Romania Information Technology Report Q1 2012
Business Monitor International, January 2012, Pages: 57
Romanian IT spending is forecast to grow strongly over BMI's 2012-2016 forecast period as the economy recovers. With the Romanian economic recovery expected to broaden over the coming quarter, BMI expects Romania's IT market to be among the best growth prospects in Europe.
In 2011, total IT spending was on course to report double-digit growth, with household computer sales particularly strong, while demand for ERP solutions was another growth area. The Romanian IT market's fundamentals of rising computer penetration, rising incomes and the effects of EU membership should support the forecast expansion.
Industry Developments
E-government and e-public service projects such as the E-Romania portal will help to drive ICT investment across various sectors, with an e-justice that was rolled out in Q111, supported with EU funding. Meanwhile, the National Tax Administration Agency (ANAF) is reportedly planning a major upgrade of its IT systems.
The Romanian government will continue to try and use EU structural funds to support ICT investment. A total of EUR383mn has been earmarked for Romania's ICT sector for the 2007-2013 period. About 70% of the money earmarked for the Ministry of Communications and IT is to expand broadband communications infrastructure.
Competitive Landscape
In H111 there was further volatility in the Romanian computer market, as overall sales reported strong growth due to an improving economy. The main vendors to benefit were Dell and HP, which grew strongly, partly due to a recovery in business procurements. Meanwhile, the sales of vendors such as Acer and Asus, which mainly address the consumer segment, dropped.
In its 2011 fiscal year, which ended on June 30, Microsoft Romania reported a 5% contraction in local sales. The main cause of the drop was a suspension of the company's contracts with the government, as well as less demand from the business sector. However, revenues from some segments was up, with CRM reporting more than 10% growth.
Business software giant SAP announced in November 2011 that it planned a major investment in Romania. SAP reported ERP sales of EUR10.5mn in Romania in 2010. However, US rival Oracle is the clear market leader and has 22 service centres in Romania and around 1,300 employees.
Computer Sales
BMI forecasts that the Romanian computer hardware market (including desktops, notebooks and accessories) will be worth US$925mn in 2012, up from US$805 in 2011. In 2012 PC sales reported double-digit growth, with total shipments of about 700,000 units. However, average prices also declined sharply, and Romanian demand for computer hardware will remain constrained in consumer and business segments due to continued deleveraging and rising unemployment.
The low level of computer penetration, at less than 25%, still represents an opportunity for vendors during our forecast period. While the latest statistics suggested that 43.5% of urban inhabitants in Romania owned a computer, the nationwide figure for home computer ownership was just 24.6%.
Software
The market value of legal packaged software in 2012 is projected by BMI at around US$252mn, with double-digit growth from 2011. As the economy emerged from recession in 2011, software investments by key software spending verticals started to grow again. In 2011 Romania's Banca Transilvania, which has a 500 branch and agency network, invested US$19.4mn in a new core banking system.
The enterprise resource planning (ERP) market is still in its early phase, where larger companies and organisations still provide strong demand. In other Central and Eastern European (CEE) states, the focus of opportunity has shifted to the small and medium-sized enterprise (SME) sector. However, demand has gradually become more sophisticated, with increasing interest in support and technical assistance.
Services
The Romanian IT services market is projected to be worth US$352mn in 2012, accounting for around 26% of total IT spending in the country. The government has looked to EU structural funds to enable IT projects that can help generate investments and support the market.
BMI expects IT services spending to increase to US$537mn by 2016. General economic reform, including a continuing wave of consolidation and privatisation, together with economic growth, should drive demand for IT expertise. Demand for basic enterprise software and hardware systems is also far from saturated.
E-Readiness
The issuance of a WiMAX licence to National Radiocommunications Company in Q408 as well as a CDMA450 licence should boost broadband growth in the country, particularly in rural regions. After receiving no bids in its tender for two further WiMAX licences in Q109, the communications authority, the ANC, said it was slashing the licence fee and would relaunch the tender. This signalled the regulator's intent to drive growth in the sector.
- Benchmark BMI's Independent 5-year IT Industry Forecasts to test other views - a key input for successful budgetary and strategic business planning in the Romania IT market.
- Target Business Opportunities & Risks in Romania's IT sector through our reviews - and major deals, projects and investments in Romania.
- Exploit Latest Competitive IT Intelligence & Company SWOTS on your competitors and peers through company rankings by sales, market share and ownership structure – includes multi-national and national companies"
Business Monitor International's Romania Information Technology Report provides industry professionals and strategists, corporate analysts, information technology associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Poland's information technology industry.
Executive Summary
SWOT Analysis
Romania IT Sector SWOT
Romania Telecoms Industry SWOT
Romania Political SWOT
Romania Economic SWOT
Romania Business Environment SWOT
IT Business Environment Ratings
Table: Regional IT Business Environment Ratings
Europe IT Markets Overview
Romania Market Overview
Industry Developments
Industry Forecast
Table: Romania's IT Sector - Historical Data & Forecasts (US$mn, unless otherwise stated)
Country Context
Table: Rural/Urban Breakdown, 2005-2030
Table: Consumer Expenditure, 2005-2010 (US$)
Internet
Table: Internet - Historical Data And Forecasts
Macroeconomic Forecast
Table: Romania – Economic Activity
Competitive Landscape
Hardware
Software
IT Services
Company Profiles
Microsoft
Dell
HP
Country Snapshot: Romania Demographic Data
Section 1: Population
Section 2: Education And Healthcare
Table: Vital Statistics, 2005-2030
Section 3: Labour Market And Spending Power
Table: Employment Indicators, 2001-2006
Table: Consumer Expenditure, 2005-2010 (US$)
Table: Average Annual Wages, 2006-2010
BMI Methodology
How We Generate Our Industry Forecasts
Transport Industry
Sources
- Microsoft
- Dell
- HP
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