July 24, 2011 -
PRLog -- Market Overview The Czech Republic's IT market is forecast to achieve a compound annual growth rate (CAGR) of 9% from US$4.7bn in 2011 to around US$6.5bn in 2015. Consumer and business IT spending picked up in 2010 but continued economic uncertainty and rising unemployment will likely mean that, during BMI's five-year forecast period, growth will remain below the immediate pre-2008 trend level. BMI expects to see a continued improvement during 2011 in enterprise and consumer IT spending, but an uncertain economic and political climate will weigh on investments. Unemployment is expected to remain relatively high, and this will act as a drag on real wage growth and consumer demand. Industry Developments The Czech Ministry for Local Development, which supervises the allocation of EU subsidies for investment in IT and other areas, has launched a campaign to make access to the funds easier for smaller organisations. According to the ministry's plans, subsidies should go into areas with strong potential to drive growth. Since the beginning of the 2007-2013 budget period, the total amount approved by the EU for Czech projects has reached CZK150.6bn. The health sector is one area of growing public sector spending. The Czech National Health Insurance Agency has implemented a new anti-fraud software plan to be implemented in the next couple of years. As part of the modernisation of the sector, 14 medical institutes run by the Ministry of Health are also rolling out unified software, supplied by Aquasoft. Competitive Landscape In September 2010, iPad-maker Apple signed up AT Computers as a second distributor for the Czech market. Apple hoped that the new distribution deal would help it to cut local prices by thousands of crowns, from a level around 10-15% above that found in much of the rest of Europe. Previously retail prices and margins were determined by Apple's sole Czech distributor Apcom, but now Apple has planned to get more involved. Despite the impact of the global financial crisis, the banking and financial services sector remains a key target for IT vendors. In April 2010, business analytics software vendor SAS won a contract from the Czech Republic's largest bank, Ceska sporitelna. The bank purchased SAS's Marketing Optimisation software with the aim of optimising existing marketing campaigns and increasing income. Ceska sporitelna, which already uses SAS software, selected long-term partner Capgemini for the implementation. Czech Republic Information Technology Report Q1 2011 © Business Monitor International Ltd Page 6 Meanwhile, also in April 2010, Israeli IT services global player Ness announced that it had won a US$2mn contract from Teva Czech Industries, a provider of pharmaceuticals products. The important project win confirmed Ness' position as a leading provider of Oracle implementation services in the Czech Republic after the vendor had delivered solutions for other Czech companies such as Vitkovice and Dalkia Czech Republic.
About Business Monitor International
------------------------------------------------------------
Full Report Details at
-
http://www.fastmr.com/prod/208440_czech_republic_informat...------------------------------------------------------------
Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at
http://www.fastmr.com/catalog/publishers.aspx?pubid=1010About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.
For more information about these or related research reports, please visit our website at
http://www.fastmr.com or call us at 1.800.844.8156.
# # #
Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.