Thai IT service demand surges due to digital transformation and AI

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Global managed service provider Kyndryl believes the demand for information technology (IT) services in Thailand is being driven by factors such as digital transformation, artificial intelligence (AI), smart cloud, and the modernisation of IT infrastructure. Kyndryl was born out of the spin-off of IBM’s infrastructure service business in 2021.

Kittipong Asawapichayon, the managing director of Kyndryl Thailand and Vietnam spoke in glowing terms about digital transformation in Thailand.

“Organisations are moving towards digital transformation to innovate, increase competition, and cut costs at this challenging time.”

Kittipong believes that many Thai companies may seek to modernise their IT infrastructure, leading to opportunities for Kyndryl’s services in hybrid cloud solutions, infrastructure management, and automation.

Statista, a global data and business intelligence platform, anticipates the IT service market in Thailand to grow by 7.28% during 2024-2028, resulting in a market volume of US$3.1 billion in 2028. The revenue in the IT services market is expected to reach US$2.34 billion in 2024, with IT outsourcing projected to dominate the market at a value of US$930 million.

Post spin-off from IBM, Kyndryl has expanded its customer base from banking to other sectors including oil, gas, and telecom businesses. The company’s split from IBM has more than doubled its addressable market from US$240 billion pre-spin-off to US$510 billion by 2024. The company’s major partners currently include Amazon Web Services, Microsoft Azure, and Google Cloud.

IT trends

Kyndryl forecasts major IT trends in 2024, one of which is the role of new ways of working in driving culture, technology, and workplace transformation. AI and cloud technologies will play a significant role but must be integrated with human-centred strategies to attract and retain top talent. The company predicts that data governance will emerge as a critical factor in AI adoption.

Kyndryl also emphasises the importance of a meticulous data strategy for extracting maximum insights from an AI system. The company also foresees the importance of infrastructure-as-a-code (IaC) in IT development, as organisations start modernising their digital infrastructure. The IaC automates the provisioning of IT infrastructure by using high-level descriptive coding language.

Kittipong anticipates that the computer mainframe will remain relevant as part of a hybrid environment and the enterprises will continue to adapt and grow, reinventing itself to deliver value in nearly every business environment.

The company also warns of an increase in the number and sophistication of cyber-attacks, making it important for enterprises to lower the barriers and expand access to cybersecurity training and hiring.

Sustainable technology will also be a priority, as enterprises will see it as important to reduce their carbon footprint, reported Bangkok Post

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Alex Morgan

Alex is a 42-year-old former corporate executive and business consultant with a degree in business administration. Boasting over 15 years of experience working in various industries, including technology, finance, and marketing, Alex has acquired in-depth knowledge about business strategies, management principles, and market trends. In recent years, Alex has transitioned into writing business articles and providing expert commentary on business-related issues. Fluent in English and proficient in data analysis, Alex strives to deliver well-researched and insightful content to readers, combining practical experience with a keen analytical eye to offer valuable perspectives on the ever-evolving business landscape.

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