IT services spending up 12.7% in S'pore

SINGAPORE: Singapore's information technology (IT) services revenues are

expected to hit US $2 billion this year, a 12.7 per cent increase from $1.8

billion in 2000, Garter Dataquest said on Monday.

Singapore's IT services industry is forecast to continue growing strongly

through 2005, when revenues will reach $3.6 billion, the research firm said in a

statement.

"The Asia Pacific services market continues to outpace other regions

significantly, with a growth rate double the world average and nearly three

times that of North America," senior analyst Jacqueline Heng said.

Gartner Dataquest expects IT services to experience double-digit growth from

2003 to 2005 despite the economic slowdown and global uncertainty.

IT management services are now going strong while networking, security,

telecommunications technology-related services and e-business initiatives are

expected to fuel demand from late 2002.

Development and integration will continue to be the largest segment within IT

through to 2005. In Singapore, the segment reached $566 million in 2000 and is

expected to hit $1 billion by 2005, Gartner Dataquest said.

Business process and transaction management, a small segment up to 2001, is

forecast to have the strongest growth rate as companies focus on core

competencies and turn to external suppliers to manage the rest, it said.

Consulting was hardest hit by economic uncertainty among the IT services

segments, with its growth rate dipping to 8.8 percent in 2001. No comparative

figures were provided.

The general recovery of consulting will lag the larger economic rebound by

three quarters, Gartner Dataquest said.

(C) Reuters Limited.