IT services market in APAC to grow to US$55.9B by 2011
ConvergenceAsia staff
26/03/2008

The IT Services market in Asia Pacific (excluding Japan) will grow from US$37.5B in 2007 to US$55.9B in 2011, representing a compounded annual growth rate (CAGR) of 10.5 per cent from 2006 to 2011, according to the 'Asia Pacific IT Services Market and Forecast, 2006-2011' report by IT market research and advisory firm Springboard Research.

According to the report, the Indian IT Services market with a CAGR of 18.6 per cent will remain the fastest growing in the region, although as a region Greater China will offer the largest market opportunity in dollar terms at the end of the forecast period.

"The Asia Pacific IT Services market is arguably the global leader in terms of growth, supplemented with a mix of mature and emerging markets," said Phil Hassey, Vice President - Services Research at Springboard Research.

"The markets of interest are not just the top four ¨C China, India, Australia and Korea - but the emerging ones like Indonesia and Vietnam, which will register significant growth going forward," he added.

The report uses Springboard's Market Attractiveness Index to rank countries and individual IT Services markets on the basis of growth opportunities. According to the Market Attractiveness Index, the top ten countries in the region are:

1. People's Republic of China
2. India
3. Australia
4. Korea
5. Indonesia
6. Vietnam
7. Malaysia
8. Rest of ASEAN
9. Singapore
10. Philippines

According to the report, Application Hosting with a CAGR of 19.5 per cent between 2007 and 2011 will register the fastest growth during the forecast period, although Enterprise Application Integration at US$ 7.8 billion will continue to be the largest component of the market by 2011. While Enterprise IT Outsourcing is the largest market in 2007, the reluctance of PRC firms to use the Enterprise IT Outsourcing model will reduce its relative size and weighting in the market by 2011.

Springboard Research 'Asia Pacific IT Services Market and Forecast 2006-2011' report offers an extensive and insightful perspective on IT Services market across Asia Pacific (excluding Japan) region. It outlines 15 individual IT Services markets - including Infrastructure Support, Desktop Management, Enterprise Application Integration and IT Outsourcing - and 15 countries with respect to market size, key players and growth dynamics and forecasts demand and growth for each of them.

advertisement