The ICT in Mongolia: Overview and Companies Data

by Dan Irascu

The ICT in Mongolia: Overview and Companies Data

Mongolia's high economic growth has been attributable to large and growing oil and gas exports, but some non-export sectors also featured double-digit growth, including construction, banking, and real estate. The IT sector was never a priority for the government-supported economy fields, and thus web industry developed by itself, with small steps, and exclusively based on market requirements. 

According to paylab the salary in the IT sector in Mongolia varies from $198/mo - $735/mo. The average hourly rate, as expected, varies between $9 up to $21 for web developers, which means that a local agency may charge per hour slightly more than the official numbers. 

Why Working with Mongolian Web Agencies?

Even though there are no visible changes and state-supported policies that would develop the branch, Mongolia web agencies still exist, and provide the same range of services as western European ones, but for a considerably lower price.

What to be aware of when working with Mongolia web agencies

However, you may want to give a second thought of whether the price range is your main reason, and also explore other options in the region. Even though web services are cheap in Mongolia, you may find difficulties in communication, project management, software piracy, and also project delivery terms. 

Are Mongolian Agencies reliable? 

It depends from case to case on how reliable web development and design agencies from Mongolia really are. Tech Behemoths don’t interfere in the selection process, but you may consider having a call with all agencies from the country and also try to avoid agencies based in small cities. 

How Mongolia relates to its neighboring countries in terms of IT?

On the background of a well-developed IT sector in China, and a slightly lower IT development sector in Kazakhstan, Mongolia faces challenges of exiting the global market and promoting its services and web products. Also, web companies lack substantial state support and government policies that will encourage the development of this branch. On the other hand, the lack of strong competition in the IT sector in this country makes it a good target for IT startups.

All in all, Mongolia has a still undiscovered IT potential and hopefully will develop this field in the next years. Until then, few web agencies struggle to acquire new products and use the latest technologies and lower prices to get a relatively strong presence on the local market. 

 

2022 forecast for Mongolian ICT industry

With an increased internet penetration rate and continuous growth of digital acquisition, Mongolia's IT industry has a solid background to develop and possibly attract new IT companies across the world. With almost 70% of internet penetration rate the country looks ready to dive into tech education and increase IT capabilities to handle a tech boom. In 2022 we should expect an emerging Mongolia on the IT market. 

Dan Irascu

Marketing Department

Researching, analyzing, and writing insightful stuff is what I do for a long time now at Mobiteam. At TechBehemoths, I put all my experience and knowledge work for IT companies and businesses and help them reach each other.