Spanish IT market grows 3.3% in 2016
Spanish IT market grew 3.3% last year, with a total investment of €23,441m, says a report from the Association of Electronics, Information and Communications Technologies, Telecommunications and Digital Content Companies (AMETIC).
The IT services grew 5.2%, reaching an overall turnover of €15,963m; Software industry grew 3.6%, with a total invoicing of €3,099m. However, Hardware purchases fell 3.4%, with an overall turnover of €4,379m, lower than the previous year.
In general, the IT market obtained in 2016 positive results for the third year running, although the results are very similar than those obtained in 2010, and they are lower than the results achieved in 2008.
The activity of the IT market and, especially IT services, grew up thanks to the digital transformation of the companies. On the contrary, Spanish political instability and the delay of the Government formation, not constituted until October, had a negative impact regarding the IT investment in the public sector.
In 2016, the sectors with a bigger investment in IT solutions were industry, banking and the insurance sector. The new Government Digital Strategy as well as the new digital transformation projects of the Public Administrations will be crucial for the IT sector in 2017.
Although Hardware purchases grew in 2015, this positive tendency didn’t continue in 2016. The investment in the technology park was substituted in 2016 for the lengthening of the lifespan of the IT equipment and the increase of maintenance operations (IT Services). Another factor that has contributed to the descent of Hardware results has been the tendency towards Cloud Computing Solutions.
Software industry obtained good results in 2016 thanks to the increase of productivity and competitiveness, regarding new inversions as well as the actualization of existing systems.
GDP growth and the global economic growth in Spain activated more projects related wit IT services. The economic situation also activated the relaunching of investment plans which had been stopped or aborted in the previous years. The aspects which have a most significant impact in the growth of the IT Services are cost-cutting and operation effectiveness.
During the past tax year, the sector continued its hiring efforts, so there were more than 200,000 new direct employees. This increase is related with the positive evolution of IT Services, the segment with more job demand.