Digital transformation, the smart cloud, artificial intelligence (AI) and the modernisation of IT infrastructure are among the drivers of IT services growth in Thailand, according to Kyndryl, global tech infrastructure and managed service provider.
The company was created from the spin-off of IBM's infrastructure service business in 2021.
"We continue to see demand from organisations to move towards digital transformation to innovate, increase competition and cut costs at this challenging time," Kittipong Asawapichayon, managing director of Kyndryl Thailand and Vietnam, told the Bangkok Post.
"Many companies in Thailand may look to modernise their IT infrastructure to improve efficiency and reduce costs. This leads to opportunities for our services in hybrid cloud solutions, infrastructure management, and automation."
According to global data and business intelligence platform Statista, the IT service market in Thailand is projected to grow by 7.28% during 2024-2028, resulting in a market volume of US$3.1 billion in 2028. Revenue in the IT services market is projected to reach $2.34 billion in 2024, of which IT outsourcing will dominate the market with a projected value of $930 million.
Mr Kittipong said that before the spin-off from IBM, Kyndryl's main customers were in banking. Now it is also penetrating new sectors, such as oil and gas and telecom businesses.
Its split from IBM has more than doubled its addressable market from $240 billion pre-spin-off to $510 billion by 2024. The company's major partners currently include Amazon Web Services, Microsoft Azure, and Google Cloud.
Kyndryl also sees major IT trends in 2024. One of them is that new ways of working will drive culture, technology and workplace transformation. Technologies like AI and cloud are helping to drive these trends, but employers must integrate them with human-centred strategies to attract and retain top talent.
Another trend is that data governance will emerge as the critical factor in AI adoption.
Kyndryl also believes that the strength of an AI system hinges on the quality of the data used to train it. A meticulous data strategy is crucial for extracting insights from an AI system to its fullest potential, Mr Kittipong said.
For example, generative AI can help identify high-value use cases that build a competitive edge and new business models, and streamline operational processes and people skills. Smarter cloud strategies are necessary to manage costs effectively.
Kyndryl also believes infrastructure-as-a-code (IaC) will be crucial in IT development as organisations start modernising their digital infrastructure. The IaC automates the provisioning of IT infrastructure by using high-level descriptive coding language.
Mr Kittipong said the computer mainframe will remain relevant as part of a hybrid environment. Predictions that enterprises would move their entire workloads and data to the cloud have turned out to be overstated. It is clear that a hybrid approach is the way to go. Mainframe will continue to adapt and grow, reinventing itself to deliver value in nearly every business environment.
Cyber-attacks will increase in number and sophistication, and it will also be important for enterprises to lower the barriers and expand access to cybersecurity training and hiring.
The other trend is that sustainable technology will be a priority, as enterprises will see it as important to reduce their carbon footprint.