Market environment

Development prospects of the global IT market

According to Gartner's estimates, in 2018 the global IT market grew by 3.9%, while in 2019 it is expected to grow by 3.2% to USD 3.8 trillion. Telecommunication services will have the largest share in the market, and purchases of software for enterprises and IT services will increase the fastest. The area related to IT services is to grow at a fast pace of approx. 4.7%, while the value of the market related to Data Center systems is to increase by 4.2%.

Gartner's analysts point out that all segments of the IT market should record growth despite the risk of recession, Great Britain's exit from the European Union (EU) or trade wars. On the other hand, one should expect dynamic changes with regard to which of the segments will be the engine of IT market growth in the future. Expenditures are being shifted from more saturated areas such as mobile phones, computers or data center infrastructure to such areas as the cloud and Internet of Things (IoT).

Along with the shift towards cloud services, which drive IT spending to the greatest extent, a significant increase will be recorded in the area of software spending by enterprises. Global spending in this area will increase by 8.5% in 2019. A further increase - by 8.2% - is forecast for 2020. A significant part of enterprise budgets in this respect will be directed to the Software as a Service (SaaS) model.

Due to the ever-increasing digitalization of business, there is a need to raise the level of competence in the latest technologies among the employees of companies. These are skills related to artificial intelligence (AI), machine learning or Application Programming Interface (API).

IT spending (in billions of USD) 2018 2019
(forecast)
Data center systems 202 210
Software for businesses 397 431
Hardware 669 679
Services 983 1,030
Telecommunication services 1,399 1,417
Total 3,650 3,767

Source: Gartner (www.gartner.com/en/newsroom/press-releases/2019-01-28-gartner-says-global-it-spending-to-reach--3-8-trillio)

 

Key drivers of growth on the IT market

  Banking and finance
  • Increased demand for advanced solutions used in financial services, determined by intense competition,
  • New trends in the area of IT solutions dedicated to financial institutions,
  • Dynamically changing legal environment requiring constant adjustment of IT systems,
  • Increasing importance of cyber security,
  • Development in the field of omnichannel solutions.
  General business
  • Growth of IT needs along with the scale of operations. It drives demand for the ERP solutions,
  • Demand for advanced products with relatively lower costs – cloud and SaaS solutions development,
  • The need to expand data centers,
  • Legal changes requiring the necessity to adapt IT systems.
  Public sector
  • The public administration remains one of the leading recipients of services from the IT industry,
  • Demand for advanced solutions, where very important role play security, reliability of systems and their provider,
  • High demand for IT products in the areas of social insurances, central administration, health care sector and uniform services.

IT market in Poland

According to PMR's estimates published in August 2018, spending on the Polish IT market increased by 5.5% year-on-year and amounted to PLN 32.6 billion. In 2019, it should be higher by 4.8%, which would mean that it would reach the level of PLN 34.2 billion. The average growth of this market in the years 2018-2023 is estimated at about 3% annually.

The development of the IT market is driven by the economic growth, which in Poland in 2019, according to forecasts of the European Commission, will amount to 3.7%. The average for 28 countries of the European Union is 1.9%.

The good economic situation is confirmed by the IT companies' assessment. 75 out of the 100 largest companies in the sector believe that in 2019 the situation on the market will continue to improve.

 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 Poland is ranked 13th in the "Largest IT companies operating in Poland" category, but it is worth noting that almost all the companies listed above are either manufacturers of computer hardware or companies engaged in the sale of hardware. Asseco Poland holds the second position among the IT companies with the highest net profit from IT in 2017.