The Business Process Management (BPM) and Middleware market in the Asia Pacific excluding Japan (APEJ) region is expected to grow 17.2 percent to US$1.2 billion in 2011 with a compound annual growth rate (CAGR) of 12.4 percent from 2011 to 2015, according to the latest IDC's Asia/Pacific Semiannual Application Deployment Software Tracker.
The research firm notes that enterprises today make efforts to gain a competitive edge with other players in the market and this drives them to increase spending on IT and be more open to adopt technology innovation.
Companies in the emerging economies like China and India are now allocating larger IT budgets to support business growth and capacity expansion.
In the coming months, China, Australia and India will continue to be the key contributors to the BPM and Middleware market in APEJ.
Although Vietnam and the Philippines are expected to lead the growth in 2011-2012 within the Southeast Asian emerging markets, Bangkok and Thailand will take some time to recover their economy during this period.
IDC's newly released tracker also indicates that the Banking and Financial Services (including Insurance) vertical grabbed the largest share in the spending on BPM and Middleware related technology, followed by Manufacturing, Government and Communication & Media.
Also, BPM and Middleware solutions with industry-specific framework or template are one of the key factors for vendors to consider when selling their products in the APEJ region.
"The double-digit growth in these two years can be explained by the desire for organisations to constantly optimise their business processes to support growth during expansion and similarly, to streamline operations and reduce costs during recession, making it almost 'recession-proof'," said Chris Zhang, market analyst for IDC's Asia/Pacific Application Deployment Software Research.
"Particularly, we are seeing more and more strategic investments made around process efficiency, orchestration software and service-oriented architecture (SOA). The need to both modernise to accommodate growth and mitigate complexities in the IT environment has become an important growth factor too."
Sign up for MIS Asia eNewsletters.