Most Asia-Pacific IT Spending to Reach $23.7 Billion

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<p><strong>Hong Kong &mdash; May 22</strong><br />According to a recent report published by Manufacturing Insights, an IDC company, the manufacturing IT spending in the Asia/Pacific (excluding Japan) region (APEJ), is expected to reach $23.7 billion by 2011 at a 2007-2011 compound annual growth rate (CAGR) of 7.9 percent.<br /><br />&quot;The market forecast and analysis presented in this study reflect the diversity in APEJ region in terms of social, political, cultural and economic conditions,&quot; said Debashis Tarafdar, senior research manager, Asia/Pacific Manufacturing Research, Manufacturing Insights, IDC Asia/Pacific. &quot;Overall, the APEJ manufacturing landscape is heterogeneous, and country-specific industry emphasis dominates the manufacturers&#39; IT investment behaviors. </p><p>&quot;In addition, there exists a difference in priorities with regard to manufacturing IT spending in developed economies as compared with the emerging ones, with a clear shift toward packaged applications and IT services in mature markets.&quot; </p><p>2006 ended with an all-around growth in most countries in Asia-Pacific, and the outlook for 2007 remains upbeat. </p><p>A booming economic powerhouse of the world, the APEJ manufacturing landscape reflects a similar market sentiment, with expectations for a strong growth underlining APEJ manufacturers&#39; priorities and investment decisions. </p><p>Increased globalization and competitive market pressures, however, will pose several challenges for the APEJ manufacturers in the form of high expectations from customers, uncertain business climate and potential operational risks or disruptions.<br /><br />As APEJ manufacturers become more responsive to market needs and try to build resilient processes to minimize the impact of various risks, including those of demand-supply variability and sociopolitical disruptions, investment in IT &mdash; the foundation to enable agile businesses &mdash; is also set to grow at a robust rate, as presented in this market forecast and analysis report. </p><p>Key findings of the study include:<br /></p><ul><li>APEJ manufacturing IT spending will maintain a strong growth through 2011, with high-tech, automotive and consumer packaged goods (CPG) manufacturers leading the pack.</li><li>The People&#39;s Republic of China (PRC) will account for the largest share of APEJ manufacturing IT spending, and India will register double-digit growth rates in almost all subindustry segments.<br /></li><li>As in 2006, hardware spending will continue to take up the lion&#39;s share of the overall APEJ manufacturing IT budget, although spending on IT services and packaged software is expected to grow at a faster rate than hardware.</li></ul><p><br />This report gives a thorough discussion on the IT spending among APEJ manufacturers by segment and looks at the drivers and key trends spurring activities in the APEJ region. </p><p>It also includes a forecast outlook for the 2007-2011 period and highlights the markets with strong manufacturing IT spending, as well as the emerging ones.</p>

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