Romanian IT Services Market to Shoot up by a Quarter this Year as EU Membership, FDI, and Economic Development Drive Spending, predicts IDC
The Romanian IT services market is expected to grow by more than 25% this year. According to a recent study by IDC, this represents an acceleration from 2006, when the market expanded by 22.3% to more than $244 million. The main market drivers in the coming years will include the inflow of FDI and EU structural funds, strong economic development, and maturation of the market.
"With many advantages on its side – size and location, cultural proximity to Western Europe and the U.S., strong technical and language skills – Romania is becoming a fierce regional competitor in the IT services field and an attractive market for international players,” says Calin Mirea, Research Analyst, IDC Romania.
The Romanian IT services market is dominated by international players. The top three providers last year were IBM, HP, and SIVECO, whose combined market share reached nearly 35%. Whereas the leader maintained its position from the year before, the other two moved up from the 4th and 6th position, respectively.
Systems integration accounted for the largest share of IT services revenue last year at 24.3%, followed by hardware support and installation (17.8%) and software support and installation (13.6%). IDC expects these services categories to continue to play a major role on the Romanian IT market.
The biggest customer for IT services was the combined manufacturing sector, accounting for over 16.5% of total spending. The utilities sector placed second with 16.3% share, while the government ranked third with 15.9% market share. Demand for IT services is expected to grow strongly in the telecommunications and financial services sectors in the coming years. Telecommunications companies need to invest in IT in order to win and retain customers in a market that is fast approaching saturation, while in the area of financial services the demand for new IT solutions stems from increased competition as well as the need to comply with EU and international banking regulations.
IDC projects that spending on IT services in Romania will maintain solid growth of more than 18% annually on average over the next five years.
IDC’s Romania IT Services 2007-2011 Forecast and 2006 Vendor Shares (IDC #ES08P) presents the Romanian IT services industry in 2006 and forecasts expenditure on IT services through 2011. The study provides market size information, vendor market shares, and revenues broken down by IT services categories and vertical markets. The study presents profiles of the top ten IT services providers including their IT services portfolio, their presence in individual vertical markets, and their largest contracts in 2006.