PRAGUE, Czech Republic, August 2, 2002 - The Greek IT services market was affected by the slowdown in the national economy, and growth was reduced to low single digits. According to the latest research by IDC, spending on IT services in Greece reached $485 million in 2001. Growth in the IT services market reflected the pace of the economy and was negatively affected by the delayed commencement of projects funded under Common Support Framework III. The introduction of the euro had only a minor impact on IT services spending in Greece last year.
IT services spending is being increasingly concentrated on system service activities, in marked contrast to previous years when IT services expenditure was focused on hardware and software support. There is growing evidence of IT services being marketed, procured, and delivered as IT/business solutions in Greece. In 2001, the largest foundation market was again hardware support and installation. Software support and installation was in second place, slightly ahead of system integration. Illustrating the evolving nature of the Greek IT services market, the combined outsourcing market exhibited year-on-year growth of more than 20%.
Intracom remained the leading IT services vendor in Greece, with services revenue of $129.40 million. IBM Hellas held on to second place with strong earnings, followed by Altec. Unisystems slipped from third to fourth position last year. Underlining the enduring strength of the Greek conglomerates in the market, Delta Singular rounded out the top five vendors.
IDC research shows almost 60% of IT services spending was concentrated in the communications, combined finance, and public sectors last year. The telecommunications sector continued to generate the single largest volume of IT services revenue among Greek industries in 2001, while the banking sector was the second largest source. The government sector (including central and local
governments) was close behind, accounted for a little over 15% of IT services expenditure last year.
The EAS market is clearly a driver of spending on IT services in Greece. Representing 25.2% of the total EAS market in 2001, extended functions (e.g., CRM and SCM) have arrived on the Greek market and are driving the market for implementation, consulting, and integration.
IDC's report, The IT Services Market in Greece, 2001-2006 (IDC #ES08J), presents an overview of developments in key IT services segments, along with an analysis of the market's competitive environment. The report also identifies several key industry trends and makes recommendations for IT services providers to expand market share.
The report is available for purchase from IDC CEMA, tel. +420-2-2142 3153 or contact Marketa Kderova at mkderova@idc.com.
About IDC
IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at www.idc.com.
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For more information, contact:
John Dooly, Research Analyst, Software & Services, IDC CEMA
+420 2 21423140
jdooly@idc.com
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Date: September 16-17, 2002
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