Government IT spending up in Central and Eastern Europe
Government IT spending up in Central and Eastern Europe
By eGov Innovation Editors | Jan 30, 2012
The top 10 IT vendors serving the government sector in Central and Eastern Europe's Visegrad Group (V4), consisting of the Czech Republic, Hungary, Poland, and Slovakia, account for over half of total government IT spending in the region.
According to an IDC study released in December, the three leading vendors – HP, Asseco, and IBM – accounted for more than half of the revenue from the top 10 and more than a quarter of total IT spending in the government sector. Other top vendors include: Atos, BIW Koncept, HP, Microsoft, Oracle, SAP, Telefonica O2 Business Solutions, and T-Systems.
"With more than $2.2 billion in government spending in play in 2011 and $2.35 billion forecast for 2012, the stakes are high in the V4 government sector," said Mark Yates, research analyst for IDC Government Insights. "While winning contracts through tenders depends on making a compelling case, it also depends heavily on reputation and branding, and vendors that stay top-of-mind through concerted promotions and outreach have a significant edge."
Microsoft is the leading software provider, as its Office Suite is still widely used by government entities at all levels, from municipal to federal.
IDC expects competition for contracts to intensify as budgets get cut, the eurozone crisis continues, and recession threatens the Western half of the continent. IDC believes an independent, high-level assessment of the key players is essential to vendors looking to maintain (or even expand) market share in the government sector.
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