The Appeal Of Information Technology Services Market In An Economic Downturn
In the age of digitalisation, the world is experiencing a phenomenal technological transformation due to an unprecedented speed of innovation. Such macro conditions facilitate the ideation of many creative product and service solutions which aim to integrate technology to make life better. However, while the domain expertise progresses and deepens over time, the learning and applications of Information Technology can become increasingly complex and challenging for its users.
Information Technology Services (“ITS”) enable users to overcome the complexities of installing and operating technologies by using IT support and management services such as business analytics, program integration and implementation.
According to Gartner[1], compared to the global IT spending which is forecasted to reach USD 3.79T – a 1.1% increase from 2018 and is expected to continue its momentum at 3.6% growth in 2019, Singapore experienced a disproportionate and significantly higher growth in information services at 32.1%, in relation to others such as total information and communication services which grew at 7.5%[2].
What drives the ITS market?
Within and across organisations, data silos are a common problem which is often present. Data silos suggest the lack of effective coordination to aggregate information to produce economies of learning and scale to obtain customer and business insights. Thus, organisations seek to address such issue by using technologies such as Artificial Intelligence (“AI”)[3]. These AI technologies have high transferability and may be deployed in a wide diversity of projects such as improving a barcode system for maintenance works or air-conditioning control in train stations, thereby overcoming the lack of coordination
Based on the IMD World Digital Competitiveness Ranking 2018, Singapore is ranked second; the country’s start-up ecosystem is recognised to be the top in Southeast Asia. As Singapore accelerates to become a Smart Nation, both private and public sectors are increasingly exploring and adopting artificial intelligence technologies. For instance, the Ministry of Home Affairs is utilising analytics for predictive maintenance and root cause analysis of fault occurrence to deliver a smoother experience. This is in line with the bulk of the Government’s spending on security and diplomacy, as announced during Budget 2019[4].
A Closer Look at Company Engineering
The Company Engineering integrates engineering and IT solutions for clients with ongoing Enterprise Resource Planning (ERP), thus enabling businesses with state-of-the-art infrastructures for smart buildings and smart cities.
The Company Engineering addresses the market gap with their unique product and service solutions: while many IT solution providers focus on ERP and chatbots as new technologies like IOT and 5G are introduced, the Company focuses on the digitalization of hard, physical assets like fibre optics and HVAC (Heating, Ventilation, Air Conditioning) systems which are critical to many enterprises’ and organisations’ building infrastructural needs.
Armed with years of deep domain knowledge, Company Engineering builds the technological foundation in this overlooked area, providing services such as hard asset geo-tagging, assets management on the cloud. This paves the way for a complete digital transformation for many corporations in a smart city.
Observing these global key trends and noting Singapore’s tremendous efforts to actualise the Smart Nation masterplan, the Company Engineering is well poised for this growing market: the Company Engineering’s customer base already includes many key players such as Singapore Government’s Building and Construction Authority (“BCA”), Ministry of Home Affairs (“MHA”) and Land Transport Authority (“LTA”); Abu Dhabi Police and McDonald’s in Saudi Arabia.
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[1] (2019, April 17). Gartner Says Global IT Spending to Grow 1.1 Percent in 2019. Retrieved from https://www.gartner.com/en/newsroom/press-releases/2019-04-17-gartner-says-global-it-spending-to-grow-1-1-percent-i
[2] S. (2019, April). INFORMATION & COMMUNICATIONS SERVICES INDUSTRY SINGAPORE. Retrieved from https://www.singstat.gov.sg/modules/infographics/information-and-communications
[3] Sallomi, P. (2019). 2019 Technology Industry Outlook. Retrieved from https://www2.deloitte.com/us/en/pages/technology-media-and-telecommunications/articles/technology-industry-outlook.html
[4] Mahmud, A. H. (2019, February 19). Budget 2019: 30% of Government expenditure to go towards defence, security and diplomacy. Retrieved from https://www.channelnewsasia.com/news/singapore/budget-2019-30-government-expenditure-defence-security-diplomacy-11252910
