ICT recovery expected in 2004
The market for information and communications technologies (ICT) in Western Europe is expected to grow by more than three per cent in 2004, according to a report by the European information technology observatory (EITO). The growth is likely to be driven by converging networks and systems, as well as the rise of the e-business sector, claims EITO. The expected growth of 3.1 per cent is far higher than that of 0.8 per cent experienced in 2003. EITO also forecasts that the telecommunications market in Western Europe will grow by 3.8 per cent in 2004, reaching a 317 billion euro market value. Speaking at the launch of the 2004 report, EITO Chairman Bruno Lamborghini underlined the importance of Europe 'not losing momentum at the beginning of a new ICT cycle.' He warned that competitors such as North America, China and Eastern Asia are also becoming stronger players in the digital world. Spain is expected to enjoy the strongest ICT growth in 2004, while in terms of spending, Central and Eastern Europe is one of the world's most dynamic regions and as such is expected to experience a market increase of more than eight percentage points during 2004. The report claims that Europe's productivity growth and competitiveness will be driven by enhanced Web-based applications such as e-commerce, but warns that restraints, such as budget restrictions and a lack of skills, will inhibit ICT investment, particularly for SMEs.