23/06-05   -   Pressmeddelande

Nordic IT Markets Back to Reality in 2005, Says IDC

Following fairly strong IT growth in 2004, market growth in 2005 is more in line with macroeconomic reality than in previous quarters, according to a new IDC Quarterly Executive Service study. The over-optimism created by a strong 2004 performance is finally being adjusted to real market conditions.

For much of the last six months, user expectations were overly optimistic, but reality finally appears to have sunk in, as predicted by IDC. Corporate profits are good, but not that good. Consequently, the IT spending climate is good, but not that good.

IDC expected growth in the Nordic IT markets to start leveling off this year and into next year. This picture is still valid, although expectations for this year have cooled. IT growth in the Nordic region this year is expected to be slightly below the 2004 level as a result of uncertainty in the market due to high oil prices and the pressure on the U.S. dollar.

Norway is the most buoyant economy and is expected to show the highest IT growth this year in the Nordic region. The IT investment index has flattened, as expected, confirming that IT investment growth this year is not likely to exceed that of 2004. IDC´s forecasts also show that it will not be until 2007 that IT growth in the region outstrips 2004 growth.

"Growth in IT investment is expected fall below the strong 2004 level this year," said Per Andersen, managing director of IDC Nordic. "However, most vital signs are good. GDP forecasts are solid, the number of bankruptcies in the Nordic region is declining, and the IT investment index is still at a high level. What´s gratifying is the fact that users seem less concerned about cutting IT costs than replenishing needed infrastructure and investing in IT that grows revenues and productivity."
Nordic IT Growth Rates

2004 - 5.4%
2005 - 3.7%
2006 - 4.4%
2007 - 6.2%
Source: IDC, 2005

To purchase the IDC document Nordic Quarterly Executive Service, 2Q05 (Doc #N520502M, May 2005), please contact your local IDC office or visit www.idc.com.
http://www.idc.com/getdoc.jsp?containerId=N520502M

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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