More IT spending expected in Asia Pacific

More IT spending expected in Asia Pacific

IT spending in the Asia Pacific region is expected to grow by 7.9 per cent next year to reach US$743 billion, according to Gartner.

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 per cent 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 per cent increase from 2012 spending. Spending in software will total US$33.9 billion, up 11.9 per cent; IT services spending US$91.5 billion, up 7.5 per cent, and telecom services US$359.4 billion, up 4.8 per cent.

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.

"This is a time of accelerating change, where your current IT architecture will be rendered obsolete," Sondergaard said. "You must lead through this change, selectively destroy low impact systems, and aggressively change your IT cost structure. This is the next age of computing."

Cloud computing will be the foundation for the integration of the other three IT forces, said Sondergaard. "Mobile is personal cloud, social media is only possible via the cloud, and big data is the killer app for the cloud. Cloud will be the permanent fixture, the foundation."

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

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags IT spending

Show Comments