Croatian IT services market up 16% in 2004

The Croatian IT services market expanded by 16.0% to $167.74 mln in 2004. Growth was a far more modest 4.5% in local currency, as the Croatian economy slowed and the government cut funding to IT projects. Offsetting these spending downturns were small but notable rises in private sector investments in IT services, particularly in the transportation, discrete manufacturing, and business services sectors. IDC expects spending to increase by 10.8% this year and 12.9% in 2006. The big news on the Croatian IT services market last year was Siemens jumping from eighth to third in the rankings and HP leaping from fifteenth to fourth. IBM held the top position while S&T moved up a space from third to second. Together these vendors were responsible for 17.4% of revenue. Despite the advances made by these four, the market remained diffuse, with more than 80 vendors providing IT services and the top 20 accounting for only 53.6% of revenue, IDC says.