Despite macroeconomic challenges, spending in Vietnam for IT services increased 9.9 percent to 446 million USD in 2013, according to the International Data Corporation (IDC).

As an emerging market, Vietnam's investment in infrastructure has been growing rapidly.

IDC said that hardware support services had continued to dominate IT services spending, with an 18.9 percent market share, followed by system integration and software deployment services of 14.3 and 11.3 percent, respectively.

In 2013, the spending for hardware deployment services was low, at an 8.8 percent growth rate, due to a lack of demand from the banking, insurance, manufacturing and retailing sectors.

Taken together, these sectors constitute 41 percent of IT services spending in the country.

However, strong investment in e-government, cloud computing, data centres and Geography Information System (GIS) led a healthy demand for system integration services, which increased by 9.7 percent compared to 2012.

The spending for network consulting & integration services increased 10.1 percent with strong investment in the IPv6 platform coming from the communication sector.

"The Vietnamese IT services market has been maturing, reflecting the emerging trends of big data, the cloud and mobility," said Ha Ngoc Khuong, market analyst for IDC.

IDC said that spending for outsourcing services increased more than 11 percent, driven by the lack of end users' advanced technical skills.

Local system integrators have been closing the skill gap by providing better technical support and customer care, enticing end users to opt for outsourcing. More players are jumping into the business, resulting in a wider range of options available for end users.

IDC forecasts that IT services market will grow at 12.7 percent year-on-year in 2014.

The Financial Sector Modernisation and Information project, valued at 71.8 million USD by the State Bank of Vietnam, will be a strong motivation for the IT services market in 2014.

IDC expects IT services spending for the banking sector to return to a healthy track with demand for new core banking and big data projects.

In addition, increased spending in infrastructure such as a smart grid and smart transport projects will drive demand for related IT services such as consulting and system integration services.-VNA