New Market Report Now Available: Slovenia Information Technology Report Q3 2010

Recently published research from Business Monitor International, "Slovenia Information Technology Report Q3 2010", is now available at Fast Market Research
 
July 11, 2010 - PRLog -- Slovenian IT spending is projected to achieve low single-digit growth in 2010, as the market begins a tentative recovery following a sharp contraction in 2009. Last year saw IT spending hit by what is estimated to be Slovenia's worst recession in most than 20 years.

Businesses retrenched due to tighter credit conditions and the unfavourable external economic environment. PC sales dropped by around 15% but shipments entered positive growth territory again in Q110.

BMI expects Slovenian IT spending to grow again in 2010, due in part to base effects and procurements deferred from 2009. The fundamentals of rising incomes in a context of below-EU-average PC penetration mean that this small IT market should advance at a compound annual growth rate (CAGR) of 6% over the 2010-2014 forecast period.

Industry Developments

Across the public sector, tenders continued to be issued in 2009 despite the bad economy. Among recent tenders was one for sales, marketing and business intelligence software from Radiotelevizija Slovenia. Another was for software programming and consultancy services from the Ministry of Labour, Family and Social Affairs.

Health is one priority area. In 2009, the Health Insurance Institute of Slovenia announced that it would roll out a new electronic health insurance card system. The new system will use a card that will eventually be carried by every Slovenian citizen and presented at the point of healthcare delivery.

In 2008, Slovenia implemented a number of IT projects, making use of both local and EU funds. Slovenia is determined to consolidate its status as one of the most advanced of the 2004 EU accession states. EU funding for its Competitiveness and Innovations programme for the 2007-2013 period includes substantial sums to support ICT policies. There are also additional sums for entrepreneurship and innovation, which can have IT applications.

Competitive Landscape

IBM won a major contract in March 2010 when the Slovenian Tax Administration awarded the US vendor a US$404mn contract to modernise its tax collection system. IBM won the tender ahead of rival bidders Hermes SoftLab and HP. The new system is due to be operational by 2014.

This success continued a good run in the public sector for IBM, which in 2009 won the contract from the Health Insurance Institute of Slovenia to roll out the electronic health insurance card system based on IBM technology.

International brands have consolidated their position in Slovenia's PC market, with HP still the leader in terms of overall PC market share in 2009, followed by Acer, Lenovo, Dell and Fujitsu-Siemens. As the hard-copy peripherals segment approaches saturation, the top three vendors - HP, Samsung and Canon - have nearly three-quarters of the market.

Computer Sales

Slovenian sales of computer hardware (including desktops, notebooks and accessories) are projected at US$566mn in 2010, with modest single-digit growth compared with the previous year. Computer hardware sales slipped into negative growth territory last year due to a weak private consumption outlook, tighter credit conditions and the impact of the recession on Slovenian businesses.

In 2010, Microsoft's Windows 7 operating system, launched in October 2009, has the potential to help trigger a cycle of hardware upgrades, although much will depend on business and consumer confidence. There could also be a boost from procurement delayed from 2009. However, most growth is likely to be in the second half of the year.

Software

The software market in Slovenia is projected at US$225mn in 2010, with a return to low single-digit growth following a sharp deceleration in 2009. The economic crisis led some companies to review IT budgets or look to defer systems updates, and margins pressure encouraged them to focus on reducing costs. However, solid market growth is expected during the forecast period through to 2014, with software revenues growing faster than that of hardware at a CAGR of 7%.

Slovenia is a relatively mature software market for the region and the relative saturation (79%) of the large enterprise market in terms of basic enterprise resource planning (ERP) applications should encourage vendors to look to other products to maintain growth, or else focus more on vertical specialisms. Although large and very large enterprises still constitute around half of the spending on enterprise application solutions (EAS) in Slovenia, more than 64% of new installations are reported to come from small and medium-sized businesses.

IT Services

The Slovenian IT services market is projected to grow to around US$308mn in 2010, with a return to single-digit growth compared with the previous year. However, the market is expected to pick up further and a 6% 2010-2014 CAGR is projected, with support and maintenance accounting for more than 25% of these revenues.

In 2009, despite the economic downturn, IT services companies continued to benefit from IT projects tendered across various sectors ranging from the public sector to banks, education, retail and financial institutions. In the long term, the IT services market is set to expand as Slovenian organisations upgrade IT systems to gain or maintain competitive advantage following EU accession.

E-Readiness

The Slovenian government statistics body, SORS, has released new data about information and communication technology (ICT) adoption by enterprises. The statistics, from Q108, comprise a fascinating picture of the utilisation of ICT by enterprises of various sizes and of attitudes towards IT spending.

The overall picture suggests room for further market development, particularly among smaller and medium companies, but also a need for continuing education by vendors. Internet access is now nearly ubiquitous, at 97% among companies with 10 employees or more, up 1% from the same period of the previous year. Broadband access reached 80% among the same group.

The large majority of companies still use the internet mainly for email and information rather than ecommerce. Nearly 30% of enterprises with 10 or more people do not even have a website. Only 18% of large companies enable online ordering on their website and only 5% enable online payment. The corresponding figures for small and medium companies are even lower.

In the case of intranet, there is a clear gap between larger companies and smaller ones - 75% of larger companies had an intranet, compared with just 40% of medium companies (50-250 employees) and 26% of small companies. Intranet usage was highest in computer-related business and lowest in the construction and hotel sectors.


For more information or to purchase this report, go to:
-  http://www.fastmr.com/prod/71709_slovenia_information_tec...

About Business Monitor International

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=1010

About 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.
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