KUALA LUMPUR, 11 FEBRUARY 2009 -- Analyst firm IDC has said that despite the economic downturn, there are still opportunities for those Malaysian businesses that manage ICT investments carefully.
These expectations form part of IDC’s annual predictions for ICT in Malaysia, according to IDC Malaysia associate analyst for personal systems, Jaygan Fu Ponnudurai, who said that Malaysian businesses should revamp their strategies and invest prudently in information and communications technology (ICT) to remain competitive and sustain profits.
"The global economic meltdown would have a direct effect on the Malaysian ICT sector through 2009,” said Ponnudurai. “During this period, businesses will look to quickly alter strategic business directions and invest wisely in IT.”
IDC’s annual Predictions for the ICT market in Malaysia draws upon latest IDC research and a worldwide brainstorming exercise among IDC’s more than 900 analysts. This was followed by an extensive regional review to weigh in on key industry events, user trends, vendor strategies and economic measures, that promises to uniquely define the technology trends which would impact and drive the ICT market in Malaysia for 2009.
Top predictions: managed services, emerging technologies
Ponnudurai said, “Among the top 10 key predications that would shape Malaysia’s ICT industry in 2009 were that IT spending would see light at the end of the tunnel.”
He said that Malaysia IT spending would surpass the US$6 billion mark, and is expected to grow between 4 per cent to 5 per cent in 2009. This probable scenario is based on the current GDP (gross domestic product) growth forecast of 3.5 per cent for 2009 by the Malaysia Institute of Economic Research, which led IDC to adjust the 2009 IT spending downwards from its previous 7.6 per cent.
“On the other hand, consumers will need a stronger push to purchase IT-related products in 2009,” said Ponnudurai. “The drop in consumer confidence, with ongoing news of downsizing and retrenchments, has led consumers to cut back on non-necessity items like IT products. IDC expects ICT vendors to focus on key range of products supported with heavy promotions rather than engaging in further price wars.
New services strategies are likely to take the limelight as companies look for alternative solutions to be competitive in the business space. Companies will adopt services solutions such as SaaS (software as a service) and managed services in order to control cost. “The two key areas that IDC predicts will take off in Malaysia in 2009 will be managed security services and unified communications.”
Green IT to save costs
Other predictions included the rise of green IT. “The economic situation will be the catalyst of such initiatives and accelerate the adoption of green IT, driven by companies desperate to save costs, rather than a push by the government.”
Ponnudurai said that Malaysian companies will be in search of emerging technologies such as green IT, managed services, Web 2.0 and virtualisation, to help reduce operational cost and maximise profitability. “Hence, these factors would create pockets of opportunities for ICT companies operating in Malaysia."
