Communications, Banking, and Business Services Are Fastest-Growing European IT Vertical Markets, According to IDC
MILAN – MAY 29, 2001 – According to IDC’s latest European IT vertical markets study, enterprise solutions and ecommerce projects were the major drivers behind the strong IT investments in 2000. While this was the case last year, spending this year is likely to be affected by the uncertain European economic environment following the U.S. slowdown. Communications, banking and other finance, and business services are expected to perform above average in 2001 with growth rates of 15.5%, 13.2%, and 14.1%, respectively.
"Growth in the communications sector was driven by the need to implement IT infrastructures capable of supporting value-added services and by increased attention to CRM solutions and advanced billing systems," said Giuliana Folco, program manager with IDC’s European Vertical Markets research program. "Expenditure within European banks focused on the enhancement of their delivery channels – such as Internet or mbanking – and also on the back-office area, with an increased attention to the integration of front-office applications at the back end."
Investments in Internet technology, networking infrastructure by xSPs, and CRM solutions are the main drivers for IT spending in the business services sector.
Spending in Other Key Verticals
· IT spending in manufacturing was just below the European average. IT strategies are increasingly focused on business-to-business ecommerce, especially in the areas of eSCM, eprocurement, and emarketplaces. CRM technology is quite advanced in some subsectors of manufacturing such as the automotive industry.
· IT investments in the retail sector focus on the effective management of the value chain, customer relationships, and in-store operations. These elements are driving investments in CRM, SCM, and retail-specific applications, but these investments are limited to large retail chains, operating mostly in Northern Europe.
· The egovernment issues and the need to harmonize and streamline the flow of information through advanced networking solutions are driving spending in the European government sector.
IDC’s Western European Information Technology Vertical Markets, 1999-2004, Part 1, Market Trends and Forecast (IDC #M01G) report provides a detailed overview of IT spending trends and forecasts for 18 vertical markets (or industry sectors) and 11 product categories, including hardware, packaged software, and services across 16 European countries. The report also includes tables detailing IT spending by vertical market for each product. The analysis is based on continuous research and monitoring of user IT spending and emerging purchase patterns. To purchase this report, contact Chad Eaton at 1-800-343-4952, extension 6972, or at firstname.lastname@example.org.
IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world’s leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at emea.idc.com.
IDC is a division of IDG, the world's leading IT media, research and exposition company.
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