Economic Growth, Reforms, and EU Approximation to Drive Unsaturated Serbian IT Market, according to IDC

The Serbian IT market has been growing rapidly and is projected to continue to expand in the coming years. A recent research study from IDC estimates that the Serbian IT market grew 18.3% year-on-year in 2007 to exceed $568 million, and could reach $646 million this year. The main drivers behind this forecast include economic growth, reforms and streamlining of the government administration, foreign direct investment, restructuring in the business sector, competitive pressures and the process of approaching EU accession.

“The Serbian IT market is not developed compared to those of the new EU member states, but is very strong compared to other countries in the Adriatic region,” says Marina Jovanovic, Country Manager, IDC Serbia and Montenegro. “As the privatization process continues, FDI increases, and the outlook for the economy improves, all end-user segments will increase their PC purchasing. Most organizations are still in a developmental phase, trying to establish their basic IT structure. This means there is potential for long-term growth on the local IT market.”

Hardware continues to dominate the IT market in Serbia, accounting for almost two thirds of total IT spending in 2006. IT services represented 18.4% share and software the remaining 17.0%. This market structure reflects the market’s immaturity and is expected to change over the coming years as Serbia catches up with more advanced economies in the region. The most dynamic segments include storage, which expanded 58.9% year-on-year in 2006, while the IT services segment grew by 25.3% and the hardcopy peripherals market by 26.8%. The packaged software market in Serbia increased by 25% and the hardware market by 23.9%.

IDC expects IT spending in Serbia to grow by 14.7% annually on average over the next five years, with the strongest growth predicted in the software segment.

IDC’s Serbia IT Market 2007-2011 Forecast and 2006 Vendor Shares (IDC #ESP1P) presents the IT market in Serbia and forecasts total IT expenditure by technology through 2011. The study contains market size information, vendor market shares, and growth projections for hardware and packaged software shipments, and IT services provision. It analyzes market trends and provides valuable insight into the main drivers of individual market segments.

Source: IDC
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