Sales and software development is the great engine of growth in the Danish IT market, says new figures from IDC. Growth in the Danish software market is expected to be in excess of 5% in 2013.

The Danish software market shows solid growth. 2012 ended with a growth rate of over 7.5%. According to new figures from IDC, it is forecast that in both 2013 and 2014, IT will grow at a rate of over 5%.

Software has become the engine of growth in the Danish IT market. The development is partly due to an increasing number of Danish companies realizing that they can enhance their business operations and increase productivity with new IT solutions, says the Danish association of IT companies.

Morten Bangsgaard

“It is very positive that we are seeing solid growth in the Danish software market. Although the market remains tough, we see a clear positive trend. More and more companies are beginning to invest in IT solutions that can increase their competitiveness and create better understanding of customers, sales and new business opportunities,” says Morten Bangsgaard, CEO of IT – industry. “Danish businesses have been reluctant to spend money on IT services. It is very positive that the market for IT services is slowly on the rise again”

The growth in the software market is primarily due to increased sales of database programs, CRM systems, Business Analytics tools and digital collaboration tools.

However, many smaller companies are still lagging behind in using IT solutions, says the Danish association of IT companies.

While the software market shows strong growth, the total Danish IT market is less explosive. The total IT growth in 2013 will be about. 2.8%, says figures from IDC. This is mainly due to the sale of hardware; this year will not see the same explosive growth as in 2012, when sales of smartphones and tablets propelled the growth in the hardware market by nearly 18.6%. Sales of hardware in 2013 will roughly be at the same levels as in 2012.

Anders Elbak

“Sales of mobile devices like smartphones and tablets will not have the same growth as in 2012. The market for smart phones is slowly becoming saturated, and the tablet market is hampered by very tough competition on prices,” said chief analyst Anders Elbak from research firm IDC. “New investments in IT services is primarily driven by the fact that several companies have started using outsourcing their IT functions as a way to become more efficient”

It is predicted that in 2014, growth in the hardware market also will be modest.

Source: IDC