This IDC Presentation provides a detailed analysis of the market and competitive landscape in IT services in Taiwan 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 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 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 GDP grew by 2.08% in 2H18 due to the decrease in export volume for components of mobile devices and consumer products. IDC assumes the IT services market would not be affected by the slowdown in GDP growth as it is important for Taiwanese companies to invest in IT in order to remain competitive. Taking the manufacturer sector as an example, many manufacturers are working with partners to set up factories in Taiwan or South Asia due to the USA-China trade war. Also, government agencies have allocated more budget to develop new technologies to enhance industrial competitiveness, especially in green energy, transportation, food safety, and healthcare.
IDC believes that IT spending from the BFSI, manufacturing, and public sectors will increase as follows:
- BFSI. The BFSI sector is facing a stricter compliance environment than before, which is driving financial service providers to leverage on emerging technologies to enhance efficiency, such as leveraging robotic process automation (RPA) in AML, loan process, and underwriting process. Besides that, online-only bank licenses will be released in 2019, a new service type that will enter the market and will drive traditional financial service providers to expand their investment in digital finance and fintech.
- Public sector. The second phase budget of the Forward-Looking Infrastructure Development Program has been approved in 2H18, which will drive growth in the railway and water resource fields. Besides that, the program also includes an NTD 119 billion budget for technical development in 2019, on technologies such as AI, IoT, and big data.
- Manufacturing. In order to reduce the impact of the USA-China trade war, manufacturers are beginning to expand or build factories in Taiwan. For example, Foxconn has agreed with the Kaohsiung City Government to build a smart factory in Kaohsiung that leverages on RPA and AI technology.
IBM, Systex, and Chunghwa Telecom (CHT) were the big winners for this cycle, as these vendors not only offered the right solution to capture the market's trend, but also provided new offerings to fulfill growing demand. For example, IBM supported manufacturer to leverage on RPA technology to improve production efficiency; CHT established a big data business unit to launch a big data platform and analysis service; and Systex continued to partner with a leading company specializing in AML and AI to raise its services capability.
IBM, SYSCOM COMPUTER ENGINEERING CO., Iisi Corp, 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, 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