This IDC Presentation provides a detailed analysis of the market and competitive landscape in Singapore's IT services from January to June 2019 (1H19). 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 of 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.
According to the Singapore's Department of Statistics, the country's economy faces a slowdown, with its gross domestic product (GDP) growing 1.1% in the first quarter and 0.1% in the second quarter. Growth in services-producing industries remains stable at 1.2% for first and second quarters. This growth's main contributors include finance and insurance and the information and communications sectors. With this, IDC believes that Singapore's overall economy growth will remain slow, because of the U.S.-China trade war, which has globally impacted the manufacturing, trade, and investment sectors.
Despite its sluggish economic performance, Singapore, with its IT spending, remains healthy as the country views technological spending as one of the core methods to cushion the negative impact on the economy. In line with Singapore's five-year Research, Innovation, and Enterprise 2020 (RIE2020) plan, the country will invest into more research and development (R&D) in three areas: digital technology, cell therapy manufacturing, and sustainable urban food production. For digital technology, the government will be investing an additional S$500 million, in which S$300 million will be used to support the growth in services and digital economy, including funding existing programs, such as cybersecurity and artificial intelligence (AI), and new capabilities on areas such as the social science of digital technologies, digital trust, and computational law; whereas the remaining S$200 million will go toward improving supercomputer infrastructure. In addition, there will also be a top-up of S$41 million for the National Robotics Program.
Singapore intends to "reengineer its government" by migrating its government operations to commercial cloud services. This course of action creates opportunities for the private sector to showcase its expertise and experience. Prime Minister Lee Hsien Loong also mentions that there are many government systems, which, in principle, can run on commercial cloud. With this, he intends for some of the country's government systems to be migrated to cloud in the upcoming years. This action will not only revamp the public services, but also allow the government to leverage cloud computing in bolstering the country's digital economy, in which the usage of cloud will allow quick innovation with the right agility. Aside from that, the migration to cloud will also help ease the citizens' interaction experience with the government, as they demand transparency, open access, and ease of use. Governments can rapidly innovate and iterate services without compromising the existing government systems — all at a lower cost.
The adoption of Internet of Things (IoT) is increasing exponentially in Singapore as this is one of the core emerging technologies that will help drive the country to achieve its Smart Nation vision. Singapore launched a S$40 million initiative in building an open and inclusive 5G ecosystem, which will support 5G technology trials for enterprise use, focusing on areas such as cybersecurity for the next-generation mobile networks. IDC believes that this 5G initiative will help connect more IoT devices at higher speeds, drastically reduce latency, and create a seamless user experience. Potential future outcomes could be the large-scale automation of vehicles and the smart environmental monitoring, which will help reduce greenhouse gases and pollution.
Acknowledging the severity of cyberthreats after suffering major data breaches since last year, Singapore improves its cybersecurity postures by building up cybersecurity talent pools to prevent any potential rise in cyberthreats. This is reflected in the Ministry of Defense (MINDEF) and its intention to recruit approximately 300 cybersecurity experts through two new schemes — hiring military personnel and tapping non-uniformed professionals. Both of these will take up roles in the cyberentities of the ministry. Personnel hired under these schemes will go through 20 weeks of training at the Cyberdefense School at Stagmont Camp. This newly launched school will also train full-time national servicemen on cyberdefense skills, act as the center for cyberdefense training and education for MINDEF, and conduct cybersecurity workshops for MINDEF personnel.
Application development services, Application management, Hosted application management, Hosting infrastructure services, IT consulting services, IT education and training, IT maintenance and support, Network and desktop outsourcing services, Systems integration services