IT spending in Central and Eastern Europe to reach $40.5 bln by 2009

The IT markets in 6 key nations of Central and Eastern Europe show no signs of slowing as economies expand and major vertical sectors reap the benefits of increased investment in the region. According to IDC, IT spending will surpass $40.5 bln in 2009, nearly double the 2004 total of $20.4 bln. Healthy GDP and growing demand from small and medium-sized businesses will fortify the markets along with the greater availability of PCs and packaged software in large retail outlets and shopping centers. Infrastructure upgrades and various IT initiatives have made government the single largest vertical market investing in IT hardware, software, and services. Declining prices, product bundles, and the increased presence of IT hardware in retail outlets have made the home segment the second largest. Although process manufacturing was third in 2004 and 2005, the banking sector is growing faster, and the revenue it generates should surpass that of process manufacturing by the end of 2006. Together, these four verticals represented more than 46% of IT revenue in 2004 and 47% in 2005.