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ICT predictions for APEJ 2013: IDC

Madura McCormack | Nov. 28, 2012
Last call for CIO transformation, telcos and OTT players play nice and the rise of Myanmar

Despite problems in the European economy and the looming possibility of another US recession, market intelligence company IDC expects overall ICT growth in the Asia Pacific excluding Japan (APEJ) region for 2013 to be similar to 2012 at around 7.6 percent.

IDC notes that companies in the region don't regard the economic outlook in the US and Europe as a top concern for business but are more focused on how to grow and expand while keeping costs under control.

For spending, IDC expects eICT spending to increase by 26 percent in 2013. 'eICT' is a term coined by IDC and encompasses four areas; ICT, e-commerce, consumer electronics and entertainment applications and services.

"eICT will be a US$3 trillion market in 2013, four times larger than the ICT market which will bring in US$775 billion," predicted group VP for practice at IDC Asia Pacific Sandra Ng.

According to IDC, there are 10 major factors that will affect the overall growth of the ICT sector in 2013.

Talent crunch

Singapore is starting to see the shrink of the labour pool with tightening restrictions of foreign employee importation and ratio limits. In Australia, the number of IT graduates have declined by 5.3 percent CAGR (compound annual growth rate).

"In India less than three percent of the workforce is employable without extra training and you have 16 percent of the population contributing 43 percent of the national income," said Ng.

IDC believes the talent shortage in the region will exacerbate in 2013, possibly stifling innovation as the ICT sector continues to increase its demand for skill specific executives.

For the CIO, 2013 will be a time for attention on staff skills, investment in training and rehiring when necessary, according to the report.

Surge of corporate tablets but watch for short sighted adoption plans

In what IDC calls the 'corporatisation of the consumer', users will increasingly be bringing their own tablets and smartphones into the office as productivity tools.

While BYOD is not a new trend and volumes are expected to grow to 46 percent for smartphones and 60 percent for tablets, IDC believes 2013 will see CIOs embrace the idea of the 'enterprise tablet' to meet the demands of their employees while allowing for a degree of manageability, integration and security.

IDC believes the Windows 8 operating platform will be the "saviour" of choice for CIOs but could be a short sighted approach if the OS does not win the hearts of the consumer. The resultant rejection of the enterprise tablet will see again, personal devices being used by 2014 and beyond.

Last call for CIO transformation

"Delivering projects on time, on budget and on quality are now simply housekeeping roles," said Ng.


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