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From the News Desk
Tuesday, 25. March 2008
India to Remain the Fastest Growing IT Services Country in Asia Pacific: Research
The IT Services market in Asia Pacific (excluding Japan) will grow from USD 37.5 billion in 2007 to USD 55.9 billion in 2011 at a a compounded annual growth rate (CAGR) of 10.5% , says the report 'Asia Pacific IT Services Market and Forecast, 2006-2011’ by market analysts, Springboard Research.
According to the report, the Indian IT Services market with a CAGR of 18.6% 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 – China, India, Australia and Korea – but the emerging ones like Indonesia and Vietnam, which will register significant growth going forward,” Mr. Hassey 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% between 2007 and 2011, will register the fastest growth during the forecast period, although Enterprise Application Integration at USD 7.8billion 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.
The report predicts that challenges in accessing and retaining IT Skills will accelerate the shift to external services providers, as enterprises will struggle to retain in-house key individuals and skill sets. Also, China will not challenge India as the home of offshore service delivery especially for English language requirements – as skill levels, quality, culture and governance are all more suited to India being a hub of global delivery against the PRC.
According to the report, the Indian IT Services market with a CAGR of 18.6% 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 – China, India, Australia and Korea – but the emerging ones like Indonesia and Vietnam, which will register significant growth going forward,” Mr. Hassey 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% between 2007 and 2011, will register the fastest growth during the forecast period, although Enterprise Application Integration at USD 7.8billion 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.
The report predicts that challenges in accessing and retaining IT Skills will accelerate the shift to external services providers, as enterprises will struggle to retain in-house key individuals and skill sets. Also, China will not challenge India as the home of offshore service delivery especially for English language requirements – as skill levels, quality, culture and governance are all more suited to India being a hub of global delivery against the PRC.
