ZF English

Private sector hesitancy and public sector lack of coordination cause software and IT services slump

23.08.2010, 23:53 6

Sales of software and IT services were weaker in the first halfof this year from a year ago as a result of the lack of contractssigned last year that should secure funding in 2010 and even 2011,Eugen Schwab-Chesaru, managing director for CEE with Pierre AudoinConsultants (PAC), a research and consulting services firm, toldZF.
The domestic software and services market was valued at 550m euroslast year.
Chesaru maintains that the first half decline came amid the lack ofdecision, coordination and motivation to use technology to boostthe efficiency of the public sector.
On the other hand, says Chesaru, small and medium-sized enterpriseslacked funding and were not aware of the role and the results ofimplementing IT solutions.
Another factor was the falling turnover of large companies andtheir more attentive assessment of gains from past investmentsbefore starting new ones. Chesaru also said the high pressure onprices also dragged the market down.

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