Thailand has been tipped by research firm IDC to overtake Singapore in terms of IT spending in 2012.
Thailand is expected spend US$11 billion on IT while Singapore is forecasted to spend US$10.6 billion. According to IDC's latest IT spending forecast, the total IT spending for Southeast Asia will reach US$54.7 billion by 2012. Asia's new economic giant, Indonesia, will continue to lead the pack.
IDC projects that IT spending in Thailand will leapfrog ahead of Singapore, growing at a compound annual rate (CAGR) of 10.8 percent from 2012 to 2016.
The growth of IT spending will be driven by the growing smartphone market and an expanding IT services sector, according to IDC.
"Thailand will be one of the region's rising smartphone stars in 2012, as tech-savvy consumers continue to snap up iPhones at the high-end while international and domestic brands alike drive greater mass adoption by pushing smartphone prices below the US$150 mark," said Melissa Chau, research manager, client devices at IDC Asia/Pacific. Thailand has been one of the fastest-growing smartphone markets in Southeast Asia, with 76 percent year-on-year (YOY) revenue growth in 2011, reaching over US$1.5 billion.
The IT services market is being driven by a dependence on external services providers that can allow for faster reactions to market demands over in-house resources.
"The demand for IT services in Thailand is driven mainly by investment in facilities for manufacturing exports and a fast-growing consumer sector. With a small skills base to draw from, Thai companies and MNCs have become reliant on externally-sourced IT services to deploy and manage their IT infrastructure and applications," said Chris Morris, associate vice president at IDC Asia/Pacific.
IDC also identified the major growth sectors for IT services as implementation services, operations management and support services.
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