Market Report, "Israel Information Technology Report Q4 2010", published

Oct. 23, 2010 - PRLog -- BMI projects the Israeli IT market will have a value of US$4.9bn in 2010. The Israeli IT market should gain enough momentum from key sectors to expand at a CAGR of 6% over BMI's 2010-2014 forecast period, thanks to stable demand from defence and government sectors as well as opportunities in verticals like financial services and small and medium-sized enterprises (SMEs).

Spending is expected to resume single-digit growth in 2010 after a contraction in 2009. In early 2010, there were reports of a pick-up in the flow of projects. Vendors reported a revival in demand in the key financial services vertical, where new projects included an US$11mn IT outsourcing tender by the First International Bank of Israel. Healthcare, the public sector and utilities also generated projects. The Israeli IT market has strong fundamentals that should keep it in positive territory during BMI's fiveyear forecast period. Household computer penetration of around 75% offers potential for further growth. High internet penetration, including growing broadband penetration, are drivers for the retail segment, while the financial services sector accounts for about 15% of Israeli IT spending.

Industry Developments

In 2009, Israel's high-tech sector suffered as demand for high-tech exports dropped by at least 10-15%, with as many as 10,000 sector jobs feared to be at risk. This represented a major concern for the Israeli government given that high-tech accounted for around 10% of Israel's economy, with annual sales estimated at around US$25bn. Major IT firms were retrenching in Israel, including SAP, Cisco and HP. IT is viewed as an important policy tool for the Israeli government's 2008-2010 socioeconomic policy framework. In 2009, the National Economic Council recently submitted a policy agenda to the government, which specified two main policy tracks of reducing poverty and achieving balanced growth. The first track is expected to emerge as the main priority.

As part of its modernisation agenda, the government is pressing ahead with various other strands of its egovernment project. Among other initiatives, there has been spending on computers in healthcare and the nationwide paperless court initiative. The e-government programme is leading to increased demand for computers, with the Israeli government reaching supply agreements with vendors like Dell and HP.

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Report Table of Contents:

Executive Summary
SWOT Analysis
- Israel IT Sector SWOT
- Israel Telecommunications Industry SWOT
- Israel Political SWOT
- Israel Economic SWOT
- Israel Business Environment SWOT
IT Business Environment Ratings
- Middle East & Africa Business Environment Ratings
- Table: Regional IT Business Environment Ratings
Middle East & Africa Regional IT Markets Overview
Israel Market Overview
- Government Authority
- Government Initiatives
Industry Forecast Scenario
- Table: Israeli IT Industry - Historical Data & Forecasts (US$mn, Unless Otherwise Stated)
- Country Context
- Consumer Expenditure, 2000-2012 (US$)
- Rural/Urban Breakdown, 2005-2030
- Internet
- Table: Telecoms Sector - Internet - Historical Data & Forecasts
- Macroeconomic Forecast
- Table: Israel - Economic Activity, 2007-2014
Competitive Landscape
Company Profiles
- Ness
- IBM
- HP
- Matrix
- Microsoft
Country Snapshot: Israel Demographic Data
- Section 1: Population
- Table: Demographic Indicators, 2005-2030
- Table: Rural/Urban Breakdown, 2005-2030
- Section 2: Education And Healthcare
- Table: Education, 2002-2005
- Table: Vital Statistics, 2005-2030
- Section 3: Labour Market And Spending Power
- Table: Employment Indicators, 2001-2006
- Table: Consumer Expenditure, 2000-2012 (US$)
- Table: Average Annual Wages, 2000-2012
BMI Methodology
- How We Generate Our Industry Forecasts
- IT Industry
- IT Ratings - Methodology
- Table: IT Business Environment Indicators
- Weighting
- Table: Weighting Of Components
- Sources

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Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets.  BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports.  Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports.  View more research from Business Monitor International at http://www.fastmr.com/catalog/publishers.aspx?pubid=1010

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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.