The index of business expectations in Information Technology and Software Development showed a slight deterioration, according to the data of the Foundation for Economic and Industrial Research (IOBE).
More specifically, the index stood at 98.5 (from 104.5) points, slightly higher than last year (101.7 points). Estimates for the current state of businesses fell slightly to +10 points, while estimates for current demand also moved slightly lower at +5 (from +16) points.
Forecasts for the short-term course of demand strengthened marginally to +43 (from +42) points, while estimates for employment remained essentially unchanged (+38 from +37 points). Moreover, the inflationary trends for prices strengthened slightly at +38 units.
According to market representatives, the IT and Communications Products (Volume Business) sector has been under pressure, compared to the previous year, as a result of the reduction in consumer spending and the absence of subsidy programs. However, new product trends are expected to be developed and demand in areas related to the circular economy, energy management and smart home/smart city are expected to be further enhanced. At the same time, the mobility trend opens up a new product field, which includes the ecosystem of smart interconnected devices and products such as the electric scooter, the robotic vacuum cleaner and wearables. Cloud services are also on the rise, as is Cyber security.
In the software sector, there is a growing trend for solutions that can meet the needs of small and very small companies that seek to gain the competitive advantage that results from digital transformation. The specific solutions concern the Management of Customers and Suppliers, Purchases and Sales, Warehouse, Invoicing, Finance, as well as operations concerning the relationships of companies with their customers. This market includes over 200,000 small and very small businesses that often need vertical solutions as well.
