Trends & Forecasts

Hardship or not, Turkish SMEs will raise IT spending

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Despite economic hardship, Turkey’s small and medium-sized enterprises (SMEs) will be increasing their IT spending in the near future. This is the prediction of IDC which conducted a survey among 750 SMEs in Ankara, Istanbul, and Izmir...

Despite economic hardship, Turkey’s small and medium-sized enterprises (SMEs) will be increasing their IT spending in the near future. This is the prediction of IDC which conducted a survey among 750 SMEs in Ankara, Istanbul, and Izmir.

Small- and Medium-sized Enterprises (SMEs) in Turkey can expect their IT spending to increase, according to a survey among 750 SMEs in Ankara, Istanbul, and Izmir conducted by IDC in 2008. The survey showed that top priorities for IT investment are open-source software, green IT, virtualisation, and enterprise application software. Other priorities include mobility and wireless solutions, managed services, outsourced document management/printing, and disaster recovery/business continuity, depending on the location, industry, and business size.

"The nature of IT spending is similar across the main cities in Turkey, but it varies when it comes to company size, with larger companies spending more on routine infrastructure updates," said Nevin Cizmeciogullari, Country Manager, IDC Turkey. "The finance vertical is the most likely sector among SMEs in Turkey to invest in new initiatives, while the public sector is the most likely to invest in initiatives that are already underway."

Between 54% and 65% of SMEs in Turkey were planning to increase spending on IT services, software, servers, PCs, or disc storage in 2008. At the same time, just over a half of surveyed companies expected their spending on peripherals, network equipment, and landline phone services to remain unchanged in 2008.

At 41%, the largest part of IT spending among Turkish SMBs was intended for hardware investments. However, the manufacturing and public sector verticals are the most likely to invest in IT services, and the construction and mining vertical will have the highest share of spending going towards software.

Industry differences exist also in tendencies to use in-house IT staff or to outsource IT services. Network industries — including transport, communications, and utilities — and financial institutions are the most likely to outsource the entirety of IT services to third parties. In contrast, the manufacturing and public sector verticals tend to prefer using third parties only when necessary.

IDC's Turkey SMB IT Priorities and Buying Behavior end-user survey for 2008 reveals specific IT-spending data for Ankara, Istanbul, and Izmir. The study includes extensive primary research on the buying patterns of end users in Turkey, including which Turkish SMEs are most likely to outsource IT services and which verticals intend to spend the most on IT services, software, and hardware. Using live interviews, IDC compiled statistically representative data and combined it with existing IDC research on data communications usage in the region.

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