The IT sector in the French-speaking part of Switzerland saw major transformations in 2018, driven by the rise of IT-as-a-Service, key mergers and acquisitions, and the growing impact of cloud technology. Learn about the challenges and trends shaping the future of the IT market in the region, including acquisitions and talent shortages.
The year 2018 marked a turning point for the IT sector in the French-speaking part of Switzerland, where digital transformation and the rise of IT-as-a-Service have driven companies to evolve quickly. These changes are reflected in the development of new offerings, strong demand for cloud solutions, and an increase in mergers and acquisitions.
Digital transformation is a key driver of this dynamic. Local businesses undergoing digital transitions are investing in increasingly sophisticated technologies and seeking partners to assist them in this evolution. The demand for as-a-Service solutions is on the rise, fueled by the expansion of the cloud, which is pushing local providers to diversify and reorganize around major cloud platforms like Amazon Web Services, Microsoft Azure, and Google Cloud.
Another driving force has been the impact of Swisscom, which, after acquiring Veltigroup, disrupted the market. This market leader has forced local providers to grow, increase their size, and offer more comprehensive services. This shift is reflected in the mergers and acquisitions that characterized the sector in 2018, with many companies consolidating in an increasingly competitive market. For instance, Bechtle acquired Evolusys, AiM took over Hepta Service's IT division, and Uditis became the largest IT provider in the Neuchâtel region following its acquisition of WebExpert.
In addition to local mergers, there were international acquisitions, such as Microsoft’s purchase of GitHub for $7.5 billion and IBM’s acquisition of Red Hat for a record $34 billion. These transactions highlight how the technology sector is restructuring to meet the challenges of an increasingly global and competitive market.
While IT companies in the French-speaking region of Switzerland remain optimistic for 2019, they will face growing pressure from declining prices and the need to find specialized talent to meet the high demand. In this context, mergers and acquisitions are expected to continue shaping the sector’s evolution.
Source : ICTjournal
