This IDC Presentation provides a detailed analysis of the market and competitive landscape in IT services in Indonesia from July to December 2018 (2H18). 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 market and vendor analyses 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 (AP) countries.
The stability of Indonesia's economy has instilled confidence in the country's organizations to increase their investments on enhancing business operations through the adoption of emerging technologies. IDC believes that the IT services spending for sectors such as manufacturing, agriculture, and also mining will gradually increase, driven by demand for application management and custom application development services.
The 2019 election will be broadly similar to the previous election in 2014, as Mr. Joko Widodo (Jokowi) and Mr. Prabowo Subianto remain as the main contenders for the presidency. However, Mr. Jokowi will have to contend with the rise in anti-incumbency sentiment in the country. If Mr. Jokowi wins the election, IDC believes that IT spending will be spurred, as his long-term policy prioritizes the usage of digital technology in driving the nation's economy.
Some industry players have held back the majority of their IT spending in 2018 due to the uncertainty of the outcome of the elections in 2019, as their IT policies will change in accordance to the policies of the newly elected government. A large portion of spending on IT services have been allocated to the hardware deploy and support market in the first half of 2018, mainly from the banking and manufacturing sectors. However, spending on IT services that are systemic in nature will be withheld until after the election. IDC believes that organizations will tweak their future strategies based on the outcome of the election.
By 2020, IDC estimates that 30% of Indonesia's enterprises will use multiple cloud services and platforms, with more than one-third of these organizations having established mechanisms to operate their multicloud environments. IDC has identified one of the key areas that will be in high demand is multicloud security management, as there is an increasing commonality across major cloud platforms. Organizations will aim to adopt multicloud strategies to maximized on modern cloud computing capabilities, while at the same time managing their traditional assets.
IBM, Telkomsigma, Cisco Systems, Inc., PT Anabatic Technologies Tbk, Accenture plc, Fujitsu Limited, Hewlett Packard Enterprise, Dell Inc., PT Astra Graphia Tbk, Telkomtelstra, Microsoft Corporation, 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, Network and desktop outsourcing services, Systems integration services