India’s tech market will have the fastest growth in APAC for 2015-2016
While India is just the fifth-largest tech market in Asia Pacific, its tech purchases will grow by more than 10% in rupees, making it the fastest growth market in the region for 2015 - 2016, according to Forrester.
While India is just the fifth-largest tech market in Asia Pacific, its tech purchases will grow by more than 10% in rupees, making it the fastest growth market in the region for 2015 - 2016, according to Forrester Research's latest Asia Pacific Tech Market Outlook report. The Indian tech market has been bouncing around $30 billion since 2010, with slower economic growth hurting tech spending in 2012 and 2013 and a weaker rupee in 2014 and 2015 offsetting better growth of 13% this year.
The Indian economy went through a rough patch in 2012 and 2013, when growth slowed to 5% or less. The new government of Prime Minister Narendra Modi has restored both business and foreign investor confidence in Indian economic policies, supporting growth forecasts of 6.6% for 2015 and 6.5% for 2016.
China, the second-largest tech market in the region behind Japan, will expand by 8% in 2015 and 7% in 2016, the research finds. Japan remains the largest Asia Pacific tech market but with just 2% growth. Australia's tech market will rise by 3%, and South Korea's by 6%.
While Software will post the fastest growth of any category in 2015 and 2016, its impacts will be overshadowed by slow growth in the larger markets for hardware. Asia Pacific markets for software and tech consulting and systems integration services will increase by around 10% in 2016, while computer and communications equipment -- still the largest parts of the regional tech market -- will rise by 5% in 2015 and 2% in 2016.
"For CIOs in Asia, especially those that support the BT (business technology) agenda for winning, serving, and retaining customers, 2015 should be the year to accelerate purchases of software and tech services, thereby driving top-line revenue growth," writes Frederic Giron, VP and Research Director at Forrester. "That means adopting new software products for customer relationship management, marketing automation, customer service, eCommerce, new product development, order fulfillment, mobile applications, and real-time customer analytics, along with the supporting middleware software and related implementation services," concludes Giron.
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