To understand the growth opportunities in the Asia-Pacific market (IT services) To identify countries, deals, industries/verticals, technologies, business/market trends To understand competitive angle to it

1. Opportunity Assessment
APAC market area

2. Project scope
Objectives
Scope
Deliverables
Time and
resources
1
2
4
5
Research
questions
3
— To understand the growth opportunities in Asia-Pacific market (IT services)
— To identify countries, deals, industries/verticals, technologies, business/market trends
— To understand competitive angle to it
— APAC countries/market
— Research material: Secondary research
— Report will be delivered in ppt format – With Web search
— Project team: Abinash Pradhan
— Timescale: 2-3 days
— How to grow in the Asia pacific market?
— Which countries to focus on?
— Which industry/Verticals?
— What technologies?

3. Analyst perspective

4. – Total APAC IT spend is ~786 BN USD
– Japan and china are the biggest markets in APAC with ~250 BN USD IT
spend each
– IDC predicts Asia-Pacific digital transformation spend to tip $375.6 billion
– China to be the largest geographic market for digital
transformation (to deliver more than 60% of the region's total
spend this year)
– Spending on artificial intelligence systems in the Asia-Pacific region is
expected to reach $5.5 billion
– System infrastructure software and IaaS to be fastest growing technology
categories
– Manufacturing industry is expected to spend $130.7 billion whereas
utilities industry to spend $20.1 billion
– Prime focus on smart manufacturing and digital supply chain
optimization
– IoT spending among manufacturers will be focused on solutions
like manufacturing operations and production asset management
etc.
– Healthcare sector IT spending to reach USD 12.2 Billion in 2019
– Software and IT services are the core of healthcare digitalization
and act as major drivers fueling the Healthcare IT spending growth
in the region
APAC IT Spend 2018-19

5. Country wise details

6. Japan: Industry level
– Japan will reach approximately 251 billion U.S. dollars IT spend by
2019
– Manufacturing and professional services industries will take up to
43% of Japan’s spend as most of them turning to IoT to increase
their capabilities
– Healthcare spends record ¥42.2 trillion in 2017
– Japanese government expects the adoption of information technology in the
medical care
– Aging of the Japanese population
– Japanese banks to spend US$20 billion on technology
– Firms are investing in digital ecosystems and platform business models
– Cashless economy is accelerating
– Aims to double digital payments from 20% to 40%
– Japanese retail market is one of the largest in worldwide with a
worth of $1.3 Billion
– Cashier-less technology will be crucial
– Data Analytics has become a need for every retailer
– RFID technologies are being increasingly used
Japan spends the highest on technology among all APAC countries

7. Japan: Technology level
– Japan’s public cloud spend is expected to reach $5.8
billion by the end of 2018
– Cloud related investment (IaaS/ PaaS/SaaS/ DaaS/Private ) are in
growth trends
– More spend on Device / Infrastructure, OS / Middleware,
Application and Security / IT Service across all the
industries
– AI/Machine Learning is listed in the technology-to-invest
position by Japanese companies
– Digital Transformation & Innovation is the next boom in
Japan
– Digital Transformation with financial institutions compete in the
world of FinTech, InsurTech and digitalization
– 7-Eleven and Family Mart started a facial recognition store by
partnering with NEC and Panasonic
Japan to spend more on technology due to network and application failures, cyber-attacks and weaker security

8. China: Industry level
– China is expected to remain Asia's largest spender in technology, spend out
US$242 billion by this year; would contribute 60 percent of the total Asia-
Pacific tech budget
– Most of their investment is in telecommunications that accounts 57% of
the country's overall spend
– 5G race, IoT are the major factors
– China's IT investment in the manufacturing industry is expected to
approach 18.55 billion U.S. dollars by 2023
– Investment in manufacturing IT applications including software and services related to IT
applications, is forecast to attract an investment of 6.62 billion U.S. dollars by 2023
– Enterprise resource planning (ERP), product lifecycle management (PLM) and customer
relationship management (CRM) will become the focuses of manufacturing IT applications
spending
– The healthcare industry is growing and diversifying, hence the healthcare
market is expected to reach around US $28.59 billion in 2026
– Health care industry is projected to be worth $2.4 trillion by 2030
– Driven a lot by aging population, changing consumer habits, digitalization, and greater private
sector offerings
– Digital solutions (pre-patient appointment registrations, online information inquires, making
payments, to receiving test results) is identified as major improvement
Telecom, manufacturing and healthcare are the major industries to focus

9. China: Technology level
– Chinese companies will invest more than $1 trillion in
digital transformation over the next three years alone
– Mostly driven due to fast-learning, hard-working entrepreneurs
– 800 million active internet users and 788 million people with mobile
phones in their pockets
– Investing heavily in modern technologies including internet
of things and Artificial Intelligence (AI). To spend over $65b
on VR/AR by 2023
– By 2020, 96% of connected devices will be made in China
– China is projected to lead spending on Internet of Things technologies
in the Asia Pacific
China’s growth and technology transformation has been led and fueled by BAT (Baidu, Alibaba, Tencent)
key drivers of digital transformation

10. India: Industry level
– As per Gartner, India’s IT spending to grow 6.7% in 2019 to
reach $ 89 billion
– IT spending in the Indian government sector is projected to reach $8.5
billion, increase in 8.9 Percent in 2018 due To Digital India Initiatives
– Spending on IT services is forecast to experience the highest growth in
2019 with a 13.5% increase year over year
– Healthcare industry has a massive rise in IT innovation
– With digitization India could save up to $10 billion in 2025
– Communications, media and services, banking and
securities, manufacturing and utilities markets are driving IT
spending growth
– IT services spending increase 13.5 percent in 2017 to reach $12.5
billion.
– Banking and securities to do more investment in digital
business
– Cashless society aided by newer digital payment channels
– Biometric technology will impact up to 20% of banking organizations
GE Healthcare, Intel, Hewlett Packard, Cisco Systems, Qualcomm, Microsoft, Google, IBM, CSC, TCS, HCL have all entered the
health space

11. India: Technology level
– The new digital platform will consist 5 domains:
traditional IT systems, customer experience,
The Internet of Things (IoT), an ecosystem
foundation and the intelligence platform
– Digital transformation of business processes
across private and government run
organizations continues to be one of the key
drivers for this growth
– $6 bn – IT spending in managed services and
cloud infrastructure services segments
– The BPO segment is projected to reach $1.7 billion
– Enterprise software spending is forecast to
amount to $6.3 billion and grow 12.9 % in 2019
Digital transformation will drive spending on agriculture, education, energy, financial services, healthcare, and logistics

12. South Korea: Industry/Tech level
– South Korean government will spend US$3.9bn of its 2020
budget on technologies like artificial intelligence (AI)
– ~ US$ 1 bn to be spend on technologies big data platforms, AI and 5G
network services
– Manufacturing industries are pushed to adopt digital
technologies like “Industry 4.0”
– More focus on IOT platforms, smart factory
– Target of 30,000 smart factories by 2025
– High ambition of telecom industries: operators like KT, SK
Telecom and LG Telecom have spent at least $2.6bn this year
alone on 5G technology
– Primary focus on AI, autonomous driving, AR/VR with gaming services
– Finance companies pursuing business projects aimed at digital
transformation
– $492.7 million to be spend
– Total 108 finance firms consist of 17 banks, 8 credit card firms, 25
insurance companies and 14 securities brokerages
Microsoft, Samsung, Huawei, Ericsson, Qualcomm are early entrants in the market of telecommunication
Market size of smart plant factory in South Korea will
grow from about 180 billion South Korean won in 2015
to around 357.6 billion South Korean won by 2020.

13. Singapore: Industry/Tech level (1/2)
– Singapore to spend up to $2.6b on ICT projects
– Companies are investing on advanced manufacturing
– Banking is the most preferred sector with $ 1.4 bn tech
investment
– Singapore banks are likely to lead Southeast Asia peers in new
technology adoption
– DBS plans to keep total IT spending between $800 million to
$900 million annually
– Digital transformation is benefitting businesses in
Singapore
– Tops the Asian Digital Transformation Index
– Plans to spend $1.7b this year in contracts for Smart
Nation apps
– Technologies: Data analytics, video analytics, and data sharing,
Blockchain, Cloud computing, Artificial Intelligence, and
automation
– Cybersecurity, Digital Transactions, Human Resource
Management System & Payroll are most talked about
in digital solutions
2017 tech spend for large Southeast Asian banks
Alibaba, Tencent, Google and Amazon have been targeting south-east Asia’s financial services industry

14. Singapore: Industry/Tech level (2/2)
ABB, Accenture, Emerson, Honeywell mostly caters in fleet management, analytics, IOT, Cybersecurity technologies

15. Other countries
Indonesia
– ICT spending to reach ~$29.5 bn
by 2020
– Majority IT spending goes to
devices (smartphones, PCs, and
tablets)
– IT services as one of the main
components of growth
– Top industry verticals: Retail,
financial services and
manufacturing
– Digital transformation investment in the
retail, manufacturing industry is seen to
double by 2019
– Technologies: cloud, analytics,
managed services, data center
management
Thailand
– Thailand software spending to
reach ~$ 13 bn
– Top industry verticals: Retail,
financial services, travel and
tourism and manufacturing
– Technologies: applications, system
infrastructure, application
development and deployment,
CRM, analytics, AI etc.
– Digital transformation projects
have been successfully carried out
by early adopters
Malaysia
– Tech spend in Malaysia to reach
USD $15.5 billion in 2019
– Top industry verticals: Retail,
financial services, travel and
tourism and manufacturing
– Technologies: cloud, internet of
things (IoT), data analytics,
cybersecurity, data center, e-
commerce and artificial
Intelligence (AI)
– Key drivers: Industry 4.0 and Smart
City development
– SaaS has the highest adoption in
cloud computing followed by IaaS and
PaaS
IBM, HP, Intel, Google, Amazon, Cisco are the major competitors

16. Focused industries at-a-glance
Japan China India South Korea Singapore Others
Manufacturing
Retail
Healthcare
Finance
Communication,
media and tech
Supply chain
Utilities
Travel and
hospitality
High focus
Low focus
Others: Indonesia, Thailand,
Malaysia
Indicators

17. Insights and recommendation
Insights
– Huge potential in APAC market with total IT spend is
predicted to be ~786 BN USD
– Japan, China and India are biggest market
– Manufacturing, finance, healthcare, retails as well as
Communication, media and tech are the major
industry verticals
– On demand technologies are cloud, internet of things
(IoT), data analytics, cybersecurity, data center, e-
commerce and artificial Intelligence (AI),AR/VR,
managed services, IT Infrastructure
– Most of the countries are focusing on digital
transformation with spend ~ $375.6 billion
– Major competitors/disruptors: Accenture, IBM, HP,
Intel, Google, Amazon, Cisco, Microsoft, HCL, TCS,
Capgemini, Infosys
Recommendation
– Focus more on other countries like Indonesia,
Thailand and Malaysia as it has huge IT budgets
compared to rest APAC countries
– Industry verticals like supply chain, utilities, travel and
hospitality has huge potential verses competition

18. Opportunity Assessment
APAC market area