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Amsterdam (pte036/17.02.2003/15:08) - The European IT market is losing ground in competition with the US, as outlined in a Forrester market research study http://www.forrester.com presented today.
For 2003, European IT expenditures are projected to reach about 647 billion euros, compared to 865 billion euros in the US.
Germany is expected to remain the greatest economic force in Europe over the next 24 months, but Great Britain will most likely replace Germany as the most important IT market in Europe by the end of 2003.
Overall, Forrester predicts a 2.4 per cent decline in software turnover, stagnation among hardware firms, and a 1.2 per cent rise in IT services (excluding telecommunications) in Europe. The telecommunications services sector is predicted to grow by 2.2 per cent.
While large software groups such as SAP, Oracle or IBM can expect five to ten per cent growth, many smaller IT services and software companies in Germany or Great Britain could be forced to fold, the study projects.
Forrester analyst Charles Homs said: "These multinationals still have enough of a budget for IT services like outsourcing and consulting." This is one reason he thinks Great Britain will see 1.6 per cent growth in IT services, while many smaller countries could see their market decline by 0.5 per cent.
The market for mobile telecommunications and services may prove the most successful in spite of high debts and low turnover among the larger firms, as the number of mobile clients in Europe is expected to increase by six per cent this year.
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