Asia-Pacific Firms Base IT Procurement Decisions on Project Cost, ROI

The economic crisis has brought transformation in application adoption and delivery models, driving organisations to look at newer engagement models but remain selective on IT projects using project cost and return on investment as their key decision-making factors, according to IDC’s Asia/Pacific Semiannual Enterprise Applications Tracker.


The study finds that the enterprise applications software market in the Asia/Pacific excluding Japan (APEJ) region returned to positive growth in 2H 2009, registering a 2% decline in 2009 compared to 2008. The rebound is expected to continue, and IDC forecasts the enterprise applications market to grow by 15.4% in 2010.


Organisations remain focused on core modules in their application procurement. Basic enterprise resource managements module like procurement, financial accounting, and enterprise asset management were in demand. Customer relationship management (CRM) module like sales and customer services found increased traction due to pressure on customer retention and sales. The supply chain management market didn’t witness strong growth as organisations prioritised towards core modules and expected to recover in 2010.


Companies across Australia, India and China were the leading adopters of enterprise applications, contributing 70% of the APEJ enterprise applications software market in 2009. A stronger recovery is expected in India, Singapore, Indonesia, Thailand, Malaysia, and China in 2010.


Manufacturing was the largest adopter of enterprise applications, followed by banking, FSI and telecommunications, as well as niche verticals like mining, food and beverage. The contribution from the government sector increased as a result of e-governance initiative.


Another finding of the study is that application vendors pushed analytics and reporting bundled applications as customers are looking for faster and fact-based decisions making process.


Customers expanded CRM platform to automate adjacent processes like warranty management and dealer management in 2009.


Meanwhile, IDC expects private cloud and the hosted model to register strong growth for enterprise resource management (ERM) in 2010. The SaaS model gained traction with CRM applications in 2009 and the momentum will continue, says IDC.

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