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Developing Tomorrow’s Workforce Today

Information and CommunicationsTechnology Council

Conseil des technologies de l’information et des communications

March, 2007

Canadian Information Technology Spending Forecast

Summary 2006-2010

Krista Collins, IDC Canada Ltd.

Table of Contents

IDC Opinion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

In This Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Situation Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Canadian IT Market Group Overview – 2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

2005 Canadian IT Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Future Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Forecast and Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Canadian IT Forecast Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Canadian IT Forecast by Submarket, 2006–2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Market Context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Key IT Subcategories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14Hardware Subcategories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14Software Subcategories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15Information Technology Services Subcategories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Canadian IT Market by Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Canadian IT Market by Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Essential Guidance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Learn More . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Related Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Hardware . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Software . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

The information technology (IT) market continues to be astrong contributor to economic growth and prosperity toCanada. The Canadian IT market had a banner year in2005, with many markets exceeding our original estimatesfor the year. This positive momentum has been carried forward into our forecast for 2006 to 2010. Canadian ITforecast highlights include:

The IT market growth rate was 5%, generating aboutC$37.2 billion in 2005. Overall this represents a highergrowth rate than anticipated due to the strong economicenvironment as well as continued fulfillment of latentdemand. For 2006 the IT market grew at an annual rate of 4.9%. The economic environment continues to be strongwith positive profit growth and business investment plans.

IDC expects the compound annual growth rate (CAGR) forthe IT market to be 3.7% for the five-year period of 2005to 2010. Annual spending will increase from C$37.2 billionin 2005 to just over C$44.7 billion in 2010. In total, morethan C$246 billion will be spent on IT over the next fiveyears in Canada.

The competitive and creative environment that exists in theIT market provides an excellent opportunity for the buyersto evaluate and integrate the value of IT into their businessstrategies and implementation plans. Understanding how IT drives strategic business advantage is critical to the success of both the buyers and providers of IT. With thestrong economic environment, now is the time to invest in IT for the future.

IT providers need to emphasize the positive impacts of IT in marketing messages and translate how IT fits into theirclients’ strategic goals to help ensure the success of theircustomers’ business strategies.

To underestimate the value of IT and simply view it as amethod of cost containment misses a great opportunity to leverage technology for the benefit of individuals, organizations and our nation.

1

IDC Opinion

March 2007Canadian Information Technology Spending Forecast Summary 2006–2010


2

This study presents IDC Canada’s forecast for the CanadianIT market for 2006 to 2010. All three major IT markets(hardware, software and IT services) are covered in this study,and a five-year forecast is included for each market. Thisstudy also provides a brief qualitative overview, which offersreaders a summary of the key trends shaping the market.

For the purpose of this study, IDC examines select segmentsin the IT hardware, software and services sectors in greaterdetail, and provides a regional and industry view of the ITmarket for 2006–2010.

For more detailed information on individual markets, readersmay refer to the documents referenced at the conclusion ofthis study in the Related Research area in the Learn Moresection of this study.

The key IT markets covered in this study include:

Hardware

• Single-user hardware

• Multi-user hardware

• Storage hardware

• Other hardware

Software

• ERM applications

• Other application software

• Application development and deployment

• System and network management

• Networking software

• Security software

• Other system infrastructure

IT Services

• Consulting and integration

• Outsourcing and operations-related services

• Support and training services

For the purposes of this study, IDC Canada has segmentedthe Canadian market into the following industry groups:

• Manufacturing and resources

• Infrastructure services

• Distribution and services

• Financial services

• Public sector

• Home/consumer

IDC Canada categorizes the 10 provinces and three territoriesin Canada into six regions:

• Atlantic Canada (ATL)

• Quebec (QC)

• Ontario (ON)

• Other Western Canada (OWC)

• Alberta (AB)

• British Columbia (BC)

Please see the Definitions within the Learn More section of this study for a detailed explanation of the terminologyused to define these market parameters.

Methodology

This report assembles IDC Canada’s most current forecastsfor the key segments in the overall Canadian IT market.These forecasts are based on extensive research and analysisof the various IT segments in Canada carried out by IDCCanada analysts, presented through direct consultation andin published reports. Please note that all revenue and salesfigures in this forecast are stated in Canadian dollars (C$),unless otherwise noted.

In This Study



Canadian IT Market Group Overview – 2005

2005 turned out to be a banner year for the IT market inCanada. Providers that were cautiously optimistic about theirsales outlook were finally rewarded in 2005. IDC estimatesthat total spending in the Canadian IT market reachedC$37.5 billion in 2005 and grew at a CAGR of 5%.

Earlier in 2005, IDC forecast that year over year CanadianIT market growth would be about 4.7%, with the hardwaresegment leading the charge with growth of about 6.3%.IDC’s latest IT market figures now show that Canadian ITmarket growth surpassed expectations, posting 5% growthyear over year – and the hardware segment exceeded predictions, posting the highest growth rate of the threemarkets (hardware, software and services) at 6.9%.

Economic activity was strong overall in 2005, with grossdomestic product (GDP) growth rate at just about 3%, profitgrowth at just under 11%, and business investment growthof just under 8%. However, IT growth did not keep pace with the profit or investment indicators, and was only slightlyfaster than GDP growth. While business investment isgrowing, much of this investment was in capital equipment in industries such as oil and gas, as well as the automotiveand transportation industries, and was not IT related.

Also, given the economic slowdown of the early 2000s,companies are less enthusiastic about spending as fast as their profit grows, deciding instead to continue tostrengthen their balance sheets and cash positions. Thiscontinues to be a challenge to the IT industry. As long as ITinvestment is considered in the context of cost containment(as opposed to providing competitive advantage and topline growth opportunity) overall IT market growth willremain muted. In addition, with the size of the IT marketnow C$37.2 billion, growth rates will be lower due to thematurity and large size of the base off which it is growing.

2005 Canadian IT ForecastTable 1 presents the Canadian IT market spending figuresfor hardware, software, services, and communications for2005. Figure 1 segments the Canadian IT Market by thekey submarkets.

Hardware

IDC estimates that spending on hardware totaled overC$14.2 billion in 2005. The hardware segment is the second largest submarket in the IT market, representingabout 38% of the Canadian spending. Although the volumeof hardware shipments continues to increase in most seg-ments, intense pricing pressure hampers total spendinggrowth in this market. Canada, along with Western Europe,Latin America, Asia/Pacific and the United States all experi-enced strong PC spending, described as a second wave to the Y2K upgrade cycle. This surge in spending is anexample of meeting the pent up demand resulting from the relatively low spending years between 2001 and 2003.

3

Situation Overview



Table 1: Canadian IT Market Spending, 2005 (C$M)

Market 2005

Hardware 14,268.9

Software 6,502.1

IT Services 16,499.9

Total IT Market 37,271.0

Source: IDC Canada’s IT Market Forecaster, March 2007

Services 45%

Hardware 38%

Software 17%

Figure 1: Canadian IT Market Segmentation, 2005

Source: IDC Canada, 2007Note: Total IT market = C$37.2 billion

Software

Although software is the smallest segment of the Canadian ITmarket, with estimated spending of C$6.5 billion in 2005, it is one of the fastest growing segments. IDC estimates thatthe Canadian software market grew by 5.4% in 2005, andthe rate of growth is expected to remain between 4% and 5% into the forecast period. The software market, while in part driven by a replacement cycle like hardware, is also driven by the increasing need to streamline businessprocess, improve supply chain integration, improvecustomer relationships and deliver increased functionality for competitive advantage. Also, as the hardware marketcontinues to proliferate with volume servers, the support,infrastructure and security software required to manage the environment increases.

Information Technology Services

Canadian spending on IT services amounted to more thanC$16.5 billion in 2005, making it the largest individualsubmarket within the Canadian IT market. While outsourcingcontinues to be the single largest driver of this market, its characteristics have changed – there are fewer largemegadeals and an increasing number of discrete and selectiveoutsourcing contracts. This is at typical evolution of a maturingmarket, as the need and application of the benefits of outsourcing start to find their way into smaller contracts andsmaller organizations. Also, the delivery platforms to deliverwhat in the past were considered viable at a high unit cost to large organizations only, now are benefiting those sameproviders because they have the critical mass needed to support lower transaction costs and pricing.

4 March 2007Canadian Information Technology Spending Forecast Summary 2006–2010


Forecast and Assumptions

IDC Canada takes into account a number of macroeconomicfactors when building its market-specific forecasts. Based on an interpretation of these factors, IDC develops a set of

assumptions that in turn influence the forecasting process. A summary of these assumptions and their subsequentimpact on the IT market forecast is presented in Table 2.

5

Future Outlook



Table 2: Canadian IT Market Macroeconomic Assumptions, 2006–2010

Accelerator/Inhibitor/ Certainty of

Market Force IDC Assumption Impact Neutral Assumption

Macroeconomics

WorldEconomy

At an estimated 4.4% (measuredusing purchasing power parity conversion rates), world growth in2005 was considerably weaker thanin 2004 but is still comparable withsome of the best years of the 1990s.The global economy will continue todecelerate in both 2006 and 2007and the structure of growth willchange as domestic demand trendsbecome increasingly more importantrelative to the external trade dynamic.While our central forecast calls forreasonable growth in the world economy in the years ahead, thereare a number of downside risks thatcould turn the gradual slowdown into something much more serious.

Moderate: The global economyis in a stable environment froman economic perspective. Whilepressure in the high growthcountries like China and Indiacontinues to drive commodityprices high, the overall impactof lower costs of manufacturingand services seems to be offset-ting the impact on inflation and interest rates. In developedeconomies where there is nearfull capacity utilization, there isnot as much impact on inflationas would be expected. This is dueto the continuing globalization ofresources and capabilities, result-ing in a new global context forsupply constraints that are notbound by geographies. While theglobal economies work to pro-vide a stable environment, theglobal geo political environmentcontinues to be a threat if thereare new and unforeseen terroristacts that unsettle the globaleconomies.

! HHHPP

GDP GDP 2005 2006 2007Canada 2.9% 3.0% 2.7% US 3.5% 3.2% 3.0% Eurozone 1.4% 2.0% 1.8% E.U. 1.6% 2.2% 2.0% AP 4.5% 4.3% 4.2% Latin 4.1% 4.1% 3.7%

Source: Consensus Economics

High: GDP forecast growth willaverage 3.0% in 2006 and 2.7%in 2007, little different from theestimated performance in 2005.A cautious GDP forecast mainlyreflects our concerns about thefinancial health of Canadianhouseholds and the prospect of slower private consumptiongrowth as Canadian interest

! HHPPP



Table 2: Canadian IT Market Macroeconomic Assumptions, 2006–2010 (continued)



Macroeconomics

GDP (continued) rates rise further. With interestrates expected to rise by aroundanother percentage point, privateconsumption growth is forecastto ease from 4% in 2005 to2.8% in 2006. This will slow fur-ther to 2% in 2007 when higherinterest rates really begin to bite.The household savings rate is at a historical low and muchconsumer expenditure has beendebt-financed. Debt growth has rapidly outpaced the rise in earnings, and household balance sheets are particularlyvulnerable to rising interestrates. The stabilization of houseprices will also dampen equitywithdrawal, which has been a major driver of additionalhousehold expenditure over the past few years.

GDP Provincial High: Among the provinces,look for Alberta to grow at arobust 4 per cent per year in the2006–07 period. In spite of thelikelihood of some slackening in oil patch conditions later thisyear and into 2007, there is significant forward momentumcurrently built up in the province’seconomy. The economic expansionin British Columbia will remainstrong in 2007 – above the 3 per cent mark – as continuedstrength in construction andservices activity more than offsets a slowdown in forestry.Elsewhere in the Western region,continued expansion in theenergy and mining industries,and some improvement in the

! HHHPP

7March 2007Canadian Information Technology Spending Forecast Summary 2006–2010


Table 2: Canadian IT Market Macroeconomic Assumptions, 2006-2010 (continued)



Macroeconomics

GDP Provincial(continued)

crop sector, is likely to keep realGDP growth in Saskatchewanabove the national average,while the diversified economy of Manitoba is expected toadvance at the same beat as Canada as a whole.

Inflation Core inflation is forecasted toremain well within the central bank’s1-3% target range. High oil and gas prices lead to rise in prices inearly 2006, however tightening ofmonetary policy will prevent furtherincrease in price in mid-06 andinflation will slow in the latter half of 06 and even further in 07.

Moderate: If inflation stays in the target zone for the Bank ofCanada, then inflation will havelittle impact on the expectation of interest rates tapering off.However, if there is worldwideevents that drive energy prices to new highs, the impact on thedomestic Canadian economy willbe negative as the CDN$ will rise,and interest rates will rise as well.The challenge is that while theenergy sector benefits, the rest ofthe economy (other than govern-ment revenues) does not as pricesand interest rates go up.

I HHHPP

Interest Rates Interest rates are expected to raise apercentage point in 2006 and evenhigher in 2007. Depending on theoverall inflation rate, the Bank ofCanada may slow the interest ratesincreases by late 2006.

Low: While interest rates rise tomanage the inflation impact ofhigher energy prices, they stillremain relatively low from a his-toric perspective. Consumerspending could start to see animpact due to higher interest rates,as would the housing market, butit would not represent a collapsein the total market. Spending bybusiness is expected to pick up theslack of any decline in the con-sumer market.

!

HHPPP






Macroeconomics

Geopolitical Continued geo political tensions willexist, with the possibility of anothermajor event impacting all economies.

Moderate: Continued tensionsand other potential threats arewidely expected to continue.

!

HHPPP

BusinessInvestments

Business, governments and institu-tions are expected to increase theirspending on plant and equipmentby 8.2% in 2006. This is a highergrowth rate than was achieved in 2005 (7.6%). Machinery andequipment spending is expected to increase 4.5% in 2006, versus an increase in 2005 of 4.2%.Source: Stats Can.

High: Business investment spend-ing has direct positive impact onspending on ICT, we expect to seecontinue increases in spending toreplace aging hardware togetherwith ongoing ICT investments aspart of the productivity agenda.

! HHHHP

CorporateProfits

While not matching the Y/Y increaseof 2004 corporate Pre Tax Profits willcontinue to be healthy in ‘05.

Years 2004 2005 2006 Canada 18.7% 10.7% 6.2% US 12.6% 14.2% 9.5%

Source: Consensus Economics

High: Profit growth continues tobe positive. Although the rate ofprofit growth is declining, it isgrowth on a larger profit numberfrom the previous 2 years. Over 3 years profit will increase by over35%. The result is increasinglystrong cash flows and strong bal-ance sheets. Given the need todrive increased competitiveness,and the strength of the corporateprofit picture, we should expect tosee an increase in the pace ofinvestments in ICT.

! HHHHP

MarketDependence onMacroeconomics

Overall, the Canadian macroeco-nomic indicators are strong. Canadais expected to be one of the strongereconomies in the G8 for 2006 and2007. The strength in the macroeconomy includes: large export surplus, increasing current accountsurplus, strong government revenuesand surplus, low interest rates,strong corporate cash flow and balance sheets, world wide demandfor commodities, including energy,stable political environment, strong

Moderate: With the continueddemand for commodities, as wellas the strong current account sur-plus (resulting in less foreign debtand interest payments) the eco-nomic environment in Canada ispositive in the short term. Thereare numerous challenges in the longer term regarding thecompetitiveness of Canadianorganizations on a global basis,as well as the continued drain ofmanufacturing and services jobs

! HHHHP






Macroeconomics

MarketDependence onMacroeconomics(continued)

Canadian dollar (C$). Weaknessesinclude too much dependence oncommodities, declining manufactur-ing sector, high C$, consumerdemand slowing.

to offshore countries. This is achallenge to be addressed but willno likely slow ICT growth, and willprobably accelerate as the chal-lenge becomes more recognized.

Exchange Rate With the US dollar expected to weakenagainst most currencies in 2006, theCanadian dollar should maintain itsstrength, averaging C$1.14:US$1 inthat year, before weakening slightly in2007 to C$1.20:US$1 as commodityprices slip back and the narrowingtrade surplus reduces the size ofCanada’s positive overall current-account balance.

Moderate: Strong economic fundamentals, including the government’s healthy fiscal position and a positive current-account balance, will support theCanadian dollar against the USdollar during the forecast period.High resource prices are alsosending the Canadian dollar tonew highs against the US currency.

!

HHHHP

Free Trade Trade disputes involving Canadianexports of softwood lumber to theUS threatens to sour trade relations.The export balance of trade contin-ues to be very positive for Canada,with continuing strength in energytrade. The automotive sector is alsomaintaining it position, as the bigthree reduce capacity the Japaneseautomakers continue to invest in plants in Ontario. The currentaccount continues to be in a surplus, driving a higher C$.

High: Trade disputes will continueto cloud Canada’s otherwise goodrelations with the US. The mostcritical trade issue involvesCanadian exports of softwoodlumber to the US, with the USignoring yet another ruling, thistime by a panel under the aus-pices of the North AmericanFree-Trade Agreement (NAFTA),which found that Canada did notsubsidize its lumber industry. TheUS has called for a negotiated set-tlement of the issue, but Canadahas postponed talks indefinitely.The issue was momentarily dif-fused after the US CommerceDepartment cut countervailingduties by half in December.However, the issue has becomeembroiled in Canada’s generalelection campaign and both majorparties have called for the duties

! HHHPP






Macroeconomics

Free Trade (continued)

to be eliminated altogether andthe money collected by the USsince 2002, an estimated C$5B, to be returned. With yet anotherexchange of heated rhetoric, thedispute threatens to sour traderelations even further.

CapitalMarkets

Capital markets are reaching newhighs based mainly on the strengthof the energy sector, as well asmergers and acquisition activity.

Low: Strong balance sheets andpositive profit outlooks continue tomake access to capital relativelyeasy.

I HHHPP

Telecom Telecom industry growth is positivewith revenue and profit gains drivemainly by in Wireless, Data and IP.

Low: Telecom industry has gonethrough large structural changesand has now stabilized. Futuregrowth in the industry depends onthe development of new servicesand technologies, specifically asthey relate to IP network rolloutsand wireless.

! HHHHP

Energy Short term events like rising petro-leum inventories can momentarilydeflate oil prices, but long term con-cerns are also creating a push- pulleffect on prices in oil markets.Geopolitical uncertainties stemmingfrom Iran’s nuclear ambitions haveadded to the volatility. Give that Iranis a founding member of OPEC andthe world’s fourth largest oil producer,oil futures have remained aboveUS$60 per barrel. Also, ongoing wor-ries over supply continue to dominatefollowing the recent disruption toNigerian oil output. Expectations arethat oil prices will remain aboveUS$57 per barrel for at least the next 12 months.

High: Oil prices at this level temperoverall economic growth of theNorth American economy. While thishas an impact on the cost of goodsand services, it also is a positiveimpact to the Canadian economythrough the strong profits generatedand the taxes collected on thoseprofits and the employment. With thehigher C$ there is less impact onimported goods as they cost less tobuy, along with the affect of lowercost products from Asia Pacific. Highoil prices do create a dichotomy forthe Canadian economy. While webenefit as net exporter of energy, weare also impacted through the affectit has on dampening US andCanadian consumer demand, aswell as the potential to drive interestrates higher as the economy worksat full capacity.

! HHPPP






Macroeconomics

Government & Trade

With the latest election resulting inanother minority government, albeitled by the Conservatives this time,not much else will likely change inthe near future. With a minority government Stephen Harper and histeam will not be able to fully imple-ment their policies. In fact, in light ofthe need to win a majority govern-ment, we can expect that there will belittle in the way of major changes tothe government agenda. The govern-ment will be challenged in deliveringsome of their campaign promises ofreduced spending and such, but theywill likely have to compromise giventhe minority situation they are in.

Moderate: The public sector rev-enues in Alberta and the federalgovernment continue to be verystrong. The Federal governmentsurplus is higher than expectedgiven the conservative assumptionspreviously made. With the econ-omy at near full capacity, and thestrong energy tax revenues, thereis plenty of cash flow. However,whether there will be a dispropor-tionate amount spent on ICTremains to be seen. There is likelysome pent up demand in theFederal government as we havehad a number of years of uncer-tainty since PM Chretien resigned.Expectation is that some majorprojects will have to be initiatedsoon in order to meet some of themodernization and cost savingsexpected from ICT.

! HHHPP

Legend: HPPPP very low, HHPPP low, HHHPP moderate, HHHHP high, HHHHH very highSource: IDC Canada, 2006

12

Table 3 presents IDC’s Canadian IT market forecast for2006 to 2010. Figure 2 shows the Canadian IT marketforecast graphically, while Figure 3 illustrates the growth

rates associated with each of the key markets in theCanadian IT market.

Canadian IT Forecast SummaryThe economic environment in Canada for 2006 and beyondis very positive. GDP growth is in the 3% range, providingrespectable growth for the economy. More importantly, how-ever, is that profits continue to show growth in the businessenvironment, anticipating 6% in profit growth in 2006, aftera year with nearly 11% profit growth. Also, tax revenues are continuing to increase with the rise in commodity prices,as well as the high employment and corporate profitabilityresulting in most governments in Canada with another year

of budget surplus. With the strong balance sheets and cashflows, business investment plans remain healthy, with anexpected increase of 8% in 2006.

As the Canadian economy runs at nearly full capacity, andunemployment rates remain at relatively low levels, theBank of Canada policy continues to be biased towards rising interest rates. Combining higher interest rates withstrong world commodity prices has resulted in an increasevalue of the Canadian dollar (relative to the US dollar) to



Table 3: Canadian IT Market Forecast, 2006–2010 (C$M)

Market 2005 2006 2007 2008 2009 2010 05–10 CAGR

Hardware 14,268.9 15,191.9 15,595.6 15,979.6 16,462.6 16,921.9 3.5%

Software 6,502.1 6,799.9 7,107.0 7,441.8 7,766.8 8,088.9 4.5%

IT Services 16,499.9 17,100.9 17,750.9 18,412.3 19,057.0 19,706.6 3.6%

Total IT 37,271.0 39,092.7 40,453.5 41,833.6 43,286.4 44,717.4 3.7%

Please refer to Table 2 for assumptions supporting our forecastSource: IDC Canada, 2007

2005 2006 2007 2008 2009 2010

Hardware

Software

IT Services$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

Spen

ding

C$M

Year

Figure 2: Canadian IT Market Forecast 2006–2010

Source: IDC, 2007

20060%

1%

3%

4%

5%

7%

2007 2008 2009 2010

Grow

th%

Year

Hardware Software ICT Wholesaling, Rental & Leasing

Figure 3: Canadian IT Market Forecast Growth 2006–2010 (%)

Source: IDC, 2007

levels not seen in almost 30 years. This factor puts a slightdampening effect on all the other positives factors in theCanadian market.

IDC estimates that the total IT market reached almostC$39.1 billion in 2006, representing just over 4.9% growthfor the year. Annual growth is projected to increase at asimilar rate throughout the forecast, resulting in aboutC$44.7 billion in annual total IT spending by 2010.

While a CAGR of 3.7% over the next five years may seemlower than historical growth (looking back over the last 10 to 20 years), it is actually quite substantial absolutegrowth on a very large market. At a 3.7% CAGR over five years the additional spending in IT is over C$7 billion, or about C$1.4 billion per year. Over those same five years,more than C$246 billion will be spent on IT in Canada.

Canadian IT Forecast by Submarket, 2006–2010Hardware

IDC estimates that the Canadian hardware market grew byabout 6.5% between 2005 and 2006, producing approxi-mately C$15.2 billion in spending. IDC expects this rate ofgrowth to persist throughout the forecast, with more thanC$16.9 billion in annual hardware spending by 2010, rep-resenting a five-year CAGR of 3.5%. Hardware remains thesecond largest IT market after services. With much of thelatent hardware demand being met in 2005/2006, futuregrowth will be driven by new applications and normaltransaction volume increases.

Software

The Canadian software market is the smallest of the threeIT markets, but it is growing at a faster five-year CAGR thanthe other submarkets. IDC estimates that software spendinggrew by 4.6% between 2005 and 2006, resulting in morethan C$6.8 billion in spending. This rate of growth isexpected to taper off slightly throughout the forecast period,with an estimated five-year CAGR of 4.5% producing morethan C$8.0 billion in spending by 2010.

The software market continues to be an attractive market,albeit competitive and high cost from a selling and supportpoint of view. Also, with the shift to more software as aservice (SaaS), new business and delivery models are having an impact on the software market in Canada. The hosted applications market continues to have stronggrowth, while the software on demand market has a lot

of attention from buyers as an interesting and viable option,including large and medium size business. This SaaS businessmodel will continue to capture market share, while at thesame time increasing the total spending on software ascustomers find different ways to address business needswith the traditional and SaaS delivery options.

Information Technology Services

The Canadian IT services market is the largest of the three IT markets, and IDC estimates that spending reachedC$17.1 billion in 2006, representing about 3.6% in annualgrowth. This market will continue to grow at a five-yearCAGR of 3.6%, and should generate C$19.7 billion inannual spending by 2010.

The IT services market is starting to show signs of maturity.While the growth is reasonable for such a large market,there are continuing signs of leveling growth rates. Thischaracteristic is driving the development of some new businessmodels. There is a drive to find ways to deliver IT services tothe midmarket that is cost effective for them, while at thesame time profitable to the provider. Selling more technologyand functionally as a managed service is part of that trend,whether it is hardware, software, communications or evenbusiness process – it is a model that many of the marketplayers are attempting to find the right balance betweenvalue to the buyer and profitability to the provider.

The IT services market has also become a favourite adjacentmarket for the telecommunications providers who are lookingto add growth to their legacy portfolios and relationships. Byentering these markets they are both competing and partner-ing with the traditional IT services companies. This is positivenews for the ICT buyers as it drives increasing price competi-tion, as well as innovative approaches to services delivery.

Market Context

The purpose of this feature is to identify and explain the key differences between the updated forecast and the prior forecast. This comparison should help IDC customersunderstand the market context and assumptions behind the data.

Table 4 compares our updated IT forecast to our previousforecast from October 2005. Figure 4 illustrates the previousIT forecast to the updated one.



14

With the exception of 2005, the updated Canadian IT forecast is slightly higher than estimated in our previousforecast cycle (October 2005).

Although IDC slightly reduced its 2005 estimate to account for a slight overvaluation of the software and services markets,continued optimism regarding the Canadian economy, businessprofits and IT budgets influenced our decision to raise previousIT forecasts in the later half of the forecast. Most notably, soft-ware estimates from 2006 to 2010 were raised due to a slightundervaluation of the market in combination with increasedoptimism for spending in the future. Hardware estimates werealso increased based on the latest PC, server and other hard-ware tracker information. The amplified spending estimates forsoftware and hardware subsequently impacted the overall ITmarket forecast comparison.

In summary, we are more optimistic about the IT marketthan we were last year based on the most up-to-date market conditions, information and assumptions. Pleasereference the assumption table and related documents for more information on this revised forecast.

Key IT Subcategories

Hardware SubcategoriesSingle-User Hardware

The term “single-user hardware” refers to the PC market. It isthe largest market within the hardware market and accountsfor about 43% of hardware spending. IDC estimates thatspending on PCs reached more than C$6.6 billion in 2006,and will grow by more than half a billion dollars over theforecast period, producing C$7.1 billion in spending by2010. This rate of growth represents a five-year CAGR of 2.5%. Escalating pricing pressure continues to hampertotal spending in this subcategory even though the volumeof shipments is rising on an annual basis. Spending onnotebooks continues to drive spending in this segment compared to the desktop market, which IDC expects todecline over the forecast.

Multi-User Hardware

IDC estimates that the multi-user hardware (or server) marketgrew by almost 3.9% in 2006 to C$1.9 billion. This rate ofspending growth is expected to taper off slightly throughoutthe forecast, producing a five-year CAGR of 3.6%. Despitesevere pricing pressure and the disruptive force of virtualiza-tion (which eliminates the need for dedicated servers), theserver market is expected to grow to more than C$2.2 billionby 2010. Volume server spending is driving growth in thissegment, while mid-range servers remain flat throughout theforecast period.

Storage Hardware

The storage hardware market accounts for the smallest proportion of hardware spending at approximately 8.9%,and generated C$1.35 billion in spending in 2006. As



Table 4: Canadian IT Market Forecast Comparison, 2005–2009 (C$M)

Market 2005 2006 2007 2008 2009

Previous IT forecast (October 2005) 37,343.0 38,438.6 39,362.3 40,421.7 41,522.4

New IT forecast 37,271.0 39,092.7 40,453.5 41,833.6 43,286.4

% difference between forecasts -0.2% +1.7% +2.8% +3.5% +4.2%

% annual growth (previous forecast) 4.7% 2.9% 2.4% 2.7% 2.7%

% annual growth (new forecast) 5.0% 4.9% 3.5% 3.4% 3.5%

Source: IDC, 2007

2005$34,000

$35,000

$36,000

$37,000

$38,000

$39,000

$40,000

$41,000

$42,000

$43,000

$44,000

2006 2007 2008 2009

Spen

ding

(C$M

)

Year

Previous forecast (October 2005) New forecast

Figure 4: Canadian IT Market Forecast Comparison, 2005–2009

Source: IDC, 2007

the slowest-growing hardware segment (CAGR of 2.1%),storage spending will inch its way toward C$1.4 billion by2010. Network attached storage and storage area networkare the fastest-growing segments in this submarket. IDCexpects the markets for direct attached storage and tapestorage to decline over the forecast, which is slowingspending for this segment overall.

Other Hardware

The other hardware category includes spending on printers,handhelds, and other hardware-related items. As a group,this category generated more than C$5.2 billion in spendingin 2006, growing over 10% year over year. Although thisgrowth will slow down over the forecast period to 4.9%, themarket will still generate an impressive C$6 billion by 2010.

Software SubcategoriesERM Applications

The market for ERM applications grew by 6.9% in 2006,generating C$833.3 million. Although ERM applicationspending is expected to taper off throughout the forecast,resulting in a five-year CAGR of 5.4%, the market is stillexpected to reach over C$1 billion by 2010.

Other Application Software

Other Application Software is the largest subcategory,accounting for about 35% of all software spending.IDC estimates this market grew 3.1% year over year and generated more than C$2.4 billion in spending in2006. Other application software is forecast to reachC$2.8 billion by 2010, a five-year CAGR of 3.4%.

Application Development & Deployment

The application development and deployment softwaremarket is the second largest software market in Canada,accounting for about 28% of all software spending. IDCestimates that this market generated almost C$1.9 billionin spending in 2006, and grew at a rate of 5.2%. This segment is expected to grow at a five-year CAGR of 5.1%,peaking at C$2.3 billion by 2010.

System and Network Management

IDC estimates this market experienced strong growth in2006 of 6.6%, generating C$263.5 million. System andnetwork management spending is forecast to grow quicklyat a CAGR of 6% to reach over C$330 million by 2010.

Networking Software

Networking software is one of the smallest and slowestgrowing segments of the software market. In 2006, themarket totaled C$85.8 million and accounted for just 1.2% of total software spending. IDC expects the market to experience slow, and at times even negative growth, witha five-year CAGR of less than 1% to reach C$86.2 millionby 2010.

Security Software

Security software is the fastest growing software market inCanada. This market was valued at C$300.2 million in2006, and grew year over year at 12.1%. Security spendingwill grow by an impressive five-year CAGR of 10.75% toreach C$446.1 million by 2010.

Other System Infrastructure

IDC estimates this market grew by 2.8% in 2006 toC$948.9 million. With a modest five-year CAGR of 2.9%,the market is forecast to reach over C$1 billion by 2010.

Information Technology Services SubcategoriesIT Consulting & Integration

The consulting and integration market accounts for about36% of total IT services spending in Canada, and gener-ated more than C$6.1 billion in 2006. IDC estimates thatthis group of services will grow at a five-year CAGR of2.5% over the forecast period, producing more than C$6.8 billion in spending by 2010.

Outsourcing & Operations-related Services

Outsourcing and operations-related services account for thelargest proportion of IT services spending at about 44%, orapproximately C$7.5 billion in 2006. This group of serviceswill continue a healthy level of annual growth throughout theforecast period, resulting in a five-year CAGR of 5.3%. IDCestimates that this group will generate almost C$9.2 billionin spending by 2010, based on the strong growth rates forall submarkets.

Support & Training Services

The support and training services group accounts for lessthan 20% of total IT services spending and generated almost C$3.4 billion in spending by the end of 2006. With a modest CAGR of 1.7% expected throughout the forecast,spending on this group of services should top C$3.6 billionby 2010.



16

Canadian IT Market by Industry

To cope with their unique business pain points, Canadianverticals are deploying diverse IT spending patterns(Canadian IT 2006–2010 Forecast by Vertical Market, IDC#CA8SMB6). The public sector was the largest IT spender,accounting for about 20% of Canada’s IT spending in2006. IDC estimates that public sector spending will reachalmost C$9 billion by 2010.

With a five-year CAGR of 4.9%, the financial services sector is the fastest growing vertical. IT spending reachedC$7 billion in 2006 as the industry addressed channel and distribution transformation, operational efficiency, and externalimperatives. IDC believes financial services firms will increase IT spending up to almost C$8.5 billion by 2010.

Although the Canadian dollar has been a big inhibitor inthe manufacturing sector, IT spending still reached overC$6 billion, driven by the need for IT solutions that canincrease collaboration, create operational excellence andhelp them reach their customers more effectively.

Table 5 presents IDC’s Canadian IT Market Forecast byIndustry for the 2006–2010 time period. Figure 5 illustratesthe growth rates associated with each of the industry segments within the Canadian IT Market.



Table 5: Canadian IT Market Forecast by Industry, 2006–2010, (C$M)

2005 2006 2007 2008 2009 2010 05–10 CAGR

Manufacturing and resources 5,959.6 6,091.1 6,192.8 6,271.7 6,356.2 6,430.6 1.5%

Infrastructure services 6,064.8 6,239.2 6,469.8 6,697.2 6,922.7 7,135.7 3.3%

Distribution and services 7,074.3 7,447.3 7,777.6 8,081.5 8,430.4 8,755.4 4.4%

Financial services 6,676.2 7,060.6 7,395.9 7,728.1 8,083.1 8,462.5 4.9%

Public sector 7,430 7,787.7 8,059.8 8,365.0 8,668.4 8,955 3.8%

Home and consumer 4,066 4,466.8 4,557.5 4,690.1 4,825.5 4,978.3 4.1%

Source: IDC Canada, 2007

2005 2006 2007 2008 2009 2010

Distribution and services

Infrastructure services

Manufacturing and resources

Home and consumer

Public sector

Financial services

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

Spen

ding

C$M

Year

Figure 5: Canadian IT Market Forecast by Industry

Source: IDC, 2007

Canadian IT Market by Region

Spending on IT will vary significantly across the regionsthrough the forecast period. The largest region will continue to be Ontario, accounting for about 50% of all IT spendingthrough 2010. IT spending in Ontario reached C$19.4 billionin 2006, and is forecast to grow at a five-year CAGR of 3.9%to C$22.4 billion in 2010. Although Quebec firms spent aboutone third of what Ontarian firms invested in IT, they werestill the second largest spenders in 2006 at C$7.4 billion.This spending can be attributed to the number of corporateheadquarters in Ontario and Quebec that elevate the levelof IT spending in these regions. More than 50% of theFinancial Post 500 (FP500) list of companies were head-quartered in either Ontario or Quebec in 2005 (Looking for Growth in IT Outsourcing: Regional Opportunities inCanada, IDC # CA8SO6).

According to Statistics Canada, since 2003, Alberta hasseen its economy, counted as real gross domestic product(GDP), grow faster than the Canadian average. This growthis forcing Western Canadian firms to act on their businesschallenges, and driving growth in IT spending. Alberta isthe fastest growing region with a five-year CAGR of almost5%. Spending on IT by Alberta-based firms will grow fromjust over C$4 billion in 2006 to over C$4.8 billion in 2010.

Atlantic Canada organizations spend the least on IT,accounting for about 5% of total IT spending. At a CAGR of 3.3%, IT spending in Atlantic Canada is estimated to grow from almost C$1.8 billion in 2006 to just over C$2 billion in 2010. Even though Atlantic Canada firmstend to be laggard buyers, they are prudent investors in IT and focus on commodity and/or necessary technologiesmore than companies in other Canadian regions.

Table 6 presents IDC’s Canadian IT market forecast byregion for 2006 to 2010, and Figure 6 illustrates thegrowth rates for each of the regions.



Table 6: Canadian IT Market Forecast by Region, 2006–2010, (C$M)

2005 2006 2007 2008 2009 2010 05–10 CAGR

British Columbia 4,145.4 4,343.2 4,476.8 4,615.5 4,765.6 4,912.4 3.5%

Alberta 3,831.6 4,078.4 4,270.7 4,458.8 4,661.8 4,867.3 4.9%

Other Western Canada 1,984.1 2,066.4 2,110.7 2,158.8 2,209.7 2,258.8 2.6%

Ontario 18,507.1 19,412.5 20,142.8 20,875.3 21,641.6 22,398.8 3.9%

Quebec 7,096.1 7,403.5 7,613.8 7,831.3 8,059.6 8,277.7 3.1%

Atlantic Canada 1,706.7 1,788.8 1,838.7 1,893.9 1,948 2,002.4 3.3%

Source: IDC Canada, 2007

2005 2006 2007 2008 2009 2010

Other Western Canada

Alberta

British Columbia

Atlantic Canada

Quebec

Ontario

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

Spen

ding

C$M

Year

Figure 6: Canadian IT Market Forecast by Region

Source: IDC, 2007

18

IDC offers the following advice to Canadian buyers of IT:

Invest in your IT strategy now to ensure success in the future. The IT market continues to show strongprospects for both providers and end users/consumers.Given the current positive economic environment, now is the time for organizations to invest in IT as a strategicweapon to safeguard against uncertainty in the future.Procrastinators will find it difficult to make these types ofinvestments if the economic environment cools off. Theadvantage of investing now is that the IT strategy will be in place to provide them the business advantage needed to succeed during the difficult times.

Do not underestimate the value of IT in your organi-zation or to the nation. The IT market is strong and morevibrant that it has been in years, despite relatively low growthrates (by historical standards) in the 3% to 4% range. Withover C$39 billion spent in IT in 2006, and incrementalspending of about C$1.4 billion a year on average, the IT market continues to be a strong contributor to economicgrowth and prosperity to Canada. To underestimate thevalue of IT and to view it solely in the context of cost con-tainment misses the opportunity to leverage technology forthe benefit of individuals, organizations and our nation.

Understand how IT can create a strategic businessadvantage. Buyers of IT should seek to understand how IT could create significant strategic business advantage, not as a technology acquisition afterthought but as a keycomponent and early participant in strategy developmentand implementation plans.

IDC offers the following guidance to providers of IT in Canada:

Focus sales and marketing messages on positiveimpacts of IT in organizations. Providers of IT should pro-vide more value statements and proof points describing thepositive impact on profitability, customer service, marketexpansion, efficiency and other business imperatives thatboth public and private sector customers have in their dailyand long term operations.

Integrate IT investment messages into businessstrategies/goals of your clients. Providers of IT shouldunderstand and integrate more effectively with the strate-gies and business goals of their customers by focusing onhow IT enables and differentiates them. The goal should bedrive the success of their customers business, and not justto increase their spending on technology.

The competitiveness of the IT market continues to drive inter-esting and valuable new offerings and business models. Asproviders enter adjacent or create new markets (eg. telecom-munications firms entering IT services or software companiesselling software as a service) they offer buyers of IT morechoice and value. Both stakeholders should understand,however, that the overall health and value of the relationshipwould depend on mutual success. A low-price, low-cost relationship alone will not support the long-term goal of creating strategic business advantage with IT.

Essential Guidance



Related Research

IDC Canada’s IT Market Forecaster, March 2007.

IDC’s Software Taxonomy, 2007, IDC # 205437, Feb 2007

IDC’s Worldwide Services Taxonomy, 2007,IDC # 205608, Feb 2007

Looking for Growth in IT Outsourcing: RegionalOpportunities in Canada, IDC # CA8SO6, Sep 2006

Canadian IT 2006–2010 Forecast by Vertical Market,IDC # CA8SMB6, July 2006

Canada Information Communications and Technology2006–2010 Forecast Summary, IDC # CA2ITMP6, May 2006

IDC’s Worldwide Hardware and Network InfrastructureTaxonomy 2005, IDC # 33333, May 2005

Definitions

The definitions provided in this document represent the scopeof IDC’s current hardware, software, services and networkinfrastructure research. Consistent market definitions are one piece in a set of research standards and methodologiesused by IDC worldwide. This consistency helps IDC provideclients with useful and accurate research they can use toidentify opportunities and analyze trends in the complexand ever-changing IT industry. IDC has provided an abbrevi-ated version of multiple taxonomies to assist readers inunderstanding the terms used in this document (below).

HardwareThe Canadian hardware market is divided into four primarycategories: single-user hardware, multi-user hardware,storage hardware, and other hardware. Please refer toIDC’s Worldwide Hardware and Network InfrastructureTaxonomy, 2005 for more detail on these definitions.

Single-User Hardware

Single-user hardware includes base desktop PCs and basenotebook PCs.

Multi-User Hardware

Multi-user hardware generally refers to the server market.IDC’s server class taxonomy segments this market intothree classes:

• Volume server market (consisting of all systems with an average sales value [ASV] below $25,000)

• Midrange enterprise server market (consisting of all systems with an ASV of $25,000–499,999)

• High-end enterprise server market (consisting of all systems with an ASV of $500,000 or more)

The midrange enterprise and high-end enterprise markets are referred to collectively as the “enterprise server market.”

Storage Hardware

The storage hardware market has four key components:direct attached storage, network attached storage, storagearea network and other storage (i.e. tape, etc.).

Other Hardware

Key categories contained within the other hardware bucket arenetwork equipment, printers and multi-function printers, smarthandhelds, and other hardware-related items. Networkingequipment includes spending on routers, switches, wirelesslocal area networks as well as IP-based and PBX equipment.

SoftwareThe Canadian software market is comprised from three pri-mary markets: applications, application development anddeployment, and systems infrastructure. The definitions forthese primary markets are outlined below. Please referenceIDC’s Software Taxonomy, 2006 for more information.

Enterprise Resource Management (ERM) Applications

Enterprise resource management applications are designedto automate and optimize business processes related toresources required to meet business or organizational objec-tives but are not customer or prospect facing or specializedto various types of engineering. The resources automatedinclude people, finances, capital, materials, and facilities.The resulting applications forecast, track, route, analyze, and report on these resources. The market includes softwarethat is specific to certain industries as well as software thatcan handle requirements for multiple industries.

19

Learn More



20

Other Application Software

This market consists of all Application software minus ERM software.

Application Development & Deployment Software

The application development and deployment software primary market includes six secondary markets including:application deployment, application development, qualityand lifecycle tools, information and data management tools,Information access and delivery tools, and other develop-ment tools. Application development software includessoftware, tools and development environments used bydevelopers, business analysts or other professionals to createboth web-based and traditional applications. Applicationdeployment software is a set of software functionality thatmakes a group of loosely connected computing resources ina distributed environment appear as a single “system” at runtime. Application deployment software accomplishes its tasksby providing interoperability/integration services that logic,data sets, and user/machine interfaces require to interact.

Networking Software

Networking software is used to link autonomous networkdevices, servers, clients, and peripherals.

Other System Infrastructure Software

Other system software is infrastructure software for systemsand applications (but not storage) that are not otherwise categorized. Such software is used mainly by system pro-grammers and administrators to perform housekeepingfunctions and to add functions to operating systems that are not otherwise supplied. Examples include file-conversionutilities, screen drivers and fonts, and sort utilities.

System and Network Management Software

System and network management software is used to manageall the computing resources for the end user, small business,workgroup, or enterprise, including systems, applications, and the network infrastructure. This market does not includestorage management and other storage software.

System and Network Management Software

System and network management software is used to manageall the computing resources for the end user, small business,workgroup, or enterprise, including systems, applications, and the network infrastructure. This market does not includestorage management and other storage software.

Networking Software

Networking software is used to link autonomous networkdevices, servers, clients, and peripherals.

Security

The security market includes a wide range of technologiesused to improve the security of computers, information sys-tems, Internet communications, networks, and transactions. It is used for confidentiality, integrity, privacy, and assurance.Through the use of security applications, organizations canprovide security management, access control, authentication,virus protection, encryption, intrusion detection and preven-tion, vulnerability assessment, and perimeter defense. All these tools are designed to improve the security of anorganization’s networking infrastructure and help advancevalue-added services and capabilities.

The security market also includes revenue from securityappliances. A security appliance consists of hardware withan integrated, hardened OS, a limited applications set, andno user software installation. Security appliances may alsoinclude other features such as security management, policymanagement, quality of service, load balancing, high availability, and bandwidth management.

ServicesThe IT services market is comprised of three primary markets:IT consulting and integration, outsourcing and operationsrelated, and support and training services. Please referenceIDC’s Worldwide Services Taxonomy, 2006 for more detailedinformation. Please note that business services (such as business consulting and business process outsourcing) are not included in these market figures as they are part of a separate, non-ICT-related market forecast.

IT Consulting and Integration Services

This grouping of services includes: IS consulting, systemsintegration, custom application development, and networkconsulting and integration. This group of services repre-sents spending from project-based contracts.

Outsourcing and Operations Related Services

The grouping of services includes: IS outsourcing, networkand desktop outsourcing, application management, hostedapplication management, and hosting infrastructure services.The spending from each of these categories is typically annuity based.



Support and Training Services

Three subcategories are included within the support and training services group: hardware deploy and support, software deploy and support, and IT training and education services.

For the purposes of this study, IDC Canada has segmentedthe Canadian market into the following industry groups:

Manufacturing and resources – Primary, discrete manufacturing, process manufacturing

Infrastructure services – Transportation, communicationsand media, utilities

Distribution and services – Wholesale and distribution,retail, business services

Financial services – Banking, insurance, financial markets

Public sector – Federal government, provincial and localgovernment, education, health

Home/consumer – Home

IDC Canada categorizes the 10 provinces and three territories in Canada into six regions:

Atlantic Canada (ATL) – The provinces of Nova Scotia,New Brunswick, Prince Edward Island, and Newfoundland& Labrador;

Quebec (QC) – The province of Quebec, and including Nunavut

Ontario (ON) – The province of Ontario

Other Western Canada (OWC) – The provinces ofManitoba and Saskatchewan

Alberta (AB) – The province of Alberta

British Columbia (BC) – The province of BC, including the Yukon, and Northwest Territories.

21

The Information and Communications TechnologyCouncil (ICTC) is a non-profit sectoral council dedicated tocreating a strong, prepared and highly educated CanadianICT industry and workforce. ICTC is a catalyst for change,pushing for innovations that will provide labour marketintelligence, life-long professional development and qualityeducation and training for the Canadian ICT industry, educators, governments and the ICT workforce. We forgepartnerships that help develop the quantity and quality ofICT professionals needed to improve Canada’s position as a leader in the global marketplace.

To achieve its goals, ICTC focuses on four areas that areproven building blocks of a healthy, forward-looking sector:

• Skills Definition – defining the skills required to be aprofessional in the ICT sector.

• Labour Market Intelligence – providing up-to-date statistics and analyses of human resource developmentsin the ICT sector.

• Career Awareness – providing programs and tools toexplore the career possibilities in Canada’s ICT sector.

• Professional Development – dedicated to continuouslearning for ICT workers so they can maintain andimprove their skills sets and increase their opportunitieswithin the sector.

Information and Communications Technology Council (ICTC)

116 Lisgar Street, Suite 300, Ottawa, ON K2P 0C2Phone: 613-237-8551Fax: 613-230-3490

Email: [email protected]

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This IDC research document was published as part of an IDC continuousintelligence service, providing written research, analyst interactions, telebriefings, and conferences. Visit www.idc.com to learn more about IDCsubscription and consulting services. To view a list of IDC offices worldwide,visit www.idc.com/offices. Please contact the IDC Hotline at 800.343.4952,ext. 7988 (or +1.508.988.7988) or [email protected] for information onapplying the price of this document toward the purchase of an IDC serviceor for information on additional copies or Web rights.

Copyright 2007 IDC. Reproduction is forbidden unless authorized. All rights reserved.



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