Canada Information Technology Report Q3 2012

Canadian IT spending is expected to reach US$46.9bn in 2012, up 3%, with BMI
downwardly revising its forecast due to expectations of a macroeconomic cooling in H212. Government
spending will continue to be constrained by a focus on cutting costs, with cost reviews being conducted by
Toronto and Ontario, but there have been a spate of large tenders, highlighting continued opportunities
within the sector. BMI expects Canada''s IT market to continue to report moderate overall growth in
2012, although much will depend on the overall business environment.

Headline Expenditure Projections

• Computer hardware sales: US$14.9bn in 2011 to US$15.1bn in 2012, +2% in US dollar terms. Forecast in US dollar terms downwardly revised due to macroeconomic factors, although Canadian PC sales reported positive growth in 2011.
• Software sales: US$9.3bn in 2011 to US$9.7bn in 2012, +4% in US dollar terms. Forecast in US dollar terms downwardly revised due to analyst modification and given the large public sector deficits, vendors will need to provide clients with ways to reduce costs by increasing efficiency.
• IT Services sales: US$21.4bn in 2011 to US$22.1bn in 2012, +4% in US dollar terms. Forecast in US dollar terms downwardly revised due to analyst modification with the market shaped by a continued move towards distributed computing and service-oriented architectures.
• Risk/Reward Ratings: Canada''s score was 70.7 out of 100.0. Canada ranks second in our latest RRR table, behind the US, but still ahead of Latin American giants such as Brazil and Mexico. The country ranked third for its Industry Rewards score, but its overall rating was boosted by a relatively high Country Rewards score of 90.

Key Trends & Developments.

• Fiscal constraints faced by the Ontario government in particular represent a challenging
  environment for vendors. Meanwhile Toronto authorities have also launched a Core Spending
  Review targeted, which could have negative implications for IT spending. However a focus, by
  Ontario and other authorities, on deficit reduction through public services delivery reforms
  should also potentially represent an opportunity for IT vendors.
• Growing interest in cloud computing is expected, with Canada currently lagging the US and
  some other advanced markets. The market in Canada remains fairly small. A 2011 survey
  commissioned by Microsoft Canada found that nearly 73% of Canadian SMEs understood that
  cloud-based services was a cost-effective delivery model, but that just 30% were investing in
  such services.

Canada Information Technology Industry Report

Published: August 2012                      No. of Pages: 49                      Price: US $ 1175

 

Table of Contents
 
Executive Summary . 5
SWOT Analysis 6
Canada IT Sector SWOT 6
Canada Political SWOT . 6
Canada Economic SWOT 7
IT Risk/Reward Ratings 8
Table: Regional IT Business Environment Ratings Q312 . 11
IT Markets Overview 12
IT Penetration 12
Market Growth And Drivers 14
Sectors And Verticals . 16
Market Overview 20
Hardware . 21
Software . 24
Services 26
Industry Developments . 28
Industry Forecast . 29
Table: Canada IT Industry – Historical Data And Forecasts (US$mn unless otherwise stated) . 32
Industry Forecast Internet . 33
Telecoms Sector – Internet – Historical Data & Forecasts . 33
Competitive Landscape 35
Hardware . 35
Software . 36
Services 38
Macroeconomic Forecast 40
Table: Canada – GDP By Expenditure, Real Growth %, 2008-2016 42
Country Snapshot: Canada Demographic Data . 43
Table: Canada''s Population By Age Group, 1990-2020 (''000) . 44
Table: Canada''s Population By Age Group, 1990-2020 (% of total) 45
Table: Canada''s Key Population Ratios, 1990-2020 . 46
Table: Canada''s Rural And Urban Population, 1990-2020 46
BMI Methodology . 47
How We Generate Our Industry Forecasts 47
Transport Industry 47
Sources 48Table: Regional IT Business Environment Ratings Q
Table: Canada IT Industry – Historical Data And Forecasts (US$mn unless otherwise stated)
Table: Canada – GDP By Expenditure Real Growth %
Table: Canada''s Population By Age Group ('')
Table: Canada''s Population By Age Group (% of total)
Table: Canada''s Key Population Ratios
Table: Canada''s Rural And Urban Population