APAC tech spend to hit $367B

APAC tech spend to hit $367B

Summary: IT spend among Asia-Pacific businesses will increase 8 percent in 2012 over this year, with emerging economies the biggest drivers, reveals new report.

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Enterprises in the Asia-Pacific region are expected to spend more than US$367 billion on IT products and services in 2012, an 8 percent increase from this year.

The bulk of this growth will come from emerging markets such as China and India, while organizations in developed economies will be more cautious with their IT spend, Gartner said in a statement Thursday.

The market research firm  added that global enterprise IT spend would reach US$2.7 trillion in 2012, increasing 3.9 percent from this year's US$2.6 trillion, but this growth would be lower than the estimated 5.9 percent increase in 2011.

"Our outlook is made with the assumption of continued global economic uncertainty, and at best, sluggish growth--especially in the United States, Japan and Western Europe," said Peter Sondergaard, Gartner 's senior vice president and global head of research. He announced the forecast at the Gartner Symposium/ITxpo this week in Australia.

Although growth is slowing amid global economic challenges, enterprises will continue to invest in IT, Sondergaard pointed out. "The days when IT was the passive observer of the world are over. Global politics and the global economy are being shaped by IT".

IT has become a primary driver of business growth, he added, highlighting that two-third of CEOs today believe IT will make a greater contribution to their industry in the next 10 years than any prior decade.

The Gartner analyst described the new era as a "post-modern business" landscape, driven by the forces of mobility, cloud, social and explosion in information. "These forces are innovative and disruptive [if] just taken on their own, but brought together, they are revolutionizing business and society.

"This nexus defines the next age of computing... The combined impact of these forces will make architectures of the last 20 years obsolete," Sondergaard concluded.

Topics: IT Employment, Apps, Software, Mobility, IT Priorities, Cloud, CXO, Browser, Banking, Social Enterprise

Jamie Yap

About Jamie Yap

Jamie writes about technology, business and the most obvious intersection of the two that is software. Other variegated topics include--in one form or other--cloud, Web 2.0, apps, data, analytics, mobile, services, and the three Es: enterprises, executives and entrepreneurs. In a previous life, she was a writer covering a different but equally serious business called show business.

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