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IDC: manufacturing IT spending in Asia expected to grow to 2012

IDC: manufacturing IT spending in Asia expected to grow to 2012

In an environment of impending economic slowdown due to global factors, market intelligence firm IDC's Manufacturing Insights Asia/Pacific brings some good news in its "Asia/Pacific (Excluding Japan) Manufacturing IT Spending 2008-2012 Forecast."

According to this research and advisory company's report, manufacturing IT spending for the Asia Pacific excluding Japan region (APEJ) will maintain a steady growth through 2012, with high-tech, automotive, and consumer packaged goods (CPG) manufacturers continuing to lead the pack.

Manufacturing IT spending in the region is expected to reach US$33 billion by 2012 at a compound annual growth rate (CAGR) of 9.5 percent, the report said.

The report noted that the China and India will be the top two growth countries. While China will account for the largest share of APEJ manufacturing IT spending, in 2008, India, for the first time, is expected to move into second place, overtaking Korea in terms of total IT spending in the manufacturing sector.

Hardware spending dominates

According to the report, hardware spending will continue to take up the lion's share of the overall APEJ manufacturing IT budget, just like it was last year. However, IT services is expected to register the strongest growth over the next five years, indicating the increasing maturity of the APEJ manufacturing IT landscape.

Putting this spending growth in perspective, Debashis Tarafdar, senior research manager of Asia Pacific Manufacturing Insights said: "Increased globalization and competitive market pressures will push APEJ manufacturers to become more agile and resilient to market changes, and to invest in IT to foster innovation, collaboration, and sustainability.

"IT investments emerge to add more value to businesses to support sustainable growth, rather than being just a cost center."


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