Global Demand Is on the Move – The Bech Index 2016

 In Entering Foreign Markets, Featured, Industry News

tbk-wipa-031_3d_460x580The annual report from TBK Consult showing the relative demand for information technology in each of the 229 countries in the world confirms the steady shift from Europe and the Americas towards Asia. 25 countries now account for over 80% of global demand for information technology.

The information technology industry is by nature a global industry. As the information technology industry is blessed with low cost of entry and simple supply chains, international growth comes much easier in the information technology industry than in most other industries. Embarking on the global growth journey is also a necessity in the information technology industry. The combination of simple supply chains, economy of scale advantages and “crossing the chasm” characteristics make the information technology industry a “winner takes all” game.  Information technology companies either grow fast or die slowly.


Hans Peter Bech, author of the BECH Index Report

“We have changed the algorithm behind the BECH Index for the 2016 version”, says Hans Peter Bech, author of the whitepaper. “The consequence of the new algorithm is a significant adjustment of the shares of global demand between countries and regions. The most significant change is the downgrading of the US market from 29,37% to 19,1% of global demand and the upgrading of China from 8,02% to 14,42%. The new index may inspire information technology companies to review their global go-to-market schedules.”

The 2016 edition of the BECH Index confirms that world demand for information technology is on the move. The Americas have experienced a decline in the period (2014-2016) due to a drop in demand from all countries in North, South & Central America. Europe continues to lose its share of global demand although the decline is somewhat slower than in the Americas. Nevertheless, North America and Europe continue to be very interesting areas with some of the biggest markets in the world and because of increasing labor costs and public expenditure there is a growing need for information analytics, process and cost optimization information technology based solutions. The slight decline in the Middle East has most likely been affected by the changes in the oil prices experienced lately and we should expect some further decline here in the 2017 figures. Future growth in the Middle East will require a restructuring of the economies away from the dependency on oil and gas. China continues its growth and has consolidated its position as the second largest information technology market in the world.

Download the whitepaper here.

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