This IDC Presentation provides a snapshot highlighting the impact on energy sector ICT investments. The core assumptions underpinning the IDC's forecast for the oil and gas sector have significantly deteriorated in the past six months. The key changes are at the macroeconomic level:
- Oil is now expected to stay lower for longer. The consensus economics prediction of "bottoming out" at $40 per barrel has been invalidated. The new consensus for WTI appears to be ~$30 dollar for an extended period before rebounding. Canada's oil sands production will take an even lower price.
- The damage is spilling into other industry sectors. Alberta's public sector is dealing with significantly lower royalty revenue; construction firms have fewer opportunities; Alberta's commercial and industrial real estate looks overbuilt; Calgary's financial services and legal sector is heavily overweighted to the energy patch; and regional consumer confidence is being negatively affected, impacting the retail and wholesale industry.
As a result, IDC Canada has lowered our expectations for the oil and gas and Alberta ICT markets for 2016 and through the forecast cycle. This Presentation outlines the most likely scenario for the following sectors:
- Client devices: Personal computers, mobile phones, tablets
- Infrastructure hardware: Servers, storage, network equipment, printers
- IT services: Consulting and integration, outsourcing, training and support
Canadian Digital Transformation: Application and Professional Services , Canadian Enterprise Big Data and Analytics Solutions , Canadian ICT Executive: Business and Technology Perspectives , Canadian Infrastructure and Cloud Solutions , Canadian Mobile Business Applications and Services , Canadian Telecom Market Drivers and Strategies , Canadian Vertical Markets
Application development software, Desktop PC, Enterprise server, Global IT and economic markets, IT consulting services, IT education and training, IT maintenance and support, Infrastructure as a service, Infrastructure outsourcing services, Integration and process automation middleware, Outsourcing engagement services, Portable PC, Software as a service, Tablet PC