IT spending in APAC will be favourable in 2013: IDC

by CXOtoday News Desk    Nov 29, 2012

IT spending in APACDespite the ongoing world-wide economic risk environment, IT spending in the Asia Pacific region will be favourable in 2013, according to a recent report by International Data Corporation (IDC).

The research firm expects e-ICT spending to increase by 26 percent to $3,018 billion in 2013. The spending on ICT is expected to be $775 billion and the rest of it coming from the rise of ‘digital commerce, consumer electronics and entertainment applications and services.

According to Sandra Ng, Group VP, Practice, IDC Asia Pacific, as the commercial environment becomes more complex, new business opportunities and challenges will drive enterprises to enter into market adjacencies and new partnerships. She believes this is beyond their traditional core and comfort zone, to improve market relevance and competitiveness in an “Asian-dominated era”.

“CIOs will continue to grumble about weak budgets, but will find that mission critical investments are protected for the most part,” added Claus Mortensen, Principal for Emerging Technology Research, IDC Asia Pacific.

He stated that the ongoing risk environment has now become ‘the new normal’ and there is no longer any excuse for not pursuing growth and even though most companies are now fiscally conservative, spending freezes are few and far between.

Mortensen noted that very few companies consider the economic outlook for the US and Europe a top concern for their business. In contrast, they are much more worried about how to grow and expand their business, keep cost under control while doing so and at the same time, keep on innovating and finding the talent they need to do all this.

The Asia Pacific market excluding Japan will continue its pattern of steady growth, never though at a slower pace than the double-digit growth seen before the 2008 crisis and in the rebound year of 201, according to the IDC report.

Of the few trends IDC expects will lead to the increase in the IT spends in the Asia Pacific market, social, mobility, cloud and big data will continue to drive the IT growth and innovation. In such a scenario, governance will become the perhaps biggest issue that CIOs will have to deal with.

IDC expects overall ICT growth in 2013 to be similar to 2012 at 7.6 percent. “We also expect the revenue split between hardware, software, services and telecom services to remain quite stable through 2016,” summed up Mortensen.