Industry news

Swedish businesses 'will increasingly look for more IT infrastructure investment'

Businesses in Sweden will increasingly look for more investment in IT infrastructure, a report has suggested.

A new IDC report said that the conditions in the IT services market will change during 2008 for Swedish firms and that the available infrastructure is set to become more important.

In fact, the report suggested that the IT services market in the country is expected to only grow at a rate of 4.4 per cent annually until 2012. This compared to a growth rate of 6.3 per cent in the first half of 2007.

"For a couple of years now the market has been led by business-oriented initiatives," explained Nils Molin, managing director of IDC Sweden. "These initiatives have led to the huge surge in project services that we reported on earlier and that in our view peaked during 2007.

"Now we are likely to see a shift in demand to more infrastructure projects with a greater emphasis on cost-cutting activities."

A recent report from Gartner suggested that European businesses should start looking at ways they could reduce the costs of their IT services as soon as possible in preparation for a potential economic slowdown.