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Nov 2016 - IDC Presentation - Doc # AP41941016

1H16 Country Report on IT Services — Thailand

Author: Ronnachai Leelachat
On-line Presentation

This IDC Presentation provides a detailed analysis of the market and competitive landscape in IT services in Thailand from January to June 2016 (1H16). It covers the market size movements and growth trends in each of the macromarkets (i.e., project oriented, outsourcing, and support and training services) and key industries such as finance, manufacturing and resources, public sector, distribution and services, and infrastructure. The report also provides a market and vendor analysis of the 3rd Platform technologies as the key market drivers. The competitive analysis section includes key strategies and activities of large global and local IT services providers in the market.

The data and insights within this presentation are a part of the "Asia/Pacific Semiannual Services Tracker" research, which covers 14 foundation markets across 14 Asia/Pacific countries.

Thailand's economy grew stronger in 1H16 compared with the economy in 2H15. The gross domestic product (GDP) growth rate was 3.2% in 1H16, mainly driven by higher domestic consumption, increased public investments, a recovery in the political environment, and the Digital Economy Master Plan (DEM). There was still no clarity from the government in terms of when the next elections will be held. Therefore, businesses from the private sector have adopted a wait-and-see policy before deciding on whether they should invest further.

IT services growth was slightly stronger in 1H16 compared with the growth in 2H15. The implementation of the DEM has become a catalyst for ICT growth in the country. IDC has noted that there were lots of activities around the setting up of new systems and infrastructure improvement because of the release of various ICT projects as part of the DEM. The projects include the setting up of WiFi spots all over the country, a nationwide broadband, the establishment of smart city projects in Phuket and Chiang Mai, and the development of a national electronic health records system.

With the economy showing a slight growth, the verticals that played the most important role in IT spending were the public sector, banking, and telecommunications. The growth of the banking industry was led by the Bank of Thailand's (BOT) push for commercial banks in the country to improve their mobile banking applications and security of ATM systems as banking transactions need to be more secure as the country moves toward a cashless society.