Crisis to hit Asian manufacturers' IT spending: Report
The global economic crisis will hit spending on information technology (IT) by manufacturing firms in the Asia Pacific region, an industry research company said on Wednesday.
By Agencies |
SINGAPORE: The global economic crisis will hit spending on information technology (IT) by manufacturing firms in the Asia Pacific region, an industry research company said on Wednesday.
Manufacturing Insights, a company under technology research firm IDC, forecast spending by companies in the Asia Pacific outside Japan to reach 23.4 billion dollars, up 2.9 per cent from 2008.
However, the forecast is 7.3 per cent lower than its previous estimate released in May before problems in the US housing market erupted into a full blown global economic crisis.
"During an economic downturn, manufacturers face the challenge to contain costs. Often the response is to reduce workforce and outsource non-core operations," said Debashis Tarafdar, regional associate research director of Manufacturing Insights.
"However, when the next growth cycle starts, it is not always possible to ramp up the workforce quickly, particularly where skilled labour is involved."
Tarafdar urged companies to think carefully about cost-cutting measures, saying effective use of IT could help reduce business costs.
Asian manufacturers have been hit by a collapse in demand from the United States and other developed countries due to the global economic downturn.
Manufacturing Insights, a company under technology research firm IDC, forecast spending by companies in the Asia Pacific outside Japan to reach 23.4 billion dollars, up 2.9 per cent from 2008.
However, the forecast is 7.3 per cent lower than its previous estimate released in May before problems in the US housing market erupted into a full blown global economic crisis.
"During an economic downturn, manufacturers face the challenge to contain costs. Often the response is to reduce workforce and outsource non-core operations," said Debashis Tarafdar, regional associate research director of Manufacturing Insights.
"However, when the next growth cycle starts, it is not always possible to ramp up the workforce quickly, particularly where skilled labour is involved."
Tarafdar urged companies to think carefully about cost-cutting measures, saying effective use of IT could help reduce business costs.
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Asian manufacturers have been hit by a collapse in demand from the United States and other developed countries due to the global economic downturn.
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