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Regional Govt IT Services spending to surpass hardware investments

Regional Govt IT Services spending to surpass hardware investments

“2015 will be the year the overall hardware spending is surpassed in absolute numbers by overall IT services spending for the APEJ public sector."

IT investments of the government sector across Asia Pacific excluding Japan (APEJ) will increase from US$25.4 billion in 2014 to US$32.5 billion in 2018 with a five-year compound annual growth rate (CAGR) of 6.2%, forecasts IDC Government Insights.

According to the latest IDC Government Insights Pivot Table, the overall year-over-year (YoY) IT spending growth in 2015 for the APEJ public sector is anticipated to grow at 5.9%, which indicates both a more cautious as well as maturing APEJ public sector IT spending landscape.

“This is because the APEJ public sector will be increasingly focused on consolidating and streamlining of scarce ICT resources, attaining better manageability tools for effective decision making, and addressing the urgent need to increase cyber security priorities of digital assets,” the report states.

“2015 will be the year the overall hardware spending is surpassed in absolute numbers by overall IT services spending for the APEJ public sector.

“The Association of Southeast Asian Nations (ASEAN) member-countries leading this transition include Malaysia, the Philippines, and Thailand, indicating more established domestic ICT landscapes.”

Together, public sectors in Australia, the PRC, India, Singapore, and South Korea are forecasted to spend over US$1 billion on IT spending in 2015. As a group, they represent 82% of the entire APEJ public sector IT spending.

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