IT investments by the government sector in Asia Pacific excluding Japan (APEJ) will increase from US$25.4 billion in 2014 to US $32.5 billion in 2018, representing a compound annual growth rate (CAGR) of 6.2 per cent, according to a forecast by IDC Government Insights.
Together the public sectors of Australia, the People’s Republic of China, India, Singapore, and South Korea are expected to spend over US$1 billion on IT in 2016. This represents 82 per cent of the entire APEJ public sector IT spending.
This year will also see overall hardware spending surpassed by overall IT services spending – a transition being led by countries such as Malaysia, the Philippines and Thailand.
Across the whole region, the overall year-over-year IT spending growth in 2015 for the APEJ is anticipated to grow at 5.9 per cent, which indicates both a more cautious as well as maturing spending landscape, according to IDC.
“This is because the APEJ public sector will be increasingly focus on consolidating and streamlining of scarce ICT resources, attaining better manageability tools for effective decision-making, and addressing the urgent need to increase cybersecurity priorities of digital assets,” a report by IDC said.
