Telecoms services spending to rise

Telecoms services spending to rise

SINGAPORE: Asia-Pacific spending on telecommunications services is likely to exceed US$175 billion next year, a research firm said on Thursday.

The anticipated figure is an 8 percent hike over 2005 for the region excluding Japan, according to International Data Corp. (IDC).

"The economic outlook for 2006 is healthy, despite continued global political, health and environmental uncertainties," The Business Times quoted IDC Asia-Pacific managing director Eva Au as saying.

"This, combined with the relentless pursuit of enterprises and their employees to be more competitive, bodes well for the information and communications technology industry in the region," she said.

Information technology spending was forecast to grow 9 percent to more than $110 billion, with China and India accounting for 64 percent of the incremental market value.

IDC also predicted business intelligence software will mature in the region and grow at 10 percent to $315 million in 2006.

Technology spending will be fueled largely by a surge in demand from what IDC called the "e-empowered employee", increasingly able to harness technology to be more productive.

Nine-to-five working hours are making way for 24/7 operations, IDC noted.

"Workspace boundaries are diminishing as employees are no longer tied to offices," Au said.

According to IDC, the companies that will succeed are those that rise to the challenge and capitalize on the technology opportunities to further enable employees.-- DPA