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Asia IT to emerge stronger despite slowdown in spending
IT spending in Asia Pacific (excluding Japan) will drop to a growth rate of 7.1% in 2009, a decrease from 10.2% in 2008, predicts Springboard Research. According to the research firm’s executive brief Asia Pacific IT Market Predictions 2009, all countries in the region will be affected, but the degree of fallout from the economic crisis will vary across countries.
Most affected countries include Australia & New Zealand, Hong Kong, Korea, Singapore, Taiwan and Thailand. Countries running at medium risk include Malaysia and the Philippines, while China and India will continue to grow, albeit at lower rates.
Said Dane Anderson, CEO and EVP of Research at Springboard Research, “However, even with slower growth Asia will continue to emerge as a critical region for IT vendors and we will continue to see a substantial shift in investment moving to Asia and other global emerging markets.
Moreover, the research highlights the key trends that will impact enterprise IT in the AP region in 2009:
· Cost concerns will drive a primary focus on IT Infrastructure Consolidation
· Increased efficiencies helps Virtualization emerge as key to data center transformations
· Cost savings help green IT projects go mainstream
· Managed services emerge as a bright spot in a year of economic downturn
· Cloud computing movement gains momentum in Asia
· Slowdown presents an opportunity for skills set upgrade & acquisition
· Unified communications gain steam as companies cut travel costs, strive to improve communications and productivity
· The crisis will lead SMBs to focus on outsourcing, managed services and SaaS to transform their business
· Increased financial challenges lead to tightening of regulations, compliance and IT governance
· Government spending to boost the economy will benefit IT companies that know the public sector
The research concludes that the crisis can be seen as an opportunity for innovation and business transformation, building competitive edge, driving operational efficiency and offering new levels of experience. Organizations need to prepare to take advantage of the rebound once it starts developing.
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