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Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.

IT Services Executive Summary, 2010

Slovak Republic

Apr-12 © IDC 2

IDC CEMA’s IT Services Coverage

Česká republika Slovensko

Polska

Magyarország

Eesti

Latvija

יְִשָרֵאל

Türkiye

دول اإلمارات العربية المتحد

South Africa جمهورية مصر العربية

Slovenija

Србија

Ελλάς

România

Hrvatska

България

Україна

Росси́я

Österreich

Lietuva

المملكة العربية السعودية

المغرب

Apr-12 © IDC

Executive Summary – Slovak Republic

In 2010, the IT services market in Slovakia totalled $609.49 million, representing a year-on-year decline of

4.2% in U.S. dollar terms. Measured in local currency, the market expanded 0.5% from the previous year.

HP was the leading IT services provider in Slovakia in 2010, with IT services revenue of $139.09 million and

13.9% market share. Siemens IT Solutions and Services placed second, with $90.86 million and 9.1%

market share. T-Systems ranked third, with $79.92 million and 8.0% share. Tempest and Soitron rounded

out the top five IT services providers in the country in 2010, with 6.2% and 5.1% of the market, respectively.

In 2010, the total IT services market in Slovakia totaled $609.49 million, representing a year-on-year decline

of 4.2% in U.S. dollar terms. The Systems Integration category accounted for the largest share of IT

services revenue, at 18.1%, followed by application consulting and customization, with 15.8%, and custom

application development, with 15.6%. The combined outsourcing category comprised 14.2% of the IT

services market in the county in 2010.

Combined government was the largest vertical market in Slovakia in 2010, with $183.31 million in services-

related spending and 30.1% market share. The combined finance vertical placed second, with 22.4% share

from IT services investment of $136.49 million. Telecommunications ranked as the third largest vertical

market in 2010, with IT services investment of $75.26 million and 12.3% market share. The utility sector was

the fourth largest market in the country, accounting for $71.81 million in IT services revenue and 11.8%

market share.

IDC expects spending on IT services in Slovakia to increase 1.1% year on year in 2011 and to expand at a

compound annual growth rate (CAGR) of 5.5% across the five-year forecast period to total $795.87 million

in 2015.

3

Apr-12 © IDC

IT Services Spending (US$M) by Engagement Type – Slovak Republic

4

25%

2%

22% 30%

14%

7%

Support and Installation

IT Education and Training

Systems Integration

Custom Application Development

Outsourcing

IS Consulting

Total = $609.49 Million

Apr-12 © IDC

IT Services Spending (US$M) by Engagement Type – Slovak Republic

2010

2009

2008

0

50

100

150

200

250

Support and Installation

IT Education and Training

Systems Integration

Custom Application

Development

Outsourcing IS Consulting

5

Apr-12 © IDC

Forecast and Analysis of IT Services Spending (US$M) by IDC Engagement Type in Slovak Republic, 2010–2015

1900n190000al

1900n190000al

1900n190000al

1900n190000al

1901n190101al

1901n190101al

1901n190101al

1901n190101al

1902n190202al

Outsourcing

Custom Application Development

Information System Consulting

Systems Integration

IT Training and Education

Support & Instalation

6

CAGR = 5.5%

Apr-12 © IDC

IT Services Spending (US$M) by Vertical Market – Slovak Republic

7

27%

22%

12%

12%

11%

3%

13% Combined Government

Combined Finance

Telecommunications

Utilities

Combined Manufacturing

Business Services

Other

Total = $609.49 Billion

Apr-12 © IDC

Impact of the Economic Crisis in Slovakia on Business Conditions and Environment

8

Other

Have Not Suffered from Recession

Suffered from Recession but Have Recovered

Growth Slowing But Not Stopped

Difficulty Obtaining Credit

Difficulty Servicing Existing Loan

Termination of Contracts

Decreasing Production/Fewer Services Sold

Layoffs in Non-Production Sphere

Layoffs in Production Sphere

0% 5% 10% 15% 20% 25% 30% 35% 40%

2010

2009

Apr-12 © IDC

Planned Actions for 2010 as a Result of Smaller IT Budget

9

None

Renegotiated Rates for Custom Development Projects

Renegotiated Support Contracts

Postponed New Projects

Cancelled All New Projects

Halted Running Projects

Invest into New Technologies

0% 10% 20% 30% 40% 50% 60%

2010

2009

Apr-12 © IDC

Benefits of Using Internal IT Staff instead of 3rd Party

10

Better Communication

Better Accountability

Cheaper

Faster Implementation

Higher Quality

More Flexible

Better Control

Provide Core Business Processes

Security Reasons

Critical Knowledge Stays at Home

Internal Business Rules

Compliance Driven

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

2010

2009

Apr-12 © IDC

Most Common Grievances with Third-Party IT Services Providers

11

Do Not Meet SLAs

Do Not Meet Deadlines

Slow to Respond

Do Not Understand Our Business

Interested in Pushing Their Product Line

Inflexible in General

Expensive in General

Insufficient Quality in General

Insufficient ROI Most of the Time

0% 10% 20% 30% 40% 50% 60%

2010

2009

Apr-12 © IDC

Learn More about IDC’s Services – Products and Services FY09 Portfolio

12

IT Services

Austria Egypt Baltic States Israel

Bulgaria Other Gulf States Croatia Morocco Czech Republic Saudi Arabia

Greece South Africa

Hungary Turkey

Poland UAE

Romania Russia Slovakia

Southeast Europe (SLO, ROM, BUL, FRY, SER, MON, Others) Slovenia Ukraine

Solutions

Czech Republic Gulf States (covering KSA, UAE, & OGCC)

Greece

Hungary

Poland

Russia Business Services

Central Europe (CZ, HU, PO, & SLK) Business Services 2010-2014 Forecast and 2009 Analysis

Sourcing Strategies

Competitive Analysis of Central European Countries Competitive Analysis of Russia and the Baltic States

Competitive Analysis of Southeastern European Countries

Competitive Profiles of Central and Eastern European Vendors Providing Offshore Services

Trackers and Forecasters – CEE

Semi-Annual IT Services Forecast Semi-Annual IT Services Vendor Tracker

IT Services Contracts Central and Eastern Europe, Middle East, and Africa Custom Consulting

Apr-12 © IDC

Why IDC?

IDC is the only international IT market research and consulting firm with research facilities throughout the

Central and Eastern Europe, Middle East, and Africa (CEMA) region, as well as research centers devoted

exclusively to tracking the fast-evolving IT markets of this region (Prague, Czech Republic, for CEE; Dubai,

UAE, for MEA).

IDC has over 15 years of experience in tracking and documenting the market dynamics of a variety of

technologies in the CEMA markets. We retain a network of offices in Bulgaria, Czech Republic, Poland,

Hungary, Russia, Romania, Ukraine, Kazakhstan, Croatia, Slovenia, Serbia, the United Arab Emirates,

Turkey, Israel, Morocco, Nigeria, Kenya, and South Africa.

IDC is experienced in undertaking primary research projects on a local basis. Each year, IDC undertakes

multiple custom research and consulting engagements that provide our clients with the strategic and tactical

intelligence necessary to improve their businesses.

IDC, through its work on quarterly and annual IT market surveys and its ongoing market research, contacts

more high-technology organizations than any other market research firm in the region. Consequently, IDC has

compiled a substantial list of local and regional contacts and has considerable expertise with in-depth

interview and survey methodologies for both vendor and end-user research.

IDC also retains an extensive list of contacts in the large enterprise end-user communities for its well-known

and highly regarded CEMA IT conferences and roadshows.

IDC applies strict project management and reporting methods to all projects of this nature to ensure that

projects are delivered on time and on budget and meet the expected quality standards.

To add the best possible value to a project’s design, analysis, and interpretation of results, IDC assigns to

each project a highly skilled team that can analyze the results of the study in the context of the broader

market environment.

13

Apr-12 © IDC

Local Presence Means Accuracy & Insight

14

•Turkey •UAE Saudi Arabia Kuwait Qatar Oman Bahrain Lebanon Syria Iran Jordan •Israel Rest of ME

Albania •Austria Belarus Bosnia & Herzegovina •Bulgaria •Croatia Cyprus •Czech Republic Estonia •Greece •Hungary •Kazakhstan Latvia Lithuania Macedonia Montenegro •Poland

Egypt •Morocco Algeria Tunisia Libya Ghana •Kenya Uganda •Nigeria Namibia Ivory Coast Ethiopia Tanzania Botswana •South Africa Rest of Africa

•Romania •Russia •Serbia Slovakia •Slovenia Tajikistan Turkmenistan •Ukraine Uzbekistan Rest of CEE

Central and Eastern Europe Middle East and Africa

IDC CEMA 120+ analysts in 20 key countries in CEE and MEA Regional headquarters located in Prague, Czech Republic Research coverage of nearly 50 countries Research centers for key sub-regions: Core Central Europe, Russia/CIS, Adriatics, SEE, Middle East, and Africa

Apr-12 © IDC

Contacts

15

Zuzana Kovacova

Tel: + 420 221 423 138

[email protected]

Research Manager

IT Services

IDC CEMA

Malé naměstí 13

110 00 Praha 1

Czech Republic

Fax: + 420 221 423 150

www.idc-cema.com

www.idc.com

Lukas Kriz

Tel: + 420 221 423 189

[email protected]

Senior Research Analyst

IT Services

IDC CEMA

Malé naměstí 13

110 00 Praha 1

Czech Republic

Fax: + 420 221 423 150

www.idc-cema.com

www.idc.com