IDC Reports Financial Crisis Severly Affects Danish IT Services Market

Impact Not Uniform Across Market Sectors and Product Lines

Copenhagen, Denmark, 17 July 2009 -- The Danish IT services market is settling down for low growth following a period of above-average growth, according to IDC research.

"The worldwide recession is impacting Denmark, even though the effect on the IT services industry is less severe than anywhere else in Western Europe," said Brian Troelsen, research manager, IDC Denmark. "For 2008 to 2013 we forecast a yearly growth of 2.4%, which is considerably lower than expectations a year ago. Even though 2008 (especially the first half) was surprisingly good for most vendors, this is bound to change now."

A number of larger vendors with exposure to the Danish manufacturing and finance sectors were hit hard in the autumn and in some cases good growth achieved during the first six months was erased in 4Q. However, the crisis has hit vendors in different ways, depending on the vertical segments in which they operate.

"The outsourcing market looks most promising, and we believe the economic recession is a trigger for both outsourcing and offshoring," said Troelsen.

Source: IDC