The Albanian IT market continued its dynamic growth in 2008, supported by a robust economy, which included increased household disposable income due to expanding credit. The volume of government technology procurement were more than doubled from the previous year. According to a recent report by IDC, total IT spending reached $117.25 million in 2008, representing year-on-year growth of 31.4%. Measured in local currency, the market expanded 20.6% year on year in 2008.

“Two large projects shaped the IT market in Albania in 2008: the eID Card project and the continuation of PC procurements for the education sector” says Managing Director Boris Zitnik, IDC Adriatics. “In the context of the global economic crisis, IDC expects that the IT market in Albania to decline sharply in 2009 and remain flat in 2010. By 2011, the crisis will slowly begin to recede, the country will gradually attain positive GDP growth, and the IT market will return to solid annual growth rates.”

Packaged software shipments and IT services provision expanded an impressive 73.2% and 70.7%, year on year. Hardware shipments grew 21.2%, which was below the market average. Accordingly, IT services increased its share of the total market to 15.3% in 2008, packaged software grew to 10.9%, and hardware’s share fell slightly to 73.8% of the total. “Notably, such volatile IT spending dynamics are tipically inherent in small countries’ IT markets, where a very small number of large projects drastically influence market trends”, states Zitnik.

IDC expects the Albanian IT market to expand 3.1% annualy on average over the next five years to reach $136.4 million in 2013.

IDC’s Albania IT Market 2009-2013 Forecast and 2008 Vendor Shares (IDC # ESQ15R9) presents the IT market in Albania and forecasts total IT expenditure by technology through 2013. 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.