IT services maintain upward trend in Q1

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The first three months of the year brought dramatic cuts on the local IT market, the most afflicted being the hardware sector, whereas the only ones that maintained at a level similar to one year ago being services, daily Finaciarul reports.

In this context, the shrinkage by 1-3 percent of the market of services and software predicted by market analysis Pierre Audoin Consultants for 2009 might reach at least 5 percent.

The IT market, in general, fell dramatically in Q1, 2009. In the segment of hardware the diminution was even 30-35 percent for some segments and companies, whereas for software it was of about 20 percent.

At the same time, the massive shrinkage in new contracts was seen, the market being maintained by the big and medium-sized contracts signed one year ago or activities of support for the already installed systems, daily Financiarul quotes Eugen Schwab Chesaru, managing director of Pierre Audoin Consultants, as saying.

‘Even if the situation is tense and the IT companies are looking for solutions, sometimes desperate, of financial balance by reducing operational costs and personnel, for the time being no major bankruptcies or forced mergers of IT services are expected.

The situation is different in the segment of distribution, mainly hardware, where the cost of stocks and the reduction of financing for acquisitions prompted the demand for IT products to be below the surviving threshold of the players in the networks of distribution and retail,’ said Chesaru.

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