16/09-03   -   Pressmeddelande

EMU

STOCKHOLM 16 September 2003 -- In Sweden the result of the EMU referendum was a “no", this means that companies can cancel their plans to invest in euro updates. Due to this, IDC has decreased the average growth rate for the five years period 2002-07 from 6.1% to 4.1% in Sweden, which means in monetary terms about SEK 6 billion decline in investments to the IT services. After the referendum´s result the growth rate for 2004 was strongly reduced from 7.4% to 2.1%.

The result will affect most strongly the demand of project services, including IS consulting, systems integration and custom application design, and the companies offering only these services will continue to have hard times. However, some organizations’ systems are at the end of their life cycle and investments cannot be postponed anymore, this will bring relief to some vendors. IDC estimates that the market situation in Sweden will begin to improve during the second half of 2004. Services industry spending will be 3-6 months behind a general economic recovery. During any economic recovery it will take 3-6 months for companies to start planning new investment in IT services.

Although IT services are less influenced by general economic trends, the decline in hardware investments and slow down in software investments made its impact on the services market. A decline of 2.4 percent has never been seen before in the Swedish services market. The total market reached SEK 41.964 million in 2002. Total growth in 2003 is only expected to reach 2%, the growth is generated by IT outsourcing. The result of the referendum does not have an impact on the IT outsourcing market and demand for IT outsourcing continues to grow.


The vendors have performed very differently, the best performers were international companies offering IT outsourcing, HP, IBM, EDS and SchlumbergerSema. From Top 5 vendors IBM, HP and TietoEnator increased their revenues, WM-data´s revenue stayed at the same level and Cap Gemini E&Y´s revenue decreased. Similar to 2001, WM-data was the largest IT services vendor in Sweden with a market share of 10%. IBM was the second largest with 8.2% market share in 2002. Cap Gemini E&Y was able keep its third place although its market share dropped.

The small and medium size companies suffered in the market. IDC expects that the largest vendors are also winners of 2003 and 2004, success creates more success and the trust that the services company will still be there in 5 years is important when deciding for a partner for outsourcing and/or larger systems integration projects. Currently, IBM is positioned the best for the future growth in the Swedish IT services market.

IDC recently published Sweden IT Services Market Forecast and Analysis 2002-2007 report. This study analyses the Swedish IT services market 2002 developments and forecast 2002-2007. The study includes a comprehensive analyze of development trends in 3 major areas – project services, outsourcing and customer support services and provides vendor market shares within these areas. A Competitive study analyses the positioning of the10 leading vendors and their opportunities to the leadership grid. The same kind of research is also available about the markets in Denmark, Finland and Norway.

For more information, contact:
Esa Peltonen
+358 9 8770 466
epeltonen@idc.com

Nils Molin
+46 8 751 0415
nmolin@idc.com

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About IDC
IDC is the premier global market intelligence and advisory firm in the information technology and telecommunications industries. We analyze and predict technology trends so that our clients can make strategic, fact-based decisions on IT purchases and business strategy. Over 700 IDC analysts in 50 countries provide local expertise and insights on technology markets. Business executives and IT managers have relied for 40 years on our advice to make decisions that contribute to the success of their organizations.

IDC is a subsidiary of IDG, the world’s leading technology media, research, and events company. Additional information can be found at www.idc.com
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