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Friday, October 01, 2004
(SOURCE: TEKRATI, FULL REPORT: IDC)
According to a new IDC study, the Romanian IT services market rose by 107 percent to $109.27 million in 2003. The analysts expect continued Romanian economic expansion and the uptake of more complex IT services to nearly double the growth rate in 2004.
Accounting for over 17% of all IT spending in Romania last year, services are expected to represent more and more of the overall IT market as Romanian companies, especially small and medium-sized enterprises, invest in the systems and infrastructure needed to do business in the increasingly technology-dependent economy.
More than thirty IT services providers fought for share in Romania in 2003, with the top twenty providers capturing just over three-quarters of revenue. The competitive nature of the marketplace was underscored by the fact that fifteen of the top twenty vendors shifted places in the rankings last year. Leveraging their installed base, many IT vendors have already added IT services to their portfolios in an attempt to generate business from both new and existing customers.
"The increased competition will force IT services providers to go beyond their current clients to secure sufficient numbers of lucrative projects, especially in the long term," says Laurentiu Popescu, Senior Analyst, IDC Romania. "Specialization will also help, and companies should consider developing expertise in selected services areas."
Hardware support and installation once again accounted for the single largest share of IT services revenue in Romania last year. It was followed by systems integration and software support and installation. Altogether, these three areas represented more than 60% of IT services revenue last year. Although still small parts of the market, software as a service and IT education and training were the fastest expanding segments, with revenue jumping by more than 44.4% and 42.0%, respectively. "But over the next few years we expect growth to be fairly evenly divided between the different service areas," says Popescu. "This means support and installation and systems integration are likely to remain the sweet spots of the Romanian IT services market."
In terms of vertical sectors, utilities spent the most on IT services in Romania in 2003. Banking was second and the central government third. Telecommunications and transportation were also in the top five. As with service areas, no two or three vertical sectors dominated the market, with the top five accounting for a little less than half of value in 2003. "The telecommunications, manufacturing, and finance verticals will be the ones to watch," says Popescu. "All three are healthy and expected to invest heavily in IT upgrades as privatization and EU preparations continue apace."
IDC expects the Romanian IT services market to maintain a healthy speed over the next few years. "The right combination of economic growth, technological advancement, and EU-inspired liberalization and privatizations have created a solid foundation for IT services growth," says Popescu. "This doesn't mean tapping the market will be easy. If anything, the ripe environment will foster intensified competition in the IT services arena."
IDC's Romania IT Services 2004-2008 Forecast and 2003 Vendor Shares (IDC# ES06L) presents the IT services industry in Romania and forecasts expenditure on IT services through 2008. The study contains market size, vendor market shares, and forecasts for thirteen foundation market categories. The study ranks the top 85 IT services providers by their 2003 revenue, and presents profiles of the top ten vendors, including their IT services portfolio, their presence in individual vertical markets, and examples of IT services involving contracts. The top ten services providers for each of IDC’s foundation market categories are also provided. The study answers the following questions: What are IDC's predictions for spending on IT services and what are the assumptions for forecast numbers, and what impact will these have on the market forecasts? What are the new trends in IT services delivery, such as outsourcing and business services? Who are the market leaders based on services revenue and what are their strengths, weaknesses, and strategies for the future?
Posted by Mihai : 10/01/2004 10:37:00 am
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