The export-dependent Slovak market was hard hit by the 2008 economic crisis, and IT budgets have been slashed as a result. According to the latest figures from IT market research firm IDC, Slovak companies spent $1.71 billion on hardware, software, and IT services in 2008, but to get companies to open their wallets subsequent years, vendors will have to prove the cost-cutting benefits of their products.

The transport, communications, and utilities vertical led the Slovak market in IT spending in 2008 at $406.10 million, the bulk of this coming from the communications sector. But this total was down significantly from 2007, and IDC says spending growth in this vertical – which is highly dependent on government and EU funding – is likely to remain weak over the forecast period.

The manufacturing vertical invested $302.53 million in IT in 2008, but was dealt a significant blow by the financial crisis. IT spending by manufacturers (particularly those in the key automotive sector) is expected to be down in 2009. Investment in areas like enterprise resource planning, supply-chain integration, and logistics should continue, however, thanks to existing foreign direct investment.

In third place, the Slovak finance vertical spent $278.71 million on IT in 2008, much of it on highly-sophisticated solutions in preparation for the January 2009 adoption of the euro. Once such projects were completed, however, spending on IT contracted significantly and it is not expected to recover before 2011.

In a market like this, IDC believes vendors must do more than just push solutions – they must help clients optimize those solutions: "Information technology may be the key to improving process efficiency, reducing overhead costs, and delivering better service, but it can help only if existing processes are modified," says IDC CEMA Research Analyst Alberto Balduzzi. "To adapt their solutions to client needs, vendors need to learn more about their clients' operations and businesses so they can suggest modifications to existing processes."

IDC's Slovak Republic Vertical Markets 2009–2013 Forecast provides a detailed overview of IT spending trends and forecasts for 17 vertical markets (or sectors) and 10 product and service categories in Slovakia. The study features overviews of key industry developments, industry challenges, and vertical-specific IT drivers and trends and includes tables detailing IT spending by vertical market for each product and service type for the 2008–2013 period. Analysis is based on continuous research, the monitoring of users' IT spending and emerging purchasing patterns, and supply- and demand-side research.

For more information on IDC research, please contact Jaromir Valenta (jvalenta@idc.com, +420 221 423 140) or Tatiana Hinova (thinova@idc.com, +420 221 423 140).