Turkish IT Services Market Poised for Strong Growth as Vertical-Specific Transformation Projects Take Hold
20 Apr 2015
IT services spending in Turkey is set to recover from the temporary slowdown it experienced in 2014 and grow at an impressive rate over the coming five years. According to International Data Corporation, the Turkish IT services market will expand at a compound annual growth rate (CAGR) of 9.1% to total $2093.62 million in 2018. Large-scale, industry-specific transformational IT projects will stand out as the main drivers of this long-term growth.
Datacenter and IT transformation projects are expected to continue over the next few years in various vertical markets, including finance, manufacturing, energy, and healthcare. The successful completion of these transformation projects will also be conducive to the adoption of certain outsourcing services in the market, as most organizations lack the required talents to operate this new infrastructure.
"Application management outsourcing services will be among the fastest growing segments and will achieve low double-digit growth during the forecast period," says Melih Murat, research manager for services and software at IDC Turkey. "The adoption of hosting services and the ongoing investments of services providers in their datacenter capabilities will continue to bode well for the IT services market. Spending will continue to grow, yet current macroeconomic challenges such as the weakening Turkish lira against major foreign currencies may have a negative impact on the pace of this growth."
In terms of verticals, the combined finance, communications and media, and government sectors will be the biggest IT services spenders over the course of the forecast period. The hardware support and installation category will account for the largest share of IT services revenue, followed by systems integration and then application consulting and customization. From a vendor perspective, IBM, Atos, HP, and Accenture currently stand out as the major multinational services providers, while Netas, Koç Sistem, Innova, and Bilge Adam are the key local services providers.
The vendor landscape will continue to be ultra-competitive, with numerous opportunities opening up to those providers that can respond effectively to the shifting dynamics of the market. "In order to sustain their positions and to capture these large-scale opportunities in the market, services providers should demonstrate their capabilities in delivering and/or orchestrating complex systems integration projects," says Murat. "In addition, the financial strength of service providers will prove to be an increasingly important differentiator."
About the Research
IDC's ‘Turkey IT Services Market 2014–2018 Forecast and 2013 Analysis' (IDC #ZICT06W) and ‘Competitive Profiles and Analysis of Leading IT Services Players in Turkey, 2014’ (IDC #ZICT07W) provides a detailed overview of IT services trends, forecasts, and competitive profiles across the country. The report provides valuable insights into the impact of market changes, key trends, and the results of vendors' new product, marketing, and channel. Analysis is based on continuous research and monitoring of users' IT spending, emerging purchasing patterns, and supply- and demand-side research.
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