Siveco Romania: Crisis Could Force IT Companies To Cancel Releases Of Innovative Software Solutions

The global economic and financial crisis could force some of the IT companies to focus on basic operations and suspend work on innovative solutions, as a way to reduce risk, according to Doina Binig, Vice President for Strategy within Siveco Romania, a leading software solution and IT service provider in the country.

Siveco estimates that the global IT market will grow approximately 4% in 2009, still impacted by the ongoing crisis. The Romanian IT market will manage to grow 10-12%. Considering the current status of the global economy, investments will be prudently directed towards areas of vital importance for development, Siveco Romania believes. They regard the IT industry as a pillar supporting the economy.

The information technology industry, the only one that enjoys fiscal protection in Romania, in the form of exemption from the tax on employee salaries, is likely to be only slightly affected by the crisis, through a change in consumer buying priorities and spending cuts, Siveco believes.

Although some customers have announced prudent spending and investment limitations in 2009, the Siveco management is not worried. The VP for Strategy said: "We cannot speak of a crisis in the IT industry for the time being, but we, too, will be affected by the global crisis. The IT market has come to a level of maturity after substantial growth especially in the past 10 years. According to the latest studies, the IT market in Romania reached over 1.6 billion USD in 2007. Under such circumstances, it is hard to imagine that any player on the IT market will have a catastrophic crisis overnight.

Siveco Romania"s customers include both public and private customers, domestically and international.