Greek exit from euro to hit IT sales

Greek flagEarlier this week we reported that Greek IT staff are leaving the country in their droves because they can earn much more money and rely on getting paid.

And with the European Union possibly setting Greece adrift from the Eurozone, a report suggested that IT spend in the country is likely to plummet.

IDC said that a Greek exit from the euro will see IT spending in the country drop by as much as 18 percent in 2016.

Ut’s not yet certain that Greece will leave the Eurozone, but even if it does reach agreement with the EU, that will still have a negative effect on IT spending because of loss of business confidence and will lead to a double digit decline in IT spend next year, IDC believes.

IDC doesn’t think, however, that there will be very much effect on other European Union countries.

Right now, Greece only accounts for half of a percent of 2015 European IT spend, and is the worst performing Western European country.

If Greece does wave goodbye to the euro, the software and services sector will be largely protected because of recurring maintenance fees and contracts spanning multiple years.