Focus on eBusiness and CRM Is Changing Spending Patterns Mix of Europe’s Customer-Oriented Verticals, IDC Says
LONDON, APRIL 4, 2000 – According to IDC's latest study on Europe's vertical markets, the newly found focus on ebusiness and customer relationship management (CRM) is redesigning the spending patterns mix of customer-oriented verticals such as finance, retail, communications, and utilities.
"At a European level, finance continues to experience above average growth in IT spending, with banking growing by almost 12% in 1999," said Giuliana Folco, senior research analyst for IDC's European Vertical Markets program. "However, European financial institutions have been investing heavily in IT for quite some time and are actually starting to slow the pace of growth in IT spending."
The best opportunities for IT vendors currently are in verticals that used to lag behind in ICT investment, a good example being the retail industry. "The need to attract and retain customers in a newly competitive environment is also spurring robust growth rates in communications and utilities," Folco added. "Growth is, nevertheless, expected to decrease throughout 2003 in both of these sectors as the European landscape starts to stabilize."
— Most of the interviewed sites planned to increase their IS operating budgets. Sites that were most likely to increase IT spending belong to the insurance and other finance and health care sectors.
— Email remains the most widely used collaborative application.
— Scandinavia shows the highest percentage of sites with access to the Internet and intranets and has the highest number of sites with home pages.
— Most sites have solved the Euro problem; however, laggards were mainly in business services, education, health care, and government.
— The most important criteria for the choice of IT supplier is reputation for the quality of processes.
Western European Information Technology Vertical Markets, 1998-2003 (IDC #M01F and M02F) contains IDC's latest information on Europe's vertical markets. This report is published in two parts. Part 1 provides an overview of IT spending trends and forecasts for 18 industry sectors and 11 products in 16 European countries. Tables describing IT spending by vertical markets for each product (hardware, packaged software, and services) are provided. Part 2 analyzes purchase patterns and intentions and is based on IDC's 1999 Global IT Survey. This survey contains attitudes toward external spending, infrastructure and application areas, networking, status of euro preparation, and customer satisfaction. Results are presented by vertical market. This study is available to purchase from your local IDC office.
IDC delivers dependable, relevant, and high-impact data and insight on information technology to help organizations make sound business and technology decisions. IDC forecasts worldwide IT markets and technology trends and analyzes IT products and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC is committed to providing global research with local content through more than 500 analysts in 43 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, and the financial community. Additional information can be found at http://www.idc.com.
IDC is a division of International Data Group, the world's leading IT media, research, and exposition company.
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