Monday, August 4, 2008

Russian IT reports brilliant half-year

Last fall, a study was conducted by Linex analysts that helped formulate the assumption that there will be a change of trend in the IT market: the IT market, which was experiencing a slow rate of growth, is hypothesized to undergo a period of rapid growth.

The results of monitoring the first quarter validated the forecast that the market will be experiencing a faster rate of growth. The services that were most in demand on the Russian IT market were network and system integration, IT consulting - including consulting and custom application development, and maintenance and support of software and hardware.

Comparing characteristics of IT business from the first half year in 2008 with its analogous period last year showed that network and system integration, despite all forecasting and predictions, will not give up its place as the leader in Russia’s IT.

According to Linex’ “Real IT Market - Q2 2008” report, the results of the second quarter, and first half-year as a whole, allow the following conclusions to be made:

• The forecast that the IT market will experience a change in growth rate was accurate. The rates of growth during the first half-year increased by 55%, resulting in a 23.6% increase in profit compared to the 15.3% increase of last year.

• The growth rate of the Russian IT market for 2008 will be closer to the rate of market growth in the second quarter (20.8%), than to its anomalous high growth temps in the first quarter (27.3%). The irregular first quarter growth can be attributed to a marked increase in spending by the government sector on IT.

• The highest rates of growth in the first half-year were from the IT Services segment - 34.7% (in the second quarter, 27.7%). IT Services have become the engine driving the whole Russian IT market.

The full report is available in Russian at http://www.linex.ru.

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