Even before the COVID-19 pandemic started to weigh on the global economy, Thailand's economic growth was already forecast to be lower than its average growth in the past years because of declining exports and weakness in domestic demand. However, since the impact from COVID-19 became more prominent, several measures have been imposed by the government, including a declaration of a state of emergency, which includes restriction of movement. Thus, overall IT investment and enterprise spending is expected to slow down.
Although the full extent of the impact of the pandemic on the economy is difficult to predict, IDC believes the impact will be substantial in the near to medium term. The IT services market will be impacted by a reduction in IT spending because of organizations' financial constraint from business operations disruptions. This will result in the delay of new IT projects and new investments over the next 12 months.
On the bright side, organizations are looking to undergo digital transformation to explore new business opportunities rather than merely focus on operational optimization or save costs. Thailand organizations are increasingly prioritizing uncovering business value over cost savings.
The adoption of artificial intelligence (AI)–related solutions is gaining traction in Thailand, with a noticeable increase in uptake of different industries, especially in the finance, manufacturing, and telecommunications sectors.
The delay in budget approval by the Thailand government has caused a slight delay in the approval of new IT-related project investments, which will impact the systems integration and IT outsourcing services market the most. However, the delay in new investments is not expected to be long term, with the IT services market expected to pick up by 2021.
Oracle Corporation, Loxley Investments Limited, G-ABLE Company Limited, Accenture plc, Hewlett Packard Enterprise, DXC Technology Co., IBM, Huawei Technologies Co., Ltd., Cisco Systems, Inc., CDG Co. Ltd., NTT, Fujitsu Limited, Advanced Information Technology Public Co., Ltd., Microsoft Corporation, Samsung
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