BMI: Romanian IT market spending to increase to RON 5.4 bn in 2014

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The Romanian IT market is forecast to outperform the majority of its peers as a result of a strong economic recovery and its position as a regional center for skilled IT professionals, a Business Monitor International (a Fitch group company) report on technology information reads. “ We forecast total IT market spending will increase to RON 5.4 bn in 2014, growth of 9.1% in local currency terms compared to 2013. Over the medium term income growth will support the retail hardware market, while improvements to telecommunications infrastructure is forecast to accelerate the development of Romania as an outsourcing and cloud computing market. However, regional economic and security instability could derail this bullish outlook, but the wider region could also drive the market to a higher growth trajectory”, the study shows.

According to BMI, computer hardware sales see an 8.1 per cent increase this year compared to 2013, up to RON 2.9 bn. A return to growth for desktop and notebook sales will supplement strong growth in tablet volumes this year, BMI forecasts. Software sales increased from RON 1.1 bn in 2013 to RON 1.2 bn in 2014, meaning a +10.6% in local currency terms. ”Piracy continues to hold back growth rates, but there will be a boost to software spending due to OS upgrades following the withdrawal of support for XP in April 2014”, the report says. As for the IT service sales, it is a 10.0 % increase to RON 1.3 bn this year, the report authors pointing out that Romania is already a popular destination for outsourcing and multinational firms continued to invest facilities in 2014. “There is also large-scale private investment-taking place in the Romanian IT industry as multinational companies locate outsourcing services facilities in the country. Romania is already home to a well-developed outsourcing industry and has the highest per capita level of IT professionals in the European Union, but investment continued in 2014”, the report also reads, reminding some of the new investments such as Siemens opening an R&D center in Cluj through its Evosoft subsidiary and Vodafone Shared Services Centre in Avrig Business Centre in May, 2014, with a total investment of EUR 6.25M.

BMI expects investment in outsourcing facilities will continue over the medium term, with upside potential from the progression of EU legislation for the harmonization of data and privacy rules across the region, the report concludes.

 

 

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