Against the backdrop of global market volatility and economic uncertainty, there continue to be questions on how Asia will step up, respond and perform. While local nuances in each country create varying dynamics that impact the growth potential of the IT services market, IDC expects another year of solid growth for the industry in Southeast Asia.
“2011 was a colorful year for the IT Services market in Southeast Asia; from Economic Transformation Programs in Malaysia to the inflation battle in Vietnam, from cloud advancements in Singapore to the PALAPA ring in Indonesia, from a transitioning government in Philippines to the flood waters in Thailand. These country-level activities, which are continuing into 2012, lead IDC to see key opportunities that will drive IT services growth across Southeast Asia,” says Roger Ling, Research Manager for ASEAN Services Research Group, IDC Asia/Pacific.
Drawing from the latest IDC research and internal brainstorming sessions amongst IDC’s regional and country analysts, the following are the top 10 key IT Services predictions in 2012 for the Southeast Asia market. This year, the predictions are split into three key segments. The big picture, which looks at how the region is expected to perform, key country level factors in 2011 that will impact 2012, and game changers that will continue to shape the IT services scene in 2012 and beyond.
The big picture showed that The Southeast Asia IT Services Market will continue its Double-Digit Growth Streak in 2012.
As predicted last year, 2011 did see the loosening of purse strings as organizations looked at making investments when clear business outcomes can be demonstrated. This is exhibited by the 19% year-on-year (YoY) growth by end of 2011. The Southeast Asia IT services market is forecasted to close at US$8.1 billion in 2011, and is expected to grow 12% to reach US$9.1 billion in 2012. These are the Country Level Predictions – Drivers in 2011 that are Shaping 2012:
In Malaysia, the economic transformation plan will fuel IT services growth but is not yet a silver bullet for growth; in Thailand, the blue whales did more than just find their way back to sea; in Indonesia, National ICT Flagship Initiatives is a possible inflection point for the country; in Singapore, as the cloud matures, data sovereignty will be an issue to tackle; in Vietnam, IT services maturity leads to opportunities for MNCs but growth will be tampered by inflation; in the Philippines, transition paving way for transformation.