Abstract
The Norwegian IT service market developed well in 2007 and grew by 5.9% to
reach a value of NOK 22.749 million. The start of 2008 has been also strong and
there are factors such as the upcoming elections, high oil prices, and the
signs of a better U.S. market that might keep growth up. Adding the large deals
made during the year - Sapa, Yara, Hydro IS, and Posten - much of the growth is
already in the "pocket." At the same time there are major shifts taking place
in the market and the current offshore wave represents the biggest of them. All
vendors need to figure out how to position themselves with regard to offshoring.
We believe that the sentiment will shift from a market focused on growth, to a
market focused on cost and internal efficiencies, and therefore the range of
opportunities changes as well. Outsourcing will benefit, while certain types of
consulting will take a hit.
Our base scenario is positive; we do believe that the underlying theme -
"realizing the benefits from the Internet" - is strong enough to provide a
shelter against a recession in the economy. That' s also the background to the
very modest changes that we have made to our forecast for the coming years.
"Our base scenario is positive and we believe that the underlying theme,
' realizing the benefits from the Internet' is strong enough to provide shelter
from a recession in the economy, and that is also the background to the very
modest changes that we have made to our forecast for the coming years," said
Nils Molin, managing director, IDC Norway.
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