Kathmandu. Insurance, banking and public sector institutions are expected to boost IT services spending in the Asia Pacific region, driven by stringent regulations and technology modernization to address outdated systems.
According to Forrester’s Global IT Services Market Forecast, 2025 to 2029, defence and public sector agencies in Australia and Singapore are also exploring generative AI to improve operational efficiency and support decision-making. Despite continued economic and productivity pressures, this demand supports Forrester’s expectation that global IT services spending will grow at a compound annual growth rate of 4.8 percent from 2024 to 2029.
Financial services firms in particular are increasing investments in cloud platforms, automation, and cybersecurity to manage compliance requirements and reduce the obsolescence of technology. Cloud services are expected to be the strongest growth area. Infrastructure as a service is expected to grow at an annual growth rate of 21.9 percent by 2030. This is much more than the total software cost.
Indian IT providers such as Tata Consultancy Services and Infosys are reporting strong demand for sovereign cloud solutions. Australian companies are accelerating the adoption of hybrid cloud to meet data residency and regulatory requirements.
Generative AI is also changing the way IT services are adopted in the sector. Goldman Sachs estimates that 10 percent to 20 percent of Chinese companies will adopt Gen AI by 2030.
Across Asia Pacific, IT service providers are increasingly incorporating AI into cloud migration, automation, cybersecurity, and compliance projects. Banks, insurance companies, and government agencies are the most active buyers.
Forrester also expects mergers, acquisitions and regional expansion to support growth as providers increase their capabilities and expand their geographic reach. Accenture said about half of its revenue growth in 2024 will come from acquisitions. Capgemini has expanded further into Asia with the acquisition of WNS Holdings.
Japan’s NTT Data has recorded the fastest growth among the top 20 global IT service providers, driven by the demand for digital transformation and AI-related services.
