World Demand for Information Technology is Still on the Move
The 2018 report from TBK Consult showing the relative demand for information technology in each of the 229 countries in the world confirms the steady shift from Europe and the Americas towards Asia. America's share keeps declining - Europe holds its position.
Embarking on the global growth journey is also a necessity in the IT-industry. The combination of simple supply chains, economy of scale advantages and "crossing the chasm" characteristics make the industry a "winner takes all" game.
Information technology companies either grow fast or die slowly.
"World demand for information technology keeps moving east," says Hans Peter Bech, author of the BECH Index whitepaper. "The Americas keep losing market share, while Europe has regained a little ground in the 2018 numbers. Overall the trend holds and Asia now accounts for over 40 percent of global demand."
The 2018 edition of the BECH Index confirms that world demand for information technology is on the move. The Americas have experienced a decline of 11.5 percent in the period (2014-2018) due to a drop in relative demand from all countries in North, South & Central America. Europe has in the same period lost 6.7 percent and the decline has leveled off for 2018.
Nevertheless, North America and Europe continue to be very interesting areas with some of the biggest single markets in the world. And because of increasing labor costs and public expenditure, there are growing needs for information analytics, process and cost optimization solutions.
The slight decline in the Middle East has most likely been affected by the changes in the oil prices experienced lately and we should expect some further decline here in the 2019 figures. Future growth in the Middle East will require a restructuring of the economies away from the dependency on oil and gas.
China continues its growth and has consolidated its position as the second largest information technology market in the world.
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Page Updated Last on: Mar 22, 2018