Market environment

Global IT market

According to Gartner's data, in 2019 the global IT market grew by 0.5% to USD 3.7 trillion.

IT spending (in billions of USD) 2019 Change y/y
Data center systems 205 -2.7%
Software for businesses 456 8.5%
Hardware 682 -4.3%
Services 1 030 3.6%
Telecommunication services 1 364 -1.1%
Total 3 737 0.5%

Source: Gartner (www.gartner.com/en/newsroom/press-releases/2020-01-15-gartner-says-global-it-spending-to-reach-3point9-trillion-in-2020)

In January 2020, IDC presented 10 technological forecasts for the coming years, which, although they may be revised due to the impact of the SARS-CoV-2 pandemic, show the growing importance of information technologies:

  1. Digital capabilities: by 2022, 25% of Europe's largest companies will have at least two management board members with digital knowledge and skills.
  2. Digital investment: by 2020, companies in Europe will invest over USD 271 billion in digital transformation, 16% of which will generate new revenue streams.
  3. Data from connected devices: by 2022, data from connected devices will generate a revenue opportunity of USD 10.5 billion.
  4. Systems upgrade: by 2025, 60% of organizations in Europe will upgrade major IT systems using the cloud to improve performance by 25%.
  5. New role of IT leader: by 2022, 30% of organizations will define a new role of IT leader combining the functions of CIO, CTO, CDO and Director of Innovation.
  6. More intelligent processes: by 2023, 70% of intelligent process automation projects will be supported by solutions based on artificial intelligence.
  7. KBI (Key Behavioral Indicators) more important than KPI (Key Performance Indicators): by 2022, 60% of the largest European organizations will replace KPIs with KBIs, putting employee and customer needs first.
  8. Changes in organizational culture: by 2022, one third of organizations will not be able to accelerate business performance and innovation because of direct implementation of a strategy copied from other organizations.
  9. The role of CISO (Chief Information Security Officer): 2022 is a turning point for CISO. They will become business leaders who ensure trust in the organization in all respects, including security, risk management and reputation.
  10. Ethics and society and technology: by 2024, half of Europe's public companies will report annually on the ethical use of data, automation and artificial intelligence in their organizations.

Key drivers of growth on the IT market

  Banking and finance
  • Increased demand for advanced technologies used in financial services,
  • New trends in the area of IT solutions dedicated to financial institutions,
  • Development of omni-channel solutions,
  • Dynamically changing legal environment requiring constant adaptation of IT systems,
  • The growing importance of cyber security.
  General business
  • Companies' growing IT needs along with the development of the scale of operations - higher demand for ERP solutions,
  • Demand for advanced solutions with the assumption of cost optimization - development of cloud and SaaS solutions,
  • The need to manage a huge amount of data,
  • Legal changes resulting in the need of IT systems adaptation.
  Public sector
  • The sector remains one of the largest recipients of IT services,
  • Demand for advanced solutions, where security, reliability of systems and their supplier play a very important role,
  • High demand for IT solutions in the areas of social insurance, central and local government administration, health care or uniformed services.

IT market in Poland

According to the latest Computerworld TOP200 report, the IT market in Poland strengthened in 2018 and its revenues increased by 7.1%, from PLN 60.7 billion in 2017 to PLN 65 billion in 2018.

When analyzing the revenues generated by IT companies from particular sectors in 2017-2018, it can be observed that it is banking which remains the most absorbent market - it has been increasing its IT spending for four years. In 2018 IT companies provided their clients from this sector with solutions worth PLN 3.65 billion, which is by 20.8% more than in 2017.

The second position in the 2018 ranking was taken by trade (PLN 2.49 billion in revenues, up by 36.2% on annual basis), which, as compared with 2017, overtook public administration (third place with revenues of PLN 2.30bn and an increase by 1.6% y/y).

In 2018 the IT sector alone recorded the largest increase in IT spending - the sales of IT companies to other IT companies increased by 54.8%. The sectors of utilities (excluding the power industry), healthcare and media also recorded significant increases - by 44.2%, 26.7% and 16.4%, respectively.

Slight declines in sales were reported by IT suppliers to the power industry (by 1.0%) and agriculture including food processing (by 4.6%). A stronger drop was recorded in the sales to transport and logistics (by 16.1%) and education and science (by 10.7%).

In 2018, large companies and enterprises - after an increase of 27.4% y/y - proved to be more than five times bigger market for IT companies than the SME sector.

Asseco Group market position

Asseco is one of the leading software vendors in Europe.

Asseco Poland S.A. is one of the largest IT companies in Poland and the largest company in Poland focused on sales of proprietary software and services rather than computer hardware. The Polish IT market is a competitive and diversified market in which both domestic companies and leading global corporations operate.

According to the latest Computerworld TOP200 report, Asseco took 1st place in 8 categories in the Computerworld TOP200 ranking of Polish IT market. The Asseco Group, with revenues from the sales of IT products and services reaching PLN 9.3 billion in 2018, took the 1st position among the largest capital groups. Asseco also outperformed other IT companies in terms of the net profit generated in the previous year and the amount of CIT the company paid to the state budget. It is also still the largest provider of IT solutions and services for the public administration, healthcare, large companies and corporations. Asseco also maintained its last year's position in the categories of the largest provider of maintenance and IT services.