This IDC Presentation provides a detailed analysis of the market and competitive landscape in IT services in Singapore from July to December 2018 (2H18). 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 part of the Asia/Pacific Semiannual Services Tracker research, which covers 14 foundation markets across 14 Asia/Pacific countries.
The Singapore economy has declined 2.4% year over year (YoY) in 3Q18 and 1.9% in 4Q18, despite the improving demand from the manufacturing, construction, and also services sectors. With the rising challenge on global as well as domestic economic environments, the Ministry of Trade and Industry (MTI) has maintained its gross domestic product (GDP) growth forecast for 2019 in the range of 1.5–3.5%.
With the continuous growth of the adoption of emerging technologies in Singapore, industry players across different sectors of the country such as government, healthcare, finance, and distribution and services are setting their sights on service providers that can assist them on their digital transformation (DX) journeys. This includes the integration and implementation of solutions that are powered by 3rd Platform technologies such as cloud, Internet of Things (IoT), artificial intelligence (AI), and data analytics. This will serve as the key factor in driving the growth of project-oriented services market, especially systems Integration, IT consulting, and also network consulting and integration services.
According to the Cloud Readiness Index 2018, Singapore is ranked the highest country in Asia/Pacific in terms of cloud readiness. This is driven by the country's fast broadband speed, enhanced level of cybersecurity and data privacy, and favorable government regulations. With the rise of DX initiatives, Singapore's favorable environment will help create market opportunities for cloud-related services, especially the banking sector, as industry players in this sector are looking at migrating to a hybrid cloud environment to help reduce expenditure, and at the same time, provide the flexibility and scalability required to cope with increasing workloads.
Despite Singapore's fast-paced adoption of DX initiatives, the country is showing a significant mismatch between available skills and the job opportunities created by tech-driven industries. To reduce the talent gaps, the Singapore government has launched several initiatives in upskilling local talents to meet future labor market needs. Aside from that, industry players such as IBM and Alibaba Group have also launched their respective programs to foster new talents in adopting emerging technologies.
NCS Pte. Ltd., IBM, Oracle Corporation, Tata Consultancy Services Limited, Cisco Systems, Inc., Accenture plc, Hewlett Packard Enterprise, Equinix Inc., ST Engineering Electronics Ltd., DXC Technology Co.
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