IT Services Market in Vietnam Witnessed Growth of close to 10% in 2013: IDC
23 Jun 2014
Ho Chi Minh City, Vietnam, June 23, 2014 – Despite macroeconomic challenges, Vietnam IT services spending increased 9.9% to $446 million in 2013, according to market researcher International Data Corporation (IDC).
As an emerging market, Vietnam’s investments in infrastructure have been growing rapidly. IDC sees that hardware support services have continued to dominate the IT services spending with 18.9% market share, followed by the system integration and software deploy services at 14.3% and 11.3%.
In 2013, the spending for hardware deploy services was low at 8.8% growth due to the lack of demand from the banking, insurance, manufacturing and retailing sectors. Taken together, these sectors constitute 41% of IT services spending in Vietnam.
However, the strong investments in e-government, cloud computing, data center, and Geography Information System (GIS) led a healthy demand for system integration services, increasing by 9.7% compared to 2012. The spending for networking consulting & integration services increased 10.1% with strong investments in the IPv6 platform coming from the communication sector.
"Vietnam IT services market has been maturing with emerging trends of big data, cloud and mobility," says Ha Ngoc Khuong, Market Analyst, IDC.
IDC observes that the spending for outsourcing services increased more than 11%, driven by the lack of end users’ advanced technical skills. Local system integrators have been closing the skill gaps by providing better technical support and customer care, enticing end users to opt for outsourcing. More players are jumping into the business, resulting in a wider range of options available for end users.
IDC forecasts that IT services market will grow at 12.7% year-on-year in 2014. The Financial Sector Modernization and Information project, valued at $71.8 million by Vietnam State Bank, will be a strong motivation for the IT services market in 2014. IDC expects IT services spending of the banking sector to return to a healthy track with demand for new core banking and big data projects. In addition, the increasing spending in infrastructure such as smart grid and smart transport projects will drive the demand for related IT services such as consulting and system integration services.
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