Telecommunications and utilities at the forefront of digitalization investment in Central and Eastern Europe
Jul 16, 2017
13 Jul 2017
Prague — IDC's recently published Semiannual IT Spending Guide: Industry and Company Size, H2 2016 shows very dynamic spending growth among telcos and utility firms, which will reach $11.69 billion in 2018 (for the two sectors combined) and will record a compound annual growth rate (CAGR) of 5.3% through 2021.
Telcos and utilities will be the main drivers of the hardware market in the coming years. " Organizations in the telecom and utility sectors are facing up to the challenge of incorporating disruptive new technologies into their systems in CEE, despite many bureaucratic and financial obstacles, " says Senior Research Analyst Ivana Slaharova. Consequently, these sectors will be at the forefront of digital transformation in the region through 2021 and beyond. IT services spending will be driven by the public sector and the finance industry, as well as by telecommunications and utilities, while manufacturing is the domain of software, with manufacturers expected to account for one-third of software spending in 2018.
In terms of end-user segments, large businesses are expected to account for more than 60% of total IT spending in 2018. Medium-sized businesses will be responsible for around 20%, and spending by small businesses will amount to a little over 13%. IT spending among small offices will be limited, at less than 5% of the total. Consumer IT spending is forecast to decline slightly through 2021.
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