Trends in the Dutch ICT Market
The total Netherlands market for Information and Communication Technology (ICT) amounts to about 5 percent of the total European ICT market and is the sixth largest in Europe. The Dutch ICT market amounted to USD 27.4 billion in 2001. The Information Technology (IT) market alone, consisting of hardware, software and computer services amounted to USD 13.1 billion in 2001. The telecommunications market, equipment (about 30 percent) and services (70 percent) amounted to USD 14.3 billion in 2001.
In spite of weakening economic conditions, growth forecasts for the ICT sector were positive at the beginning at 2001. As the year progressed they became less optimistic, particularly during the last quarter and after the 9/11 events. Still the year ended with several segments of the market showing good opportunity for U.S. exporters interested in expanding their sales to the Netherlands. Growth areas included particularly the software and IT and telecom services segments. The Small and Medium-sized enterprise market is emerging as a rapidly growing market for all types of ICT products and services.
Market Overview and Opportunities
The Netherlands has a total population of 16 million people. There is an active working population of 6.6 million people, some 90,000 registered companies with a staff of more than five people, and 6.5 million Dutch households. The Netherlands is a technologically advanced country offering an excellent transportation and telecommunications infrastructure. The Netherlands offers a compact market, which is used by many ICT companies from abroad as a pilot market and as a central point for distribution of products and services throughout Europe.
Computer Software
The Dutch software market grew by about 13 percent in 2005. The total Dutch software market reportedly consisted of about 30 percent tools, 40 percent applications software and 30 percent systems software.
The Netherlands counts a large number of software and services firms, ranging from very small, often serving niche markets, to very large firms. Among the larger Dutch software firms are Baan (now owned by British Invensys) for Enterprise Resource Planning (ERP) software products and Exact for E-Business and ERP/financial software. .
Some 65-70 percent of software products available in the Netherlands reportedly are imported. The United States is by far the largest supplier, followed by European software producers in Germany, the United Kingdom and France.
Demand for external services, particularly outsourcing of ICT activities, is strongest from financial organizations, telecommunications industry, central government, Dutch multinationals, the public utility and health care sectors. Competition in the market is increasing, while mergers and takeovers continue to take place in this sector. Although not as severe a problem as one or two years ago, services firms are still experiencing difficulty in finding sufficient qualified staff to service their clients.
Over all, the Netherlands has a large number of services firms, varying in size from very small to very large, and ranging from hardware vendors to management consultants. About 30 percent of the market is in the hands of the top five, mostly Netherlands headquartered, service providers. They include: Atos-Origin, CMG, Getronics and Cap Gemini/Ernst&Young.
Telecommunications Market
The total market consists of telecommunications services, while the remaining 25 percent is telecommunications products and equipment. In the market for telecom services the business segment represents approximately 65 percent.
The Netherlands offers an open, liberalized telecom market, which is accessible and welcomes new investments, both foreign and domestic. The Dutch Government is committed to promote competition in the telecom market .
Even with KPN still a dominant factor, the Netherlands belongs to the more liberalized telecom countries in Europe and has proactively promoted competition. OPTA, the Dutch independent regulator, is closely watching and stimulating competitive developments. Fixed line voice telephony was completely liberalized on July 1, 1997.
Antal’s ICT Desk
Antal has been at the forefront of ICT executive search since it’s entry into the Dutch market in 1999. We are proud to offer a myriad of high-end executive search solutions to cater for an enormously overstretched, candidate driven marketplace.
With our group of highly focused executive search consultants specialising in various disciplines of the ICT sector we can speak with authority and credibility when it comes to offering focused search solutions to our clients in both the sales and technical areas of ICT.
Today we are happy to count all the leading software vendors and global consulting firms as key clients. In addition we collaborate on a Pan – European basis with two tier one global vendors offering a dynamic recruitment process outsourcing solution.