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IT upgrade to improve services

VGP - The information technology (IT) infrastructure in Việt Nam will be upgraded this year to promote public services and create greater outsourcing opportunities, according to a report prepared by the International Data Corporation (IDC).

March 12, 2012 6:49 PM GMT+7

Illustration photo

The report says IT spending in the country would reach US $3.25 billion, an annual growth of 19.2% in comparison with the 8.4% increase last year. This would make Việt Nam one of the top IT spending nations in the Asia-Pacific region.

 The Cloud application will be extensively applied as the Vietnamese government and businesses try to cut expenditures, the report says.

IDC also believes that this year, big telecommunication corporations will buy up smaller ones because of market saturation, and fierce competition will take place among big players like VinaPhone, MobiFone and Viettel.

The report also predicts stronger growth of smart phones. By the middle of last year, smart phones had taken 9% of total market share, with 400,000 units, but by the end of this year, the figure might reach 2.7 million.

The growth of smart phones would help service providers improve their income because 80% of their turnover comes from voice services, which is decreasing, the report says. Value added services will be a necessary solution to keep customers, it adds.

Another significant prediction is a 92% growth in tablet consumption, creating more difficulties for PC distribution.

The security authentication market is expected to recover with growth of 28% despite a tough year in 2011, far from the 43% growth seen in 2010. The market will be helped by strong development of e-payment as Việt Nam reaches 26 million Internet users towards the end of this year.

The strong development of web-based social networks will also boost electronic trade, the report says./.