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More IT spending expected in Asia Pacific

Veronica C. Silva | Nov. 23, 2012
The region is still one of the bright spots in global IT, says Gartner.

The US is bracing for a "fiscal cliff" while Europe recently downgraded its forecast for 2013. But in the Asia Pacific region, investments, at least in IT, are growing.

IT spending the region is expected to grow by 7.9 percent next year to reach US$743 billion, according to market research firm Gartner.

And while Europe is warning of unemployment, the IT jobs are in the AP region. Gartner estimates that the AP region will create almost a million jobs by 2015 because of the demand for big data. Spending in data centre systems is one of the five major IT segments where Gartner sees AP organisations spending. Gartner forecast this segment to reach US$28.6 billion in 2013, a 9.5 percent increase from 2012.

Innovation and keeping up with competition are motivating organisations in the AP region to invest more in IT, according to Gartner.

Bright spots

"As global markets improve in 2013 and resume growth, Asia Pacific remains one of the bright spots of the global IT market, allowing organisations in this region to accelerate competitiveness," said Sondergaard. "Organisations in Asia Pacific will be able to innovate and compete using what we call the nexus of forces, or the intersection of cloud, mobile, social and information. New business models will emerge in this region."

Aside from data centres, four other major IT segments in AP are expected to grow in 2013. The devices segment (including PCs, tablets, mobile phones & printers) is projected to total US$229.7 billion, a 12.3 percent increase from 2012 spending. Spending in software will total US$33.9 billion, up 11.9 percent; IT services spending US$91.5 billion, up 7.5 percent, and telecom services US$359.4 billion, up 4.8 percent.

By 2014, Gartner is expecting IT hiring in major Western markets to come predominantly from Asian-headquartered companies, which would be enjoying double-digit growth.

"An increasing number of successful Asian companies - particularly from China and India - are enjoying double-digit growth rates and will substantially grow their geographic footprints, making significant investments in major Western markets through 2015. Consequently, these organisations will be responsible for major hiring of IT professionals to support their growth at a time when Western companies will still be coping with the impact of the economic crisis," Sondergaard said.

Big data demand

The demand for big data will require an additional 4.4 million jobs by 2015, and 960,000 of these will be created in the AP region. Gartner said four million jobs in the region will be actually needed.  However, only a third of this demand will be fulfilled as the region is challenged to come up with the required skilled and trained workers.

Further IT spending will also be triggered by the confluence and integration of cloud, social collaboration, mobile and information.


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