Jun 2018 - Market Presentation - Doc # AP43941318
2H17 Country Report on IT Services – Thailand
By: Prapussorn Pechkaew
This IDC Presentation provides a detailed analysis of the market and competitive landscape in IT services in Thailand from July to December 2017 (2H17). 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 part of the “Asia/Pacific Semiannual Services Tracker” research, which covers 14 foundation markets across 14 Asia/Pacific countries.
Thailand’s third and fourth quarter GDP in 2017 recorded growth of 4.3% and 4.0%, respectively, a slight improvement from the 3.3% and 3.9% growth during the first and second quarter. GDP growth was driven by the tourism and manufacturing sector, while the construction and agricultural sector experienced a slowdown. Furthermore, government spending in 2017H2 had no significant increase from the previous year. Despite this, IDC predicts that in the near future, the IT services market will continue to be driven by the government sector, as government spending is expected to accelerate in the coming years.
The Thai baht continued to strengthen in Q3 and Q4 of 2017, recording an exchange rate of 33.4 and 32.9 THB per USD, respectively. Consequently, there will be less constraint on domestic spending on IT resources such as hardware and software, which are imported from overseas. Going forward, this would encourage organizations to increase IT spending, as IT services would be more affordable than in the past.
The military junta, under the leadership of General Prayuth Chan-o-cha, continues to lead the Thai government. The next general election is expected to take place in 2018. It is uncertain whether a new government would positively impact domestic consumption as the new government’s influence on the economy remains to be seen. This uncertainty may impact the credibility of the government, which would negatively affect foreign direct investment in the next few years as investors are waiting for a solid direction from the government. IT spending in the private sector will be influenced by government policies, while IT spending of some industries such as healthcare would not be affected by the political climate.
The Digital Economy and Society Committee has recently approved the National Digital Economy Master Plan and the National e-Commerce Master Plan. Both master plans cover a five-year period from 2017 to 2021, aiming to usher the country into the Thailand 4.0 era and free the country from the middle-income trap. Through the eCommerce Plan, Thailand Post will provide e-payment and e-logistics services to allow SMEs to distribute products via an e-marketplace and expand their customer base. The government will invite technology leaders from international companies to invest in innovative solutions and new technologies. The move is in accordance with the Thailand 4.0 policy that seeks to leverage information technology to provide benefit to society.
IBM, Loxley Investments Limited, Cisco Systems, Inc., CDG Co.,Ltd., Samsung, Accenture plc, Hewlett Packard Enterprise, Advanced Information Technology Public Co., Ltd., MFEC Public Company Limited, DXC Technology Co.
Application development services, Application management, Hosted application management, Hosting infrastructure services, IT consulting services, IT education and training, IT maintenance and support, Systems integration services