, acquisition finance, structured and leveraged finance, NPLs, debt
restructurings, insolvency and banking regulatory matters. She also has experience advising on capital markets and securities transactions, including share and bond issues, IPOs, stock exchange listings, securitization, derivatives (ISDA) and cap markets regulatory matters. Zoltán Nádasdy, head of Noerr’s Budapest office commented: “Edina will bring significant value to our growing Budapest office in a number of areas that we are committed to develop and we are proud to have her with us.”
PwC Hungary Names new Partner Csaba Polacsek has been appointed a new partner at PwC Hungary, according to a press statement sent to the Budapest Business Journal. Polacsek joined PwC Hungary’s advisory practice as executive director in January 2016, focusing on financial and transaction advisory services. Polacsek has spent 20 years in the banking and financial services sectors, including nearly ten years at Creditanstalt/UniCredit. He
was in charge of real estate development projects in various ex-Yugoslav countries for two years, and spent five years in the public sector. Before joining PwC, he served for three years as chairman of the board of directors at Magyar Posta (Hungarian Post). He has acquired extensive regional business experience in Serbia, Croatia, Montenegro, Romania and Poland. In addition to his university degree and doctorate in economics, he is a Certified Public Accountant both in Hungary and in the United States. As PwC Hungary’s business advisory partner, he will be responsible for transaction advisory, business valuations, acquisitions, business restructuring, real estate advisory and forensic services.
Telenor Hungary Appoints new Deputy CEO Ole Bjørn Sjulstado was appointed CEO of Telenor Bulgaria as of August 1 and his current position of deputy CEO at Telenor Hungary will be taken over by Christian Wulff Søndergaard, who is currently responsible for Telenor Group’s European and Regulatory matters in Brussels.
The Danish senior executive has gained experience in corporate communication and corporate relations. Søndergaard has worked in Brussels and until now has served as VP for European and Regulatory Affairs at the Telenor Group. Prior to that, he worked at Telenorʼs daughter company in Denmark as head of corporate communications and external affairs. He also held positions in the Danish Parliament and the Danish Embassy in Washington, and served as the managing director of one of Denmarkʼs leading communications agencies. Søndergaard has been a member of the board of directors of Telenor Hungary since February. “We are in constant dialogue with our customers, regulators, partners, civil society organizations and the media to continuously grow and transform our company,” said Alexandra Reich, CEO of Telenor Hungary and head of the Central and Eastern Europe region at Telenor. “I am confident that through his great expertise and international experience, Christian will play a useful role in this dialogue and will contribute to making business decisions with the interests of society and our clients. At the same time, I am delighted to further strengthen our cooperation in the Central and Eastern European region by appointing Ole Bjørn as the new CEO of Telenor Bulgaria,” she added.
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Budapest Business Journal | September 8 – September 21, 2017
PROMOTION
30 Years Young and Still Innovating Law A law firm with a 30-year tradition of innovation and education this fall celebrates its foundation in Hungary, back in the days of the “Wild, Wild East”, even as it looks forward to ways in which new technologies and apps (many developed by Baker McKenzie) impact how lawyers are able to service their clients.
“We use the technology to become more precise, quicker and cheaper; that is how simple it is in today’s rapidly changing legal market.” Dr. Zoltán Hegymegi-Barakonyi, managing partner of Hegymegi-Barakonyi és Társa Baker & McKenzie Ügyvédi Iroda.
ROBIN MARSHALL
“We have more than 20 apps, 16 of which are really unique,” says managing partner Dr. Zoltán HegymegiBarakonyi. Indeed, internet marketing service company Fliplet named Baker McKenzie as one of the top three law firms in the mobile app field. But before we get to today and the future, perhaps we should rewind. When what is now HegymegiBarakonyi és Társa Baker & McKenzie Ügyvédi Iroda was established in 1987, Hungary was a very different place. “Baker McKenzie made a very brave move to open behind the Iron Curtain. None of the other big firms were here then,” the managing partner points out. 1987 was just a couple of years before the fall of the Iron Curtain, but while the stresses and strains on the Eastern Bloc were clear to see, no one could have predicted at that time that things would unravel with the speed that they did. Baker McKenzie was founded in America in 1949, and had a natural interest in Hungary: Lajos Schmidt, a Hungarian immigrant who spoke Spanish and German but no English when he first arrived in the States, had made partner at Baker McKenzie by 1952, and was its chairman from 1966-71.
Leading Legal Lights “Russel Baker, the founder, was encouraging Lajos to work in Hungary from the 1960s, I think. By the 1980s Lajos was quite familiar with the scene here, and had good contacts.”
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Zoltán Hegymegi-Barakonyi, managing partner of Hegymegi-Barakonyi és Társa Baker & McKenzie Ügyvédi Iroda.
The firm originally opened in a flat Schmidt had rented. “There was one phone line, and sometimes it took hours to send a contract to the client via fax.” Hegymegi-Barakonyi joined in 1994. The man who became managing partner says he chose Baker McKenzie because around half of its then 16 attorneys were Hungarian. These were some of the leading names in the local law scene, including János Martonyi and Géza Kajtár; also there then were two other principals of today’s firm: Pál P. Takács and Ines Radmilovic. “I had studied in the States, where the firm had a very good reputation. In Budapest, it was quite sizeable with several senior Hungarian attorneys. I thought it would make for a good learning environment.” That idea of Baker McKenzie as a proving ground for legal talent clearly still holds true. Many of the senior people at leading law firms in Budapest today have learned at least some of their craft while at the 30-year old pioneer. And from the start, they were using cutting edge technology at the firm. “Baker McKenzie had started using computers in the 1970s, and had made a lot of progress with them by the 1980s. But markets were not global in the way they are today, and systems did not match up or always talk to each other,” recalls Hegymegi-Barakonyi.
Innovation and IT
“I mentioned that when the office opened they only had one line. By the time I joined we had a dedicated fax line and 10 phone lines – and you needed them. There was the MATÁV privatization, the Ford plant at Székesfehérvár, Pepsi was acquiring a leading natural water company; we had three or four big transactions running in parallel. It was an incredible workload, and all done without any of the technology we use today. Just the due diligence in those days was colossal.”
Work that would take an associate a whole day to process 25 years ago can now be done in 30 minutes, says Hegymegi-Barakonyi. But the tech sector has also grown massively as an area of employment. “Innovation and IT are also important in our work as lawyers, because these days you cannot imagine any major project without some IT or related issues. We work for some of the biggest IT companies in the world; even the ‘simplest’ question presents data protection or other IT law related issues.” Baker McKenzie’s apps and software are available for clients in some cases, and lawyers in others, and handle everything from the relatively simple (contract templates), to the deeply complex. There is an internal app for checking your workload capacity, both today and four weeks down the line, for example. For clients, there is an app tracking what is happening with your global IP management, or to help you if you suffer a dawn raid. It will even put you in touch with the nearest Baker McKenzie expert so you can get on-site assistance as soon as possible. Hegymegi-Barakonyi is not one of those doom-mongers who believe that artificial intelligence will one day mean the end of lawyers. The apps and technology are just the latest elements in the tool box, he says. Ultimately, they still need to be operated by a skilled professional with the experience to know how best to interpret the results. “We use the technology to become more precise, quicker and cheaper; that is how
Baker McKenzie Fact File
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simple it is in today’s rapidly changing legal market.” And competition is fierce, not least because clients have become very sophisticated and at the same time very demanding. “Ten years ago, compiling a compliance report might take several weeks. Nowadays the clients want it in a week. And they don’t want to plow through the whole report; they want to know about any ‘red flags’. It requires the same amount of legal work, but you no longer have three weeks to prepare it; you have three days.”
More Demanding He dates that change in client mindset to the recent recession. “The crisis of 2008-9 had two results: clients became more concerned about budgets and more demanding about what they got for what they paid. Where technology can help is in satisfying the need of the client.” If the apps are a visible symbol of the innovative approach of Baker McKenzie, they also illustrate another philosophical trait of the company: Design Thinking. “We are not trying to find problems just so we can innovate, but looking at what clients actually need. Where clients have a problem, what can be developed to help solve it? Innovation has become a vital part of what we do.” (See box for more details). But it isn’t just the clients who like the apps, of course; so too do the millennials. “The new generation like to be mobile; We like them to be mobile. They are willing to work, but also want to strike a balance between their professional and personal lives. You need technology to help with that.” Mobility doesn’t just refer to the ability to work remotely. With 77 offices to choose from, the law firm also encourages its associates to experience
Photo: Vivien Horváth, Fotó Művek
“Our Firm has a proud history of innovation. We need to create an environment where fresh ideas are encouraged and established ways of doing work are challenged.” Paul Rawlinson, global chair of Baker McKenzie.
From left: Zoltán Hegymegi-Barakonyi, János Martonyi, Ines Radmilovic, Géza Kajtár, Pál P. Takács.
different countries and cultures. “These days with video conferencing you do not need to meet in person, but we still bring our people together to build networks and human connections. We also run associate transfer programs across the whole firm. They are getting shorter in duration but more frequent, and are sometimes very client or project specific.” Another key is to make the work as interesting and challenging as possible. The law firm has long since moved to using practice groups, with teams of cross-practice experts coming together to work on each deal. Social outlook is also important. Baker McKenzie Hungary was voted “Pro Bono Law Firm of the Year” by the Hungarian Bar and PILnet, the global network for public interest law.
Innovative in Finding Talent All of that helps with retention, but even hiring has changed. “Several years ago, if you were talking about a multinational law firm like Baker McKenzie, the talents would find you. Nowadays there is incredible competition for these talents,
so you have to be innovative in how you find and hire them,” HegymegiBarakonyi explains. There are six- or eight-week work experience placements, where the students can benefit from the good international atmosphere and learning opportunities at the firm, but there are also grander schemes. “Baker McKenzie has a global scholarship program where ten
students in their last year of studies get the chance to work for six weeks in the country where they study and six weeks in another country. Each office submits its own candidates; there was a Hungarian student among the winners in each of the last three years, which demonstrates that we have very good talents in this country, who can be successful in today’s international legal market.”
Innovation Program Reimagines the Business of Law In February of this year, Baker McKenzie announced it had become the first law firm to apply Design Thinking on a global scale. A global innovation program was announced to address changing client needs, new industry dynamics, and the broader role of digitization across the economy. A crosspractice Innovation Committee ensures a firm-wide approach to innovation is incorporated into every aspect of the business’ global operations. “Applying Design Thinking to client service will challenge the legal industry’s traditional capabilities-focused approach. Baker McKenzieʼs innovation program will extend well beyond introducing new technology or other solutions and will start from and hinge around client challenges,” the law firm said at the launch.
Areas for investment, include: Machine Learning
“We consider ourselves to be leaders across the main components of innovation in the legal industry – project management, technology, knowledge management, pricing, process engineering, and alternative staffing. This program brings these areas together and adds proven innovation methodologies that other industries have used for some years now. Applying client-centered design methods to re-imagining our services requires a ground-up approach to each area. The result is a bespoke Baker McKenzie approach to innovation that will reap huge benefits for our clients and stand us in good stead during changing times for the legal industry.” Jason Marty, founder of Baker McKenzie’s Global Services Belfast, an “ innovation hub” for the Firm.
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Applying current AI tools to due diligence, contracts, e-discovery and any practice for which such technologies can ensure market-leading efficiency. The firm has deployed “Relativity” as its global e-Discovery platform to provide a common platform for clients worldwide and is in the process of doing the same for machine-learning based due diligence software to dramatically reduce lawyer time on transactions. Most recently, Baker McKenzie signed a deal to use U.S. AI provider eBrevia’s contract review technology in nine of its offices.
Services Transformation Using methods from Design Thinking to re-shape all aspects of the firm’s client services and the business models necessary to support them, focused around new ways to meet big common challenges faced by clients.
Technology Investments Longer-term investments in advanced technologies and data management to prepare for significant changes these will bring to the industry.
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Budapest Business Journal | September 8 – September 21, 2017
Lamborghini Networking Event at Hungaroring Hungary hosted the fourth Blancpain GT Series Sprint Cup championship at the Hungaroring F1 grand prix circuit on Sunday, August 27, which was also a networking event jointly organized by the Italian Chamber of Commerce for Hungary and its partner Eme Kft., part of the Orange 1 group. ADVERTISEMENT
From left: Mauro Grana, Daniele Guerzoni, Marco Bulf, Ferdinando Martignago, Armando Donazzan, Italian Ambassador Massimo Rustico, Francesco Maria Mari, and László Parragh.
CLAUDIA PATRICOLO
The event brought together many of the main Italian and Hungarian authorities and business entrepreneurs. Among the guests were Italy’s Ambassador to Hungary Massimo Rustico, the president of Orange 1 Armando Donazzan, László Parragh, the president of the Chambers of Commerce and Industry of Hungary, and the Chief of Protocol of the Ministry of Foreign Affairs and Trade, István Manno. Other Italian guests were the president and general secretary of the Italian Chamber of Commerce for Hungary, Ferdinando Martignago and Francesco
Maria Mari, respectively, the director of the Italian Trade Agency, Marco Bulf, and the vice president of the Italian Association of Small- and Medium-sized Businesses, Daniele Guerzoni. As highlighted by the Orange 1 executive director Mauro Grana during his welcome speech, the event represented a great opportunity to underline the good relations between the Hungary and Italy. Orange 1 has operated here for 20 years and has always been satisfied with the Hungarian environment and the highqualified workforce, he said. The #63 GRT Grasser Racing Team Lamborghini Huracan GT3 of Christian Engelhart and Mirko Bortolotti,
IT
sponsored by Orange 1, took third place to score valuable points and cement their grasp on the overall lead in the Blancpain GT Series team championship. “The Italian Chamber of Commerce for Hungary felt privileged in having cooperated together with its partner Eme Kft. in the realization of such an important event, as not only it laid the foundations for the creation of future fertile economic and political collaborations, but it also gave the opportunity to take part to the world of car races,” the chamber told the Budapest Business Journal.
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TransferWise to Increase Headcount by 200 in Budapest Office During his recent visit to Tallinn, Minister of Foreign Affairs and Trade Péter Szijjártó met with the directors of internationally acclaimed digital company TransferWise, reported kormany.hu, the government’s news portal. Transferwise, operates a major center in Budapest that will soon be expanded with 200 new staff members. The center, which produces high added value, currently has a staff of 40 people, mostly developers and experts working on switching to the digital economy. “It is clear that the competitiveness of individual countries will depend on how rapidly and efficiently they are capable of linking productivity and digitalization. As the Estonian economy is one of the world’s five most highly digitalized, economic cooperation with the Baltic state is particularly important to Hungary, said Szijjártó. TranferWise was established by Estonians Taavet Hinrikus and Kristo Käärmann to get around hidden bank charges for currency transfers and in the process, bring digital innovation to financial services. Headquartered in London, and with the motto “Money Without Borders”, TransferWise is one of the biggest London-based fintech startups.
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IT Multinationals Partner With Universities Institutions of higher education in Hungary have formed partnerships with six multinationals so far to foster the country’s next generation of IT professionals, an official from the National Development Ministry said, announced in August. Colleges and universities have signed contracts with Microsoft, Red Hat, Oracle, SAP, National Instruments and Cisco so far this year, said deputy state secretary Károly Balázs Solymár. “The goal is to sign a hundred such agreements by 2020,” he added. The partnerships were made under the aegis of “Program Your Future”, a government project supported with HUF 8.2 bln in European Union funding that offers free IT instruction and aims to popularize the profession among youth. “The project also plays the role of a catalyst: it seats universities and ICT companies at a virtual table where they can get to know each other’s needs and technologies. The goal is... to educate as many young graduates as possible with real market knowledge,” Solymár said. “This requires developing cooperation between businesses and educational institutions, as well as raising the social and economic profile of the IT profession, and making it more attractive,” he added. Hungary’s labor market is short “at least 20,000-22,000” IT professionals, Solymár said.
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EXPERT OPINION
INNOVATION Insight
sponsored by
Telenor Accelerate to Boost Most Promising Local Startups Again
Last year was the first time a corporate acceleration program had ever been launched in Hungary by Telenor. The number of applications was well beyond expectations, with 143 startups showing interest in participating. Five selected projects were given the opportunity to jump on a growth track thanks to a super-intensive mentoring program, generous funding and access to the global customer base and partner network of Telenor. The lucky few received between HUF 5 million and HUF 10 million of seed funding each; Musicating, Moow (now Zoi), eSports Horizon, Tickething and Zyntern have all improved their services a great deal as a result. “Apart from the substantial professional and financial support, including infrastructure, the biggest help was the access to Telenor’s network and their knowledge of global markets,” Bence Töreky, founder of Tickething notes. “Thanks to the program, global expansion is now within reach for us.” This year offers nothing less, with one exception; in order to improve efficiency further, only three from the 109 applicants will be selected. The idea is to increase focus, so that even more attention can be paid to the individual projects. “I believe in the fact that the innovative power and creativity of Hungarian startups and the global expertise of Telenor can pave the way to international success for the best applicants,” Alexandra Reich, CEO of Telenor Magyarország says on the occasion of the launch of the new program. “Since our goal is to facilitate Hungary’s digital development, we are joining forces with the most exciting startups to help them bring new concepts and ideas to market and get their services to the biggest possible number of our customers and partners.”
Top Mentors The boot camp will take place at Telenor’s headquarters in Törökbálint and at co-working office space, Kaptár. What the organizers are seeking are digital solutions,
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The Accelerate class of 2016. with no specific area of priority. As a basis, however, the teams are expected to have a so-called “minimum viable product” (MVP) in fields such as FinTech, mHealth (mobile health), education, E-commerce, communication, IoT (Internet of Things), entertainment, gaming, M2M, cloud, mobile application or hardware. “In accordance with previous feedback,
last time, are now joined by György Simó from Portfolion Venture Capital Fund. Weekly workshops will equip the startups with key competences in service design, digital marketing, growth hacking, fund raising, pitching and more. “We worked together, sometimes even on a daily basis, and this cooperation was very inspiring,” Oszkó says, recalling his mentoring
“Apart from the substantial professional and financial support, including infrastructure, the biggest help was the access to Telenor’s network and their knowledge of global markets. Thanks to the program, global expansion is now within reach for us.” Bence Töreky, founder of Tickething. this year more time will be dedicated to less early-stage young firms,” Zoltán Takács, Telenor’s vice president in charge of innovation says. “The boot camp will also last longer: intensive workshops will be organized for five consecutive months instead of three.” The agenda is shaped by top mentors of the Hungarian investor community: Veronika Pistyúr (Bridge Budapest), Zoltán Varga (Central Invest), Balázs Várkonyi (Extreme Digital), Balázs Vinnai (Misys Digital Channels) and Péter Oszkó (Oxo Group), who were all on board
experience with Tickething in the 2016 program. The total value of support in Telenor Accelerate is worth HUF 150 mln. Seed investment will amount to between HUF 5 mln and HUF 10 mln per project, in exchange for a minority ownership stake for Telenor. An important part of the package is the product validation opportunity with Telenor’s customer base in Hungary and worldwide, and a chance to present for leading VCs on Demo Day after the boot camp. Additional features include the
Telenor Hello Data limitless tariff for all winning team members, Microsoft BizSpark program with free access to Microsoft Azure cloud services, and Samsung S8 smartphones for all winning team members. Interestingly, the program is not limited to teams from Hungary; Europe-based startups may also apply if they have or are ready to set up a Hungarian legal entity, and are willing to relocate to Budapest for the time of the acceleration.
Dedication to Innovation Telenor Magyarország has earned a reputation for its dedication to innovation as it firmly believes that active cooperation between corporations and startups is mutually beneficial. Large enterprises get inspiration from dynamic earlyphase projects, whilst startups can gain appropriate market traction. “Our first acceleration program featured fantastic startups and products last year, and I am very proud that many of them have entered the market, and are in negotiation with investors, as a result of our joint efforts,” Takács adds. “I really hope that this year we can guide similarly exciting projects while relying on experience gathered from 2016.” “I would urge every early-phase startup that already has a specific product to apply and allocate the time for the training and mentoring, and to make use of this unique opportunity,” Töreky adds inspired by last years’ experience. Oszkó agrees that the program has great potential. “In Hungary, the startup world is still in a quickly evolving phase and for this initiatives like Telenor Accelerate are very much needed.”
NOTE: ALL ARTICLES MARKED EXPERT OPINIONS ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RESPONSIBILIT Y
Following last yearʼs huge success, Telenor has for a second time invited Hungarian startups to apply for mentoring and funding under its unique corporate acceleration program, with the top three applicants to benefit from support worth HUF 150 million.
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Special Report IT & Systems Integrators
Incentives, Investments, and Intrigue
As the digital revolution enters a new phase of development with disruptive solutions in the field of Artificial Intelligence and the Internet of Things, soon to be powered by 5G technology, the domestic ICT sector is gearing up to ride the wave of growth. LEVENTE HÖRÖMPÖLI-TÓTH
The sector provides employment, directly or indirectly, to some 400,000 people in Hungary, and makes up 13.7% of the GDP, according to the 2016 data of the ICT Association of Hungary (IVSZ). The total value produced by the sector amounted to HUF 3.45 billion last year, of which HUF 400 bln was carved out by software and services exports. The latter figure equates to 7.5% of total Hungarian exports, and represents a 23% growth on a year-on-year basis. And that could be eclipsed if there were enough specialists around. However, an estimated 22,000 positions are vacant, which hinders further dynamic growth greatly. Overcoming that bottleneck could potentially add HUF 1 trillion to the country’s GDP, IVSZ estimates. And the share of the digital economy, which is already equivalent to 21% of the total, would expand dramatically.
IT Investment The IT investment scene has been very active, regardless of the shortage of skilled labor. The government says it is deeply committed to supporting digitalization and is aiming to boost it via key incentives. For one, enterprises are now entitled to write down against taxes double their R&D expenses. And as of January this year, the Hungarian Investment Promotion Agency has been able to fund technology intensive projects where eligibility is no longer subject to job creation; it suffices to maintain the existing number of jobs in exchange for implementing R&D
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development worth a minimum of EUR 30 million. It is envisaged that HIPA will, in time, be vested with the right to provide funds of up to EUR 2 mln for training. One of the recent investments by Nokia is already capitalizing on the benefits of the new measures. Its 25,000 sqm Skypark office building, which opened in May, is home to some 2,000 engineers and perfectly depicts the current efforts the industry is busy with. Research will focus partly on 5G networks, of which Hungary is a big promoter, with the country striving to become one of the development centers for the technology. The new network standard is set to take industry automation (also known as Industry 4.0), and the IoT to a whole new level. At Nokia, experts aim to establish an intelligent system by connecting networks, data and devices that, with the help of deep learning, should recognize, and adapt to, your habits and needs as a sort of sixth sense. The widespread access to high-speed networks will further lower the point of entry for smaller businesses that are already active in the IoT field. With hardware getting smaller and cheaper, the number of players is expected to increase dramatically very soon. AI-based solutions can benefit from the development as well. One of this year’s important breakthroughs was certainly the fact that AImotive, a startup with headquarters in Budapest
and Silicon Valley, had acquired a license for autonomous driving tests on public roads in Finland, California and Hungary. The company, whose staff has ballooned from 20 to 140 within the past year, is developing self-driving algorithms and AI-optimized hardware to market fully autonomous cars as fast as possible, and its approach of using deep learning methods is being embraced by ever more IT businesses locally.
Software Developers As a matter of fact, one of the largest software developers in the country, Qualisoft Zrt. announced a partnership earlier this year to buy a minority share of Arteries Stúdió Kft., which specializes in IoT and AI-based creative solutions. According to last year’s BBJ Book of Lists, Qualisoft jumped to second place behind evosoft Hungary on the list of software developers, and is expected to grow further as a result of the new alliance. The remaining leading players pretty much kept their positions: NEXON holding on to third place, followed by R&R Software Zrt. and Klucs-Soft Nyrt. In terms of rankings, everything remained unchanged for digital hardware producers. Samsung is still leading the pack, the runner-up is PCE Paragon Solutions, chased by LG, Huawei and
IBM Data Storage Systems in the race for supremacy. As far as system integrators are concerned, T-Systems is still on top, followed by Invitel, HP and IBM, just like the year before. A remarkable performance was, in turn, made by Delta Group Holding, the biggest Hungarian-owned system integrator, which climbed up to the fifth place even though it had not featured among the top 10 the year before. The telecoms market has been stirred up the most in the entire ICT sector, and it was yet again Digi that was acting as the disruptor. At first, it announced earlier this year that it would finally launch its own, long-anticipated mobile service in the fall. Then in July it bought the retail and small business clients of Invitel Group for a reported HUF 43 bln. The transaction is subject to regulatory approval, but once it is done probably by Q1 of 2018, market conditions will significantly change. According to the latest statistics of the Hungarian National Media Authority (NMHH), Digi and Invitel control 16% and 10.1% of the fixed-line internet service market, respectively. The deal would catapult Digi ahead of rival UPC, now holding 22% of the market, and right behind market leader Magyar Telekom (35.5%). So, the game is on in the internet services segment, and it will be fascinating to see how competition will react.
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Special Report | 13
Hungary Needs to Digitize its SMEs
Hungarian enterprises’ level of digitalization is so low that it hurts their competitiveness. Programs to boost it may help, but SMEs also have to fight with international firms for skilled IT employees. SONJA BENCZE
When it comes to the ICT sector, the shortage of IT professionals is often cited as the single most important problem. Yet the lack of programmers is not the only hurdle in the way of competitiveness; the extent to which enterprises can integrate digital solutions in their business procedures is just as important. Most firms don’t tap into the benefits of using digital tools, so they lag behind
The Wage Hurdle
compared to larger or international counterparts. To boost the level of digitalization of Hungarian enterprises, a new program was introduced last year. “Launch Your Digital Startup!” aims to improve the IT skills of roughly 3,000 Hungarian SMEs. A countrywide consultant network helps companies assess their current level of digitalization and gives them guidelines on what tools/ equipment to use, what tenders to apply for and what strategy to devise to increase efficiency. The program is coordinated by the Hungarian Chamber of Commerce and Industry (MKIK).
But even for companies that are at a similar level of digitalization as multinationals, there is another field where they need to play catch up: wages. Salary expectations have increased so much lately that they are causing a headache for local SMEs that have no choice but pay the same as their large international peers to remain in competition. High salary levels have also led to the deterioration of professional expertise – programmers with fewer qualifications and/or experience can apply to posts that normally would require more experience. University courses cannot really keep pace with the fresh supply IT professionals trained by short-term courses that can create a lower-level programmer in as short as three months. These courses, which are the markets’ response to the shortage of professionals, are practice-oriented and often tailored to the needs of a certain company that may also pay the tuition of students – their future employees. (Another option is to train programmers in-house, after they are hired.) Originally, the idea behind such schemes was to give everyone a chance to become a programmer fast, regardless of their work history. Yet, because of the risks stemming from their business structure (that companies pay for the tuition), increasingly they only seem to target the cream of the
crop: young people with good algorithmic, social and language skills. By offering grants to less sought-after candidates, the government could create a more level playingfield, the Hungarian ICT Association IVSZ says.
Brain Drain Less of a Worry The emigration of IT professional may not be as serious a problem as is, say, that of doctors, Gábor Major, secretary general of the Hungarian ICT Association IVSZ said. Unlike in medicine, where the physical presence of the doctor is almost always essentials, IT professionals can work remotely. Thanks to digital tools, they can participate in a project without having to leave their country or even their home. There is not such a huge difference in the remuneration either: salary levels are pretty much level in the region (and even in Europe). This is due to the fact that, to ensure that a post is filled in a competitive market, companies are willing to offer attractive packages.
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Special Report
www.bbj.hu
Budapest Business Journal | September 8 – September 21, 2017
Getting Ready for Hyper-connectivity
“We achieved what we wanted from the talks; a fair valuation of the residential business… It is a good outcome for Invitel, because the business is in the hands of the region’s most dynamic operator, with the scale to compete in today’s very competitive residential landscape. And Invitech has a long-term agreement with Digi to provide services, and can focus management time and capital on growing the B2B business.”
No CEO in the world is going to say he has not been busy, but when David Blunck, head of Invitel Group, tells you that, you tend to give him rather more credence; in the last six months, the sale of the residential business has been announced, and the group itself was bought by the China-CEE Fund. Now the group is turning its eyes on future acquisitions of its own. David Blunck, CEO Invitel Group.
ROBIN MARSHALL
In 2015/16, Invitel Group went through a process of splitting its residential and corporate businesses into two separate organizational and legal entities, Invitel Zrt. for residential clients, and Invitech Solutions Zrt. for the corporates. While there were some synergies lost, there was more to be gained from the separation, Blunck insists. “Residential customers have much different needs and technologies than customers in the corporate space,” he explains. “We were looking to optimize ourselves to serve two separate markets. In the year since the separation we have seen real benefits in specialization, where we can truly focus on the customers in both cases.” So, the key driver behind the separation was a customer focus, the CEO insists, and he says the group’s new owners, the China-CEE Fund, were in full agreement with the strategy of growing both Invitel and Invitech Solutions in parallel. “When we took that step to separate the two businesses, we had also created the essential pre-condition for a partial sale as a byproduct, even though that was not our primary motivation.” Both shareholders and management saw a compelling investment case for both parts of the group. Plan “A”, as Blunck puts it, was to continue operating both businesses as separate entities across the horizon of the
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China-CEE Fund investment, a policy that was made clear to the market.
Attractive Proposition
“Paradoxically, the very fact that we were not looking to sell and had a credible plan “A” to grow the Invitel residential business made it a more attractive proposition to the market. There was no ‘for sale’ sign out. You always want what you can’t buy; it is human nature, and it applies with investments as well.” Into that space came ambitious Romania-based telco Digi. It made what Blunck calls an unsolicited “credible offer” for the residential business. Just as importantly, Invitel Group felt assured both parties were committed to an efficient process “so the deal would either succeed or fail quickly, and not become a distraction from Plan ‘A’”. Although still subject to competition authority approval, expected by March of next year, the EUR 140 million deal was completed in a matter of weeks. “We achieved what we wanted from the talks; a fair valuation of the residential business. Part of the deal was an agreement by Digi for a period of ten years to continue to purchase from Invitech the level of services Invitel had been receiving in network and IT services support. That comes to HUF 2.8 billion per year. It is a good outcome for Invitel, because the business is in
the hands of the region’s most dynamic operator, with the scale to compete in today’s very competitive residential landscape. Invitech has a long-term agreement with Digi to provide services, and can focus management time and capital on growing the B2B business.” The owners, China-CEE Fund, have turned down the opportunity to extract capital from the sale via a dividend recap, preferring instead to invest in Invitech Solutions, Blunck says. With the residential part of the business no longer in the picture, what will happen to the group name? “That’s a good question. We haven’t given it much thought, but we like the sound of Invitech Group,” says Blunck. “The ‘group’ part is still relevant because we are on the hunt for acquisitions in the B2B space, to grow our national optical and infrastructure presence as well as our IT services capabilities. We have several acquisitions in the pipeline. We want to grow and hope to close two or three acquisitions in the next year.”
Seven-year Itch Invitel Group itself was acquired by the China-CEE Fund in March for EUR 202 million. “The motivation for that sale was that former owner Mid-Europa Partners had reached the end of the typical PE investment cycle. Mid-Europa brought the business in
2009, and in Private Equity they often talk about the ‘seven-year itch’. So, given the dynamics of the investment cycle, it was the natural time to look at things again when we received an unsolicited approach from China-CEE Fund.” Blunck says the fund is a good match for Invitel Group, sharing a similar strategic approach and having a mission of investing in infrastructure providers. As with Digi, the earlier deal was also done quickly (over a three month period last fall) with no drawn out process to distract management from the business of running the business. “One thing you learn working for private equity investors is how to run sales processes, so that helps. There was also a constructive attitude, no one was trying to play games, it was very results orientated. And it was a clean exit for the former shareholders, as they were able to sell the whole company.” For Invitech Solutions, Blunck says, things look positive. “We are growing revenue, and are having had a good year. Unlike Invitel Group overall, which has not been profitable from an accounting point of view, Invitech is book profitable. Invitech generates cash as well as net income. Finances are stable, which means we can get a balance between the capital invested in the company and returns in terms of the value added for customers.” And, as one of the founders of the 5G Coalition that aims to make Hungary a world leader in the next generation of mobile provision, he sees much more growth in the future. “The promise of 5G is hyperconnectivity – ubiquitous, ultra-high speed with very little delay, what is known as high bandwidth and low latency in the industry jargon. A denser base station network (at least ten times more than what we have now) and the fiber optics to connect to them are the two preconditions for the 5G revolution. Both elements are very expensive, and that is where Invitech Solutions can help – in providing network and IT infrastructure in the background. We are enablers.”
2017. 09. 06. 18:22
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3
Budapest Business Journal | September 8 – September 21, 2017
EXPERT OPINION
Shadow Information Technology: a Chance for Revival? Tibor Vörös Chief Information Officer GISMA BUSINESS SCHOOL (GERMANY) VISITING FACULTY
all, an unofficial solution. However, banning is not a solution. Perhaps “resistance is futile” would be an overly strong statement, but the key question should be – why? Why was there a need to create Shadow IT and work outside the regime provided by the official IT Department? Maybe it is due to the slow reaction time of the IT Department, maybe it is connected to the information needs of the managers, or maybe it is just a convenience issue.
How is Information
Why do unofficial data Created? However, if a company is looking for data analytics solutions, there channels appear in is a real need to understand companies, even when how information is created and transmitted within the company – IT departments forbid both inside and outside the official IT channels. Punishing those helping them? Shadow IT (which may include I still remember a large scale enterprise resource planning system introduction a few years ago in a multinational environment. I had participated in the process analysis segment: I was leading training, drawing diagrams and working with employee groups for months (ever heard of process charts, dataflow diagrams and no lunch breaks?). The information system implementation lasted for years (as usual). A few years later I returned to the company to discuss data analytics solutions. On this return, I chatted with some people from the groups I had worked with – and they described the system as working, but also described homegrown spreadsheets and databases they were using to keep their departments running and their information needs served. Was the central IT Department aware of these solutions? Well, to some extent yes, but these solutions were outside the official company infrastructure: they were not vetted or approved by administrators, nor were they supported. In some cases, they were outright banned (no departmental databases, and no USB sticks, please), but people used them, creating an alternate IT solution – let us call it Shadow IT. And here is the question: should Shadow IT be banned? It is, after
Shadow IT usually exists for a particular reason – and it usually translates and carries information among users. Understanding these channels can help a lot in improving a commonly used buzzword – data visualisation.
automated MS Excel spreadsheets and more) will do no good. Asking them how and why they have done it may help in designing a better data analytics solution.
Perhaps one telling result might be quoted from a recently conducted survey into Hungarian mediumsized enterprises (50-250 employees). More than 1,000 participants from 22 companies across different sectors were asked about their overall official information system approaches, and whether they would like to continue to use the same guidelines and technologies. Out of the entire sample, 28% felt that there is a need to change, 32% couldn’t decide and 36% considered the existing system adequate with changes. Only 4% felt completely satisfied. Thus, Shadow IT usually exists for a particular reason – and it usually translates and carries information among users. Understanding these channels can help a lot in improving a commonly used buzzword – data visualization. Data visualization is great – but even the most colourful, dynamic chart is only as useful as the data fed into it. If the official data is only an aftermath of the Shadow IT information flow, the chart will forever be out of sync and delayed. One might say that, in many cases (though not always), Shadow IT is an opportunity – to understand information sharing and decision support challenges. A chance for the revival of the original decision support goal: to get the right information to the right person at right time on the right device. This column is part of a series of opinion pieces from experts at the CEU Business School in Budapest. The opinions stated here do not necessarily reflect those of the BBJ.
How to Save Money With Fleet Management Software Gábor Cseresnyés CEO CALLTEC CONSULTING
Starting from this fall, we will make our self-developed software accessible to all fleet management enterprises or firms that operate a larger fleet. Our software is based on more than a decade of experience and offers the widest range of services amongst similar systems. Our team at CallTec believes that our fleet management system is not only comfortable but also cost-efficient: the cost returns in the case of a fleet of 100 vehicles. Who needs fleet management? Fleet management is needed by two types of enterprises: fleet management firms, and those companies who manage their own fleet. Managing a fleet requires high levels of precision, human resources and presents a large-scale administrative challenge. These tasks can be automated and completed without human intervention to a large part. We read about self-driving cars and artificial intelligence on a daily basis, so why detour from the direction that software development is headed in anyway when it comes to fleet management? Our software, which is based on more than 10 years of experience and research, simplifies fleet management both for professional fleet managers and large, possibly state-owned, enterprises that manage their own fleet. Where does the fleet managing software come from? Over the past several years, we have experienced every aspect of fleet management as the partner in development of MKB-Euroleasing Autópark Zrt., which already counted as the market leader in its niche, therefore our company has now decided that we will make our own newly developed software available to everyone. This package is composed of two parts: the management and the accounting system. Through their use the entire technological process involved in fleet management can be carefully monitored, while our clients do not need anything in addition to the CallTec system. Besides guaranteeing complete data protection, the software is suitable for the management of electronic
invoices and delivery costs and our clients can access it from any location through the internet. As confirmed by previous market research, our solution is deemed the most complete and developed currently accessible on the Hungarian market. Innovation and expertise Our experience proves our software is suited to accommodating fleets composed of fleets anywhere between one hundred and tens of thousands of vehicles, therefore we are continuously developing our programs. We at CallTec have been working with a nearly identical team of developers over the past decade. We firmly believe that the essence of excellent software is based upon the team’s professional calling, skill and in-depth knowledge of the market.
“The purpose of IT is to support business creativity”. Moreover, we always place our expertise in the service of our clients, who have great experiences working with us, as CallTec’s systems are always custommade to accommodate their individual needs, and we always complete requests for changes within short deadlines while guaranteeing the high quality that can be expected from our company. How does the fleet management software help save money? One of the major advantages of our system is that a number of tasks can be automated and completed without human intervention. According to our calculations, in the case of a fleet of more than 100 vehicles, our clients already lower their costs significantly. Our program allows for continuous monitoring of delivery costs, which helps avoid hidden or unexpected expenses. One fleet can be composed of 50 to 100, 500, or even 1,000 vehicles; every vehicle produces a number of bills, for example for gas, service, motorway costs, insurance, exchanges, purchase, maintenance and sale. This leaves the company with several thousand bills at the end of each month, which need to be precisely managed. As all subprojects can be accessed through our company and we thereby cover the entirety of areas for front office and accounting, including e-invoices for instance, significant savings can be achieved in the form of time and human resources – and what is more expensive nowadays than a company’s time and human labor? We also provide an internet and mobile user interface to our easy-to-operate, platform-independent IT system, so that all information can be accessed from any location at all times.
www.calltec.hu
NOTE: ALL ARTICLES MARKED EXPERT OPINIONS ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RESPONSIBILIT Y
CEU COLUMN
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Special Report
16 | 3
www.bbj.hu
Budapest Business Journal | September 8 – September 21, 2017
Using Education and Retraining to Overcome the IT Staff Shortage
The shortage of IT professionals remains a problem in Hungary, but some educational reforms may help increase the supply. Change will take time, though. SONJA BENCZE
On today’s job market, IT competence is the new English. The ability to use digital tools and programs has become as essential as command of a foreign
language once was. No sector is spared; even blue-collar jobs too demand the possession of some IT skills. IT services are not only so deeply ingrained in everyday life that people lacking digital skills are at a disadvantage in the job market. On the larger scale, the level of digitalization equates to a market edge – be it for a company, an industry or a country. Hungary is not doing well: no real progress has been made to improve the digital education, the key to qualified labor supply. The lack of reform in the educational system has resulted in a shortage of IT professionals. According to research by the Hungarian ICT Association (IVSZ) and the National Ministry of Development, there are currently 30,000 ICT job vacancies in Hungary. (The figure shows the number of IT professionals needed but it says nothing about other jobs that also require digital skills). It is of little comfort that many countries in Europe, especially those that once made up the Eastern bloc, face similar problems.
NOTE: ALL ARTICLES MARKED EXPERT OPINIONS ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RESPONSIBILITY
EXPERT OPINION
Become an Attractive Employer for IT Professionals Zsuzsanna Perényi Recruitment Consultant HAYS HUNGARY In today’s economy, it’s more important than ever for companies to have happy employees, since the labor market in the IT and telecommunication sectors continues to be a candidate-driven market. We would like to give you a few simple tips, in order to make your company a more desirable and productive workplace. Provide some small additional benefits. For example, free snacks and beverages are always welcome. Try to help employees better manage their lives. Flexible working arrangements have become more and more popular over the years. Most programmers love what they do and if they can do it from anywhere, they are likely to be working outside of office hours, not because they have to, but because they want to. A work culture that enables a work-fromanywhere approach will demonstrate that an employee’s value is not based on whether or not they are physically in the office, but on the quality of their work. Invest in your employee. Organize official or non-official training for them. Give them opportunities to further improve their
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professional and/or soft skills. According to our experience, it can be pretty useful to keep employees up to date with the latest technological advances. Employers must do everything possible to stay competitive and maintain highly skilled, motivated employees. Employers need to be aware of the need for continual employee training and education to keep their programmers happy and productive, boost morale, and remain competitive. Design a comfortable work environment. Try to use ergonomic equipment wherever it is possible. This will allow your employees to focus better, and reduce unnecessary stress, which in turn can increase their productivity and help avoid burning out in the long run. Take regular satisfaction surveys. Alternatively, hold staff meetings where employees can exchange ideas and ask questions. Pay careful attention to their feedback. To hire and keep the best IT professionals, you need to pay them accordingly. We aren’t talking about a foolishly high salary for these people, but if you pay below the market rate for the position, it tells employees that their work is not valued. For example, junior candidates with one year experience can command salaries that are on average 10-15 % higher than in 2016. In our salary guide you can find more information about the salary rate in 2017.
www.hays.hu
Gábor Major, general secretary of the Hungarian ICT Association.
“The program encompasses all levels from elementary to tertiary to adult learning. It also states what human and financial resources are needed to achieve the goals set. As for financing, roughly HUF 100 billion would be needed annually to tighten the gap.”
Digital Welfare Program Some change has taken place. As a result of the growing demand for IT professionals by both international and local firms, the expansion of digitalization in every sector, and the lobbying of IVSZ, the government has started to pay attention to the problem. This February, it approved the Digital
Welfare Program which included a digital education program. “The program encompasses all levels from elementary to tertiary to adult learning. It also states what human and financial resources are needed to achieve the goals set. As for financing, roughly HUF 100 billion would be needed annually to tighten the gap,” Gábor Major, secretary general IVSZ told the Budapest Business Journal. Part of that is supposed to come from EU funds, another portion from the state and some should be rechanneled from existing resources. A digital education methodology center (DPMK) was established this summer, with the mandate to set out a new legal environment, and define and coordinate training, tools and the required devices, together with the Ministry of Human Resources. “The first round of equipment tender has already started: schools have to submit their equipment requirements by 2022. This is not easy as they need to calculate with obsolescence and maintenance as well,” Major said. Elementary school teachers will be given around 40,000 tablets and laptops.
2017. 09. 06. 18:22
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Budapest Business Journal | September 8 – September 21, 2017
“All is not lost, teachers are enthusiastic and flexible, but they also need tools, education, and motivation.” The public procurement is coordinated by the Klebersberg Központ, which serves as a liaison between the ministry and the school administrations. Eszterházy Károly University of Applied Sciences in Eger will be responsible for IT training of teachers, who will need to participate in courses according to their level. Successful execution of the digital education strategy is crucial. Not all initiatives have brought the desired result and need to be revised. One such is okosportal.hu, a webpage launched to comprise study materials and plans, which could at best be called moderate success, Major said. The goal is to have a site that comprises top quality digital learning materials, many of which, such as for the sciences, will simply be translated from foreign language sources.
2017 university admission statistics Total number of applicants to higher education
105,868 (-1,5% YoY)
Number of students admitted
72,641 (+12,5% YoY)
Number of applicants to ICT faculties
11,159 (+2% YoY)
Number of those admitted:
6,442 (+5% YoY)
People more than last year, of which 200 were taken by the Budapest University of Technology and Economics (BME)
300
Percentage of total number of successful applicants admitted to ICT faculties
8.87% (-0.64 % YoY)
Drop-out rate at ICT faculties
50%
Source: IVSZ
Teaching the Teachers
New Qualifications
Teaching methodology is also under going transformation: more emphasis is to be given to methods like learning from home. From individual learning, to developing team problem solving skills, to the shift from so-called “frontal teaching” to mentoring, everything is changing. Students can study at their own pace rather than having to adjust to a class. Such transformation, however, is slow, and it will take time for schools to apply the methods described above. Since not much has changed in the past few decades, this comes as no surprise. Teachers were trained long ago and they are not the best paid either. Not all have the willingness to change. These very people were targeted by Digital Thematic Week, which was dedicated to teaching using novel methods. During the event, teachers were provided with study plans and the like that they are free to use in their own classrooms. Approximately 20% of teachers participated in the week. “All is not lost, teachers are enthusiastic and flexible, but they also need tools, education, and motivation,” Major said. The digital strategy gives them guidelines on how to incorporate these in their classes. Some apply them quickly, some just won’t, the majority, about two-thirds, need a hand to make progress, the secretar y general said. Regardless of willingness, every teacher will have to participate in further education based on their current level, which will be determined with tests. Those with certain skills need to learn how to hold an engaging class incorporating digital tools. For example, pupils may be assigned with tasks in a fragmented manner that they need to present together. They may be required to solve a problem, look up the definition of something and explain it to their classmates using digital tools. The number of options both for teaching and learning digital skills is vast.
If elementary and high school students are given interesting enough IT lessons, more may be willing to study information technology in college. The fact that the number of students applying to higher education and ICT faculties is very low is a problem in and of itself. That 50% of those admitted drop out during their studies only makes matters worse. Yet the labor market demand is so high that even the half-taught are absorbed. College education is often regarded as not being practical enough anyway. Universities would challenge this by claiming that a strong mathematical basis is essential to training highly-qualified professionals, but it is also true that students in third grade often don’t know how to program. The market responded with the launch of several short-term courses to meet the needs of firms, which in turn absorbs more potential candidates from higher education. To make university education more practical and appealing, a new type of university course is to be introduced. The Bachelor of Profession (BOP), an existing qualification in the Bologna-system but thus far unknown in Hungary, will place more emphasis on practice. The basic university education is to start in September 2018. More attractive grants could be another draw for universities. In June, the launch of a generous scholarship program was announced for IT college students. No details have been revealed as yet, but experts calculate that 70,000100,000, or around 50% of students, would be involved in an ascending manner as of January 1. An awarenessraising campaign was also announced to start this September 1. “Program Your Future” is a European Union program with a budget of HUF 8.4 billion that targets students at contests to try and steer them toward so-called STEM (Science, Technology, Engineering, and Mathematics) studies, especially IT. The first part of the campaign is that in-house training programs of international firms
BBJ_2516_special_report.indd 17
such as Cisco, Oracle, Microsoft, will be incorporated into the university curriculum. This means that in the future, specialized training currently required and paid for by employers can be done at school.
Special Report | 17 Training vs. Learning When it comes to vocational training, not much progress has been made. The matter is urgent as jobs are becoming ever more digital, and even blue-collar jobs require the use of IT tools. The Hungarian Chamber of Commerce and Industry (MKIK) has a role in defining the number of people to be involved in training and the curriculum, but no tangible results have been produced yet. But if vocational training has been lacking, adult learning, on the other hand, has been blooming lately. Rather than waiting for traditional education to solve the problem of the skills, some market players have launched their own schemes. These are short, ranging from three-to-eighteen months, and operate with different business models. Most of them train low-level programmers, or professionals for posts requiring no deep knowledge of mathematical skills. Some spots are paid for by future employers, but self-financed places can cost more than HUF 1 million.
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2017. 09. 06. 18:22
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Special Report
www.bbj.hu
Budapest Business Journal | September 8 – September 21, 2017
Software developers top loCal exeCutive Cfo maRketing diReCtoR
addRess pHone fax email
Ÿ Ÿ Ÿ Ÿ
961 864
– evosoft GmbH (100)
péter várady Erika Balogh Zoltán Gönye
1117 Budapest, Kaposvár utca 14–18. (1) 381-6400 (1) 381-6631 sales@evosoft.com
Individuals (3) Qualysoft Holding Ltd. (97)
Zoltán Kővári Tamás Zimányi Édua Karajos
1118 Budapest, Rétköz utca 5. (1) 889-9800 (1) 889-9810 office@qualysoft.com
Resale
distRibution of oWn pRoduCts
oWneRsHip (%) HungaRian non-HungaRian
majoR Clients in 2016 Consulting
softWaRe pRoduCts
no. of full-time employees on july 1, 2017 of tHese full-time softWaRe developeRs
softWaRe Related aCtivities
installation
main expoRt destinations
17,151
17,174(1) 9,029(2)
softWaRe expoRts in 2016 as a pReCentage of total Revenue (%)
total net Revenue in 2016 (Huf mln) total net Revenue in H1 2017 (Huf mln)
Company Website
net Revenue fRom softWaRe development in 2016 (Huf mln)
Rank
Ranked by net revenue from software development in 2016
evosoft HungaRy kft. www.evosoft.hu 1
99.87
Germany
–
Siemens
10
Germany, Austria, Romania, Albania, Slovakia
QualySmart, AgriPortal, Content Cruiser, Impulse Driver, Nebula, Docfinito és Docflow, Precommender, Netvisor, Vapor
MVMI, Tolnagro, Kello, Ép-Gépész,
✓
✓
✓
✓
196 156
2
Qualysoft zRt.
3,924
4,440 2,460
3
R&R softWaRe zRt.
1,826
1,922 1,108
7.60
UK, Nigeria, USA
FusionR ERP, FusionR BSS, FusionR Utility, FusionR SFA, VERK/400, cDMS
Invitel, MNKH, HEINEKEN, NISZ, Garantiqa Hitelgarancia, Seven-Up Bottling Company
✓
✓
✓
✓
109 65
Individuals (100) –
Csaba Rozenberszki Judit Andráskó Zsolt Rozenberszki
1038 Budapest, Ráby Mátyás utca 7. (1) 436-7850 (1) 436-7851 info@rrsoftware.hu
4
nexon kft.
1,734
3,558 1,872
Ÿ
Ÿ
NEXONhrm, NEXON_PORT, NEXON4
Ÿ
✓
✓
–
✓
246 15
Individuals (100) –
Szilárd Ocskay, Katalin Sass Judit Nyeste Rita Lovas
1138 Budapest, Váci út 186. (1) 465-5100 (1) 465-5101 nexon@nexon.hu
✓
✓
✓
✓
50 16
Individuals (63.10), Volán Elektronika Zrt. (32.10), Alsó-Keszi Kft. (4.80) –
kálmán faur Zoltán Komora Petra Borbély
1113 Budapest, Karolina út 65. (1) 255-3939 (1) 209-1477 info@mve.hu
✓
✓
–
✓
84 19
Tibor Kulcsár (96) shareholders (4) –
Ervin Szabó Ernő Pap Miklós Dulkai
1022 Budapest, Törökvész út 30/A (1) 336-5300 (1) 336-5309 info@kulcs-soft.hu
87
Individuals (100) –
ákos szekendy – –
1143 Budapest, Gizella út 51–57. (1) 471-3000 (1) 471-3002 contact@ sysdata-pse.com
19
Individuals (100) –
Sándor dankó – –
1117 Budapest, Budafoki út 209. (1) 463-0620 (1) 463-0621 infomail@itware.hu
45
Individuals (100) –
lászló Szalóki Anikó Nagy Norbert Somkutas
1133 Budapest, Váci út 76. (1) 461-8030 (1) 352-1553 revol@revolution.hu
Gábor Kelemen (73), Judit Gyenes Kelemenné (27) –
gábor kelemen Zsuzsanna Pauló Dóra Bertalan
1112 Budapest, Kőérberki út 36. (1) 310-1492 (1) 310-1497 sales@multisoft.hu 1149 Budapest, Nagy Lajos király útja 117. (1) 220-6458 (1) 469-0899 sales@trilobita.hu
5
6
www.qualysoft.com/hu
www.rrsoftware.hu
www.nexon.hu
libRa szoftveR zRt. www.libra.hu
kulCs-soft számításteCHnika nyRt.
1,552
1,553 659
–
–
Libra 6i, Libra 3S
MVMI Informatika Zrt., Tiszamenti Regionális Vízművek Zrt., KMKK Zrt., ÉRV Zrt., Észak-magyarországi Közlekedési Központ Zrt., FKF Nonprofit Zrt.
1,361
1,361 768
3
USA, Romania
Kulcs-Ügyvitel, Kulcs-Könyvelés, Kulcs-Bér, Online számla, BizXpert
Ÿ
1,193
1,284(1) 679
60
Austria, Germany
Ÿ
Siemens
✓
✓
✓
✓
Ÿ
Ÿ
Ÿ
Ÿ
✓
✓
–
✓
BAHART
✓
✓
✓
✓
✓
✓
✓
✓
www.kulcs-soft.hu
7
8
sysdata pse kft.
www.sysdata-pse.com, www.pse.hu
itWaRe kft.
www.itware.hu, www.createsmartapp.com
820
9
Revolution softWaRe kft.
772
10
multisoft kft.
605
11
tRilobita infoRmatikai zRt.
12
teRC keReskedelmi és szolgáltató kft.
13
www.revolution.hu
www.multisoft.hu
www.trilobita.hu
www.terc.hu
ifs HungaRy kft. www.ifsworld.com
BBJ_2516_special_report.indd 18
820
Ÿ
772
Ÿ
Ÿ
Ÿ
deep.erp, Iroda++, rEVOL Express
1,085 539
86
UK, USA, Germany, France
MobileNAV (mobile app for Microsoft Dynamics NAV), Servotion (field service solution)
Ÿ
Ÿ
TriDoc enterprise, TriDoc standard, DocuBank, TriCommission, TriCrm, TriWorkflow
OTP Bank Nyrt., Richter Gedeon Nyrt., Magyar Lapterjesztő Zrt., Bank of China Magyarország
–
TERC V.I.P. (GOLD, SILVER, BRONZ),TERCETALON
Ÿ
✓
✓
–
IFS Applications ERP/EAM/ESM system
BioTech USA Kft., Vajda-Papír Kft., ANY Biztonsági Nyomda Nyrt., FÉMALK Fémöntészeti és Alkatrészgyártó Zrt., LAKICS Gépgyártó Kft.
✓
✓
461
591 262
377
1,011 491
300
605 300
2
–
–
✓
✓
Ÿ
Ÿ
Ÿ
62 21
✓
18 10
Zsolt Koltai (100) –
Zsolt Koltai Zsolt Koltai Diána Wágner
✓
✓
37 3
Magdolna Demeter (60), Miklós Konrád Molnár (30), Miklós Molnár (10) –
Konrád Miklós molnár Judit Horváth Magdolna Demeter
1149 Budapest, Pillangó park 9. (1) 222-2402 (1) 222-2405 terc@terc.hu
–
✓
25 6
– IFS WORLD AB- IFS CEE (100)
Zsolt Weiszbart – Gábor Halász
1132 Budapest, Váci út 22–24. (1) 236-3700 (1) 236-3701 infohu@ifsworld.com
–
2017. 09. 06. 18:22
www.bbj.hu
3
812 397
–
–
Saldo Creator integrated (ERP) system
✓
–
Budapest Zoo, Széchenyi István University
✓
✓
–
no. of full-time employees on july 1, 2017 of tHese full-time softWaRe developeRs
109
✓
Special Report | 19
oWneRsHip (%) HungaRian non-HungaRian
top loCal exeCutive Cfo maRketing diReCtoR
addRess pHone fax email
✓
Ÿ Ÿ
Gábor Cseresnyés (100) –
gábor Cseresnyés – –
1142 Budapest, Erzsébet királyné útja 125. (30) 600-1400 (1) 700-4500 info@calltec.hu
✓
52 13
Individuals (100) –
Márta Sibinger Enikő Kovács Ágnes Kramer
1135 Budapest, Mór utca 2–4. (1) 237-9800 (1) 237-9811 saldo@saldo.hu
37
AMCS Kft. (100) –
Tamás Szabó – –
1117 Budapest, Infopark sétány 1. (1) 205-0055 (1) 205-0056 info@alerant.hu
– BalaBit IT Security Deutschland GmbH (Ÿ), BalaBit S.A. (Ÿ)
Zoltán Györkő, Balázs Scheidler, Endre Wagner – –
1117 Budapest, Alíz utca 2. (1) 398-6700 (1) 208-0875 info@balabit.hu
4iG Nyrt. (100) –
Attila Zoltán Merényi – –
1037 Budapest, Montevideo utca 8. (1) 270-7600 (1) 270-7679 info@banksoft.hu
Gergely András Fördős (Ÿ) LUGREDA a.s. (Ÿ)
Gergely András fördős – –
1116 Budapest, Hauszmann Alajos utca 2. (1) 279-3970 (1) 279-3971 sales@evoline.hu
– Nemetschek AG (100)
Viktor Várkonyi Gábor Svéd Ákos Pfemeter
1031 Budapest, Záhony utca 7. (1) 437-3000 (1) 437-3099 mail@graphisoft.hu
Protomix Zrt. (55), Zoltán Madár (21.43) Ivana Mader s.r.o. (23.57)
zoltán madár – –
1087 Budapest, Könyves Kálmán körút 48–52. (1) 204-7730 (1) 204-7731 mail@grepton.hu
4G Nyrt. (78.200), HS Board Kft. (16), Béla Zsolt Tóth (5.80) –
Attila Merényi, judit Hegedűs Tamás Koppány Ferenc Turcsán
1037 Budapest, Montevideo utca 8. (1) 270-7600 (1) 270-7679 info@humansoft.hu
Ÿ Ÿ
– IBM Ireland Product Distribution Limited (99.93), IBM World Trade Corp. (0.07)
péter szalay, péter benedek Árpád Koncz Svetlana Stavreva
1117 Budapest, Neumann János utca 1. (1) 382-5500 (1) 382-5501 info@hu.ibm.com
358 VTA
– Logmein Ireland Holding Company Ltd. (100)
lívia Kovács, Timothy james Ewing – –
1061 Budapest, Andrássy út 9. (1) 413-3780 – recepcio.bp@ lonmin.com
distRibution of oWn pRoduCts
Bulgaria
MKB-Euroleasing Autópark Zrt., Euroleasing Kft., ALD Automotive Bulgaria, Eurorisk Kft.
Resale
6.20
Fleet management software: F1|P1, Accounting / Financial software: Pillar
Consulting
194
194 98
majoR Clients in 2016 installation
main expoRt destinations
softWaRe pRoduCts
softWaRe expoRts in 2016 as a pReCentage of total Revenue (%)
total net Revenue in 2016 (Huf mln) total net Revenue in H1 2017 (Huf mln)
Company Website
softWaRe Related aCtivities
net Revenue fRom softWaRe development in 2016 (Huf mln)
Rank
Budapest Business Journal | September 8 – September 21, 2017
CallteC Consulting kft. www.calltec.hu 14
15
saldo pénzügyi tanáCsadó és infoRmatikai zRt. www.saldo.hu
aleRant zRt. NR www.alerant.hu
balabit-euRope kft. NR www.balabit.com
banksoft számításteCHnikai NR REndSZERfEjlESZTő kft.
Ÿ
1,697
Ÿ
5,421
Ÿ
114
Ÿ
Ÿ
Ÿ
Ÿ
Ÿ
Ÿ
Ÿ
Ÿ
Ÿ
Zorp Gateway, Shell Controll Box
Ÿ
Ÿ
Ÿ
Ÿ
Ÿ
✓
✓
✓
–
✓
✓
✓
–
✓
✓
Ÿ
✓
188
✓
8
Ÿ
Ÿ
www.banksoft.hu
NR
evoline kft. www.evoline.hu
gRapHisoft se NR
www.graphisoft.com
gRepton NR infoRmatikai zRt. www.grepton.hu
Humansoft kft. NR www.humansoft.hu
Ÿ
Ÿ
Ÿ Ÿ
21,540
Ÿ
Ÿ
937
Ÿ
13,693
Ÿ
16,826
Ÿ
8,924
Ÿ
Ÿ
Ÿ
Ÿ
Ÿ
Ÿ
Ÿ
Ÿ
Ÿ
ARCHICAD, BIMx, BIMcloud, MEP Modeler, EcoDesigner STAR
Switzerland, Germany
Ÿ
–
AgromAX, DoQ, MindTheGapp, ASIR/PAIR
Ÿ
Ÿ
Ÿ
Ÿ
✓
✓
✓
✓
✓
✓
✓
✓
–
✓
–
✓
✓
✓
Ÿ Ÿ
318
Ÿ
57
–
Ÿ
✓
323
Ÿ
NR
ibm magyaRoRszági kft.
NR
logmein kft.
NR
miCRosoft magyaRoRszág kft.
Ÿ
13,984
Ÿ
Ÿ
Ÿ
Ÿ
Ÿ
Ÿ Ÿ Ÿ Ÿ
236
NR
p92 it solutions kft.
Ÿ
1,084
Ÿ
Ÿ
Ÿ
Ÿ
Ÿ Ÿ Ÿ Ÿ
48
József Molnár (100) –
józsef Molnár – –
1038 Budapest, Fürdő utca 2. (1) 453-4100 (1) 453-4101 info@p92.hu
Ÿ
28,300
– SAP SE (100)
Balázs Ablonczy – –
1031 Budapest, Záhony utca 7. (1) 885-7300 (1) 457-8344 –
– UNIT4 Business Software Holding B.V. (100)
Tamás Wehring – –
1023 Budapest, Lajos utca 28–32. (1) 436-0540 (1) 388-2178 contact.hu@unit4.com
– UNIT4 Business Software Holding B.V. (100)
Tamás Wehring – –
1023 Budapest, Lajos utca 28–32. (1) 436-0540 (1) 388-2178 contact.hu@unit4.com
www.ibm.com/hu
www.logmein.com
www.microsoft.hu
www.p92.hu
sap HungaRy kft. NR www.sap.hu
Ÿ
Ÿ
Ÿ
Ÿ
NR
unit4 Coda HungaRy kft.
Ÿ
Ÿ Ÿ
NR
vt-soft kft.
Ÿ
Ÿ Ÿ
http://www.unit4.com/hu
www.unit4.com/hu
Ÿ
Ÿ
Ÿ
Ÿ
Ÿ
Ÿ
Ÿ
Ÿ
Ÿ Ÿ Ÿ Ÿ
Ÿ Ÿ Ÿ Ÿ
Ÿ
Ÿ
Ÿ
Ÿ
SAP
Ÿ
✓
✓
–
✓
980
Ÿ
Czech Republic, Germany
Unit4 Financials, Unit4 Logistics, Unit4 ERP
Ÿ
✓
✓
✓
✓
10
–
–
Unit4 Munkaügy (UNit4 Bér, Unit4 Tb)
Ÿ
✓
✓
✓
✓
Ÿ
Ÿ
30
Ÿ
– Gabriella Szentkuti Microsoft Corporation Katalin Antal (100) Judit Grósz
1031 Budapest, Graphisoft park 3. (1) 437-2800 (1) 437-2899 sajto@microsoft.com
NOTES: (1) Data of business year October 1, 2015-September 30, 2016 (2) Data of business period October 1, 2016-March 31, 2017
BBJ_2516_special_report.indd 19
2017. 09. 06. 18:22
20 | 3
Special Report
www.bbj.hu
Budapest Business Journal | September 8 – September 21, 2017
Systems integrators
8
s&t Consulting HungaRy kFt.
10,310
9
dimension data magyaRoRszág kFt.
5,078
www.euroone.hu
www.snt.hu
www.dimensiondata.com
BBJ_2516_special_report.indd 20
Ÿ
Ÿ
Ÿ
Ÿ
Ÿ
–
Ÿ
–
Ÿ
–
Ÿ
✓
Ÿ
Ÿ
Ÿ
zoltán kaszás – –
1117 Budapest, Budafoki út 56. (1) 452-1400 (1) 452-1401 info@t-systems.hu
Ÿ
– IBM Ireland Product Distribution Limited (99.93), IBM World Trade Corp. (0.07)
péter szalay, péter benedek Árpád Koncz Svetlana Stavreva
1117 Budapest, Neumann János utca 1. (1) 382-5500 (1) 382-5501 info@hu.ibm.com
Ÿ
– ES Hague B.V., ES Hague II B.V. (100)
zoltán Czibók, krisztián kovács – –
1114 Budapest, Bartók Béla út 43-47. (1) 229-9999 (1) 229-9000 info@hp.com
istván brandhuber – –
1033 Budapest, Szentendrei út 39–53. (1) 437-5200 (1) 437-5299 info@delta.hu
soFtWaRe
10,574
11,306(1)
Ÿ
–
integRation oF oWn pRoduCts
7
euRo one számításteCHnikai zRt.
www.invitech.hu
Ÿ
–
Ÿ
Magyar Telekom Nyrt. (100) –
HaRdWaRe
6
inviteCH megoldások zRt.
www.humansoft.hu
✓
unix
13,693
✓
addRess pHone Fax email
WindoWs seRveR
HumansoFt kFt.
✓
top loCal exeCutive CFo maRketing diReCtoR
novell
5
✓
oWneRsHip (%) HungaRian non-HungaRian
mixed
www.delta.hu
14,558 7,145
Ÿ
✓
majoR Clients in 2016
soFtWaRe
4
deltagRoup Holding zRt.
www.hp.com
✓
opeRating systems oF seRveRs
HaRdWaRe
16,754
Ÿ
mixed
3
enteRpRise seRviCes magyaRoRszág kFt.
www.ibm.com/hu
Consulting
16,826
Ÿ
it seCuRity
2
ibm magyaRoRszági kFt.
www.t-systems.hu
soFtWaRe development
73,743
eRp
t-systems magyaRoRszág zRt.
type oF system integRation
seRviCes
sap seRviCes
1
Rank
Company Website
total net Revenue in 2016 (HuF mln) in H1 2017 (HuF mln)
Ranked by total net revenue in 2016
✓
✓
✓
–
✓
✓
✓
✓
–
Ÿ
–
Ÿ
✓
Ÿ
–
Ÿ
✓
Ÿ
✓
Ÿ
Ÿ
Ÿ
✓
✓
✓
✓
✓
✓
Ÿ
✓
✓
✓
–
✓
✓
✓
✓
(100) –
–
✓
✓
✓
✓
✓
Ÿ
✓
✓
✓
✓
✓
✓
✓
✓
4G Nyrt. (78.20), HS Board Kft. (16), Béla Zsolt Tóth (5.80) –
attila merényi, Judit Hegedűs Tamás Koppány Ferenc Turcsán
1037 Budapest, Montevideo utca 8. (1) 270-7600 (1) 270-7679 info@humansoft.hu
✓
Ilford Holding Kft. (99.99), other (0.01) –
david blunck, áron javorniczky Gerald Grace –
2040 Budaörs, Edison utca 4. (1) 801-1500 (1) 801-4424 vip@invitech.hu
–
Bravogroup Holding Kft. (65), CEWEB Kft. (35) –
árpád kucska – –
1145 Budapest, Újvilág utca 50–52. (1) 358-6350 (1) 358-6359 info@euroone.hu
✓
– S&T AG (100)
Péter Dezső Szabó Sándor Kulcsár Tímea Soós
2040Budaörs, Puskás Tivadar út 14. (1) 371-8000 (1) 371-8001 info@snt.hu
✓
– Dimension Data Holdings Nederland B.V. (100)
istván simon – László Demeter
1117 Budapest, Budafoki út 60. (1) 482-9500 (1) 482-9501 HU.Info@eu.didata.com
–
–
✓
–
✓
–
✓
–
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
–
✓
–
Ÿ
Ÿ
Ÿ
Ÿ
✓
✓
✓
✓
✓
✓
✓
✓
✓
–
✓
✓
–
–
–
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
–
–
✓
2017. 09. 06. 18:22
www.bbj.hu
10
duna elektRonika kFt.
4,802
11
inteR-ComputeRinFoRmatika zRt.
4,664
12
QualysoFt zRt.
13
nádoR RendszeRHáz kFt.
14
aCCentuRe tanáCsadó kFt.
www.dunaelektronika.com
www.intercomputer.hu
www.qualysoft.com/hu
www.nador.hu
www.accenture.hu
Ÿ
✓
Ÿ
✓
✓
✓
–
✓
✓
integRation oF oWn pRoduCts –
–
Gábor Juhász (Ÿ) Freed Rebecca Lee (Ÿ)
péter Freed, gábor juhász – –
1183 Budapest, Gyömrői út 99. (1) 666-1600 (1) 350-5660 sales@ dunaelektronika.com
tamás molnár János Bence Bajzáth –
1118 Budapest, Gombócz Z. utca 12. (1) 411-3720 (1) 411-3749 info@intercomputer.hu
soFtWaRe
HaRdWaRe
unix
WindoWs seRveR
novell
mixed
soFtWaRe
HaRdWaRe
mixed
it seCuRity
soFtWaRe development
eRp
Consulting –
addRess pHone Fax email
✓
✓
✓
Ÿ
✓
✓
✓
–
✓
✓
–
✓
4,440 2,460
–
✓
✓
–
✓
✓
Ericsson, Tolnagro Kft., Ép-Gépész Zrt., MVMI Zrt.
✓
✓
✓
–
✓
✓
–
✓
Individuals (3) Qualysoft Holding Ltd. (97)
Zoltán Kővári Tamás Zimányi Édua Karajos
1118 Budapest, Rétköz utca 5. (1) 889-9800 (1) 889-9810 office@qualysoft.com
4,114 3,100
–
✓
✓
✓
✓
✓
Ÿ
✓
✓
✓
–
✓
✓
✓
✓
István Bánlaki (52.50), Tibor Gombos (47.50) –
tibor gombos Krisztina Mikusik Helga Szántó
1152 Budapest, Telek utca 7–9. (1) 470-5000 (1) 470-5011 info@nador.hu
peter skodny – –
1088 Budapest, Rákóczi út 1–3. (1) 327-3700 (1) 266-7709 Info_Budapest@ accenture.com
3,587
Ÿ
16
1,341
kÜRt inFoRmáCióbiztonsági és ADAtmentő Zrt.
1,337
Ÿ
Ÿ
Ÿ
18
iFs HungaRy kFt. www.ifsworld.com
605 300
19
aQuis innovo kFt.
597
www.aquis.hu
–
top loCal exeCutive CFo maRketing diReCtoR
✓
Conet kFt.
www.kurt.hu
–
oWneRsHip (%) HungaRian non-HungaRian
–
1,918
17
–
majoR Clients in 2016
–
Ÿ
HostlogiC zRt.
www.conet.hu
–
opeRating systems oF seRveRs
Inter-Computer-Holding Kft. (100) –
15
www.hostlogic.hu
type oF system integRation
seRviCes
sap seRviCes
total net Revenue in 2016 (HuF mln) in H1 2017 (HuF mln)
Rank
Company Website
Special Report | 21
3
Budapest Business Journal | September 8 – September 21, 2017
Ÿ
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
–
Ÿ
Ÿ
Ÿ
Ÿ
Ÿ
Ÿ
Ÿ
Ÿ
Ÿ
– Accenture International S.A.R.L. (Ÿ), Accenture Minority I B.V. (Ÿ)
✓
ALTEO Nyrt., Aventics Group, CHEMARK Kft., Sole-Mizo Zrt., Vincotech Group, VÖRÖSKŐ Kft.
✓
✓
✓
–
✓
–
–
✓
(100) –
péter Fárizs, zoltán görbics Balázs Varga-Giesz Attila Molnár
1134 Budapest, Váci út 35. (1) 237-1730 (1) 350-4113 info@hostlogic.hu
endre nagy, endréné nagy – –
1147 Budapest, Fűrész utca 115. (1) 467-2060 (1) 467-2070 conet@conet.hu
–
✓
–
✓
✓
–
Ÿ
Ÿ
Ÿ
Ÿ
–
✓
✓
Ÿ
Ÿ
Endre Nagy (50), Endréné Nagy (50) –
–
–
✓
✓
✓
✓
Ÿ
✓
✓
✓
–
✓
✓
✓
✓
János Kürti (37.30), Sándor Kürti (37.30), József Kmetty (25.40) –
józsef kmetty – –
1118 Budapest, Rétköz utca 5. (1) 424-6666 (1) 228-5414 kurt@kurt.hu
BioTech USA Kft., Vajda-Papír Kft., ANY Biztonsági Nyomda Nyrt., FÉMALK Fémöntészeti és Alkatrészgyártó Zrt., LAKICS Gépgyártó Kft.
✓
– IFS WORLD AB- IFS CEE (100)
zsolt Weiszbart – Gábor Halász
1132 Budapest, Váci út 22–24. (1) 236-3700 (1) 236-3701 infohu@ifsworld.com
Ÿ
Imre Takács Jnr. (100) –
imre takács jnr. Lídia Sápi –
2051 Biatorbágy, Tópart utca 65. (1) 436-3000 (1) 436-3100 info@aquis.hu
–
✓
✓
–
✓
–
–
–
✓
✓
✓
–
Ÿ
–
Ÿ
✓
Ÿ
–
–
✓
–
Ÿ
–
✓
–
–
Ÿ
This list was compiled from responses to questionnaires received by August 31, 2017 and publicly available data. To the best of the Budapest Business Journal’s knowledge, the information is accurate as of press time. While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Additions or corrections to the list should be sent on letterhead to the research department, Budapest Business Journal, 1075 Budapest, Madách Imre út 13–14., or faxed to (1) 398-0345. The research department can be contacted at research@bbj.hu NoteS (1) Data relevant from the company’s establishment from July 1, 2016 to December 31, 2016. Data does not include the January 1, 2016-June 30, 2016 revenue of Invitel Távközlési Zrt.’s former corporate and wholesale trade branch. Invitel Távközlési Zrt. is the legal predecessor of Invitel Megoldások Zrt.
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Budapest Business Journal | September 8 – September 21, 2017
Bar Worship and Non-alcoholic Revelations David Holzer goes in search of ginger beer and bars with a near religious fervor. DAVID HOLZER
I stopped drinking nine years ago but I still love a good bar. This fascinates my partner. Last winter we were in the gorgeous American Bar in Vienna designed by Adolf Loos in 1908, whiling away a bitterly cold, rainy afternoon. “You look more relaxed than I’ve ever seen you,” she said. “It’s like you’re in church.” This may have had something to do with the way the light shone through the onyxcolored stained-glass windows. But there is definitely something almost mystical about the best bars. Although I say so myself, I have a sixth sense when it comes to finding great watering holes. So, I can say with authority that the Jelen Bistro is one of them, even if I only discovered the Jelen because a friend suggested we meet there. The Jelen is on the edge of District VIII, once a dubious neighborhood but now, according to Vogue, “a delightfully shabby district... Budapest’s must-visit spot”. Going purely by appearances, the Jelen crowd was a mix of the obviously arty and the more normal, suggesting that the Eighth hasn’t yet become another identikit hipster haven. The bar itself is big and airy but it’s not like you’re drinking in an aircraft hangar. There’s plenty of dark wood furniture, adding to the feeling that this is a longestablished joint. Even if, as is highly likely, the Jelen is not that old.
Substantial Menu
We didn’t eat, for reasons I’ll get to in a minute, but the menu is substantial
The Michelin-starred Costes Downtown.
and includes breakfast. The wine list is reasonable and there’s a decent choice of beers. Because the Jelen was clearly created by someone who knew what it takes to make a great bar, I hoped that there might be something non-alcoholic on offer that was a little more interesting than the usual. “Do you have ginger beer?” I asked. Our waiter, dressed all in black with slicked back hair, shook his head. I settled for yet another giant lemonade with elderberry flavoring. The reason we were just having drinks and not eating was because I’d decided to broaden my culinary horizons in Budapest and go upmarket. In a big way. I’m sure I’m not the first person to remark on the fact that Costes Downtown is appropriately named. But, even though our bill was around HUF 83,000 (roughly EUR 280) for three courses for three people, dining at Costes Downtown is certainly an experience. The restaurant (which opened in 2015 and received a Michelin star in 2016, and
has an older sibling called simply Costes that also has a Michelin Star) is one of those places where the waiters give you a little spiel before each dish. Faced with my partner and her sister, who couldn’t take this seriously and started teasing them in Hungarian, the Costes waiters shrugged their heavily muscled shoulders, grinned and gave up. Consequently, I really couldn’t tell you much about the wee amuse-bouches we were served between the dishes we’d ordered. I do know that the first was composed of dried vegetables topped with dabs of some sort of puree, designed to look like flowers and served on a bed of stones. I must admit I thought at first that these were brown rolls. Luckily, even though I was starving, I didn’t pop one into my mouth.
Holy Ginger Grail
Although the food was incredible – as it should have been – the highlight of the Costes experience for me was a nonalcoholic revelation.
When the waiter asked for our drinks order, I looked hopefully up at her (she was very tall) and said, “You don’t have ginger beer, do you?” She beamed down at me like a Hungarian lighthouse. “We do,” she said. I’m sure my own face must have lit up like that of a child on Christmas day. “And we have different flavors.” “Different flavors,” I said, “Wow,” blushing as I realized I sounded a lot like Homer Simpson. I chose a ginger beer flavored with coffee to start with, secure in the knowledge that there were three others to try. Incidentally, the Homer Simpson reference is not as arbitrary as it seems. As every good Hungarian knows, the original animator of the Simpsons was the brilliant Hungarian Gábor Csupó. This, according to my partner, is why the Simpsons look like a typical Hungarian family. Her words, not mine. I’ve yet to see a Hungarian with yellow skin and blue hair and I’m looking forward to it. But back to the gyömbérsör. I can’t say it was as purely refreshing as British ginger beer but it was certainly a not-so-soft drink to reckon with. The version with coffee lasted me an hour. Invited to try another, I plumped for ginger beer with grapefruit. This, too, was a fair fight and took me the rest of the evening to finish. Not that I’m complaining. I usually drink so many soft drinks over the course of an evening that I get to know the bathroom of any bar as well as I do its battlescarred banquettes. It turns out that the gyömbérsör is produced by a Hungarian named Péter Steierlein. I would love to know why he decided Hungary needed its own ginger beer. I’d also like to find out if it’s stocked anywhere other than Costes Downtown. Sadly, Péter didn’t reply to my email before my deadline for this article. If you’re reading this Péter, get in touch. Jelen Bistro is at Blaha Lujza tér 1, behind the Corvin Mall. Costes Downtown is one the ground floor of the Prestige Hotel at Vigyázó Ferenc u. 5.
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Volcanic Wine Erupts Onto Local Scene
The bijoux volcanic wine festival held in the pretty, hilly Mátra village of Gyöngyöspata on August 26 was a cozy and creative event that brought together a number of producers who are all bound by the volcanic soil they grow their grapes on. The subject of volcanic wine is as hot as a lava flow in the wine world, and Hungary is blessed with more than its fair share of volcanic soil. ROB SMYTH
The charming cellars of Gyöngyöspata played host to winemakers from around the country with some new names emerging, such as Péter Géró, who picks his grapes from the black, volcanic basalt soils of Somló and impressed with his Juhfark 2015. This indigenous grape can be hard to tame due to its searing acidity, but Géró has succeeded in making a wine with juicy citrus fruit, as well as the grape’s trademark banana and rhubarb, to hang enticingly off the acidic backbone. Fellow boutique Somló wineries Somlói Vándor and Dénes Hegybirtok also poured some very big wines from Hungary’s smallest wine region. From Gyöngyöspata itself, Márk Szignárovits, who showed an exciting Furmint from his micro plot of just a quarter of a hectare, is one to watch. He was introduced to me by Bálint Losonci, who I recall visiting over a decade ago when all he had in his pocket-sized, garage winery was a solitary barrel and a tiny tank. While still keeping things on a small scale, he has become one of the prime pioneers of Mátra, and it was nice to see him keen to promote other local talent. To delve deeper into volcanic soils it is perhaps best to draw on a recent book on the subject, “Volcanic Wines: Salt, Grit and Power” by John Szabo. This timely tome, which won the prestigious 2016 André Simon Award, takes in more than 300 winemakers/wineries in 22 regions across nine countries, with four Hungarian regions featuring in the volcanic mix. “Hungary may
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no longer have active volcanoes, but it does have a spectacular volcanic history,” writes the Torontobased Szabo, who has Hungarian roots. He became Canada’s first Master Sommelier in 2004. He selects his four finest Hungarian volcanic regions, which are TokajHegyalja, Badacsony, Balaton-felvidék, and Somló. Szabo observes there is no such thing as volcanic wine in the singular, but given the huge differences in soil composition, grapes, climatic and other key factors, he prefers to talk in terms of a family of volcanic wines that possess certain commonalities. “Wines from volcanic soils hinge on a common mouthwatering quality, sometimes from high acids, almost always from a palpable saltiness, sometimes both,” he writes. He goes on to discuss the savory character that wines originating from volcanic terroirs appear to have: “Volcanic wines have fruit, of course, but it’s often accompanied by, if not dominated by non-fruity flavors in the earthy and herbal spectrums of flavor, along with all of the nuances covered under the magnificently useful, multi-dimensional term minerality and all of its varied definitions. Minerality and volcanic wines walk hand-in-hand.” Szabo delves deep into the composition and formation of the specific region’s volcanic soils but also skillfully describes the plethora of other factors that determine the character of the wines. For instance, the distance to Lake Balaton makes all the difference in Badacsony and Balaton-felvidék, with the southern slopes that directly overlook the lake in Badacsony being subject to extreme ripeness, perilously low acid levels and botrytis-inducing high humidity. “Further inland, humidity and average temperatures drop slightly, giving the wines of Szent György-hegy and Csobánc, for example, more finely chiseled acids and finer frames,” he
explains. Although basalt-based, the soil composition varies considerably between the volcanoes in this area, adds Szabo. Badacsony producers Ambrus Bakó, Szászi Birtok, Válibor, Villa Sandahl, and Villa Tolnay are awarded two out of a possible three stars. Somló’s Györgykovács and Tokaj’s Alana, Bott Pince, Zoltán Demeter, Disznókő, Dobogó, Homonna, Oremus, and Szepsy score the maximum three. Two Hungarian volcanic wines offering terrific bang for the buck:
Káli Kövek Rezeda 2016 (Balatonfelvidék) A wine to confound critics of Olaszrizling. Picked on various harvest dates from the middle of September to the middle of October from old vines growing in basalt soil with some prized limestone in the mix. Fermented spontaneously in both barrel and tank, with a larger share going into the latter, and aged for six months, this wine captures a lovely balance of the fruit, floral and savory character, without oak getting in the way. HUF 2,750 from Bortársaság
Losonci Bálint Nyitnikék 2016 (Mátra) A blend of spontaneously vat-fermented Kékfrankos and the rare Magyar frankos from andesite and clay soils, with eight months of ageing in casks. A pretty purple color hints that this could be a youthful wine, which is confirmed by the primary fruit that oozes forth on the nose and palate. It has a bit of a rustic and bitter edge to it, perhaps due to the fact that it is unfiltered and
unfined, but it has loads of personality. Light- to medium-bodied, but full of flavor. HUF 2,620 from Bortársaság
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