Developing Telecoms | Albanian IT spurred by public spending, foreign investment, buoyant economy - IDC

17 May 2012

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Albanian IT spurred by public spending, foreign investment, buoyant economy - IDC

Monday, 10 November 2008 01:00

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Albania's IT market continued to grow solidly in 2007, fueled by increased spending in the government, finance, and telecom sectors, by falling equipment prices and by favourable economic development. This is according to a recent IDC study, which concludes that Albania's IT market reached US$89.34 million in 2007, representing 28.3% year-on-year growth. In local currency, the market expanded 16.3% year on year.

"We expect IT spending in Albania to grow dynamically in the midterm, albeit from a low base, driven by an expanding economy, structural reforms, privatisation, and inflow of foreign direct investments," said Lindita Shomo, Manager of ISCS, IDC's research agent in Albania. "Additionally, competitive pressures associated with the globalization processes will spur an increase in IT spending in Albania in coming years."

The Albanian IT market is heavily hardware-oriented due to its relatively early stage of development. Combined revenue from shipments of PCs, servers, storage devices, and hardcopy peripherals amounted to about 80% of the market in 2007. Nevertheless, IT services was the fastest expanding IT market segment in 2007, recording 49.3% year-on-year growth.

IDC expects the Albanian IT market to expand at an annual average of 16.7% over the next five years to reach $193.4 million in 2012.

IDC's Albania IT Market 2008-2012 Forecast and 2007 Vendor Shares presents the IT market in Albania and forecasts total IT expenditure by technology through 2012. The study contains market size information, vendor market shares, and growth projections for hardware and packaged software shipments, as well as IT services provision. It analyses market trends and provides insights into the main drivers for individual market segments.

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