Local software and IT service market posted increased below expectations in 2017, study says

0 51

According to the latest study by ANIS – The Employers’ Association of the Software and Services Industry, the local IT and software market has increased by only 2.1% last year, reaching EUR 975 million. The total turnover of the IT sector has increased by 11 percent in 2017, compared to 2016, reaching the threshold of EUR 4 billion. Analysts had estimated the threshold will be exceeded in 2017. For 2018, the forecast is that total revenues generated by the software and IT industry to mount to EUR 4.5 billion.

Software and IT services export contributed with 75.6% , to the value of the entire IT sector, up by 14% as against the previous year. However, the domestic revenue has been up by only EUR 20 million (2.1%) to EUR 975 M as compared to EUR 955 M in 2016. Out of the total export on IT products and services, 75% goes to the European market, 225 to the U.S. market and the rest to other markets.

The top 10 companies generate about a quarter of the market share. At the same time, among the 300 largest IT and software local companies, 40% are Romanian firms.

The following business sectors which have contributed the most with the most significant shares to the domestic revenue on this market are: the industrial sector-22%, the public sector-20%, banking-16%, telecom-11%, utilities, retail and services- 8% each.

It’s encouraging that the tech industry continues its growth, but forecast shows that, under similar circumstances, it will soon reach a plateau phase. To maintain and accelerate the growing path, the companies need a healthy, predictable environment, that should encourage the significant investments in technology across the entire economy and in the public system. At the same time, the tech industry is focusing its development priorities in the innovation area and in education projects with medium and long term impact,” said Teodor Blidăruș, President ANIS.

The study also shows that the total number of full time employees in the software and IT sector has reached 89,850 specialists in 2017, an increase by 7.5% compared to 2016. Among them, 88.6% have technical positions.

Three quarters of the companies with most employees have foreign capital.

- Advertisement -

Leave A Reply

Your email address will not be published.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More