The Hindu Business Line : `ICT spending in Asia Pacific to reach $210 b next year'

TOTAL spending by Indian IT enterprises will increase to reach Rs 1,09,300 crore next year. The latest report from analyst firm Gartner says the total spending is growing at a compound annual growth rate (CAGR) of 20.8 per cent (from 2004 to 2009).

Spending includes expenditure on hardware, software, telecommunications and IT services but not consumer IT spend. In 2006, the annual growth rate will be 23 per cent.

The report titled Top Ten Trends and Predictions for 2006 shows that enterprise ICT spending in Asia Pacific would be $ 210 billion in 2006, with a CAGR of 7.5 per cent from 2004 through 2009.

By contrast, the total worldwide enterprise ICT spending (excluding internal IT spend on salaries etc) will reach $1768 billion with a CAGR of 4.5 per cent, said the release.

According to the report, between 2006 and 2012 the majority of new information technologies adopted by enterprises will have their roots in the consumer market.

In a release issued by the company, Mr Dion Wiggins, Vice-President and Research Director, Gartner said, "This trend is being driven faster and further in Asia Pacific which is both the major producer of consumer technology and, in certain parts of the region, highly tech-savvy."

Asian companies will lead development in consumer technology, mobile and broadband content. The region will, however, lag in the development of enterprise applications.

The rapid maturing of IT development in China and India will see trade between the two explode and result in firms gaining competencies that can be applied across emerging markets globally, says the report.

Another trend identified by Gartner is the adoption of open source by small and medium businesses. By 2010, open source software will account for 20 per cent of the global software market, displacing over $100 billion from traditional software vendors.

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