Digital Media Europe

August 30, 2005

Romanian IT services market to reach €297m in 2009 – report

The Romanian market for IT services grew a healthy 28.3 per cent to €136.5m in 2004, according to a report from market advisory firm IDC. A combination of economic growth, large privatisation deals and vertical market development spurred investment in IT services. The Romanian IT services market should expand by an annual average of 16.8 per cent over the next few years, reaching €297m in 2009.

There was a considerable shake-up in the vendor rankings on the Romanian IT services market last year. S&T jumped from sixth to first, Siveco fell from first to third, and new entrants Softwin , Forte and Romysm Consulting all cracked the top ten. IBM held on to second position while HP dropped a notch to fourth. Despite the shuffle, the market further consolidated in 2004, with the top 10 vendors representing just under 70 per cent of market revenue, up from 60 per cent in 2003.

Systems integration was the largest single area in the IT services market in Romania in 2004. Hardware support and installation was a close second, as enterprises continued to replace obsolete equipment. Custom application development and software support and installation were a distant third and fourth, respectively. Together these four areas accounted for 66.5 per cent of IT services revenue.

The utilities sector was the single largest vertical in the Romanian IT services market last year due to a number of major projects in the sector. The privatisation of the country's biggest bank helped make banking the second largest sector, as did the implementation of e-banking services and additional steps towards satisfying Basel II requirements. The central government was the third largest vertical. Together, these three verticals comprised 34.0 per cent of IT services spending

http://www.dmeurope.com/default.asp?ArticleID=9901&cachecommand=bypass&Print=true