Southeast Asia’s booming digital economy is spurring enterprises across the region to double up on driving technology change to compete with more nimble start-ups.
According to the 2020 TechTarget/Computer Weekly IT Priorities survey, 44% of nearly 200 respondents in ASEAN cited digital transformation as their top priority, followed by infrastructure modernisation (41%) and cyber security (36%).
The priorities are not surprising, given that more enterprises are coming under pressure to remain competitive in the face of digital disruption across industries, such as financial services, logistics and telecommunications.
That said, the growth in overall IT spending appears to be softening, likely over concerns over the slowing global economy. In 2019, 80% of respondents expected a bigger IT budget while just 61% expect to spend more this year.
Like in previous years, 2020 will see more ASEAN firms investing in their core technology foundation to support transformation efforts. In the datacentre, 38% of respondents will continue to invest in on-premise infrastructure with an equal number stating their preference for hybrid cloud.
This will be supported by automation, security and monitoring tools, which about a third of respondents will invest in, not only to keep the lights on but also to pave the way for agile software development.
Indeed, the proportion of respondents who would spend on agile project management software doubled from 21% in 2019 to 42% this year, underscoring the growing resolve of firms to build in-house software development capabilities to gain an edge over rivals.
These development efforts are largely geared towards internet of things (IoT) applications (37%), signalling that the technology is finally catching on in the region, followed by microservices (32%). And as expected, investments in application programming interface (API) management tools remains high (53%) on the agenda to support development and co-creation initiatives.
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27 February 2020