Asia/Pacific (Excluding Japan) Public Sector IT Spending to exceed US$32 Billion by 2011
According to the latest research published by Government Insights, an IDC company, governments and government organizations within the Asia/Pacific region, excluding Japan, (APEJ) will continue to spend steadily on IT services and products with a compound annual growth rate (CAGR) of 7.9% from 2007-2011. This IT growth is largely driven by the People's Republic of China (PRC) and India, which together account for more than half of the total.
"The public sector within the APEJ region represents an industry of diverse spending behavior, with spending expected to exceed $32 B US by 2011. Developing countries like the PRC and India continue to be key drivers of this spending as they have been building up their information and communications technology (ICT) infrastructure to increase outreach to their citizens, especially in the rural areas," says Raphael Phang, research director of Government Insights Asia/Pacific. "With a double-digit CAGR in the PRC (10.2% CAGR) and India (17.6% CAGR), the growth rate of these developing countries also outpaces all other countries within the region," adds Raphael.
This Government Insights study provides latest forecasts for the IT spending in the public sector including government, education, and healthcare, from 2007 to 2011, and provides IT spending across geographies, broad IT segments, and specific IT categories. Government Insights predicts overall IT expenditure by broad segments will continue to be largely driven by hardware, although a slight decline is expected in this expenditure from 57.5% in 2007 to 54% in 2011. Expenditure on services is expected to increase steadily with a similar trend for software expenditure during this period.
"IT investment in the APEJ Government sector will remain strong, and is expected to account for $19.5 B US of the total public sector IT expenditure by 2011," says Raphael. "It will still be the largest of the three public sector segments with a CAGR of 8.5%, though this growth has slightly declined from the 2006-2010 forecast as Government Insights sees spending on large infrastructure projects begin to decline with e-government initiatives shifting beyond the infrastructure build-out stage, towards maximizing the value of existing infrastructure," he adds.
(This is press release of IDC)
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