TECH SUPPLIER Dec 2018 - Market Presentation - Doc # AP44508418
1H18 Country Report on IT Services — Singapore
By: Benjamin Ten
This IDC Presentation provides a detailed analysis of the market and competitive landscape in IT services in Singapore from January to June 2018 (1H18). 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 a part of the "Asia/Pacific Semiannual Services Tracker" research, which covers 14 foundation markets across 14 Asia/Pacific countries.
In the first half of 2018, the Singaporean economy experienced robust growth in spite of headwinds in the global economy, growing by 4.5% on a year-over-year basis in 1Q18 and 3.9% in 2Q18, supported largely by improving demand from the manufacturing and services sectors. In the context of the challenging global and domestic economic environment, the Ministry of Trade and Industry maintained its gross domestic product growth forecast for 2018 in the range of 2.5% to 3.5%.
Over the next few years, the spending budget of Singaporean enterprises on IT services will remain conservative. IT spending will be driven by sectors that have been performing relatively well, such as the government, healthcare, finance, and insurance. Digital transformation initiatives involving the implementation of the 3rd Platform technologies, such as cloud, big data and analytics, mobility, and security, will continue to drive IT services growth in the foreseeable future.
Singapore's long-term goal of transforming into a Smart Nation will be the long-term catalyst of increased spending on IT services in the future. This will spur the demand for development of solutions that will help Singapore transform into a Smart Nation, such as smart health, smart transportation, and smart living solutions. In addition, the government's five-year plan called the Digital Government Blueprint aims to enhance the quality of public services to its citizens through eservices and mobile applications. This will fuel spending on systems integration and application development services. Furthermore, the government's Smart Nation Sensor Platform initiative will drive spending on Internet of Things and big data and analytics technology.
The Singaporean government has continued to be a major proponent of digital transformation initiatives in the private sector, supporting the adoption of the 3rd Platform technologies across different industries, such as the small and medium-sized enterprise (SME), manufacturing, and services sectors, through the launch of a selection of government initiatives, such as the Retail Industry Digital Plan for SMEs. In the long term, these government initiatives will be a catalyst for IT services growth in the nation's private sector.
Capgemini Services SAS, NCS Pte. Ltd., IBM, Oracle Corporation, Tata Consultancy Services Limited, Cisco Systems, Inc., Accenture plc, Siemens AG, Akeles Consulting Pte Ltd., ST Engineering Electronics Ltd., Microsoft Corporation, DXC Technology Co.
Application development services, Application management, Cognitive/artificial intelligence, Global IT and economic markets, Hosted application management, Hosting infrastructure services, IT consulting services, IT education and training, IT maintenance and support, Internet of things, Network and desktop outsourcing services, Systems integration services