E-commerce mobile to drive Asian IT recovery

E-commerce mobile to drive Asian IT recovery

Electronic commerce, mobile telephony and telecommunication services will be three of the main drivers of the recovery of Asia-Pacific (excluding Japan) IT markets this year, according to market analyst IDC.

In a report detailing its main predictions for the Asia-Pacific market, IDC said the second half of 2002 will see a strong rebound, with overall IT spending in 2002 being 13.5 per cent greater than in 2001 at $US76 billion.

Telecommunication spending in Asia-Pacific is expected to be twice as high as IT spending. This year it will grow by 20.6 per cent to reach $161 billion, IDC said. Over the next four years it will continue to grow at a CAGR (compound annual growth rate) of 19 per cent to be worth $269 billion in 2005.

Other IDC predictions include:

- the public sector, telecommunication and life sciences markets will show strong growth in IT spending this year.

- e-commerce will grow exponentially in the Asia-Pacific, with IT spending on enterprise portals, enhancing Web presence, Web integration of key applications and facilitating information access and exchange through mobile devices.

- wireless Web infrastructure will improve, with GPRS (General Packet Radio Service) co-existing with SMS (short messaging service). Expanded content and a more aggressive service provider push will help the wireless Internet vision move closer to reality in 2002.

- hype will outstrip reality in the area of Web services, which describes an anytime, anywhere dynamic vision of on-the-fly application access. Major technical, legal and behavioural issues still need to be resolved.

- network storage infrastructure will move to centre stage as companies come to appreciate its value as a repository of enterprise knowledge.

- end users will take a much more serious and integrated look at the issues of Internet security and business continuity and will prepare and implement action plans to mitigate risks.

- digital identity and single sign-on will gather momentum as major vendors push the technology and end users begin to appreciate the convenience.

- China, already far and away the dominant force in the Asia-Pacific IT and telecommunication industry, will gain added momentum in 2002 following its accession to the World Trade Organization (WTO). Its IT market will grow at a 27 per cent CAGR over the next four years, by which time it will be an annual $50 billion market.

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