Asia-Pacific IT Landscape: Key Trends and Developments

Strategic Insights -

Seoul-based Internet Auction Co. will see a significant acquisition by online retail giant eBay Inc., increasing its stake to 85.61%. Fujitsu Ltd. aims to strengthen its middleware marketing operations, training 5,000 foreign development technicians and bolstering sales and customer service personnel. Meanwhile, local South Korean manufacturers are opting out of alliances with foreign firms, citing improved business performance. Taiwan is poised to dominate the public wireless local area networking market, driven by strong manufacturing capabilities and full government support. IT spending in India remains low, with only 50% of user organizations spending less than 1% of their annual turnover on IT.

Key Takeaways:

  • eBay Inc. plans to acquire an additional 23.41% stake in Internet Auction Co., increasing its ownership to 85.61%.
  • Fujitsu Ltd. aims to strengthen its middleware marketing operations, training 5,000 foreign development technicians and bolstering sales and customer service personnel.
  • Local South Korean manufacturers are increasingly opting out of alliances with foreign firms, citing improved business performance.
  • Taiwan is expected to play a leading role in the global public wireless local area networking market due to its strong manufacturing capabilities and full government support.
  • IT spending in India accounts for less than 1% of the annual turnover of most companies, despite a growing domestic software market estimated to reach US$4.2 billion in the current fiscal year.
  • Helios & Matheson Information Technology Ltd. has acquired two companies, Maruthi Info Tech Inc. and Jayamurthi Software Systems, for a total cash payment of US$7.5 million.
  • Patni Computer Systems Ltd. plans to expand its operations in Chennai by setting up a centre to accommodate 10,000 professionals with an investment of Rs 4.5 billion (US$97.1 million).
  • CMC Ltd. has drawn a strategy to promote its business in the overseas market and will leverage Tata Consultancy Services Ltd.'s brandname in the global markets.
  • Educomp Datamatics Ltd. has won an order from the US for its technology integration platform Smart Class, which will be showcased in a workshop session in New Orleans.

Statistics:

  • eBay Inc. plans to acquire an additional 23.41% stake in Internet Auction Co.
  • Fujitsu Ltd. aims to train 5,000 foreign development technicians over the next three years.
  • Local South Korean manufacturers cite improved business performance as the reason for ending ties with foreign companies.
  • India's domestic software market is estimated to reach US$4.2 billion in the current fiscal year.
  • 50% of Indian user organizations spend less than 1% of their annual turnover on IT.
  • Helios & Matheson Information Technology Ltd. has acquired two companies for a total cash payment of US$7.5 million.
  • Patni Computer Systems Ltd. plans to invest Rs 4.5 billion (US$97.1 million) in its Chennai operations.
  • CMC Ltd. will leverage Tata Consultancy Services Ltd.'s brandname in the global markets.

Sources:

  • Asia Pulse (http://www.asiapulse.com)
  • Internet Auction Co. filing with the Korea Stock Exchange
  • Fujitsu Ltd. press release
  • Local industry sources (unspecified)
  • Wu Chen-sheng, general manager of Nortel Network in Taiwan
  • Nasscom (National Association of Software Service Companies) survey
  • Council for Economic Planning and Development (CEPD) official Thomas M.F. Yeh
  • Helios & Matheson Information Technology Ltd. press release
  • Patni Computer Systems Ltd. press release
  • CMC Ltd. press release
  • Educomp Datamatics Ltd. press release