Asian IT Expenditure To Grow at 8.8% in 2010

by CXOtoday Staff    Dec 21, 2009


Asian IT market fuelled by China and India has performed better than rest of the world. IT expenditure in Asia is expected to grow at 8.8% in 2010, an increase from 6.4% in 2009, predicts Springboard Research.

According to Springboard’s research, Asia has not seen the carnage that the Western economies have experienced and while Asia has taken its lumps, it is emerging much quicker and this is reflected in IT spending throughout the region. Organizations are expected to continue to focus on extracting greater value from existing IT investments versus significant, new capital expenditure. Additionally, they will continue to focus on reducing operational expenditure from both business and IT perspectives. Data centre transformations, IT manageability advancements and virtualization investments are finally helping ‘move the needle’ downward on the traditionally high and stubborn costs to simply ‘keep the lights on’.

Top 10 trends according to Springboard Research that will shape enterprise IT in the Asia Pacific region in 2010:

  1. Analytics, and the evolution towards ‘Intelligent Solutions’ more broadly, emerges as a key driver of new business value
  2. The convergence of computing platforms accelerates
  3. Cloud computing momentum will increase dramatically
  4. Virtualization will play an increasingly critical role on the desktop
  5. Mobile devices and applications are crucial for overcoming the digital divide in emerging markets
  6. Collaboration continues to shine as organizations leverage initiatives put in place during the economic crisis
  7. A wave of innovative new payment technologies emerge
  8. Online developer platforms and communities are the new ecosystem battleground and epicenter of application innovation
  9. Social networking will be as accessible and commercialized as the internet itself
  10. IT abstraction forces CIOs to change or fall by the wayside

The Springboard brief disclosed that in spite of the generally optimistic position of Asia, there are indeed risks and challenges facing the market in 2010. IT buyers and prospects are returning to a more ‘normal’ state of IT investments, but they remain cautious and increasingly sceptical of vendor guidance. IT solution providers can expect sales cycles and the quality of prospects to improve over 2009, but to remain more challenging than before the crisis.

The economic crisis, while being destructive, has also helped drive actions and decisions that have positioned organizations in Asia for a year of growth in 2010. The crisis has helped Asian companies become leaner and more productive. Technology is set to witness continued growth as the market rebounds and companies continue increasing their IT investments to compete in the global economy. Overall, it will be a year of increased investments, increased spending, and greater opportunities for technology vendors present in the region, concludes Springboard.