Research and Markets: Hong Kong Information Technology Report Q3 2010

DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/2a139a/hong_kong_informat) has announced the addition of the "Hong Kong Information Technology Report Q3 2010" report to their offering.

“Hong Kong Information Technology Report Q3 2010”

The Hong Kong Information Technology Report provides industry professionals and strategists, corporate analysts, information technology associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Hong Kong's information technology industry.

Market Overview

The Hong Kong IT market is forecast to grow from around US$4.6bn in 2010 to US$5.7bn in 2014. Sales were strong in Q110, with retail demand leading the way as the economy recorded positive growth following a contraction in 2009. The government sector is expected to be the key driver, along with stronger demand from the corporate and small and medium-sized enterprise (SME) segments. IT market growth is forecast at 5% in 2010, but much will depend on continued business and consumer confidence in the economic recovery. In 2010, consumer spending is expected to remain strong, as evidenced by strong demand for Apples iPad. Private consumption grew by 6.5% in Q110, while imports also increased.

The IT market will be supported by initiatives encouraging the integration of Hong Kong's economy with mainland China and the abolition of taxes on cross-border trade. Recent integration of PCs with wireless networking technologies, as well as the roll-out of 3G mobile networks and popular converged services such as internet protocol television (IPTV), are also drivers.

Industry Developments

In February 2010, Hong Kong Financial Secretary John Tsangs maiden budget was broadly positive for local IT market growth, as the government looked to strengthen the economic recovery. The HKD317.2bn (US$40.82bn) budget was composed of higher expenditure and one-off relief measures to support domestic demand and lower-income households. Government fiscal stimulus, including tax relief, was aimed at boosting consumer confidence. In 2009, projects being implemented by Hong Kong public sector organisations included development of a city-wide system for sharing electronic health records and an e-procurement system for the office of the Chief Information Officer. Moves to increase the number of mainland Chinese residents visiting Hong Kong by making it easier for them to apply for visas provided a boost to the Hong Kong computer market during the economic slowdown. Many mainlanders visit Hong Kong to purchase notebook computers, digital cameras and other devices. The visa reform was widely perceived as a gesture by Beijing to help Hong Kong fight the economic crisis.

Competitive Landscape

This year is projected to see the rise of tablet notebooks, spearheaded by Apples iPad. The iPad enjoyed strong sales in Hong Kong over the Easter weekend shopping period, with retailers reporting brisk sales. The units being sold had been imported unofficially and cost about 50% more than in the US market. Other vendors are expected to follow Apple in releasing net tablet devices, which have a form factor between the size of a smartphone and a netbook.

One current feature of the IT services competitive landscape is the increasingly aggressive move of telecoms service providers into the IT services space. In May 2010, PCCW Solutions launched its own cloud computing service. Local telecoms company PCCW has forecast that the service will break even within one year, and the banking and retailing fields are seen as key areas of potential.

In January, Hong Kong Broadband Network, the broadband subsidiary of local telecoms company City Telecom, announced that it had formed a partnership with I-Consulting Group to introduce managed services. Meanwhile, COL, the IT services arm of telecoms operator Wharf T&T, has launched a partnership with US software giant Oracle to deliver human resource process outsourcing.

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