Look to Asia Pacific, urges Austrade

Peter Dinham
Monday, 15 June 2009 14:26

Business IT - Technology

Australia’s trade promotions organisation, Austrade, says opportunities are opening up for Australian IT companies to take advantage of increased technology spend by Asian companies, despite the global economic downturn.

According to Austrade’s regional director for South East Asia, South Asia and the Pacific, David Twine, Australian IT vendors should capitalise on the opportunities thrown up by the steady increase in technology spending by companies in the region.

Twine says IT businesses, particularly start-ups, should turn their focus closer to home, and were well placed to navigate the downturn, or recover faster due to the region’s robust economic growth over the past decade.

“The good news is emerging economies in the Asia Pacific are continuing to invest in technology. Although IT spending in the region (Asia Pacific excluding Japan) is down from last year, it is still expected to grow by 5.8 per cent to nearly US$196 billion this year.”

According to Twine, a recent IDC survey of 1,645 Asia Pacific companies indicated that over the next 18 months, more than 30 per cent of companies in the region intended to increase spending on software with only six per cent planning reductions.

“To remain competitive, more local businesses are investing in ICT projects that are critical to achieving productivity gains and long term growth. Economic stimulus plans announced by Governments in the region are generating new prospects.”

Twine also said that a number of Asian companies were also looking to invest or partner with Australian firms to develop new technology, deliver global sales and access third markets, and, he said, Austrade would help Australian ICT firms harness these opportunities by representation in the region’s largest industry event–CommunicAsia 2009–to be held in Singapore next week (12-16 June).

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