IDC’s early assessment of the Russia-Ukraine conflict on ICT spending and tech markets in Asia Pacific
The impact of the current conflict between Russia and Ukraine is far-reaching and will impact Asia Pacific in the short and possibly long-term in a recently published impact analysis: IDC reiterates that sanctions, commodity shortages, and higher prices for oil and gas as well as other essential goods will further fuel inflationary pressures and damage ICT supply chains that support the regional consumer electronics and semiconductor manufacturing as well as distribution industries.
"While not as exposed as European nations, Asian nations, large and small, still recovering from COVID-19, will undoubtedly feel the spillover effects of the economic sanctions on Russia, as will the ICT industry in Asia/Pacific. IDC expects that sanctions, commodity shortages, and higher prices for oil and gas and other essential goods will fuel inflationary pressures and damage the supply chains that support the regional consumer electronics and semiconductor manufacturing as well as distribution industries," said Dr Chris Marshall, AVP, IDC Asia Pacific.
Drawing on its broad network of regional and local analysts, IDC carefully evaluated the geopolitical situation and its impacts on Asia Pacific ICT tech vendors and tech buyers.
These are likely to include:
The company expects further that both ICT vendors and buyers are likely to emphasize technology-related spending on digital resiliency and risk management.
"Given the fluid nature of the war, IDC recommends that companies create action plans that enable them to anticipate and react to potential disruptions resulting from it, such as supply chain disruptions, chip shortages, increased inflation, and cybersecurity threats. The impact of events can change quickly and so must your plans. Leveraging technology for resiliency should be top of the agenda," said Sandra Ng, Group Vice President and General Manager, IDC Asia Pacific.