Wednesday, January 12, 2011

Tech association predicts 5 pct growth in services

The Turkish Informatics Industry Association, or TÜBİSAD, reveals 2010 growth data about Turkey’s IT sectors compiled by its official partner, the European Information Technology Observatory. According to the data, Turkey’s technology sector grew to $27.3 billion level in 2010 and the communications sector had the largest slice with 73 percent
Experts expect the total growth of the telecommunications sector to be around 5 percent in 2011. (Bloomberg)

Experts expect the total growth of the telecommunications sector to be around 5 percent in 2011. (Bloomberg)
Turkey’s technology sector grew to $27.3 billion level in 2010, according to data from the Turkish Informatics Industry Association, or TÜBİSAD. The group forecasts 8.3 percent growth in 2011 in terms of services.
According to data recently released, $20 billion of the volume came from the communications sector and $7.5 billion to information technologies, or IT. Communications took the largest slice from the overall technology industry with 73 percent.
TÜBİSAD revealed the data from the European Information Technology Observatory. TÜBİSAD has been EITO’s official Turkey partner since 2008.
According to data by EITO, the European IT sector has greatly recovered since the economic crisis of 2009. And the European IT market, which shrunk by 4.3 percent in 2009, grew 1.2 percent in 2010. While the global IT market reached $3.3 trillion, Turkey obtained a 0.8 percent share of it.
Software, services boost IT sector
While in 2009 the main driving force for sectoral growth was 3G investments, in 2010 the status was taken over by software and services. TÜBİSAD forecasted that overall market growth in 2011 would be driven by accelerating growth in these two sectors.
“In 2010 the service sector grew 4.2 percent and 9.5 percent of this growth was due to outsourcing. This growth indicates that particularly during the crisis companies prioritized efficiency investments,” TÜBİSAD’s report said, adding that the services sector could see 8.3 percent growth in 2011.
According to TÜBİSAD data, the software sector registered 4.1 percent growth in 2010, reaching to $753 million, and is expected to grow 7.4 percent in 2011.
The growth figures for 2010 in the services and software sectors indicate that both the sectors survived the dire straits of 2009 and showed a rapid recovery and growth tendency last year, which TÜBİSAD expected to continue in 2011.
As well, the overall growth of the hardware sector reached $5.6 million with 8.3 percent growth and the increase in personal computer demand gaining speed in 2009 continued in 2010, according to TÜBİSAD data. At the end of the third quarter, personal computer sales totaled 853,000 units. According to the sales distribution figures of the same period, some 297,000 desktop units and 557,000 laptop computers were sold, which in terms of percentages equals 68 percent in laptops and 32 percent in desktops.
While the growth registered in overall personal computer sales in 2010 compared to the previous year was 20 percent in terms of units, it was 12 percent in terms of prices. For 2011, the experts predicted that growth in the hardware sector would reach 15 percent.
The telecommunications sector, comprising 78 percent of the entire IT sector, grew 7.3 percent in 2009 and 1.8 percent in 2010. According to TÜBİSAD, the decline in growth was because the sector finalized a great majority of its 3G investments in 2009.
While TÜBİSAD data revealed shrinkage in investments in telecommunication equipment in 2010, it showed that the greatest rate of growth was registered by Internet access and mobile data services, with 15.5 and 29 percent respectively.
The experts expect the total growth of the telecommunications sector to be around 5 percent in 2011.

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