In order to better show the current situation on the Romanian market, a comparison with the Western European markets is most appropriate. According to Pierre Audoin Consultants (PAC) estimates, the IT services business (Hardware Maintenance, Project Services, Outsourcing) represents 18% in total IT expenditure versus 24% share in Czech Republic and versus a median level of 34% in Western Europe. Romania has the 7th largest population with European Union that provides a huge potential for development in the near future. Currently, Romania remains notably behind the Western European average, with only 77 Euros spent on SITS per head as opposed to 431 Euros per head in Western Europe. Czech Republic spends 171 Euros per head, very much ahead of Romania, but still quite behind the Western countries.
The Romanian software market holds roughly 45% of the SITS (software and IT services) expenditure. In Western Europe, this ratio stands at 27% and in Czech Republic is 33%. Despite the increasing maturation of the market, the demand is still very much infrastructure-oriented, including related software, which leads to a high share of system infrastructure software, databases etc. within software and SITS. Among horizontal applications, ERP is by far the largest segment, as most of the companies in Romania remain at the start of their automation journey. The ERP market accounts for 48% of the business application software in Romania. From a vertical standpoint, the ERP market has been very concentrated, as manufacturing, utilities and retail represent more than 50% of the total ERP spending in Romania. The back-office functionality (finance and accounting) represents half of the ERP software implementations, providing evidence on the level of business process automation among the companies in Romania.
2009 found Romania in a double crisis: economical and political one. This combination of instability and budget restrictions conducted to the most dramatic decrease in GDP (-8%) and significant drop in all sectors that have supported the country’s growth during the last five years (industry, constructions, trade, financial services, telecommunications).
Despite positive estimates for economic evolution in 2010, most of the Romanian sectors will continue to suffer and a flat growth or even decrease in GDP would not be surprising. 2011 will be most probably the year of local recovery, mainly based on already positive tendencies in general demand in Western Europe and decreasing local budget deficit.