Springboard Research Finds a Massive Chasm in Public Sector IT Spending Per Capita in Asia

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Springboard Research, a leading innovator in the IT Market Research industry, today released a study showing that while Information Technology spending in the Public Sector is growing strongly across Asia, there is still a wide gulf between the more mature and emerging countries in the region. Springboard found that countries such as New Zealand and Australia are spending close to US$200 per capita on IT in the Public Sector, while countries such as India and Indonesia are spending as little as US$1 per capita.

Springboard Research, a leading innovator in the IT Market Research industry, today released a study showing that while Information Technology spending in the Public Sector is growing strongly across Asia, there is still a wide gulf between the more mature and emerging countries in the region. Springboard found that countries such as New Zealand and Australia are spending close to US$200 per capita on IT in the Public Sector, while countries such as India and Indonesia are spending as little as US$1 per capita.

Per Capita Public Sector IT Spending (US$)

New Zealand -- $198.78

Australia -- $193.82

Singapore -- $152.89

Hong Kong -- $67.22

Korea -- $52.96

Taiwan -- $45.22

Malaysia -- $21.92

Thailand -- $7.41

China -- $3.67

Philippines -- $2.94

India -- $1.29

Indonesia -- $1.10

“The degree of difference in IT spending per capita in the Public Sector across the region is staggering,” commented Dane Anderson, Research Vice President at Springboard Research. “While we have seen significant growth in technology spending in the Public Sector, in many of the developing countries the level of spending is still at extremely low levels on a per-capita basis.”

Springboard estimates that 2005 IT expenditure in the Public Sector in Asia (excluding Japan) was US$17.3 Billion and the market is expected to grow at a compound annual growth rate (CAGR) of 9.5% with Public Sector IT spending being close to US$25 billion by 2009. The largest sub-vertical within the Public Sector was the Security & Defence segment, consisting of Defence, Intelligence, Border Control/Immigration, and Public Safety. This sub-vertical accounted for close to 22% of the Public Sector IT spending across the region.

Jonathan Silber, Senior Market Analyst -- Public Sector for Springboard Research, added, “We observed that three key tiers exist in per-capita IT Spending in the Asian Public Sector, with the top two tiers forecasted to post relatively stable growth rates between 4-5%. Surprisingly, we expect the top tier countries like New Zealand, Australia, and Singapore to grow slightly faster than the tier two countries like Hong Kong, Taiwan, and Korea -- but we anticipate the highest growth will come from the developing countries like India, China, the Philippines, Indonesia, and Thailand and will post annual growth rates between 11-19%.”

Springboard expects the fastest growing countries to be the emerging twin towers of the region- India and China, with India’s Public Sector IT expenditure to grow at a CAGR of 19.6% and China’s growth to be 14.6%.

About this Study

This landmark study by Springboard, “IT Spending in the Public Sector in Asia: Opportunities Abound”- examines key trends in the Public Sector in Asia and provides very in-depth and granular information on the Public Sector in each of the 13 markets covered in this study. A key focus of this report was to dive deeper into the Public Sector in each country to measure the Sub-Vertical Industries within the Public Sector such as Defence, Healthcare, Social Services, Taxation/Finance, etc… and to provide granular data on each of these Sub-Verticals. Springboard has also ranked the top 15 Public Sector organizations by IT spending in each country to identify the leading ministries and departments and forecast their future IT expenditure.

About Springboard Research

Springboard Research represents value, integrity and insight. Lead by a team of dynamic industry experts, Springboard Research provides its customers with high value IT market research that helps them identify new market opportunities, growth engines, and innovative ways to go to market, which means Springboard’s customers lead rather than follow market trends. Not bound by legacy, Springboard’s cutting-edge research model leverages its offshore research centers, the Internet, and an increased use of technology as engines of innovation to deliver unique research value. This means that customers have a real alternative for IT market research and where knowledge is delivered in more useable and interactive formats. Springboard Research works with the largest IT companies in the world across the hardware, software, networking, and services sectors.

Founded in 2004, Springboard Research serves the needs of its clients globally through offices in the United States, Singapore and Japan as well as global research centers in India and Pakistan.

For more information regarding Springboard Research, please visit http://www.springboardresearch.com.

Contacts

Chris Perrine

Vice President – Business Development

Springboard Research

65-6236-7681

Jon Silber

Senior Market Analyst- Public Sector

Springboard Research

65 6236-7694

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