Forrester predicts slower IT spending growth for Asia-Pacific

Australia, South Korea remain bright spots in a challenged region

IT spending growth in the Asia-Pacific region is expected to slow as countries including China and India grapple with emerging economic issues as a result of the world economic crisis, according to research firm Forrester.

Spending by governments and businesses is expected to grow just 2.9 percent this year, to around US$543 billion, Forrester said Monday. That is the second-largest spend after the U.S. and ahead of Western and Central Europe.

Despite a host of economic issues, Japan will spend the most, at $251 billion. China, one of the fastest growing Asia-Pacific markets, is expected to spend $114 billion, followed by Australia at $49 billion, India at $32 billion, South Korea, $28 billion; Taiwan, $13 billion and Singapore, $9 billion.

While Asia has been thought of as a growth engine of the global economy, it "has been misfiring on some key cylinders, leading to slower growth in the regional tech market in 2012," Forrester said.

"While Australia, Korea, and several Association of Southeast Asian Nations (ASEAN) tech markets are showing good or improving growth, in other markets like China, India, Japan, Malaysia, and Vietnam, political leaders seem paralyzed in the face of growing economic problems," according to a report written by Andrew Bartels and Frederic Giron.

Australia, New Zealand, Singapore, and South Korea are expected to show interest in software for automating business processes and analytics in order to improve their businesses, Forrester said.

Political changes in Myanmar, formerly known as Burma, are unlikely to pose significant opportunities for vendors. "Even if Myanmar does open up, it will remain small for the foreseeable future, as will Brunei, Cambodia, and Laos," Forrester said.

Organizations in Asia-Pacific are expected to spend in 2013 $171 billion on computer equipment, $118 billion on software and $99 billion on communications equipment. IT consulting and systems spending is expected to be around $83 billion, Forrester said.

Forrester relied on data from the International Monetary Fund along with IT investment data from the national statistical agencies of Australia, Japan, New Zealand, Singapore and South Korea, along with the Organisation for Economic Co-operation and Development (OECD). It also looked at the financial reports of 50 IT vendors.

Send news tips and comments to jeremy_kirk@idg.com. Follow me on Twitter: @jeremy_kirk

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags business issuesForrester Researchgovernment

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jeremy Kirk

IDG News Service
Show Comments

Essentials

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?