This IDC Presentation provides a detailed analysis of the market and competitive landscape in IT services in Thailand from January to June 2018 (1H18). It covers the market size movements and growth trends in each of the macromarkets (i.e., project-oriented services, managed services, and support 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 market drivers. The competitive analysis section includes key strategies and activities of 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.
According to the Office of the National Economic and Social Development Board, Thailand's 1Q18 and 2Q18 GDP growth rate in 2018 was 4.9% and 4.6%, respectively, an improvement from the 4.3% and 4.0% growth in 3Q17 and 4Q17. On the expenditure side, the expansion was supported by the growth in both private consumption and government expenditure. On the production side, the growth of the agriculture, wholesale, and retail trade sectors accelerated, while the construction sector expanded moderately.
The Thai baht continued to strengthen in Q1 and Q2 of 2018, recording an exchange rate of 31.5 and 31.9 THB per USD, respectively, according to the Bangkok Bank of Thailand. 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 General Prayuth Chan-o-cha continues to lead the Thai government. The date of the next general elections has been rescheduled to February 24, 2019, after several postponements over the past two years. With regards to the long-awaited election, the uncertainty of the results and the possibility of a new government could be an inhibitor to private consumption. Uncertainty surrounding the dates of the general elections may impact the credibility of the government, thus affecting foreign direct investments into Thailand over the next 12 months, as investors are waiting for a solid direction from the government. Similarly, the private sector will likely be subject to the policies of the government, while the IT services spending of some industries such as healthcare would not be affected by the political climate.
The Digital Economy and Society Committee has 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 e-Commerce 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.
Application development services, Application management, Hosted application management, Hosting infrastructure services, IT consulting services, IT education and training, IT maintenance and support, Network and desktop outsourcing services, Systems integration services