EITC report: IT growth in EU to resume by 2010 upto €718.6 Bn [as TNT poised to fire 11,000 dutch staff]!
By Tarry Singh at 5 July, 2009, 8:26 am
I know I am mixing two news but for a specific reason. One part of the world [paper, walking men and women, meats and potatoes folks] is shrinking as other world [The Compute Cloud] expands.
While TNT plans to fire its staff and many such jobs will come to great risk while the IT [or lets hope that the effective use of IT by using Cloud Computing instead of dumbly purchasing machines] will continue to grow as companies are hoping to not only cut the fat but also continue to grow when the world economy finally takes to grow gradually by next year.
I was discussing with an investor and was wondering how far and how deep can firms keep cutting their costs and [arguably] justifying their inflating costs, and if that very move will not put these IT firms at great jeopardy when the market finally begins to take up. TNT may be doing what it needs to do by firing 11,000 or its 25,000 strong postmen/women.
This is clear move towards the greater, bigger IT Compute Clouds as more and more firms realize that consumers can be reached in variety of ways and knocking doors and sending folks to homes may not be such fun anymore. No more people to come to doorsteps anymore. No postmen. No salesmen [applies to IT as well], no more paper work. All virtual. All on the web. Everything in the cloud.
So concluding: Market is bound to expand as more and more of the world will go to those IT Compute Clouds. Many PAN-. GAN- and MAN-Clouds are going to be born. They will embrace unified computing, unified messaging and unified boxes and even unified PODs in much more smarter and effective ways than you can imagine. They will increase and thrive for higher efficiencies and at the same time have massive reach.
Here’s EITC’s report
The European high-tech market is set for a rapid rebound following a growth intermission. That prediction was unveiled by the international research institute European Information Technology Observatory (EITO). EITO projects a 1.7% decline in sales of information and communications technology products and services in the EU in 2009 to €716.6 billion. Next year the market is seen rebounding 0.3% to €718.6 billion. “Though exposed to the effects of the economic crisis, the European high-tech industry will not be hit as hard as many other sectors,” said EITO-Chairman Bruno Lamborghini. The IT and Telecom sector thus is faring significantly better than the overall economy. The EU Commission and OECD anticipate the European Union’s gross domestic product (GDP) to contract by 4% this year.
According to EITO, the EU telecommunications market will amount to €362 billion, nearly unchanged versus the previous year’s level after a 0.1% decrease for 2009. Major shifts are underway however among the different market segments. Europe-wide, fixed voice telephony services will fall 6.8% to €70.2 billion. “Consumers are increasingly switching from fixed to mobile and internet telephony,” said Lamborghini. Both wireless and fixed-line data services are booming. Sales from internet access fees are projected to rise 7.2% in 2009 to €36.3 billion. The mobile telephony market will stagnate at €109 billion despite an increasing number of users. “Cut-throat price competition and regulations emanating from Brussels are weighing on mobile providers’ sales,” said Lamborghini. Driven by the recovery of the mobile phone market EITO expects that the telecom market will grow 1.0% in 2010 to 365.7 € billion.
The EITO forecasts IT market volume to decline 2.2% in 2009 to €296 billion, dragged down by a projected 6.6% fall in sales of IT hardware to €85.7 billion. Hardware sales are plagued by falling prices and companies putting off IT investments. Software and IT services are only down a moderate 0.3% to €210.4 billion. “Right now the amount of IT spending being done varies according to the user segment,” said Lamborghini. While buying is restrained on the part of manufacturing and automotive sectors, which have been sharply impacted by the crisis, the public sector and utilities are spending more. Lamborghini: “Companies are more selective in their investing behavior, but are more than ever interested in enhancing efficiency through new technologies.” This is reflected in an expected 5% increase in sales of outsourcing services Europe-wide, to €65.8 billion. In 2010 the overall IT market will increase 0.6% up to 297.9 € billion. In 2010 the overall IT market is forecast to resume growth of 0.6% to 297.9 € billion.
While here one of the disturbing news on TNT:
Postal delivery group TNT is poised to sack 11,000 delivery workers and sorting staff over the next two years, the AD reports on Thursday.
The paper says TNT Post boss Harry Koorstra is set to outline details of the cuts in a personal leaflet to staff later today. Yesterday department managers were told of the job losses.
TNT is facing increasing competition from new players such as Sandd and Selekt Mail, and expects a fall in volume of up to 6% this year.
New entrants to the market largely treat their delivery workers as freelancers, leading to much lower staffing costs.
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