IT market in Poland: over 16% growth

In its report entitled “IT market in Poland 2008. Development forecasts for 2008-2012”, the research and consulting firm PMR estimates that in 2007 the IT market in Poland was worth PLN 24bn, up by 16.5% year on year. In the next two years a double-digit growth rate is expected to continue.

PMR has computed that the value of the Polish IT market (in PLN) rose by 16.5% to PLN 24bn in 2007. This growth rate was the highest for eight years and on a par with that of 2000.

The sharpest growth, of approx. 18% y-o-y, was posted by IT services. Still, about a half of the market’s value is attributable to hardware.

Mature IT markets are characterised by growing importance of services, against the decreasing role of hardware. The Polish market does not share this feature yet. Even though in 2007 the services segment outperformed the market and increased its share, the growth was only marginally. The main reason was that the hardware segment (despite the high base) again recorded a growth of several dozen percent, thus the previous year’s status quo was retained.

The continued relatively strong position of the hardware segment is primarily an effect of the boom on the consumer market, with very high sales of notebooks and LCD monitors. “Interestingly enough, contrary to the expectations expressed last year by most suppliers and analysts, the desktop segment did not slow down and recorded double-digit increase in volume”, adds Edyta Kosowska, PMR analyst and co-author of the report.

The marked increase in demand for IT solutions on the mass and corporate markets results mainly from the favourable macroeconomic situation, which translates into better standing of businesses and higher disposable incomes of consumers. The sound economic conditions are not fully leveraged by the state administration. Though showing certain signs of improvement, government authorities keep postponing the key IT projects and are rather far from bringing them to life.

Representatives of Poland’s largest IT companies agree that the biggest incentive for the development of the IT market may come from EU financial support to Polish companies. This view is shared by 52% of the 200 managers of the biggest IT firms operating in Poland, surveyed by PMR Research in June 2008. Every fifth respondent also pointed to improving economic situation in Poland and higher awareness of IT needs as prospective areas offering growth opportunities.

The number of respondents who believe that Euro 2012, co-hosted by Poland and Ukraine, creates development opportunities for the Polish IT sector dropped by 6 p.p. in comparison with the 2007 edition of the survey.

This year PMR Research asked about prospective growth opportunities offered by the championships. A half of the surveyed managers see Euro 2012 as an additional chance for growth, however almost every third respondent does not believe that one of the biggest sporting events in Europe will have any influence on their business.

Representatives of IT firms are optimistic about the growth of the IT market in Poland. 97% of respondents surveyed by PMR Research expect the market to expand in 2008, and the proportion of similar answers for 2009 is only 1 p.p. lower. The average annual growth rate in 2008-2009 is forecast to reach 14%. 

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