India To See Best Tech Market Growth During 2015

The Q4 and fiscal 2015 results of top 5 outsourcing firms indicates a slowdown. Analyts estimate a weak H1 2015 and a strong H 2 . Much hinges on the IT spending patterns.

Amid the gloom and doom, here comes a new Forrester observation that gives in an element of optimism and buoyancy. According to Forrester, the Asia Pacific tech market will grow roughly 5% in  2015 and 2016. India and South Korea will see the strongest growth.

Spending on the Business technology (BT )Agenda - technologies that helps firms win, serve and retain customers - will see the strongest growth in Australia and New Zealand, which have adopted BT technologies as rapidly as firms in the US, and South Korea and Singapore, which are close behind.

“CIOs in the Asia Pacific region should plan on building and/or strengthening their BT portfolio with software and services for winning, serving, and retaining customers,” said Fred Giron, VP and research director. at Forrester Research.  “The plan's aggressiveness will be based on the business outlook in firm's home country and the digital maturity of the organization. The first factor dictates what CIOs will be able to afford in terms of tech spending; the second factor determines the amount of BT their organization can leverage to generate significant business value.”

Further more, CIOs in India and most ASEAN countries including the Philippines, Thailand, and Vietnam will see some of the best tech market growth in the region. While a significant portion of this growth will go to older IT that provides the foundation for running globally competitive firms, Forrester also sees firms in these countries invest in BT to improve sales, marketing, and customer service.

Key Trends: APAC

• CIOs in Australia, China, India, Japan, South Korea, and other Asia Pacific countries will encounter very different, country-specific tech markets in 2015 and 2016.
• CIOs in Australia, Singapore, and Japan should expect slow growth in tech purchases this year and next.
• In Australia, growth will be strong in support of the business technology (BT) agenda for winning, serving, and retaining customers, while CIOs in Japan will focus on cutting costs.
• CIOs in South Korea will have the best balance between good overall tech market growth and strong demand for BT software and services.
• CIOs in China will be dealing with slowing overall growth and a shift in the mix of spending toward software and services.
• CIOs in India and most ASEAN countries including the Philippines, Thailand, and Vietnam will see some of the best tech market growth in the region.