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RESEARCH
ANALYSIS
TRENDS

Digital offerings to be key revenue growth driver for

leading IT vendors in Asia-Pacific, says GlobalData

The coronavirus (Covid-19) outbreak has underscored An analysis of GlobalData IT Client Prospector reveals
the importance of digital adoption amongst enterprises, that the digital technology spending ratio of the
reigniting concerns regarding business continuity, data companies to their overall ICT budget in 2020 in the
security, collaboration and seamless customer APAC region is neither high nor too low, when
experience. Against this backdrop, the demand for compared to companies across other regions for cloud
digital transformation presents IT vendors in Asia- and 5G.
Pacific with a substantial revenue growth opportunity in
the medium to long-term, says GlobalData, a leading However, spending on IoT is relatively smaller in APAC
data and analytics company. compared to the other geographies. So far, enterprises
in APAC region had shown a keen interest in
Sunil Kumar Verma, Lead ICT analyst at GlobalData embracing digitalization across multiple verticals such
comments: “The Covid-19 outbreak will definitely lead as manufacturing (Industry 4.0), telecommunications
to increased uptake of digital adoption amongst (BSS/OSS overhaul), retail (visual search and deep
enterprises over the next few years. During this period, tagging), professional security services (AI-based
vendors should leverage government framework and security surveillance CCTV), and banking (virtual
policies along with inorganic/organic growth strategies assistants/chatbots). These offer strong opportunities
to create a digitized environment and develop digital for IT vendors in APAC, despite the challenges in the
capabilities. IT providers that can leverage capabilities near term.
around technologies such as AI, blockchain, cloud, and
big data, and rethink their future business models by Indeed, digital capabilities have continued to boost the
evaluating digital transformation will have a competitive revenue of major IT providers in India and APAC and
edge.” have become increasingly important for them.

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