Asia Pac IT spending to reach US$330 bln by 2006
Sarawak Tribune - Friday, 3 January, 2003  Page 10
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KUALA LUMPUR - Information Technology (IT) spending in the Asian Pacific Rim region is expected to grow to US$330 billion (US$1 = RM3.8) in 2006 from US$257 billion in 2002 with the region's share of worldwide spending rising to 22.9 percent from 21.1 percent.

Boston-based Aberdeen Group, a leading market analysis and positioning services firm Aberdeen Group, said in a statement released here yesterday that the region's growth will be led by China and India with its IT spending growing annually at 14.6 percent and 10.9 percent, respectively, between 2002 and 2006.

Korea and Australia will follow with growth rates of 10.8 percent and 7.1 percent respectively, Aberdeen said in quoting its new report on "World IT Spending 2003-2006: Measuring the Incremental Recovery".

The report said Japan, which has the highest spending in the region and the second largest IT spending in the world, will have the lowest projected growth rate (2.25 percent) between 2002 and 2006 of any country in the Asian Pacific Rim due to its continuing economic distress and lack of capital investment.

"The Asian Pacific Rim region has a very diverse constituency and correspondingly diverse growth prospects," said Hugh Bishop, Aberdeen senior vice president and author of the report.

"Not surprisingly, however, the region's most developed countries do not differ from the IT spending patterns in North America and Europe. China and India, in particular, are poised for explosive IT spending growth over the next four years."

The report also said that the hardware, software and services mix of IT spending for the Asian Pacific Rim region, will reflect the region's overall composition of developed and developing economies.

Although the region ranks a close third in overall regional IT spending to North America and Europe, it contains far more developing economies that either of the other two. Consequently, Aberdeen said that hardware will continue to dominate IT spending, increasing to US$155 billion in 2006 from US$124 billion in 2002.

Software will grow to US$66 billion in 2006 from US$47 billion and services will grow to a US$109 billion market in 2006. - Bernama