Maturing market

For the second consecutive year, the IT services market in Poland has shown double-digit growth. In 2004, the figure was 26.8 percent, increasing the market's value to EUR 1.1 (zł.4.4)  billion and for this year market-research firm IDC Central Europe forecasts a 14.4-percent increase. The development of the market in 2004 is closely linked to Poland using EU funds for IT investments.

The finance sector was the largest spender on IT services in 2004 with $292.7 (zł.960) million spent on new infrastructure. Government institutions came in second with $162.49 (zł.533) million.

IDC further explains that in the face of shrinking margins on the sale of hardware and software licenses, more IT vendors are providing services as a means to maintain revenue streams. Although HP, Prokom, IBM and ComputerLand continue to control the market, their services revenue is increasing at rates slower than that of the total market. Smaller players often achieve rapid growth, as they specialize in a specific vertical market (e.g. utilities or finance) or type of services offered (e.g. network integration or outsourcing). IDC projects that Poland's IT services market will expand at a compound annual growth rate of 15 percent until 2009 to reach a value of more than $2.5 (zł.8) billion.