2013-02-25 09:57:00 - New Computer Technology market report from Business Monitor International: "Canada Information Technology Report Q1 2013"

BMI View: Canadian IT spending is expected to reach US$49.3bn in 2013, up 5%, with BMI downwardly revising its forecast due to expectations of household retrenchment in 2013. BMI expects Canada's IT market to remain in overall positive growth territory, although much will depend on the business environment. Government spending will continue to be constrained by a focus on cutting costs, with cost reviews being conducted by Toronto and Ontario, but there have been a spate of large tenders, highlighting continued opportunities within the sector. Meanwhile, there will be opportunities as the government seeks to foster the development of a marketplace for cloud services.

Headline Expenditure Projections

Computer hardware sales: US$15.8bn in 2012 to US$16.4bn in 2013, +4% in US dollar terms.

Forecast in US dollar terms downwardly revised due to macroeconomic factors, but ultrabooks and Windows 8 based tablets and notebooks should provide growth areas in 2013.


Full Report Details at
- www.fastmr.com/prod/541163_canada_information_technology_report_ ..


Software sales: US$9.4bn in 2012 to US$10.0bn in 2013, +7% in US dollar terms. Forecast in US dollar terms downwardly revised due to analyst modification and given the large public sector deficits, vendors will need to provide clients with ways to reduce costs by increasing efficiency.

IT Services sales: US$21.6bn in 2012 to US$22.9bn in 2013, +6% in US dollar terms. Forecast in US dollar terms downwardly revised due to analyst modification with the market shaped by a continued move towards distributed computing and service-oriented architectures.

Risk/Reward Ratings: Canada's score was 70.7 out of 100.0. Canada ranks second in our latest RRR table, behind the US, but still ahead of Latin American giants such as Brazil and Mexico. The country ranked third for its Industry Rewards score, but its overall rating was boosted by a relatively high Country Rewards score of 90.

Industry Trends and Developments

* Government entities at all levels are expected to be a growing market for cloud computing services as small towns and cities strive to cut costs and raise efficiency. In 2012, the government launched a new brokerage system, designed to create an open marketplace where government agencies can procure cloud services. As of mid-2012, two of Ottawa's highest profile departments - Service Canada, which supervises federal benefits including Social Insurance, and the Canada Revenue Agency - are using cloud services.
* Fiscal constraints faced by the Ontario government in particular represent a challenging environment for vendors. Meanwhile, Toronto authorities have also launched a Core Spending Review targeted, which could have negative implications for IT spending. However, a focus, by Ontario and other authorities, on deficit reduction through public services delivery reforms should also potentially represent an opportunity for IT vendors.
* The majority of enterprise software demand, in functional terms, is currently for ERP, CRM and supply chain management (SCM). Despite being a relatively mature market, there still remains plenty of potential for ERP implementations in industries such as consumer products, telecommunications, energy, engineering, construction, transport, food and beverage, retail and metal working.

Report Table of Contents:

BMI Industry View
SWOT
- Political
- Economic
Industry Forecast
- Table: Canada IT Sector - Historical Data & Forecasts (US$mn Unless Otherwise Stated)
- Internet
- Table: Telecoms Sector - Internet - Historical Data & Forecasts
Industry Risk Reward Ratings
- Table: Americas IT Risk/Reward Ratings
Market Overview
- Hardware
- Software
- IT Services
Regulatory Development
- Table: Regulatory Authorities
Competitive Landscape
- Hardware
- Software
- Services
Regional Overview
- IT Penetration
- Market Growth And Drivers
- Sectors And Verticals
Demographic Forecast
- Table: Canada's Population By Age Group, 1990-2020 ('000)
- Table: Canada's Population By Age Group, 1990-2020 (% of total)
- Table: Canada's Key Population Ratios, 1990-2020
- Table: Canada's Rural And Urban Population, 1990-2020
Methodology
- How We Generate Our Industry Forecasts
- IT Industry
- IT Ratings - Methodology
- Table: IT Business Environment Indicators
- Weighting
- Table: Weighting Of Components
- Sources

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