Today’s IT challenges mean that many organizations have IT systems that are unable to deliver on the digital transformation agendas that their businesses require. Inflexible IT, minimal scalability, rising management costs and other challenges add up to IT infrastructures that impede meaningful innovation and growth. Many CEO’s today believe that embracing new technologies such as cloud, mobile and analytics is one of two strategic priorities affecting their organizations, providing the engine for enabling new levels of engagement with their customers and revolutionizing products, operations and business models.
These new technologies also need to be integrated with existing core systems to capitalize on an organization’s full potential. This results in complex, hybrid environments — and puts increasing pressure on chief information officers (CIOs) to deliver business value. At the same time, CIOs and IT managers from every industry and geography face the all-too-familiar pressures to cut costs, enhance services and availability, boost efficiencies and otherwise improve business as usual
Vietnam ‘s IT market and industry are both developing rapidly and have one of the brightest outlooks for the APAC region over the medium term. Although the hardware segment is expected to be relatively subdued to PC use case cannibalisation by smartphones, domestic spending growth will be driven by robust econom ic development that creates software and services demand through a higher value composition of economic activity, and within sector moderni s ation initiatives.
Latest Updates And Industry Developments
● Computer Hardware Sales: VND34.7trn in 2017 to VND39.6trn in 2021, a compound annual growth rate
(CAGR) of 3.4%. The lower trajectory of PC ownership due to mobile-first device ecosystem development
will result in segment underperformance, though vendors can still potentially benefit from demand growth at the high-end of the retail market as well as enterprise customers.
● Software Sales: VND12.7trn in 2017 to VND21.6trn in 2021, a CAGR of 14.3%. Software penetration is low in most major verticals, and modernisation pressures should drive up enterprise investment levels in system software and applications.
● IT Services Sales: VND30.5trn in 2017 to VND53.1trn in 2021, a CAGR of 14.9%. Increased informatisation across the economy will increase the demand for core IT services, while the wider adoption of outsourcing solutions in the public and private sector should make a positive contribution to growth over the medium
Enterprise Investments Key To The Positive IT Spending Outlook
IT Forecast Breakdown