The Croatian market for IT services expanded by 32.8% to nearly $223 mln in 2005 and will rise another 13% in 2006. In local currency, growth was a lower but still substantial 26.5% due to the appreciation of the kuna against the US dollar. The central government increased its spending on IT services by 48% in 2005, IDC says. While IBM remained the top IT services provider in Croatia in 2005, the vendor rankings changed substantially from the previous year. Of the top 20 vendors based on revenue, 19 changed places from 2004 to 2005. Combis moved up from sixth position to second, and FINA from fifth to third. Meanwhile, market newcomer GBS-IT claimed fourth. S&T Hermes Plus took fifth. Together, these five vendors captured 28.4% of IT services revenue in 2005, up from less than 21% in the previous year.