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US software vendors dominate in Europe while UK companies hold only a limited market share in the region, according to the latest rankings by PAC.

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The software and IT services (SITS) market in Eastern Europe and Russia experienced a major mood swing in 2008. The market switched from an upbeat outlook and a promising pipeline in the first half of 2008 to a sluggish year end, dominated by uncertainty and caution.

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The global financial crisis will emphasise the importance of IT outsourcing as a tool to cut IT expenditure in 2009 and 2010. Central and Eastern Europe (CEE) is no exception in this respect.

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While the SAP consulting services market is facing huge challenges of client budget cuts, project delays and lengthening sales cycles, the SAP outsourcing segment in the UK is seeing some more positive developments.

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IT services suppliers will continue to build out their low-cost sourcing networks across multiple regions in 2009 in order to improve their cost base amid challenging market conditions.

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Bianor signed a partnership agreement with the Finland based Comptel Corporation. The expected duration of the project is 14 to 24 months.

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American companies plan to continue to implement their current strategies for sourcing some functions offshore despite the current worldwide economic slump, and the financial downturn may even accelerate such plans.

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Macedonia’s IT market skyrocketed 63.8% year on year in 2007, to almost $164 million. In local currency, year-on-year growth was 53.7%.

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IT market has increased with a moderate rate, while telecommunication sector has shrunk IDC has made a survey on the Hungarian IT market for the third time in 2008.

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As firms, including nonprofits and institutions, move their strategies toward meeting their customers’ needs, by investing in tools such as in CRM, call recording, speech analytics, and performance and workforce management systems at their contact centers, they have been moving away from BPOs for such high-value interactions.

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