Asia-Pacific firms to take cautious approach on software investments
Asia-Pacific firms to take cautious approach on software investments
The increased interest of companies to utilize enterprise applications (EA) for business process automation and faster time-to-value will continue drive the growth of the EA software market.
But the upward trend in growth could be affected by the uncertainty surrounding the European economic crisis and the threat of a double-dip recession looming large in 2012.
IDC expects these conditions to negatively affect the market and slow down growth and thus forecasts a compound annual growth rate of 10.2% to reach US$8.0 billion till 2015.
Results of the latest IDC Asia/Pacific Semi-annual Enterprise Applications Tracker show that the EA software market experienced good growth of 18.6% year-on-year (YoY) in the Asia-Pacific excluding Japan (APEJ) region in 1H 2011.
“Although the need to extend newer functionalities and capabilities to end-users, which in turn help in improving internal efficiencies and reducing operating cost, has been driving growth over the last 18 months or so, companies will take a cautious approach on software investments in 2012 due to the negative economic scenario,” says Sabharinath Bala, Research Manager of IDC’s Asia/Pacific Enterprise Applications Software Research Group.
But the upward trend in growth could be affected by the uncertainty surrounding the European economic crisis and the threat of a double-dip recession looming large in 2012.
IDC expects these conditions to negatively affect the market and slow down growth and thus forecasts a compound annual growth rate of 10.2% to reach US$8.0 billion till 2015.
Results of the latest IDC Asia/Pacific Semi-annual Enterprise Applications Tracker show that the EA software market experienced good growth of 18.6% year-on-year (YoY) in the Asia-Pacific excluding Japan (APEJ) region in 1H 2011.
“Although the need to extend newer functionalities and capabilities to end-users, which in turn help in improving internal efficiencies and reducing operating cost, has been driving growth over the last 18 months or so, companies will take a cautious approach on software investments in 2012 due to the negative economic scenario,” says Sabharinath Bala, Research Manager of IDC’s Asia/Pacific Enterprise Applications Software Research Group.
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