The 3rd Platform and the future of emerging Asean: Page 2 of 2
By Jim Sailor June 24, 2014
The ICT market in Vietnam is believed to start evolving from traditional process to Third Platform technologies this year. The emergence of these technologies will require service and solution providers, and Vietnam companies to transform in order to move faster into a more mature stage of ICT.
Continuing economic stagnation and the changing appetite of consumers and businesses are creating more challenges for the ICT market than ever before.
However there is light at the end of the tunnel; the next phase of banking consolidation is taking place this year, new FDI, and emergence of newly established SMBs will begin to overshadow current business inhibitors.
As the market is heading towards the Third Platform, local IT players are somewhat disengaged with the new landscape as their business volumes are still heavily based on the second platform.
It is also expected that the key local IT services players need to redefine their roles and engagement in the market for growth and business sustainability in the Third Platform era.
IT spending in the Philippines is looking at a healthy performance this year and is expected to reach 11.4% in growth compared to last year.
Central to this development is the rosy outlook in the country’s economic indicators and the vibrant spending from the consumer sector that indicates an ongoing change in the nature of spending.
The ‘changing of the guards’ has deeply transformed IT spending habits and there will be an increasing ICT demand from SMEs and a stronger demand for mobility, whether devices, services or applications across the country.
The ICT spending starting this year is seen to be heavily impacted by the Third Platform and usage of these technologies is being driven by the needs of companies seeking for new and effective ways for better engagement.
Moreover, sound economic fundamentals, manageable fiscal conditions, and investment grade improvement all combine to provide a rosy picture for ICT sector in 2014. Since last year, healthy domestic consumption and public sector projects have been seen, both of which are likely to continue in 2014.
There is also the ever-growing demand from SMEs, further intensified by the continuing regionalisation and geo-expansion trends, as well as the need to ‘IT-fy’ their operations.
Based on IDC’s annual Continuum survey, almost all SMEs in the country are looking at either increasing their spending on ICT or keeping at the level they had in 2013.
Myanmar's ongoing political and economic reforms after decades of autocratic rule have set the stage for hyper-growth for the nation of 61 million people.
Having re-established ties to the rest of the world, Myanmar is ushering in a wave of foreign-led investments, many of which are channeled toward ICT development.
But despite all the buzz of this exciting emerging market, a number of risks and challenges remain for technology companies.
Infrastructure is still nearly nonexistent due to the long period of economic stagnation. There is a glaring lack of clarity on ICT policy and the timelines surrounding its implementation. Access to stable power supply and Internet connectivity is an ever-present problem even for residents of major cities such as Yangon and Mandalay.
Still, there is considerable optimism that with progressive governance and strong external support, Myanmar can expect to fast track its transformation into a developed digital economy by 2030.
At the heart of this digital revolution will be the overhaul of the telecom service industry, proliferation of personal devices that connect consumers and businesses, and the expected emergence of small businesses who are taking advantage of these new addressable commercial opportunities.
There is little doubt that both hardware and software vendors have been busy mapping out strategies and plans to effectively compete in Myanmar.
Jim Sailor is Asean general manager at IDC Asia/Pacific
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