Tremendous growth figures and IT-led opportunities in key sectors are boosting the emerging economies (E+ economies) of
India, China, Malaysia, Indonesia and Philippines to outpace the western riches and information technology (IT) is playing the role of a key facilitator. These growing economies with a large consumption market are therefore attracting high foreign investments especially in the time of a global economic slowdown. In the coming future, with the right investor sentiments, these economies can prove to lead the next wave of IT investments for a global competitive advantage.
Defying the effect of the global economic slowdown, the E+ economies are bolstering a rise in government spending aimed
at a technology-led inclusive growth with education and healthcare sector being the major focus areas. The share of IT investments of E+ economies against the US has risen from 14% in 2008 to 35% in 2020.
The IT investment growth in E+ economies is a consequence of strong internet and mobile infrastructure. The emerging countries will have a potential internet user base of 2,256 million by 2020. Smartphone users in E+ economies are growing at a strong pace and it is likely to achieve a number of 1,795 million by 2020. The E+ economies have a strong internet user base even though the penetration is much lower in comparison to US. Hence, there’s a huge scope of growth in IT-led opportunities going forth.
The emerging economies of the world are today boasting a strong growth in enterprise-led opportunities. Large and mid-sized enterprises employing more than 200 employees are multiplying and the enterprise-led opportunity in E+ economies could potentially be 3 to 4 times of US. Market analysis based on deep economic insights further indicate the total numbers of Forbes 2,000 enterprises to grow by 300% in E+ economies by 2020, while the number of US enterprises could face a decline.
Small and medium businesses, which account for over 20% of GDP for E+ economies are starting to play a key role in economic growth of E+ markets. Today, India has the second largest base of SMBs among emerging economies that stands at 48 million. These are