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European Systems Integrators feel the squeeze

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European Systems Integrators feel the squeeze

globaltelconews-admin by globaltelconews-admin
8 March, 2011
in English
0

(London 8 March 2011) European Systems Integrators have had a tough time weathering the recession with the total revenue of the top 500 up last year by just 0.68% to reach 144.43bn ($202.65bn). This fairly modest rate of growth, slightly below the markets forecast average growth rate of 1.2% (EITO), actually represents quite a strong recovery from the previous two years which were marked by a sharp fall in revenues within the sector. At 1,010,850, overall employment within the sector was also down 20% on the levels of 2008. These are amongst the findings from Systems Integrators in Europe The Top 500, the latest database report from IT Europa which is published today.

The database report, which provides detailed business profiles of each of the top 500 European Systems Integrators, provides further evidence that the current recovery being witnessed in the European IT sector is both fragile and patchy. The countries which have seen rising revenues in systems integration have all been on Europe’s periphery: the Swiss market was the best performer, followed by Ireland, the Netherlands and Turkey

Generally, it seems that the systems integrator market has had a tough time over the last 3 years, says IT Europa managing director Alan Norman. The reliance on long term service contracts that buffered this sector on the way into the recession seems also to be slowing its way out. With cut-backs now biting in the public sector and a leaner private sector becoming much tougher in demanding a real return on new IT investment, we expect recovery to continue to be slow. There are also some signs that increasing adoption of Cloud Computing models for the implementation of new applications is beginning to impact short term revenues.

The Systems Integrators in Europe The Top 500 database report spans 34 countries and represents the most comprehensive overview available of this key market sector. It has been compiled from detailed interviews conducted by IT Europas own research team. The company profiles include sales breakdowns by company activity, which markets a company operates in, and detailed information on staff numbers and development plans, along with contact details for the top executives of each company. Of the 500 companies profiled, 373 are independent, 55 are parent companies of multi-national groups and 72 are subsidiaries of corporations that are headquartered outside Europe. The report is available from IT Europa (www.iteuropa.com) at a cost of 2,095 + VAT for a single-user licence and 6,285 + VAT for a multi-user licence.

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