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Growth Expected, Growth Delivered

F.Y. Teng | Oct. 10, 2012
A quick view of the ICT spending picture across key sectors and an invitation to compare against the MIS 100 index.

All Round Spending Going Up
Spending on IT in the public sector is expected to go up too. According to IDC company Government Insights in a statement released to the press sometime back, public sector IT spending in Asia/Pacific (excluding Japan), or APEJ, should have gone beyond US$32 billion by the end of last year, registering the CAGR of 7.9 percent for period 2007 through 2011. Analysts at Government Insights said that this growth rate was to have been "largely driven by the People's Republic of China and India, which together account for more than half of the total [amount quoted]."

The referenced study by Government Insights looked at public sector IT spending in key areas such as government, education and healthcare, within the 2007-2011 timeframe, and predicted that "overall IT expenditure by broad segments [would] continue to be largely driven by hardware" and said that in addition, "expenditure on services [was] expected to increase steadily with a similar trend for software expenditure during this period."

"The public sector within the APEJ region represents an industry of diverse spending behaviour, with spending expected to exceed US$32 billion by 2011. Developing countries like the People's Republic of China and India continue to be key drivers of this spending as they have been building up their information and communications technology infrastructure to increase outreach to their citizens, especially in the rural areas," said Raphael Phang, research director of Government Insights Asia/Pacific in a statement to the press at the time of release. "With a double-digit CAGR in the People's Republic of China-10.2 percent-and India-17.6 percent-the growth rate of these developing countries also outpaces all other countries within the region."

Phang added that "IT investment in the APEJ Government sector [would] remain strong, and [was] expected to account for US$19.5 billion of the total public sector IT expenditure by 2011. It [would] still be the largest of the three public sector segments with a CAGR of
8.5 percent."

The picture of IT spending on the manufacturing front today is similarly upbeat, as are pronouncements on all other sectors. Just this June, yet another noteworthy research company put out a report-Forecast: Enterprise Software Markets, Worldwide, 2011-2016, 2Q12 Update-saying that global spending on enterprise software should go up, and that it would mostly "focus on industry-specific applications" such as those that manage enterprise resource planning (ERP). In fact, Gartner analysts said: "ERP revenue is projected to reach US$24.9 billion in 2012." (That is to be set within Gartner's figure for global spending on the broader category of enterprise application software-US$120.4 billion in 2012-which registers a 4.5 percent increase from the 2011 figure of US$115.2 billion.)


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