IT upgrade to improve services

The information technology (IT) infrastructure in Vietnam 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).
The information technology (IT) infrastructure in Vietnam will beupgraded this year to promote public services and create greateroutsourcing opportunities, according to a report prepared by theInternational Data Corporation (IDC).

The report says IT spending in the country would reach 3.25 billion USD,an annual growth of 19.2 percent in comparison with the 8.4 percentincrease last year. This would make Vietnam one of the top ITspending nations in the Asia-Pacific region.

The Cloudapplication will be extensively applied as the Vietnamese government andbusinesses try to cut expenditures, the report says.

IDCalso believes that this year, big telecommunication corporations willbuy up smaller ones because of market saturation, and fierce competitionwill take place among big players like VinaPhone, MobiFone and Viettel.

The report also predicts stronger growth of smartphones.By the middle of last year, smartphones had taken 9 percent of totalmarket share, with 400,000 units, but by the end of this year, thefigure might reach 2.7 million.

The growth of smartphoneswould help service providers improve their income because 80 percent oftheir turnover comes from voice services, which is decreasing, thereport says. Value added services will be a necessary solution to keepcustomers, it adds.

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

The security authentication market is expected to recover with growthof 28 percent despite a tough year in 2011, far from the 43 percentgrowth seen in 2010. The market will be helped by strong development ofe-payment as Vietnam reaches 26 million Internet users towards theend of this year.

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

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