Local IT industry is worth €1.1 bln

IT spending makes up for 1.2 percent of Romania’s GDP, compared to the 2.5 percent international average. IDC estimates for the coming fours years include an annual growth rate of 12.1 percent for IT spending, and 10.8 percent for software.

IDC’s study indicates that the IT sector will generate 13,500 new jobs and 150 new companies on the Romanian market in the next four years. Moreover, IT’s contribution to the state budget will amount to $400 mln (€280 mln) in taxes, considering the value of the market is estimated at $1.9 bln (€1.33 bln) in 2011.

Software spending accounts for only 11 percent of the entire IT market, although 48 percent of total employees are involved in the creation, distribution, installation and maintenance of software.

IDC forecasts that total IT spending will amount to $1,200 bln (€840.26 bln), with an estimated growth rate of 6.1 percent in the coming four years, double the average increase of worldwide GDP.

The difference in terms of contribution by hardware and software to IT spending will be maintained, with the latter contributing a mere 21 percent, although 50 percent of workplaces will be directly related to software.The study was conducted in 82 countries, who together spend 99.5 percent on the world’s IT.            

Every dollar cashed in by Microsoft in Romania from software sales generates $14.54 (€10.18) for the entire Romanian IT industry, more than the $14.07 (€9.85) average for Central and Eastern Europe. Of that amount, $12.3 (€8.61) comes from hardware sales, $1.11 (€0.77) from software other than Microsoft’s, and $1.13 (€0.79) from services.

In Romania, 21,000 or 53 percent of the approximately 40,000 workplaces in this field depend on or are related to products from the company founded by Bill Gates in 1975.

Microsoft contributes $514 bln (€359.91 bln) in revenues from taxes to countries in which it sells software products, of which $203 bln (€142.14 bln) in the USA, $133 bln (€93.12 bln) in the EU, another $133 bln in the Asia-Pacific region, and more than $100 bln (€70.02 bln) in emerging countries, including Romania.

Ratio
Worldwide, the ratio between Microsoft’s revenue and income generated horizontally to the company’s economic environment is one to seven.