Czech Republic Information Technology Report Q1 2013
- ID: 2364094
- December 2012
- Region: Czech Republic
- 75 pages
- Business Monitor International
BMI forecasts demand will pick up after 2014, but economic uncertainty and rising unemployment will likely mean that during BMI's five-year forecast period, growth will remain below the immediate pre-2008 trend level. The Czech Republic's IT market is forecast at US$5.2bn in 2013, up by around 6%, with growth in IT spending stimulated by greater investment in international process integration and networking, as well as the employment of broadband for business and consumer use. Government ICT initiatives, often backed by EU subsidies, will continue to generate opportunities, with new tenders in 2012 from government bodies such as the Ministry of Defence.
Headline Expenditure Projections
Computer hardware sales: US$2.1bn in 2012 to US$2.2bn in 2013, +5% in US dollar terms. Forecast in US dollar terms upwardly revised due to analyst modification as the Windows 8 operating system has the potential to trigger a new cycle of PC upgrades.
Software sales: US$1.1bn in 2012 to US$1.2bn in 2013, +5% in US dollar terms. Forecast in US dollar terms upwardly revised due to analyst modification, even as political and economic uncertainty, weigh on investments.
IT Services sales: US$1.7bn in 2012 to US$1.8bn in 2013, +6% in US dollar terms. Forecast in US dollar terms upwardly revised due to analyst modification, but the search for cost savings will be a driver behind some managed services contracts.
The Czech Republic's score was 51.8 out of 100.0. The Czech Republic has dropped one place to eighth in our latest Europe RRR table, behind the UK, Germany, France and Poland,
but ahead of Hungary and Turkey.
Key Trends & Developments
- In 2013, BMI expects to see modest growth in enterprise and consumer IT spending as an uncertain economic and political climate will continue to restrain growth. Unemployment is likely to remain relatively high and this will act as a drag on real wages growth and consumer demand.
- Many larger organisations in the manufacturing and utilities sector, in particular, have already completed ERP implementations. However, BMI expects growth to pick up again as the focus of software market growth shifts from basic ERP implementations for large accounts and central government to new markets and product areas.
- The administration's fiscal austerity programme will continue in 2013, but we expect it to be eased in 2014, and this could provide a boost to IT investments. 2012 brought new information technology tenders from central and local government bodies such as the Social Security Administration and the Ministry of Defence. SHOW LESS READ MORE >
Executive Summary 5
Market Overview 5
SWOT Analysis 7
Czech Republic IT Sector SWOT 7
Czech Republic Telecoms Sector SWOT 8
Czech Republic Political SWOT 9
Czech Republic Economic SWOT 10
Czech Republic Business Environment SWOT 11
Europe IT Risk/Reward Ratings 12
Table: Europe Risk/Reward Ratings, Q113 14
Europe IT Markets Overview 15
IT Penetration 15
Sectors And Verticals 20
Market Overview 24
Government Authority 24
Industry Developments 33
Table: Top Four Czech Electronics Retailers, Revenue 2008-2009 (CZKbn) 36
Table: Czech Electronic Retailers: 2008 Revenue 36
Industry Forecast 38
Table: Czech Republic IT Industry - Historical Data And Forecasts , 2010-2017 40
Country Context 41
Table: Consumer Expenditure Per Capita (US$), 2000-2012 41
Table: Rural/Urban Breakdown, 2005-2030 41
Industry Forecast Internet 42
Table: Telecoms Sector - Internet - Historical Data And Forecasts, 2009-2016 Error! Bookmark not defined.
Competitive Landscape 44
IT Services 48
Internet Competitive Landscape 50
Macroeconomic Forecast 53
Table: Czech Republic Economic Activity, 2011-2016 55
Company Profiles 56
Microsoft Corporation 62
Country Snapshot 67
Table: The Czech Republic's Population By Age Group, 1990-2020 ('000) 68
Table: The Czech Republic's Population By Age Group, 1990-2020 (% of total) 69
Table: The Czech Republic's Key Population Ratios, 1990-2020 70
Table: The Czech Republic's Rural And Urban Population, 1990-2020 70
BMI Methodology 71
How We Generate Our Industry Forecasts 71
IT Industry 71
IT Ratings - Methodology 72
Table: IT Business Environment Indicators 73
Table: Weighting Of Components 74