Israel Information Technology Report Q4 2015
BMI View: We revised our estimate for Israel's IT market size in 2014 in the Q415 update, in addition tomaking a small downward revision to the growth outlook. The new forecast better reflects the maturity ofthe Israeli IT market, including a greater share for IT services spending and the reduced growth prospectsoffered by Israel's mature IT hardware market. Growth rates will underperform emerging markets in theMiddle East 2015-2019, but Israel will continue to be a lucrative market in per capita spending terms.
Israel also sits at the technological frontier with a vibrant ICT start-up community and highly skilled techworkers, which have continued to attract high levels of investment in 2015 following a record-breaking yearin 2014. We expect this trend to continue, as global IT firms look to leverage innovative solutions emergingfrom Israel's start-up ecosystem to accelerate their transition towards high-growth software and servicessuch as cloud computing and big data analytics.
Headline Expenditure Projections
Computer Hardware Sales: Forecast to reach ILS6.3bn in 2015, up from ILS6.2bn in 2014. Spendingforecast to grow in local currency terms, but contract by 6% in US dollar terms due to depreciation as aresult of deferred purchases and substitution for cheaper devices in the retail market.
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