Asia Unhampered by Shaky U.S. Economy
The economic uncertainty the United States is experiencing will have no impact on Asia's IT industry, which is expected to "power forward" in 2008, according to Springboard Research.
Dane Anderson, CEO and executive vice president of research at Springboard, said in a recent statement: "In contrast to ongoing credit crisis in the United States and the upward swing in energy prices there, leading Asian economies such as China, India, Singapore and Korea, are likely to maintain their growth momentum in 2008."
Anderson added that Asian organizations will continue to "significantly invest" in IT products and services.
In its latest study, 2008 Asia Pacific IT Market Predictions , Springboard said the Asian region has become far less dependent on export-driven growth compared to previous years. Conducted in December 2007, the survey polled 53 CIOs across the region.
In addition, the research firm said, the development of larger domestic economies has bolstered Asian economies against the current U.S. market volatility.
Ravi Shekhar Pandey, Springboard senior market analyst, noted in the statement: "A substantial portion of Asian IT investments will be new investments and will come from organizations scaling up their IT systems or building entirely new ones to drive business."
Pandey added that investment in the region will continue to be driven by CIOs' "micro" challenges, such as reducing IT operational cost, improving application performance and retaining skilled personnel.
Springboard also highlighted SOA (service oriented architecture) and virtualization as key enterprise IT trends to monitor in 2008, where reusability will likely be a focus for organizations that have adopted SOA.
The research house is expecting "a far greater number" of organizations in Asia to integrate SOA into its business processes, for example, by streamlining the flow of information.
Virtualization is also set to be a hot topic for Asian CIOs in 2008, according to the study. "We expect a growing number of companies to implement virtualization at the server level in 2008, and for investments to become increasingly common in the mainstream market," Springboard noted. The study noted that 50 percent of respondents indicated they were "inclined to adopt" virtualization.