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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
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
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