Government IT Projects to Drive Red Hot Macedonian Market in 2007, says IDC

The Macedonian IT market is expected to soar over 40% in 2007 to almost $121 million, largely due to massive government investment in the education sector. According to a recent study by IDC, rapid growth of the Macedonian IT market is expected to continue over the coming years.

“After a ‘lost’ decade, the emerging Macedonian IT market is not only rebounding, but showing unique vitality compared to other countries in the region,” said Boris Zitnik, Managing Director, IDC Adriatics. “Due to the expanding economy, recently launched FDI incentives, and preparations for EU membership, the country’s IT spending will expand strongly in the mid-term.”

The surge in IT spending comes after healthy growth of almost 13% in 2006, when total revenue reached nearly $83 million. In contrast to 2007, demand in 2006 came predominantly from the enterprise and home sectors, while procurements by government and state-owned companies were delayed by parliamentary elections.

Hardware continues to fuel the IT market in Macedonia. IDC estimates that investments in hardware will skyrocket roughly 69% in 2007 to almost $80 million in 2007, nearly two thirds of total IT spending. IT services will be the second-biggest segment, predicted to grow 16% year-on-year in 2007 to nearly $25 million or more than 20% of the total. Packaged software will come third at $16.5 million (13.6% of the market) in 2007, compared to $14.3 million in 2006.

“While the IT spending structure reflects the immaturity of the Macedonian IT market, there has been a notable shift in favor of IT services,“ said Zitnik. “Macedonia is unique in the Adriatic region in its growing popularity as an offshore IT services provider. Last year, local providers exported a third of their IT services abroad.”

IDC expects IT spending in Macedonia to increase at an average annual rate of around 20% year-on-year over the next five years to $206 million in 2011, more than double the figure for 2006.

IDC’s Macedonia IT Market 2007-2011 Forecast and 2006 Vendor Shares (IDC #ESP10P) presents the IT market in Macedonia and forecasts total IT expenditure by technology through 2011. The study contains market size, 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
TAGS:
CATEGORY: FYR, Outsourcing News
 
 

    Popular posts

    Related posts