The Italian software is one of the largest in Europe.  Its value in 2005 is estimated at $5.047 billion, a slight increase of 0.9% in Euro currency over 2004. As with most of other sectors, the Italian software market has suffered from the difficult economic situation of the past few years and it no longer records annual two-digit growth rates, as it used to do up until 2001. However, market analysts forecast a cycle of relative growth for software even as the total Information Technology market may experience a further downturn.

Application software accounts for over 60 percent of the total market, and system software for slightly less than 40 percent, with middleware accounting for approximately 63 percent of system software demand.  

Large and medium-sized businesses continue to be the primary IT (Information Technology) spenders in Italy.  In the past few years they have continued rationalizing and optimizing their existing infrastructures to improve productivity and obtain benefits in terms of flexibility and governance.  Concerned about improving the internal flow of information, streamlining customer relationships, and expanding their markets, larger Italian firms are increasingly investing in enterprise resource planning (ERP), supply chain management (SCM), customer relationship management (CRM), and e-commerce applications.  The Italian banking sector, which has been the most active in investing in new technologies, is focusing on delivery channels to give customers greater access to their banking services.  The Public Administration sector is also a large investor in IT, and will remain so in the coming years as it continues to increase and improve its online services and advance Italy’s information society.  IT security spending is becoming more and more important for Italian enterprises in all sectors.

Italy relies heavily on foreign production of software, which accounts for 75 percent of the total market.  The United States is the leading exporter of multiple platform and application software, with a share of approximately 80 percent of imports.  Once the economic climate improves, U.S. software companies should be among the main beneficiaries as the market recognizes the supremacy and innovative quality of American products...(continues)

Please note:
This Industry Sector Profile is also part of the more comprehensive
ITALY COUNTRY COMMERCIAL GUIDE 2006.