This IDC Presentation provides a detailed analysis of the market and competitive landscape in IT services in Taiwan 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 key 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 a part of the "Asia/Pacific Semiannual Services Tracker" research, which covers 14 foundation markets across 14 Asia/Pacific countries.
According to the latest report published by the Directorate General of Budget, Accounting, and Statistics (DGBAS), Taiwan's gross domestic product (GDP) grew by 2.93% in 1H18, driven by an improved export performance. Because of the strong export volume in 1H18, Taiwan's GDP growth forecast for the full-year 2018 has been revised slightly higher to 2.69%, from its previous estimate of 2.6%, by DGBAS. However, IDC believes that the GDP growth could slow down due to the trade war between China and the United States, which will impact Taiwan's manufacturing export volume, especially in the semiconductor, telecom equipment, consumer electronics, and clothing textile industries.
IDC believes that IT spending from the BFSI, retail, and public sectors will be higher:
- BFSI. To raise their organizational competitiveness, BFSI companies continue to leverage technologies such as artificial intelligence (AI), blockchain, cloud, and robotics to optimize the operational process, enhance customer relationships, and create new business streams. One example is Allianz, which is working with IBM to create a customer service chatbot that offers round-the-clock service on its official website, mobile app, and social platform.
- Public. Government agencies continue to leverage big data and analytics, mobility, and artificial intelligence to offer improved services for citizens under the "Forward-looking Infrastructure Development Program."
- Retail. Retailers are actively looking to establish their smart stores to attract more customers; an example is 7-Eleven, which has set up its unmanned store called X-Store, by leveraging on mobility, Internet of Things (IoT), robotic process automation, and AI technologies.
IBM, Chunghwa Telecom (CHT), and Systex were the big winners this cycle, as these vendors not only offered the right solution to capture the market's demand, but also provided new offerings that are growing in demand but have not reached the peak level of demand yet. For example, IBM supported BFSI players to leverage on its blockchain technology to create new business opportunities; CHT provided a powerful IoT platform to help the public sector enhance its services quality; and Systex continued to partner with leading companies specializing in data analytics to raise its services capability.
IBM, International Integrated Systems Inc., Cisco Systems, Inc., Trade-Van Information Services Co., Hewlett Packard Enterprise, Chunghwa Telecom Co., Ltd, Acer Inc., SYSTEX Corporation, MiTAC Inc., DXC Technology Co.
Application development services, Application management, Cognitive/artificial intelligence, Hosted application management, Hosting infrastructure services, IT consulting services, IT education and training, IT maintenance and support, Internet of things, Network and desktop outsourcing services, Systems integration services