Swiss ICT sector only cautiously positive
The Swiss ICT sector is no longer as positive as it was at the beginning of 2017. The index value declined by 3.6 points to 106.0 points, a slightly lower value than a year ago. The consulting segment in particular expects a clearly negative development compared to the previous quarter.
Nevertheless, the ICT industry is still in a positive mood, with all segments expecting sales growth. The consumer electronics and imaging/printing/finishing sectors, on the other hand, are taking a critical view of the next quarter. All indicators show more pessimistic expectations than a year ago.
Expectations for both industries have been below the 100-point mark since the fourth quarter of 2014.
Light cooling
Overall, the ICT sector is showing a slight slowdown. Only the index value of the IT Services segment rises by a very cautious 0.2 points. The values for the Software and IT Technology segments fall slightly by 3 and 1 points respectively. At 99.7 points, the index for the IT Technology segment is even below the 100-point mark.
The Consulting segment stands out. The index value dropped by 10.6 points to the 101.6 mark. The main negative trend in this segment is in expectations for profitability. The Software and IT Services segments expect more profitable growth, while IT Technology and Consulting expect less profitable growth.
The Consumer Electronics and Imaging/Printing/Finishing sectors follow the long-term trend and continue to fall. The positively anticipated development of both industries for the last quarter was not confirmed. The industries expect a worse development with regard to all indicators compared to the third quarter of 2016.
Falling prices challenge the ICT industry
All segments of the ICT industry expect a positive development of the order situation for the next quarter. Employment indicators also point to growth across all segments. Expectations for business performance, on the other hand, are mixed. While all segments expect revenue growth, only the software segment anticipates a clearly positive development of gross margin and prices.
Accordingly, all segments of the ICT industry - with the exception of software companies - expect a negative development in profitability. The presumed development of operating costs is not sufficient to maintain profitability in the segments.
Suitable skilled workers, digitalization & Co.
The most frequently cited challenge continues to be attracting and retaining good professionals. All four segments of the ICT industry expect an increase in vacancies. In the consumer electronics and imaging/printing/finishing sectors, the shortage of skilled workers is understandably not an issue. At first glance, it is surprising that all industries cite digital transformation and cloud computing as a challenge, since both topics are based on ICT technologies. The associated transformation is obviously also a challenge for the ICT industry itself. In the Consumer Electronics and Imaging/Printing/Finishing sectors, the shifts in purchasing associated with exchange rates remain the central issue.
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