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ICT investment trends in Indonesia
Enterprise ICT spending patterns through to the end of 2015
July 2014
ICT investment trends in Indonesia P a g e | 1 www.kable.co.<US> / © Kable Business Intelligence Limited / + 44 (0) 207 936 6997
1 Trends in ICT budgets
1.1 Summary
This report presents the findings from a survey of 47 Indonesian enterprises regarding their Information &
Communications Technology (ICT) investment trends. The survey investigates how Indonesian enterprises
currently allocate their ICT budgets across the core areas of enterprise ICT expenditure: hardware, software, IT
services, communications, and consulting.
The report illustrates the core technologies enterprises are investing in, including business intelligence, content
management, mobility, communications & collaboration solutions . The survey also highlights the approach adopted
by enterprises in Indonesia when purchasing technology. Through Kable’s survey, the report aims to provide better
insight to ICT vendors and services providers when pitching their solutions to enterprises in Indonesia.
The survey was conducted in Q4 2013 via an online methodology, with respondents all having ICT decision maker
responsibility (typically CIOs and IT Managers). Kable plans to repeat the survey in the second half of 2014, in
order to monitor ICT budget changes on an ongoing basis.
1.2 Reason to buy
This report will help readers to understand how Indonesian enterprise ICT landscape is set to change in
2014.
Gain a view as to how ICT Rupiahs are being allocated in your target audience.
The report covers a detailed breakdown of the opportunities within each of the core areas of ICT spend
(hardware, software, IT services, telecommunications, and consulting.)
The report will help users to gain a view of the current strategic objectives of Indonesian enterprises.
The report will provide a detailed breakdown of the opportunities within selected technology categories
(business intelligence, content management, mobility, communications & collaboration).
Understand the factors that are influencing Indonesian enterprises’ decision to select an ICT provider.
Gain a view as to the business and IT objectives Indonesian enterprises are looking to achieve through
their ICT investment strategies.
ICT investment trends in Indonesia P a g e | 2 www.kable.co.<US> / © Kable Business Intelligence Limited / + 44 (0) 207 936 6997
1.3 Survey demographics
Figure 1: Indonesian enterprise ICT survey industry breakdown
Source: Kable
Table 1: Indonesian enterprise ICT survey industry breakdown
Industry Count Percentage of respondents
Financial markets X X%
Utilities X X%
Education X X%
Retail X X%
Manufacturing X X%
Insurance X X%
Government X X%
Healthcare X X%
Energy X X%
Media X X%
Retail banking X X%
Pharmaceuticals X X%
Total X X%
Source: Kable
X%
X%
X%
X%
X% X%
X%
X%
X%
X%
X% X%
Indonesian enterprise ICT survey industry breakdown
Financial markets Utilities Education Retail
Manufacturing Insurance Government Healthcare
Energy Media Retail banking Pharmaceuticals X respondents
ICT investment trends in Indonesia P a g e | 3 www.kable.co.<US> / © Kable Business Intelligence Limited / + 44 (0) 207 936 6997
Figure 2: Indonesian enterprise ICT survey breakdown by size band (number of employees)
Source: Kable
Table 2: Indonesian enterprise ICT survey breakdown by size band (number of employees)
Employee size band Count Percentage of respondents
Over 10,000 X X%
5,000-9,999 X X%
2,000-4,999 X X%
1,000-1,999 X X%
500-999 X X%
100-499 X X%
50-99 X X%
Total X X%
Source: Kable
X%
X%
X%
X% X%
X%
X%
Indonesian enterprise ICT survey breakdown by size band (number of employees)
Over 10000 5000-9999 2000-4999 1000-1999 500-999 100-499 50-99
X respondents
ICT investment trends in Indonesia P a g e | 4 www.kable.co.<US> / © Kable Business Intelligence Limited / + 44 (0) 207 936 6997
1.4 ICT budget changes
Figure 3: Recent and expected ICT budget changes among Indonesian enterprises
Source: Kable
Table 3: Recent and expected ICT budget changes among Indonesian enterprises
Trend 2012-13 (Count)
2012-13 (%)
2013-14 expectation (Count)
2013-14 expectation (%)
Decrease more than 6% X X% X X%
Decrease slightly (1%-5%) X X% X X%
Flat (0%) X X% X X%
Increase slightly (1-5%) X X% X X%
Increase significantly (6%+) X X% X X%
Total X X% X X%
Source: Kable
Despite the uncertain economic conditions...................................................................................................................
(Summary of the situation in the enterprise ICT market and discussion around the degree to which IT budgets are
decreasing/increasing/staying flat.)
ICT investment trends in Indonesia P a g e | 5 www.kable.co.<US> / © Kable Business Intelligence Limited / + 44 (0) 207 936 6997
1.5 ICT budget allocation by core technology area
Figure 4: Indonesian enterprises’ (external) ICT budget allocation, 2013 and 2014
Source: Kable
Kable’s survey suggests that Indonesian enterprises are allocating a major portion of their IT budgets on
........................................................................................................................................................ ...............................
................................................ (A brief description of the way in which enterprises are allocating their IT budgets.).
on how this breaks down by provider type).
Table 4: Indonesian enterprises’ (external) ICT budget allocation, 2013 and 2014
Category Average budget in 2013 (%) Average budget in 2014 (%)
Software X% X%
Hardware X% X%
Services X% X%
Communications X% X%
Consulting X% X%
Other X% X%
Total X% X%
Source: Kable
ICT investment trends in Indonesia P a g e | 6 www.kable.co.<US> / © Kable Business Intelligence Limited / + 44 (0) 207 936 6997
1.5.1 Hardware budget breakdown
Figure 5: Indonesian enterprises’ average hardware budget allocation
Source: Kable
Kable’s recent survey finds that almost one third of the hardware spend is on............................................................
(A brief description on where the investments are being made and what the implications are for hardware vendors. )
Table 5: Indonesian enterprises’ average hardware budget allocation
IT function Average budget (%)
Clients X
Network and communications equipment X
Mainframes X
Security X
Servers X
Processors X
Storage X
Peripherals X
Total X
Source: Kable
ICT investment trends in Indonesia P a g e | 7 www.kable.co.<US> / © Kable Business Intelligence Limited / + 44 (0) 207 936 6997
2 ICT investment priorities and vendor mindshare
2.1 Core technology investment priorities
Figure 6: Current and future investment priorities of Indonesian enterprises across core technologies
Source: Kable
Table 6: Current and future investment priorities of Indonesian enterprises across core technologies
Technology category
Have now (Count)
Have now (%)
Considering investment in next 2 years (count)
Considering investment in next 2 years (%)
Content management X X% X X%
Mobility X X% X X%
Communications & collaboration X X% X X%
Business intelligence X X% X X%
Source: Kable
ICT investment trends in Indonesia P a g e | 8 www.kable.co.<US> / © Kable Business Intelligence Limited / + 44 (0) 207 936 6997
According to the survey, content management has the highest penetration rate, ................... (Brief description of
which technologies enterprises are currently investing in, as well as those that they are set to make the greatest
investments in, in the next couple of years)
2.1.1 Mobility
Figure 7: Mobility – Indonesian enterprises’ current and future investment priorities
Source: Kable
Table 7: Mobility – Indonesian enterprises’ current and future investment priorities
Mobility Have now
(count) Have
now (%) Considering investment
in next 2 years (count) Considering investment
in next 2 years (%)
Device management X X% X X%
Employee/supplier facing application development X X% X X%
Tablet computing X X% X X%
Customer facing mobile applications X X% X X%
Source: Kable
The demand for mobility is growing in Indonesia; such solutions enable enterprises to manage their operations
more effectively by providing ................................... (Briefly describe in which sub categories enterprises are
planning on making investments).
ICT investment trends in Indonesia P a g e | 9 www.kable.co.<US> / © Kable Business Intelligence Limited / + 44 (0) 207 936 6997
3 ICT procurement trends
3.1 Purchasing channels
Figure 8: Indonesian enterprises' preferred approach to buying technologies
Source: Kable
Table 8: Indonesian enterprises' preferred approach to buying technologies
Technology
Direct from
supplier deployed
on-site
Through a local
reseller deployed
on-site
Through a national reseller
deployed on-site
Direct from
supplier as a
hosted service
Through a local
reseller as a hosted
service
Through a national
reseller as a hosted
service
Total
Enterprise applications X% X% X% X% X% X% 100%
Business intelligence X% X% X% X% X% X% 100%
ICT investment trends in Indonesia P a g e | 10 www.kable.co.<US> / © Kable Business Intelligence Limited / + 44 (0) 207 936 6997
IT systems management X% X% X% X% X% X% 100%
Security X% X% X% X% X% X% 100%
Communications & collaboration X% X% X% X% X% X% 100%
Mobility X% X% X% X% X% X% 100%
Content management X% X% X% X% X% X% 100%
Green IT & virtualization X% X% X% X% X% X% 100%
Source: Kable
According to Kable’s survey, it is evident that the majority of Indonesian enterprises prefer buying technologies
........... ..... (Brief description of the enterprises approach to buying IT products and preferred deployment modes
across various technology categories)
3.2 Business objectives influencing IT investment strategy
Figure 9: Business objectives which influence Indonesian enterprises' IT investment strategy
Source: Kable
ICT investment trends in Indonesia P a g e | 11 www.kable.co.<US> / © Kable Business Intelligence Limited / + 44 (0) 207 936 6997
Table 9: Business objectives which influence Indonesian enterprises' IT investment strategy
Business objectives Average rating
Increase customer satisfaction X
Increase revenues X
Raise efficiency X
Achieve or maintain regulatory compliance X
Improve supplier relationships X
Cut costs X
Source: Kable
A majority of Indonesian enterprises rate ........................................... as their most important business objective.
3.3 IT objectives influencing IT investment strategy
Indonesian enterprises make IT investments to better demonstrate the value of IT to the business
Figure 10: IT objectives which influence Indonesian enterprises' IT investment strategy
Source: Kable
ICT investment trends in Indonesia P a g e | 12 www.kable.co.<US> / © Kable Business Intelligence Limited / + 44 (0) 207 936 6997
Table 10: IT objectives which influence Indonesian enterprises' IT investment strategy
IT objectives % of
responses(1) % of
responses(2) % of
responses(3) % of
responses(4) Average
rating
Better demonstrate the value of IT to the business X% X% X% X% X
Use IT to support revenue growth X% X% X% X% X
Deliver new functionality to business users X% X% X% X% X
Meet internal service level agreements X% X% X% X% X
Align IT with overall business goals X% X% X% X% X
Source: Kable
A majority of Indonesian enterprises rate ........................................... as their most important IT objective.
ICT investment trends in Indonesia P a g e | 13 www.kable.co.<US> / © Kable Business Intelligence Limited / + 44 (0) 207 936 6997
4 Report Methodology
Kable’s Customer Insight Survey reports are primarily based on the information (related to ICT budgets, priorities
and procurement plans) collected through an annual survey performed in the fourth quarter of every year. The
primary research involves a major program of interviewing CIOs and IT executives regarding their IT investment
and priorities. The secondary research process involves covering publicly available sources, company annual
reports, and press releases. The content in the report is written by analyzing the survey findings and substantiating
those findings through secondary research.
ICT investment trends in Indonesia P a g e | 14 www.kable.co.<US> / © Kable Business Intelligence Limited / + 44 (0) 207 936 6997
5 Further reading
ICT investment trends in South Korea, June 2014
ICT investment trends in Japan, May 2014
ICT investment in Singapore & Malaysia, June 2014
ICT investment in China, April 2014
ICT investment trends in Indonesia P a g e | 15 www.kable.co.<US> / © Kable Business Intelligence Limited / + 44 (0) 207 936 6997
TABLE OF CONTENTS
1 Trends in ICT budgets ......................................................................................... 5
1.1 Introduction .............................................................................................................. 5
1.2 Survey demographics ............................................................................................... 5
1.3 ICT budget changes .................................................................................................. 8
1.4 ICT budget allocation by core technology area ......................................................... 10
1.4.1 Hardware budget breakdown...................................................................... 12
1.4.2 Software budget breakdowns ..................................................................... 14
1.4.3 Third party IT services expenditure ............................................................. 16
1.4.4 Telecommunications budget ....................................................................... 20
1.5 ICT budget allocation by function ............................................................................. 22
1.6 Outsourced IT functions .......................................................................................... 24
2 ICT investment priorities and vendor mindshare ........................................... 26
2.1 Introduction ............................................................................................................ 26
2.2 Core technology investment priorities ...................................................................... 26
2.2.1 Business intelligence ................................................................................. 28
2.2.2 Content management ................................................................................ 32
2.2.3 Mobility...................................................................................................... 36
2.2.4 Communications & collaboration solutions .................................................. 40
3 ICT procurement trends .................................................................................... 44
3.1 Introduction ............................................................................................................ 44
3.2 Purchasing channels ............................................................................................... 44
3.3 Business objectives influencing IT investment strategy ............................................. 46
3.4 IT objectives influencing IT investment strategy ........................................................ 48
3.5 ICT provider selection ............................................................................................. 50
4 Summary ............................................................................................................ 52
4.1 Indonesian enterprises are increasing their expenditure in disruptive technologies to
gain differentiation in the global marketplace ............................................................ 52
5 Appendix............................................................................................................. 53
5.1 Definitions .............................................................................................................. 53
5.2 Further reading ....................................................................................................... 57
5.3 Contact the authors................................................................................................. 57
ICT investment trends in Indonesia P a g e | 16 www.kable.co.<US> / © Kable Business Intelligence Limited / + 44 (0) 207 936 6997
List of Figures
Figure 1: Indonesian enterprise ICT survey industry breakdown ............................................................ 5
Figure 2: Indonesian enterprise ICT survey breakdown by size band (number of employees) ................. 6
Figure 3: Recent and expected ICT budget changes among Indonesian enterprises .............................. 8
Figure 4: Indonesian enterprises’ (external) ICT budget allocation, 2013 and 2014 .............................. 10
Figure 5: Indonesian enterprises’ average hardware budget allocation ................................................ 12
Figure 6: Indonesian enterprises’ average software budget allocation by technology............................ 14
Figure 7: Indonesian enterprises’ average IT services budget allocation .............................................. 16
Figure 8: Indonesian enterprises’ average IT consulting services budget allocation .............................. 18
Figure 9: Indonesian enterprises’ average telecommunications budget allocation ................................ 20
Figure 10: Indonesian enterprises’ ICT budget allocation by function, 2013 and 2014 .......................... 22
Figure 11: Outsourced IT functions - Indonesian enterprises’ current and future outsourcing priorities .. 24
Figure 12: Current and future investment priorities of Indonesian enterprises across core technologies 26
Figure 13: Business intelligence – Indonesian enterprises’ current and future investment priorities ....... 28
Figure 14: Business intelligence – vendor mindshare among Indonesian enterprises ........................... 30
Figure 15: Content management – Indonesian enterprises’ current and future investment priorities ...... 32
Figure 16: Content management – vendor mindshare among Indonesian enterprises .......................... 34
Figure 17: Mobility – Indonesian enterprises’ current and future investment priorities ........................... 36
Figure 18: Mobility – vendor mindshare among Indonesian enterprises ............................................... 38
Figure 19: Communications & collaboration solutions – Indonesian enterprises’ current and future
investment priorities ................................................................................................ 40
Figure 20: Communications & collaboration solutions – vendor mindshare among Indonesian enterprises
42
Figure 21: Indonesian enterprises' preferred approach to buying technologies ..................................... 44
Figure 22: Business objectives which influence Indonesian enterprises' IT investment strategy ............ 46
Figure 23: IT objectives which influence Indonesian enterprises' IT investment strategy ....................... 48
Figure 24: Factors influencing Indonesian enterprises' decision to choose an ICT provider .................. 50
List of Tables
Table 1: Indonesian enterprise ICT survey industry breakdown ............................................................. 6
Table 2: Indonesian enterprise ICT survey breakdown by size band (number of employees) .................. 7
Table 3: Recent and expected ICT budget changes among Indonesian enterprises ............................... 8
Table 4: Indonesian enterprises’ (external) ICT budget allocation, 2013 and 2014 ............................... 10
Table 5: Indonesian enterprises’ average hardware budget allocation ................................................. 12
Table 6: Indonesian enterprises’ average software budget allocation by technology ............................. 14
Table 7: Indonesian enterprises’ average IT services budget allocation ............................................... 16
Table 8: Indonesian enterprises’ average IT consulting services budget allocation ............................... 18
Table 9: Indonesian enterprises’ average telecommunications budget allocation ................................. 20
Table 10: Indonesian enterprises’ ICT budget allocation by function, 2013 and 2014 ........................... 22
Table 11: Outsourced IT functions - Indonesian enterprises’ current and future outsourcing priorities ... 24
Table 12: Current and future investment priorities of Indonesian enterprises across core technologies . 27
ICT investment trends in Indonesia P a g e | 17 www.kable.co.<US> / © Kable Business Intelligence Limited / + 44 (0) 207 936 6997
Table 13: Business intelligence – Indonesian enterprises’ current and future investment priorities ........ 28
Table 14: Business intelligence – vendor mindshare among Indonesian enterprises ............................ 30
Table 15: Content management – Indonesian enterprises’ current and future investment priorities ....... 32
Table 16: Content management – vendor mindshare among Indonesian enterprises ........................... 34
Table 17: Mobility – Indonesian enterprises’ current and future investment priorities ............................ 36
Table 18: Mobility – vendor mindshare among Indonesian enterprises ................................................ 38
Table 19: Communications & collaboration solutions – Indonesian enterprises’ current and future
investment priorities ................................................................................................ 40
Table 20: Communications & collaboration solutions – vendor mindshare among Indonesian enterprises
42
Table 21: Indonesian enterprises' preferred approach to buying technologies ...................................... 45
Table 22: Business objectives which influence Indonesian enterprises' IT investment strategy ............. 46
Table 23: IT objectives which influence Indonesian enterprises' IT investment strategy ........................ 48
Table 24: Factors influencing Indonesian enterprises' decision to choose an ICT provider ................... 50