Markets and Digia's market position
Digia mainly operates in the Finnish IT services and software market. Digia estimates that the market will grow by about 4-5 per cent in 2018. In our view, growth is strong in modern application development, integration and implementation services as well as in cloud solutions, which are gaining ground from traditional data centre solutions. In these areas, market growth clearly outpaces the total market growth. The digitalisation of business operations is the engine of market growth. This creates demand for both the development of new services and the modernisation of the underlying business systems.
Harnessing the opportunities of digitalisation increasingly often requires among other things combining information from numerous sources, analysis, processing and reporting. Companies want to source information not only from their own databases and systems, but also exchange it between organisations. This increases the need for integration expertise, particularly Application Programming Interface (API) solutions.
Realising the benefits of digitalisation requires both a company and its IT service supplier to comprehend extensive solution packages. In order to efficiently utilise technologies, one must understand services, how to enhance their smart functionalities and integrate them into the company’s business systems. In our view, demand will focus even more on the development of end-to-end systems for customers instead of separate individual projects.
Digia sees a trend in digitalisation development in which customers need a partner with sufficiently extensive delivery capabilities. At the same time, the need for continuous support (24/7) is emphasised, as services are an increasingly critical part of companies’ business processes.