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APAC firms to up software budget in 2010

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DQW Bureau
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Although organizations in Asia Pacific expect to continue to be conservative

with their total IT budgets in 2010, software budgets are expected to increase,

according to a survey released today by Gartner.

The survey showed that organizations in Asia Pacific plan to increase their

software budgets by 4.4 percent on average in 2010, while overall IT budgets

were expected to decline by 3.1 per cent on average. More organizations in Asia

Pacific (38 per cent) expect to increase their software budgets in 2010 than

their overall IT budget (31 per cent).

The average expected increase in software budget of 4.4 per cent is higher

than all other regions surveyed including Europe, Middle East & Africa (EMEA),

North America and Latin America.

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Gartner surveyed 323 IT managers in Australia, Singapore, Malaysia, China,

India and Hong Kong, as part of a worldwide survey of 982 respondents, to help

business and IT managers compare their enterprise IT spending with peer

organizations. Respondents were asked whether they expected their 2010 IT budget

to be below, the same or exceed their IT budget for 2009.

India-based respondents were consistently the most optimistic, with the

highest number of respondents intending to increase their IT budget in 2010 (42

percent), followed by China (32 percent). On the other hand, Malaysia-based

respondents remain pessimistic, with the largest number of respondents intending

to decrease their spending (52 per cent), followed by Singapore (48 percent of

respondents). Software is expected to represent the second-largest portion of

the IT budget in most countries, with the exception of India (where software and

hardware spend are roughly equal) and Australia (where spending is notably

higher on IT staff). India is the most aggressive with the highest software

budget allocation (26.9 percent), followed by Singapore (25.8 percent), Malaysia

(24.1 percent) and China (23.1 percent).

When looking at country level software spending, India is the most

optimistic, with the average expected change in software budget of +10 percent.

Australia and Singapore, although considered mature markets, are not

conservative, expecting positive average change in software budget for 2010.

Gartner recommended that software vendors in Asia Pacific continue to build,

fund and invest in sales and marketing, despite economic volatility.

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