Spending on ICT in central and eastern Europe (CEE) will continue its positive trend and reach 127.3 billion dollars in 2019, according to the new edition of the Worldwide Semiannual IT Spending Guide: Industry and Company Size, published by the International Data Corporation (IDC).
Poland and the Czech Republic are among the top three countries in the region which will see significant growth, 15.2 per cent and 7.5 per cent respectively.
According to IDC spending in the telecommunications industry is forecast to grow at a compound annual growth rate of 5.6 per cent through 2022, with total spending exceeding 12.6 billion US dollars. The emergence of innovative technologies depends on solid infrastructure, reliable data centres, and network improvements such as fiber-optic communication and 5G mobile.
“We shouldn’t view the telco industry just as a cornerstone of innovation,” Ivana Slaharova, IDC senior research analyst for customer insights and analysis tells Emerging Europe. “Telco companies set ambitious targets for customer experience and building strong brand awareness. In the world of digitalisation and disruptive technologies, it shouldn’t be viewed as a problem.”
Banks are also investing in innovation, digitalisation, and the automation of processes, in order to help them compete with the many financial technology (FinTech) companies and start-ups.
“Open banking is another important driver in ICT investments. It is becoming mandatory in Europe and a business requirement in APAC and North America to spend more on ICT,” Martin Stiller, senior research analyst for financial insights tells Emerging Europe. “ICT spending is expected to grow over the next five years as banks transform their legacy infrastructures. To remain competitive, they need to accelerate time to market, invest in data analytics, and build omni-channel capability across all channels.”
“Banks are investing in digitalisation and process automation in response to competition,” continues Mr Stiller. “They are developing functionalities that improve the banking experience, such as digital on-boarding, instant lending, and cognitive advice.”