This IDC Presentation provides a detailed analysis of the market and competitive landscape in IT services in Thailand from January to June 2017 (1H17). It covers the market size movements and growth trends in each of the macromarkets (i.e., project-oriented, outsourcing, and support and training services) as well as the 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 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.
In 1H17, Thailand's economy grew stronger compared with 2H16. The gross domestic product growth rate was 3.2% in 1H17, mainly driven by the export and tourism sectors, domestic consumption, and private investment. The political situation is fairly stable despite the absence of an announcement by the military government on the date of the next general election. The business sector has been hesitant to invest and adopted a "wait and see" policy, given the uncertainty of the domestic environment.
The military government has laid out the Thailand 4.0 development plan, which focuses on 10 targeted industries divided into two segments — five existing industrial sectors and five additional growth engines — to accelerate Thailand's future growth. In addition to the development plan, some public agencies, such as the Digital Economy Promotion Agency and Electronic Government Agency, have piloted their own initiatives. IDC noted that the initiatives by the government emphasize a transformative shift toward a digital society that requires more high-skilled labor. Conversely, the initiatives are likely to be without a clear direction and an aligned strategy.
The verticals that played the most important role in IT spending were the public sector, banking, and telecommunications industries. The growth of the banking industry was led by the emergence of fintech, or start-ups in financial technology, which has led to a drastic change within the industry.
Cloud has seen an increased adoption following a relaxed cloud guideline issued by the Bank of Thailand. The technology has become a norm of business operations in the country. Big data/analytics has gained traction in the market, especially in financial services, telecommunications, and retail sectors, despite the lack of skilled personnel in the field. Blockchain has been a frequently discussed topic in the market, as the technology presents an enormous opportunity for various business applications. For instance, Kasikornbank has been working with IBM to develop a blockchain-based letter of guarantee service.
IBM, Oracle Corporation, Loxley Investments Limited, CDG Co.,Ltd., Hewlett Packard Enterprise, Ricoh Company, Ltd., MFEC Public Company Limited, Microsoft Corporation, Metro Systems Corporation Public Company Limited
Application development services, Hosted application management, Hosting infrastructure services, IT consulting services, IT education and training, IT maintenance and support, Systems integration services