Dominican Republic - Country Commercial Guide
Information and Communication Technology

This is a best prospect industry sector for this country. It includes a market overview and trade data.

Last published date: 2021-08-23

Overview

The Dominican market for computers and peripherals and IT services has experienced continuous growth in recent years. It is anticipated that the market will continue to expand due to a combination of price reductions, the availability of attractive financing packages, and technology changes that characterize this sector.

The previous GoDR administration had announced an ambitious initiative titled, “Republica Digital,” intending to overhaul the country’s education sector nation-wide through technology. There were plans to provide a computer for every student in the public school system, create a national digital library, reduce internet access costs, as well as educate teachers and students on many different technology areas (multimedia, web development, software, social media, e-commerce, etc.).

In 2020, the was a change in government after President Abinader was elected and with that, Republica Digital was updated and rebranded as “Agenda Digital 2020-2030.”  The Abinader administration is focusing this effort on laying the foundation for a long-term digital development project that will continue developing, regardless of future changes in government. More information about this initiative should be made public by August 2021.

Leading Sub-Sectors

The most promising sub-sectors within this sector are:

  • Cloud storage

Dominican companies and the government are in the early stages of adopting this technology, creating numerous opportunities for US companies. The biggest challenge to market entry is convincing IT executives and company owners that the cloud is just as safe (if not more) as having physical storage on their premises.  Local businesses are wary of placing sensitive information in the cloud, so it is essential to inform them of security measures offered so they can become familiar with the advantages.

  • Peripherals (power supplies, keyboards, card key, and magnetic media entry devices)

The Dominican market for computers and peripherals has experienced continuous growth over the last three years and the market will continue to expand. American brands dominate the market, and this trend will likely continue due to the free trade agreement (CAFTA-DR) that allows for duty-free imports of computers and peripherals. There is also a market for used and refurbished equipment in the market.

Other Sub-Sectors

  • Software
  • Enterprise Software (payroll management, IT Service Management, etc.)
  • Middleware

Opportunities

The key to sustained sales is a partnership with a local distribution company that is familiar with the market and has access to contacts in the industry. A local distributor is invaluable for after-sales services and maintenance.

Specific to cloud services, it is important to show potential customers that their data is safe, confidential, and encrypted. Some companies may still want to have a physical means of storage at their premises and only use the cloud for non-sensitive data.

The three most important factors in selling computer hardware and peripherals in the Dominican Republic are price, service support, and timely supply of spare parts.

U.S. manufacturers of computers and peripherals interested in the Dominican market need a competent local agent, distributor, or representative unless they plan to open their own branch office or subsidiary. A good agent should be able to provide technical assistance and local servicing, and be well acquainted with local political dynamics and business customs.

Due to the Covid-19 crisis, many companies and schools implemented teleworking, virtual conferences, and virtual classrooms. For most, this was a new experience, and although many activities will return to normal after the pandemic, some companies and schools may keep using these alternatives. Programs like Zoom, GoToMeetings, and Microsoft Teams are widely used in the country.

Connectivity

  • Mobile phone connections: 8.64 Million (79.2% of the population)
  • Fixed lines in operation: 800,000
  • Internet users: 8.16 Million (74.8% of the population)
  • Active mobile social media users: 7.0 Million (64.2% of the population)
  • Top mobile vendors: Samsung (36%), Apple (23%), LG (11%)

Web Resources

  • Website of the Dominican ICT Chamber: http://www.camaratic.org.do
  • Website of the Government (Presidency) ICT office: http://www.optic.gob.do
  • ICT Expert: www.mitenishio.com

Javier Suarez, Commercial Specialist: javier.suarez@trade.gov