‘Asia’s IT sector faces further shakeouts’

Singapore | Updated: Jan 22 2002, 05:30am hrs
Asia's information technology sector is poised for further shakeouts in the year ahead, most notably through job losses and supplier consolidation, research firm Gartner said on Monday.

“The IT industry faces accelerated job losses and vendor consolidation that will last through 2002, and as many as half of all IT suppliers that existed in 2001 will disappear from the competitive landscape by the end of 2003,” said Mr Ian Bertram, regional vice president for hardware platforms at Gartner.

In line with the weak global economic conditions, businesses in the region will seek to minimise new investments in IT infrastructure by redeploying their under-utilised server and storage resources, the report said.

Storage vendors are likely to be the hardest hit as a majority of corporations in the region are not planning to make any major purchases in the next 12 months, research director for servers and storage Phil Sargeant said.— AFP