IT spending in Romania to increase by more than $3.1 billion by 2015
Although spending did not reach pre-crisis 2008 levels, the more than $2 billion spent on IT last year reflects a cautious return of market confidence, according to a recent study by international market research company IDC.
Moreover, the outlook is positive: IDC expects IT spending in Romania to increase by more than $3.1 billion by 2015.
"It's important to remember that we're starting from a low base due to the economic crisis," says Madalin Lazarescu, research manager at IDC Romania. "Also, many small businesses are still struggling, the unemployment rate is still too high, and inflation could be an issue. The robust IT spending growth is encouraging, but we're not out of the economic woods just yet."
Accounting for a fifth of total IT spending, the home sector was the only sector in Romania to exceed the 2008 spending level. Hardware dominated the market, with "new" form factors like smartphones, ereaders, and tablets claiming the lion's share of the market. IDC expects the segment to remain healthy, with a compound annual growth rate (CAGR) of 12% through 2015.
By contrast, the second largest vertical, communications, still has a way to go to catch up. In addition to bankruptcies, a 25% cut in public-sector pay last year put a dent in telecoms spending by consumers, reducing overall revenue. IDC expects IT spending in the communications sector to contract by just under one percent in 2011, then expand by a bit more than 5% annually through 2015.
Government was the third largest single vertical in terms of IT spending in Romania in 2010. However, despite a number of large IT projects at the Ministry of Finance, the Ministry of Communications and Information Technology, and the implementation of modern IT infrastructure at the National Trade Register Office (ONRC), spending did not return to 2008 levels, and it is expected to contract slightly in 2011. Tax receipts are down and government commitment to an austerity program approved by the European Commission and the International Monetary Fund means spending will fall in the near term. Average annual growth will be no higher than 1.5% over the next five years.
Bucharest and Prague, 16 September 2011 –
