Market Trends of Indonesia IT Services Industry
IT Consulting & Implementation to Propel the Market Demand
- Businesses in Indonesia are adopting new technologies to drive their operations, improve efficiency, and gain a competitive edge in the market. However, keeping up with the new trends can take time and effort, especially for non-IT professionals. This is increasing the demand for IT consulting services in the country. IT consulting and implementation services help businesses make informed decisions and provide customized solutions to customers.
- Increasing demand for consulting services in Indonesia has compelled market vendors to provide end-to-end IT solutions to businesses. Expertise in cloud computing, analytics, and big data, along with partnerships with leading technology vendors, such as AWS, Microsoft, and Google, are propelling the growth of IT services and consulting in the country.
- IT consultants and implementation providers support Indonesia's vision of strategically moving toward the New Indonesia. They are making decisions about transforming and growing existing businesses and scaling new companies using suitable investments. The IT service market in Indonesia is evolving, and vendors are promoting the country's transformation journey by providing high-end consulting services.
- For instance, Kharisma Potensia Indonesia has a team of experts in human resources and provides quality HR consulting that focuses on customer's goals. The company's consultancy process includes strategic plan discussion for problem-solving and project implementation to support organizational effectiveness.
- According to the International Monetary Fund's recent report, the Association of Southeast Asian Nations economies is expected to see a significant domestic demand for IT consulting and implementation in recent years. The rising internet adoption across Indonesia has increased the need for reliable, robust connectivity. According to Indosat Ooredoo Hutchison, a telecommunications provider in Indonesia, internet penetration in Indonesia is expected to reach 86% in the next five years, from 77% in the previous year. The number is expected to increase as digital transformation expands across various markets, including financial services, retail, manufacturing, healthcare, and gaming.
- Indonesia is emerging as one of the fastest-growing public cloud marketplaces in the Asia-Pacific region, attracting investments from all over the globe. The massive increase in IT services startups also contributes to Indonesia's accelerated growth. Many large tech companies are investing in Indonesia and embracing cloud technologies to support digital expansion.
- India's leading strategic consultancy, Redseer Strategy Consultants, recently opened a new office in Jakarta, adding to its global expansion strategy. Redseer Strategy Consultants advises clients on strategy, growth investments, commercial excellence, and digital advisory. The company's expansion in Indonesia is attributed to the country's fast-growing economy, strong demand for strategic advice, and booming internet ecosystem. The company's new hub in Jakarta will enable it to address the rising demand for strategic advice and consulting services in the country, further adding to the market growth.
Understand The Key Trends Shaping This Market
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IT and Telecom Industry to Register Significant Market Growth
- The Indonesian IT and telecom sector is growing significantly as a mobile-centric industry, driven by mobile and fixed broadband subscriptions. Strong economic fundamentals have positioned Indonesia as one of the fastest-growing telecom markets in the world.
- The Government of Indonesia has made digital transformation a top priority in the post-pandemic era. The government announced the digital roadmap for 2021-2024 to promote the country's digital transformation journey. The plan focuses on developing a digital infrastructure to improve internet connectivity and create a 5G network for customers nationwide.
- The Indonesian government announced the establishment of a national data center and a telecommunication monitoring center in addition to 5G. Plans for establishing a digital economy are in place to drive the number of startups in the country. IT services from vendors are expected to help develop a tech-focused workforce, offering various levels of training in IT skills, such as cloud computing, big data analytics, and cybersecurity.
- Indonesia has risen as a potential site for investment, with Alibaba Cloud, Google Cloud, and Amazon Web launching data centers in Jakarta, Bali, and Java. Several telecom operators and retail colocation providers are also boosting Indonesia's data center market, building new or modernizing existing facilities, and outfitting them with best-in-class technologies for optimized efficiency.
- Ericsson officially opened a 5G innovation hub in Jakarta at the Centre for Digital Industry 4.0. The 5G Innovation Centre aims to create Industry 4.0 innovations by promoting teamwork across various industry players. Partnership with the Kepala Pusat Industri Digital 4.0 (PIDI 4.0) agency will play a pivotal role in aiding the government's ambitions and developing digital talent.
- GSMA Intelligence states that the recent second wave of 5G rollouts in Indonesia will make the Asia-Pacific region one of the largest 5G markets in the world in the future. Mobile operators see 5G, particularly 5G fixed-wireless access (FWA) services, as a viable alternative to traditional fixed broadband. Indonesia is seeing a rise in the adoption of 5G fixed-wireless access (FWA), with operators such as Telkomsel offering FWA services in Indonesia, thereby increasing the market demand.
