TECH SUPPLIER Jan 2020 - Market Presentation - Doc # AP45644919

1H19 Country Report on IT Services — Indonesia

By: Meily Lisdiyanti

On-line Presentation

Abstract

This IDC Presentation provides a detailed analysis of the market and competitive landscape in IT services in Indonesia from January to June 2019 (1H19). 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.

To maintain macroeconomic stability, the government is implementing initiatives such as interest rate hikes to cushion exchange rate volatility. Despite this, the Indonesian rupiah remains volatile. Although it does not impact IT services spend directly, the outlook for spending initiatives is more cautious.

The systems integration foundation continues to be a key growth driver for the Indonesian IT Services market. The demand is driven by increased opportunities to support digital transformation initiatives. The growth in custom application development showcases opportunities in the market beyond commercially available off-the-shelf (COTS) software.

The increased adoption of both cloud and big data is driving the hosting infrastructure foundation market. As IT outsourcing continues to grow, greater demand and scrutiny is placed on providers to showcase the ability to incorporate cloud as part of their overall services offerings. The growth of the hardware deploy and support services market is driven by product client systems' obsoletion as well as a demand for more ubiquitous computing environments.

The growing focus on Regulation 82 is now an advantage that is being marketed heavily by local datacenter incumbents. Even as discussions are still under way in terms of revisions, a focus on local data residency will bode well for players with a local footprint. This may also drive local investments in Indonesia by global players. IDC expects that for industries that are not impacted, it will be business as usual, but for those that have vested interest in the direction of the revised regulation, a wait-and-see approach will likely delay large-scale investments.


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