IT services spend in Asia-Pacific to hit $US205 billion by 2015: analyst

IT services spend in Asia-Pacific to hit $US205 billion by 2015: analyst

Enterprise customers who put projects on hold during the downturn have started investing again

IT services spend in Asia-Pacific will increase at a compound annual growth rate (CAGR) of 6.6 per cent to reach $US205 billion by 2015, according to research firm, Ovum.

The study shows that though the region was slightly affected by the recession, the market is rebounding and the growth could possibly hit nine per cent in the next four years.

According to Ovum senior analyst of market intelligence, Hansa Iyengar, enterprise customers who restricted spending and put many transformative projects on hold during the downturn have started investing for growth again.

“A large proportion of the growth will be driven by applications and consulting engagements with enterprises aiming to upgrade, transform, and modernise their IT environments in order to support the rapid expansion being experienced in most of the region’s economies,” she said.

The company also released a new market share analysis of the top 30 IT services vendors in the region.

The research revealed that Fujitsu remains top of the list of IT services revenue in 2010 – with a market share of 13.9 per cent in the Asia Pacific region.

It also showed that global vendors are still major representatives in most markets within the region with the exception of Japan, which continues to be dominated by large domestic providers. Ovum said this shows that there is still a ‘home-bred’ tendency that has included a rising desire to learn and interact with global providers to sustain enterprises’ expansionary plans.

“A key trend worth noting, is the growth in leveraging consulting services to define and align strategic plans and longer-term operational roadmaps, prior to committing to multi-year strategic engagements,” Ovum IT services principal analyst, Jens Butler, said.

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Tags it servicesFujitsuovumAsia Pacific markets

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