Gartner’s July 16 report reveals a surprising downturn in Asia Pacific IT spending, with managed services and enterprise software investments dropping sharply despite AI-driven cloud growth.
- Australia and India saw double-digit declines in IT budgets, citing geopolitical caution and inflationary pressures.
- Japan’s spending remained flat, while South Korea posted modest gains due to government-backed AI initiatives.
- The report warns of “strategic recalibration” as firms prioritize cybersecurity and data sovereignty over expansion.
- Cloud infrastructure remains strong, but demand for outsourced services is waning.
This slump reflects a broader economic recalibration across the region, driven by strategic caution and national integrity concerns.
