Asia IT market to reach $39b

Asia IT market to reach $39b

SINGAPORE: The information technology (IT) services market in the Asia-Pacific region should expand at a compound annual growth rate of 21 percent between 2001 and 2006 to reach US$38.8 billion, an industry monitor said Tuesday.

The growth is expected to be driven by services firms targeting the banking, communications and media, government and manufacturing sectors, International Data Corp. (IDC) said in a statement.

South Korea should surpass Australia as the biggest IT services market in the region by 2005, with China also seen growing strongly, said the statement which summarized the results of a study of 12 Asia-Pacific markets outside Japan.

From 2001 to 2006, IDC projects the market in China to grow 41 percent, 28 percent in South Korea and 27 percent in Indonesia.

"This overshadows the growth rates expected in mature markets like Australia, New Zealand, Australia and Hong Kong," the statement said.

"Korea looks set to overtake Australia as the largest IT services market by 2005," it said.

By 2006, 65 percent of the money spent on IT services would be in Australia, South Korea and China, IDC said. -- AFP