This IDC study provides a detailed overview of IT spending trends and forecasts for 17 vertical markets (or sectors) and 10 product categories, including hardware, packaged software, and services in Israel. The study features overviews of key industry developments, industry challenges, and vertical-specific IT drivers and trends and includes tables detailing IT spending by vertical market for each product for the 2008–2012 period. Analysis is based on continuous research, the monitoring of users' IT spending and emerging purchasing patterns, and supply- and demand-side research.

"Israeli IT spending continues to grow, as economic conditions remain stable, despite the global slowdown. The public sector, including defense, continues to account for the biggest share of IT spending, thanks to military contracts and large public tenders. High-tech exports soared in 2007, causing increased demand for IT products and services from this sector. Extensive reforms in the financial sector have kept IT expenditures by banks and insurance firms relatively high, while recent telecoms sector developments have triggered increased demand for IT infrastructure. The falling U.S. dollar has had a largely negative effect on local exporters, but has increased purchasing power in many other market segments. – Research Analyst Liran Tal, IDC Israel