Tuesday, August 16

IT Outsourcing Expected to Blossom in Indonesia Over the Next Five Years

According to the Jakarta Postthe dawn of IT outsourcing is expected to hit Indonesia within the next five years. Indonesia is the world’s fourth most populous country, and the region is expected to experience large growth in technology sectors within the upcoming decade.

Media and communications, finance, insurance, manufacturing, and banking are expected to spend almost US $7 billion in 2014 on IT in Indonesia. As more and more money pours into IT, the pressure is on for businesses to adapt it to their business models and achieve goals through using IT solutions.

International Data Corporation (IDC) Indonesia is currently predicting that business-led outcomes are going to be behind the majority of IT projects this year. As the technological marketplace continues to open up in Indonesia and more companies step in, competition has been ramping up, and this relates to the push for investment in better IT infrastructure. The increasing amount of competition, as well as a corresponding rising cost of doing business, is leading businesses to look for easy ways to innovate and gather better market intelligence — IT is often the answer.

Outsourcing is becoming a more common solution, especially as many businesses realize they have been spending a lot of money on “sleeping with the lights on,” which refers to large amounts of money simply spent on the minimum maintenance — buying hardware and fixing holes as they appear. Outsourcing can help businesses get more flexibility out of their investments, and involves less risk when it comes to data management.

As Indonesia’s industries continue to evolve, there will be a greater demand for ways in which to push businesses forward into the future, and in a way that allows them to interact on the global stage. Hopefully, traditional supplier models will change and adapt to the opportunity that new IT solutions can provide.

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