Investing in digital infrastructure to build strategic advantage

By Eric Wong, Head of Asia Pacific, Expereo

Source: Expereo.
2024 has begun in earnest, and despite facing economic uncertainty, the Asia Pacific region is displaying a strong sense of optimism among businesses. This optimism stems from a rapidly growing digital economy and an unprecedented infrastructure expansion across key economies like India, China, and Southeast Asia.

In this context, organisations are increasingly focusing on technology investment as a strategic move. To them, it is not just about gaining a competitive edge but also about building resilience against future market volatilities and disruptions. In fact, Forrester is predicting that the Asia Pacific region will lead the way with 5.7% in technology spend growth globally in 2024*.

In our conversations with customers and partners over the past year, we are seeing organisations homing in on pivotal areas such as investing in connectivity as the backbone of economic growth, as well as investing in digital infrastructure that is purpose-built for the needs of tomorrow. Hand in hand, these are crucial elements of building the foundations of a more resilient organisation, as well as setting up their global expansion ambitions for success.

Connectivity as the backbone of economic growth

Connectivity is rapidly evolving beyond a basic operational tool into a strategic asset for business growth. Connectivity challenges are aplenty in regions with challenging terrain, whether the rural areas of Indonesia and the Philippines, where service providers are finding it difficult to provide terrestrial connectivity for, let alone deploy 5G networks to, for example. Some of our partners have stepped in to fill this gap over the past year, with expansion into Japan, Thailand, Malaysia, the Philippines, and other markets, enabling connectivity for rural communities and maritime shipping routes alike.

At the same time, with connectivity investments comes opportunity to transform communities and businesses, and alongside the adoption of cloud technologies and services, having greater access to connectivity means that businesses can be empowered to hire from a wider geographical pool of talent. 

This helps them to become more agile, to operate more efficiently, and more importantly, realise their potential to scale and expand their footprint in the global market. This push towards investing in connectivity aligns with findings from the recent Enterprise Horizons survey**, which found that APAC CIOs are putting pressure on their teams to ensure application performance across multiple locations (43%) as well as to provide 24x5 support across multiple time zones (34%).

Digital infrastructure that is purpose-built for tomorrow 

Rapidly growing markets such as Indonesia, China, and India underscore the need for purpose-built digital infrastructure. This network must be capable of handling the increasing demands for high- speed connectivity, sophisticated cybersecurity, and AI-enabled applications. This is particularly important for sectors like manufacturing and telecommunications, which are experiencing rapid digital transformation. 

Having the right infrastructure in place to accommodate evolving technologies ensures that businesses remain competitive and agile in a fast-paced market. While building such digital capabilities in-house is a formidable task with potentially exorbitant initial costs, partnering with vendors possessing relevant capabilities could offer cost savings for businesses to gain competitive advantage and increase efficiency overall.

The way forward

In light of 2024’s economic unpredictability, strategic investments in digital infrastructure are increasingly vital for businesses, especially in Asia Pacific. At the same time however, the role of partnerships and collaboration in technology adoption cannot be overstated. Across Asia Pacific, alliances between tech companies and traditional businesses are facilitating the transfer of expertise and fostering innovation. This collaborative approach is enabling companies, especially small and medium enterprises, to leverage digital infrastructure more effectively and compete on a global stage.

In conclusion, for organisations in the Asia Pacific, investing in digital infrastructure must shift from trends to strategic imperative. It is about investing in the future, whether matters of innovation, operational efficiency, or to drive market leadership. Companies that embrace this strategic direction will not only successfully navigate the current economic landscape but will also cement their positions as leaders in a digitally-driven global economy, as organisations look to redefine their business models and secure a resilient and prosperous future.

*Forrester: Global Tech Spend To Grow 5.3% In 2024, Reaching $4.7 Trillion

**Enterprise Horizons - Expereo

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