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ICT investment trends in Turkey
Enterprise ICT spending patterns through to the end of 2015
August 2014
ICT investment trends in Turkey P a g e | 1 www.kable.co.<US> / © Kable Business Intelligence Limited / + 44 (0) 207 936 6997
1 Trends in ICT budgets
1.1 Summary
This report presents the findings from a survey of 96 Turkish enterprises regarding their Information &
Communications Technology (ICT) investment trends. The survey investigates how Turkish enterprises currently
allocate their ICT budgets across the core areas of enterprise ICT expenditure: hardware, software, IT services,
communications, and consulting.
The report illustrates the core technologies enterprises are investing in, including business intelligence, enterprise
applications, communications and collaboration, and cloud computing. The survey also highlights the approach
adopted by enterprises in Turkey when purchasing technology. Through Kable’s survey, the report aims to provide
better insight to ICT vendors and service providers when pitching their solutions to enterprises in Turkey.
The survey was conducted in Q4 2013 via an online methodology, with respondents all having ICT decision maker
responsibility (typically CIOs and IT Managers). Kable plans to repeat the survey in the second half of 2014, in
order to monitor ICT budget changes on an on-going basis.
1.2 Reason to buy
This report will help readers to understand how the Turkish enterprise ICT landscape is set to change in
2014.
Gain a view as to how ICT Liras are being allocated in your target audience.
The report covers a detailed breakdown of the opportunities within each of the core areas of ICT spend
(hardware, software, IT services, telecommunications and consulting.)
The report will help users to gain a view of the current strategic objectives of Turkish enterprises.
The report will provide a detailed breakdown of the opportunities within selected technology categories
(business intelligence, enterprise applications, communications and collaboration, and cloud computing).
Understand the factors that are influencing Turkish enterprises’ decision to select an ICT provider.
Gain a view as to the business and IT objectives Turkish enterprises are looking to achieve through their
ICT investment strategies.
ICT investment trends in Turkey P a g e | 2 www.kable.co.<US> / © Kable Business Intelligence Limited / + 44 (0) 207 936 6997
1.3 Survey demographics
Figure 1: Turkish enterprise ICT survey industry breakdown
Source: Kable
Table 1: Turkish enterprise ICT survey industry breakdown
Industry Count Percentage of respondents
Financial markets X X%
Utilities X X%
Education X X%
Retail X X%
Manufacturing X X%
Insurance X X%
Government X X%
Healthcare X X%
Energy X X%
Media X X%
Retail banking X X%
Pharmaceuticals X X%
Total X X%
Source: Kable
X%
X%
X%
X%
X% X%
X%
X%
X%
X%
X% X%
Turkish enterprise ICT survey industry breakdown
Financial markets Utilities Education Retail
Manufacturing Insurance Government Healthcare
Energy Media Retail banking Pharmaceuticals X respondents
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Figure 2: Turkish enterprise ICT survey breakdown by size band (number of employees)
Source: Kable
Table 2: Turkish enterprise ICT survey breakdown by size band (number of employees)
Employee size band Count Percentage of respondents
Over 10,000 X X%
5,000-9,999 X X%
2,000-4,999 X X%
1,000-1,999 X X%
500-999 X X%
100-499 X X%
50-99 X X%
Total X X%
Source: Kable
X%
X%
X%
X% X%
X%
X%
Turkish enterprise ICT survey breakdown by size band (number of employees)
Over 10000 5000-9999 2000-4999 1000-1999 500-999 100-499 50-99
X respondents
ICT investment trends in Turkey P a g e | 4 www.kable.co.<US> / © Kable Business Intelligence Limited / + 44 (0) 207 936 6997
1.4 ICT budget changes
Figure 3: Recent and expected ICT budget changes among Turkish enterprises
Source: Kable
Table 3: Recent and expected ICT budget changes among Turkish enterprises
Trend 2012-13 (Count)
2012-13 (%)
2013-14 expectation (Count)
2013-14 expectation (%)
Decrease more than 6% X X% X X%
Decrease slightly (1%-5%) X X% X X%
Flat (0%) X X% X X%
Increase slightly (1-5%) X X% X X%
Increase significantly (6%+) X X% X X%
Total X X% X X%
Source: Kable
Despite the uncertain economic conditions ...................................................................................................................
(Summary of the situation in the enterprise ICT market and discussion around the degree to which IT budgets are
decreasing/increasing/staying flat.)
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1.5 ICT budget allocation by core technology area
Figure 4: Turkish enterprises’ (external) ICT budget allocation, 2013 and 2014
Source: Kable
Kable’s survey suggests that Turkish enterprises are allocating a major portion of their IT budgets on
........................................................................................................................................................ ...............................
................................................ (A brief description of the way in which enterprises are allocating their IT budgets.).
on how this breaks down by provider type).
Table 4: Turkish enterprises’ (external) ICT budget allocation, 2013 and 2014
Category Average budget in 2013 (%) Average budget in 2014 (%)
Software X% X%
Hardware X% X%
Services X% X%
Communications X% X%
Consulting X% X%
Other X% X%
Total X% X%
Source: Kable
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1.5.1 Hardware budget breakdown
Figure 5: Turkish enterprises’ average hardware budget allocation
Source: Kable
Kable’s recent survey finds that almost one third of the hardware spend is on ............................................................
(A brief description on where the investments are being made and what the implications are for hardware vendors.)
Table 5: Turkish enterprises’ average hardware budget allocation
IT function Average budget (%)
Clients X
Network and communications equipment X
Mainframes X
Security X
Servers X
Processors X
Storage X
Peripherals X
Total X
Source: Kable
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2 ICT investment priorities and vendor mindshare
2.1 Core technology investment priorities
Figure 6: Current and future investment priorities of Turkish enterprises across core technologies
Source: Kable
Table 6: Current and future investment priorities of Turkish enterprises across core technologies
Technology category
Have now (Count)
Have now (%)
Considering investment in next 2 years (count)
Considering investment in next 2 years (%)
Enterprise applications X X% X X%
Business intelligence X X% X X%
Cloud computing X X% X X%
Communications & collaboration X X% X X%
Source: Kable
According to the survey, enterprise applications have the highest penetration rate, ...................(Brief description of
which technologies enterprises are currently investing in, as well as those that they are set to make the greatest
investments in, in the next couple of years)
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2.1.1 Business intelligence
Figure 7: Business intelligence – Turkish enterprises’ current and future investment priorities
Source: Kable
Table 7: Business intelligence – Turkish enterprises’ current and future investment priorities
Business intelligence Have now
(count) Have
now (%) Considering investment
in next 2 years (count) Considering investment
in next 2 years (%)
Device management X X% X X%
Employee/supplier facing application development X X% X X%
Tablet computing X X% X X%
Customer facing mobile applications X X% X X%
Source: Kable
The demand for business intelligence is growing in Turkey; such solutions enable enterprises to manage their
operations more effectively by providing ................................... (Briefly describe in which sub categories enterprises
are planning on making investments).
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3 ICT procurement trends
3.1 Purchasing channels
Figure 8: Turkish enterprises' preferred approach to buying technologies
Source: Kable
Table 8: Turkish enterprises' preferred approach to buying technologies
Technology
Direct from
supplier deployed
on-site
Through a local
reseller deployed
on-site
Through a national reseller
deployed on-site
Direct from
supplier as a
hosted service
Through a local
reseller as a hosted
service
Through a national
reseller as a hosted
service
Total
Enterprise applications X% X% X% X% X% X% 100%
Business intelligence X% X% X% X% X% X% 100%
ICT investment trends in Turkey P a g e | 10 www.kable.co.<US> / © Kable Business Intelligence Limited / + 44 (0) 207 936 6997
IT systems management X% X% X% X% X% X% 100%
Security X% X% X% X% X% X% 100%
Communications & collaboration X% X% X% X% X% X% 100%
Mobility X% X% X% X% X% X% 100%
Content management X% X% X% X% X% X% 100%
Green IT & virtualization X% X% X% X% X% X% 100%
Source: Kable
According to Kable’s survey, it is evident that the majority of Turkish enterprises prefer buying technologies ...........
..... (Brief description of the enterprises approach to buying IT products and preferred deployment modes across
various technology categories)
3.2 Business objectives influencing IT investment strategy
Figure 9: Business objectives which influence Turkish enterprises' IT investment strategy
Source: Kable
ICT investment trends in Turkey P a g e | 11 www.kable.co.<US> / © Kable Business Intelligence Limited / + 44 (0) 207 936 6997
Table 9: Business objectives which influence Turkish enterprises' IT investment strategy
Business objectives Average rating
Increase customer satisfaction X
Increase revenues X
Raise efficiency X
Achieve or maintain regulatory compliance X
Improve supplier relationships X
Cut costs X
Source: Kable
A majority of Turkish enterprises rate ........................................... as their most important business objective.
3.3 IT objectives influencing IT investment strategy
Turkish enterprises make IT investments to better demonstrate the value of IT to the business
Figure 10: IT objectives which influence Turkish enterprises' IT investment strategy
Source: Kable
ICT investment trends in Turkey P a g e | 12 www.kable.co.<US> / © Kable Business Intelligence Limited / + 44 (0) 207 936 6997
Table 10: IT objectives which influence Turkish enterprises' IT investment strategy
IT objectives % of
responses(1) % of
responses(2) % of
responses(3) % of
responses(4) Average
rating
Better demonstrate the value of IT to the business X% X% X% X% X
Use IT to support revenue growth X% X% X% X% X
Deliver new functionality to business users X% X% X% X% X
Meet internal service level agreements X% X% X% X% X
Align IT with overall business goals X% X% X% X% X
Source: Kable
A majority of Turkish enterprises rate ........................................... as their most important IT objective.
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4 Report Methodology
Kable’s Customer Insight Survey reports are primarily based on the information (related to ICT budgets, priorities
and procurement plans) collected through an annual survey performed in the fourth quarter of every year. The
primary research involves a major program of interviewing CIOs and IT executives regarding their IT investment
and priorities. The secondary research process involves covering publicly available sources, company annual
reports, and press releases. The content in the report is written by analyzing the survey findings and substantiating
those findings through secondary research.
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5 Further reading
ICT investment trends in the Middle East, June 2014
ICT investment trends in the UK, March 2014
ICT investment trends in France, May 2014
ICT investment trends in Italy, April 2014
ICT investment trends in Turkey P a g e | 15 www.kable.co.<US> / © Kable Business Intelligence Limited / + 44 (0) 207 936 6997
TABLE OF CONTENTS
1 Trends in ICT budgets ......................................................................................... 5
1.1 Introduction .............................................................................................................. 5
1.2 Survey demographics ............................................................................................... 5
1.3 ICT budget changes .................................................................................................. 8
1.4 ICT budget allocation by core technology area ......................................................... 10
1.4.1 Hardware budget breakdown...................................................................... 12
1.4.2 Software budget breakdowns ..................................................................... 14
1.4.4 Telecommunications budget ....................................................................... 20
1.5 ICT budget allocation by function ............................................................................. 22
1.6 Outsourced IT functions .......................................................................................... 24
2 ICT investment priorities and vendor mindshare ........................................... 26
2.1 Introduction ............................................................................................................ 26
2.2 Core technology investment priorities ...................................................................... 26
2.2.1 Enterprise applications ............................................................................... 28
2.2.2 Business intelligence ................................................................................. 32
2.2.3 Communications & collaboration ................................................................ 36
2.2.4 Cloud computing solutions ......................................................................... 40
3 ICT procurement trends .................................................................................... 44
3.1 Introduction ............................................................................................................ 44
3.2 Purchasing channels ............................................................................................... 44
3.3 Business objectives influencing IT investment strategy ............................................. 46
3.4 IT objectives influencing IT investment strategy ........................................................ 48
3.5 ICT provider selection ............................................................................................. 50
4 Summary ............................................................................................................ 52
4.1 Turkish enterprises’ ICT expenditure is expected to grow in line with country’s
economic growth..................................................................................................... 52
5 Appendix............................................................................................................. 53
5.1 Definitions .............................................................................................................. 53
5.2 Further reading ....................................................................................................... 57
5.3 Contact the authors ........................................................................................... 57
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List of Figures
Figure 1: Turkish enterprise ICT survey industry breakdown ................................................................. 5
Figure 2: Turkish enterprise ICT survey breakdown by size band (number of employees) ...................... 7
Figure 3: Recent and expected ICT budget changes among Turkish enterprises ................................... 8
Figure 4: Turkish enterprises’ (external) ICT budget allocation, 2013 and 2014 .................................... 10
Figure 5: Turkish enterprises’ average hardware budget allocation...................................................... 12
Figure 6: Turkish enterprises’ average software budget allocation by technology ................................. 14
Figure 7: Turkish enterprises’ average IT services budget allocation ................................................... 16
Figure 8: Turkish enterprises’ average IT consulting services budget allocation ................................... 18
Figure 9: Turkish enterprises’ average telecommunications budget allocation ...................................... 20
Figure 10: Turkish enterprises’ ICT budget allocation by function, 2013 and 2014 ................................ 22
Figure 11: Outsourced IT functions - Turkish enterprises’ current and future outsourcing priorities........ 24
Figure 12: Current and future investment priorities of Turkish enterprises across core technologies ..... 26
Figure 13: Enterprise applications – Turkish enterprises’ current and future investment priorities.......... 28
Figure 14: Enterprise applications – vendor mindshare among Turkish enterprises .............................. 30
Figure 15: Business intelligence – Turkish enterprises’ current and future investment priorities ............ 32
Figure 16: Business intelligence – vendor mindshare among Turkish enterprises ................................ 34
Figure 17: Communications & collaboration – Turkish enterprises’ current and future investment
priorities. .......................................................................................................................... 36
Figure 18: Communications & collaboration – vendor mindshare among Turkish enterprises............... 38
Figure 19: Cloud computing solutions – Turkish enterprises’ current and future investment priorities .... 40
Figure 20: Cloud computing solutions – vendor mindshare among Turkish enterprises ........................ 42
Figure 21: Turkish enterprises' preferred approach to buying technologies .......................................... 44
Figure 22: Business objectives which influence Turkish enterprises' IT investment strategy ................. 46
Figure 23: IT objectives which influence Turkish enterprises' IT investment strategy ............................ 48
Figure 24: Factors influencing Turkish enterprises' decision to choose an ICT provider ........................ 50
List of Tables
Table 1: Turkish enterprise ICT survey industry breakdown .................................................................. 6
Table 2: Turkish enterprise ICT survey breakdown by size band (number of employees) ....................... 7
Table 3: Recent and expected ICT budget changes among Turkish enterprises .................................... 8
Table 4: Turkish enterprises’ (external) ICT budget allocation, 2013 and 2014 ..................................... 10
Table 5: Turkish enterprises’ average hardware budget allocation ....................................................... 12
Table 6: Turkish enterprises’ average software budget allocation by technology .................................. 14
Table 7: Turkish enterprises’ average IT services budget allocation .................................................... 16
Table 8: Turkish enterprises’ average IT consulting services budget allocation .................................... 18
Table 9: Turkish enterprises’ average telecommunications budget allocation ....................................... 20
Table 10: Turkish enterprises’ ICT budget allocation by function, 2013 and 2014 ................................. 22
Table 11: Outsourced IT functions - Turkish enterprises’ current and future outsourcing priorities ......... 24
Table 12: Current and future investment priorities of Turkish enterprises across core technologies ....... 27
Table 13: Enterprise applications – Turkish enterprises’ current and future investment priorities ........... 29
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Table 14: Enterprise applications – vendor mindshare among Turkish enterprises ............................... 30
Table 15: Business intelligence – Turkish enterprises’ current and future investment priorities ............. 32
Table 16: Business intelligence – vendor mindshare among Turkish enterprises.................................. 34
Table 17: Communications & collaboration – Turkish enterprises’ current and future investment
priorities.. .......................................................................................................................... 36
Table 18: Communications & collaboration – vendor mindshare among Turkish enterprises ................ 39
Table 19: Cloud computing solutions – Turkish enterprises’ current and future investment priorities ..... 40
Table 20: Cloud computing solutions – vendor mindshare among Turkish enterprises ......................... 42
Table 21: Turkish enterprises' preferred approach to buying technologies ........................................... 45
Table 22: Business objectives which influence Turkish enterprises' IT investment strategy................... 46
Table 23: IT objectives which influence Turkish enterprises' IT investment strategy ............................. 48
Table 24: Factors influencing Turkish enterprises' decision to choose an ICT provider ......................... 50