Spending on IT in Thailand to grow 4%

Spending on IT in Thailand is expected to grow by more than 4% in 2023, slightly slower than last year and weighed down by a projected contraction in spending on new phones.

Growth this year is projected to be almost twice the global rate of 2.4%.

John-David Lovelock of the research firm Gartner said…

“Inflation, skills shortages and supply chain issues continue to have a significant impact across Thailand, driving chief information officers to be more hesitant, delay decisions or reorder priorities.

“Despite these economic realities, we continue to see local enterprises increase spending on digital business initiatives.”

Spending on IT in Thailand is forecast to reach 935 billion baht (US$28 billion) in 2023, up from 897 billion in 2022. Double-digit growth is expected for spending on software and services. Spending on data centre systems is expected to grow 5.5% to 27 billion baht and the outlay on communications is estimated to rise 5.1% to 522 billion baht. However, spending on devices is expected to dive by 4.7% this year.

At the global level, IT spending is projected to reach US$4.5 trillion (US$130 billion) in 2023, up 2.4%.

According to Gartner, while inflation continues to erode consumer purchasing power and drive down spending, business spending is expected to remain strong.

Lovelock said…

“A turbulent economy has changed the context of business decisions and can cause chief information officers to become more hesitant, delay decisions or reorder priorities.”

The software and IT services segments are projected to grow 9.3% and 5.5% in 2023, respectively. The devices segment is forecast to decline 5.1% this year as both consumers and enterprises lengthen refresh cycles.

Lovelock said…

“At the height of the pandemic, employees and consumers refreshed their tablets, laptops and mobile phones because of remote work and education. Without a compelling reason for an upgrade, devices are being used for longer and the market is suffering.”

Commercial spending on IT in Thailand growing as companies look to bring in outside IT staff for implementation and support. spending on consulting is expected to reach almost 265 billion baht (US$8 billion) in 2023, a 6.7% increase from 2022.