Spending on information technology in Indonesia is expected to grow by 12.5% this year supported by a new wave of first-time IT spenders caused by foreign direct investment. International Data Corporation (IDC), an IT research group, said IT spending this year is expected to hit $16.8 billion, which would slow down
Spending on information technology in Indonesia is expected to grow by 12.5% this year supported by a new wave of first-time IT spenders caused by foreign direct investment.
International Data Corporation (IDC), an IT research group, said IT spending this year is expected to hit $16.8 billion, which would slow down from the 13% growth pace in 2013.
Sudev Bangah, country head of IDC in Indonesia, said that amid intensifying competition in the business environment in Indonesia, companies are forced to invest in IT to improve their business operations.
Bangah said banking and financial services companies — typically one of the biggest spenders on IT — are not increasing their spending. However, new companies that spend on IT for the first time will support growth. The manufacturing and retail industries are among those with many new spenders.
“This is driven by a lot of foreign direct investment coming into the country,” Bangah said.
However, as cost efficiency is important amid an economic slowdown, most Indonesian companies will seek a way to obtain optimum results from their investments.
“A lot of companies are starting to get very interested in outsourcing as a way to alleviate cost,” Bangah added.
Outsourcing will support the IT service market in Indonesia to grow by 25%. Outsourcing makes up close to 40% of IT service market in the country.