Menu
Menu
Asia's public sector IT adoption shows strength

Asia's public sector IT adoption shows strength

Australia's aging population creates special demands

Public sector IT spending in Asia (including Japan) has enjoyed steady growth right around the region, according to Springboard Research. Based on its market analysis, Springboard expects IT spending to be $US51.5 billion in 2007, with the market growing at a compound annual rate of 6.9 per cent from 2006 to the end of 2010.

Springboard's analysis showed that Japan, while growing much slower than the rest of Asia, is still by far the largest market in the region, accounting for 45 per cent of public sector IT spending. China and Australia are the next largest markets, accounting for 20 per cent, and 11 per cent, respectively, of public sector technology spending. India is the fastest growing market in the region.

While federal IT spending accounts for 72 per cent of all expenditures, Springboard is seeing increased growth in spending at the next level, which consists of state, regional, provincial, and local governments.

"This segment of the market is growing at close to 10 per cent a year across the region and state-level spending is growing twice as fast as federal spending in more mature markets like Japan, Australia, Korea, New Zealand, and Taiwan ," said Jonathan Silber, research manager for Springboard Research. "This is an opportunity, but it also represents more real estate that vendors need to cover as there are a lot more organisations at this level. Also, local government spending has tended to grow more slowly than state and regional spending; but in India, Indonesia, and the Philippines, we have seen strong local spending growth that is as fast or faster than federal and state spending," Silber added.

Key sub-verticals within the public sector include education (public and private), which will account for 22 per cent of spending in 2007. Other key sub-verticals are healthcare (public and private) and defence/security, with healthcare being the fastest growth sub-vertical across the region.

"We are seeing strong growth in technology spending in healthcare across the board. In most countries, it is the fastest growing sub-vertical as countries invest heavily in infrastructure and to support aging populations in places like Australia, Japan, and Korea," Silber explained.

Len Rust is publisher of The Rust Report.

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

Join the newsletter!

Error: Please check your email address.

More about Billion

Show Comments

Market Place