Security and Defence initiatives driving IT expenditure

SINGAPORE: Security and Defence initiatives are

stimulating strong spending on IT in the Asian Public Sector, according to study

released by Springboard Research, innovator in the IT Market Research industry.








The regional market (excluding Japan) for spending by this public sector segment
saw IT spending increase to $3.8 Billion in 2005, a total Springboard expects to

grow to $5.4 Billion by 2009. Currently, IT spending in the Security and Defence

space is the largest segment of Public Sector spending, representing 22 per cent

of total technology expenditure in the Public Sector.






Jonathan Silber, senior market analyst for the Public Sector for Springboard
Research, said, “With the ever-present threat of terrorism and the continuing

modernization of militaries in Asia, we are seeing IT spending in the Security

and Defence segment leading other segments as governments in Asia leverage

technology as a key part of their security strategies.”






“Technology is now coming to the forefront in defence and internal security, and
sophisticated intelligence and border control solutions are receiving far more

focus in the post 9-11 world,” he added.






This study revealed that China currently has the largest IT expenditure in the
Security and Defence segment in Asia, just slightly higher than Australia, with

the market in 2005 being close to $1.3 billion. India is expected to be the

fastest growing market with a compounded annual growth rate (CAGR) of 17.6 per

cent from 2005-2009.






Australia and Singapore are in a near tie when looking at the highest IT
Spending on Security and Defence on a per capita basis, while Singapore had the

highest percentage of IT spending going into the Security and Defence segment at

almost 30 per cent of total Public Sector IT spending in 2005.






“While the Security & Defence segment is by far the largest sub-vertical within
the Public Sector for IT spending, the growth rate is on par with other, much

smaller sub-verticals like Government Healthcare, Taxation/Finance, Social

Services, and Public Works. We believe this continued growth will present

increasing opportunities for IT vendors focused on providing solutions to help

meet the unique needs of this segment,” added Silber.






The largest individual body in the region focused on Security and Defence is the
Australian Department of Defence, with an estimated IT expenditure exceeding

$600 million in 2005, followed by the Ministry of National Defence in China with

IT expenditures exceeding $400 million.






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