2013-09-14 09:30:25 - New Computer Technology market report from Business Monitor International: "Sri Lanka Information Technology Report Q4 2013"
BMI View: We have a positive outlook for the growth of the Sri Lankan IT market over the medium term. We expect it to be an outperforming market in APAC as it benefits from a peace dividend and closes the gap in terms of PC, software and services penetration with its regional peers. Further, there is a vibrant local software and BPO industry which is expanding rapidly and there is momentum towards it becoming a hub for PC manufacture and assembly to service the local market and wider region. Over the medium term, BMI forecasts a CAGR of 14.8% for 2013-2017. The IT market has considerable latent potential and the restoration of peace and improvements in security helped release enterprise
demand for IT solutions as companies boost efficiency.
Headline Expenditure Projections
* Computer Hardware Sales: LKR40.2bn in 2013 to LKR66.6bn by 2017, CAGR of 13.5% in local currency terms. Rising incomes and investments in supporting broadband infrastructure will enable vendors to capitalise on low household PC penetration by targeting the first-time buyer and upgrade/ replacement market.
* Software Sales: LKR7.6bn in 2013 to LKR14.3bn in 2017, CAGR of 17.2% in local currency terms. Investments in enterprise software expected to be a key driver of growth as enterprises modernise. However, the market remains restricted by the high level of software piracy, as well as security threats.
* IT Services Sales: LKR11.9bn in 2013 to LKR22.6bn by 2017, CAGR of 17.4% in local currency terms. IT services forecast to be the outperforming vertical with government, finance and telecoms sectors accounting for at least half of the total services spend.
* Risk/Reward Ratings: Sri Lanka's score is unchanged at 35.2 out of 100.0 in Q413. The country ranks at the bottom in 12th position in our Asia region RRR table. However, the country's status as a frontier market with high growth potential should see it rise up the rankings over time.
Full Report Details at
- www.fastmr.com/prod/671021_sri_lanka_information_technology_repo ..
Key Trends And Developments
* Sri Lanka's PC manufacturing industry took a major step forward in July 2013 with the start of production at the first facility in the country to be accredited as a Microsoft OEM partner. The 25,000ft2 plant is owned by EWIS and will produce desktops, notebooks and tablets for the local market, as well as targeting sales across the region. Sri Lanka has a number of local assemblers. The EWIS plant, along with several investments in tablet production facilities by Chinese companies signifies an acceleration in the development of the manufacturing sector.
* Another area of rapid development is the enterprise software market. Sri Lanka's status as a frontier IT market attracted the attention of major IT vendors, with a number of investments and partnerships announced in recent months. SAP announced it secured its 50th customer in Sri Lanka in May 2013, following the expansion of its portfolio of software and services sold through its local partner John Keels Holdings in March 2013. In the same month, IBM partnered with telecoms operator Lanka Bell to provide its SmartCloud service. In February 2013 leading global CRM cloud services provider Salesforce.com announced it had appointed Saberion as their consulting partner in Sri Lanka and in April 2013 Tata Communications Services expanded its product portfolio in Sri Lanka to introduce managed hosting services - becoming the first global player to do so.
Report Table of Contents:
BMI Industry View
- Business Environment
- Table: Sri Lanka IT Sector - Historical Data And Forecasts (LKRmn)
- Table: Broadband - Historical Data And Forecasts
- Economic Analysis
Industry Risk Reward Ratings
- Industry Risk/Reward Ratings
- Table: Asia Pacific IT Risk/Reward Ratings - Q4 2013
Industry Trends And Developments
- Table: Regulatory Overview
- Regional Overview
- Table: Sri Lanka's Population By Age Group, 1990-2020 ('000)
- Table: Sri Lanka's Population By Age Group, 1990-2020 (% of total)
- Table: Sri Lanka's Key Population Ratios, 1990-2020
- Table: Sri Lanka's Rural And Urban Population, 1990-2020
- IT Industry Forecasts
- IT Risk/Reward Ratings - Methodology
- Table: IT Business Environment Indicators
- Table: Weighting Of Components
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