SEE IT market in 2011: growing in a volatile environment
In 2011 the IT sector in Southeast Europe suffered from the instability of the national economies but managed to achieve growth in most of the countries in the region. The sector continued to rely on government spending on IT, investment from telecommunications companies and outsourcing contracts. The software segment has a vitally important share in the sector’s total revenue in the region’s larger markets such as Romania, Bulgaria, Serbia, Croatia and Slovenia. The SEE IT sector’s need for highly-qualified IT specialists is constantly growing, pushing up salaries and tertiary education graduates in IT. The well educated and cheap workforce in the region has attracted many large international IT majors such as Hewlett-Packard, SAP, Cisco Systems, IBM, Intel, Microsoft, Oracle and Redhat. The SEE IT companies are mainly focused on the outsourcing of software development and testing and website design. As demand on the SEE markets is limited, the bulk of local IT enterprises, especially software developers, rely on exports to support their growth. The future of the SEE IT market looks promising but not for all segments as hardware sales are expected to decline while those of software should grow fuelled by the demand for innovative software solutions.