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Analyst Corner
Polish IT Services Market to Hit USD 2 Billion in 2007, India Take Note
The IT services market in Poland slowed significantly in 2006, with growth less than half that of the previous year. Nevertheless, it was still strong, as revenue increased more than 13 per cent year on year to more than USD 1.9 billion.
According to a recent IDC study, the Polish IT services market continued to consolidate in 2006, reflecting both growing market maturity and intensifying competition. In 2007, IDC expects the market to grow by more than 14 per cent to pass the USD 2 billion mark.
"Last year, the number of large projects carried out, especially in the government sector, was smaller than expected, which resulted in a substantial slowdown," said Ewa Zborowska, senior analyst, IDC Poland. "However, Poland's bright economic outlook and considerable inflow of funds from the EU, coupled with current developments in verticals such as banking, manufacturing, and public administration, will contribute to healthy growth in the IT services area in the coming years."
The Polish IT services market is highly fragmented, with no provider holding more than 9 per cent market share. The top 3 players in 2006 — HP, ComputerLand (now Sygnity), and Prokom — together held nearly 22 per cent of the market.
Systems integration was the service most in demand; accounting for almost 24 per cent of total IT services revenue last year. Hardware support and installation followed with just over 16 per cent share. Then came software support and installation, which took close to 16 per cent of the market. Outsourcing was the fastest growing IT services category, growing more than 22 per cent year on year in 2006. Poland continued to gain popularity as a major centre for business process offshore (BPO) services in Europe.
Spending in the banking, telecommunications, and government verticals fueled the Polish IT services market last year. The financial sector accounted for nearly a quarter of total spending, the government sector was second with 16.5 per cent, and telecommunications was the third-largest spending vertical with 16 per cent market share.
According to a recent IDC study, the Polish IT services market continued to consolidate in 2006, reflecting both growing market maturity and intensifying competition. In 2007, IDC expects the market to grow by more than 14 per cent to pass the USD 2 billion mark.
"Last year, the number of large projects carried out, especially in the government sector, was smaller than expected, which resulted in a substantial slowdown," said Ewa Zborowska, senior analyst, IDC Poland. "However, Poland's bright economic outlook and considerable inflow of funds from the EU, coupled with current developments in verticals such as banking, manufacturing, and public administration, will contribute to healthy growth in the IT services area in the coming years."
The Polish IT services market is highly fragmented, with no provider holding more than 9 per cent market share. The top 3 players in 2006 — HP, ComputerLand (now Sygnity), and Prokom — together held nearly 22 per cent of the market.
Systems integration was the service most in demand; accounting for almost 24 per cent of total IT services revenue last year. Hardware support and installation followed with just over 16 per cent share. Then came software support and installation, which took close to 16 per cent of the market. Outsourcing was the fastest growing IT services category, growing more than 22 per cent year on year in 2006. Poland continued to gain popularity as a major centre for business process offshore (BPO) services in Europe.
Spending in the banking, telecommunications, and government verticals fueled the Polish IT services market last year. The financial sector accounted for nearly a quarter of total spending, the government sector was second with 16.5 per cent, and telecommunications was the third-largest spending vertical with 16 per cent market share.
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