Springboard Research has announced the latest data from its study of public sector IT spending in Asia (including Japan). Study results show that growth was steady in the region. Based on its market analysis, Springboard expects IT spending to be $51.5 billion in 2007, with the market growing at a compound annual rate of 6.9% from 2006 through 2010.

India is the fastest growing market in the region, and is forecast to grow at a compound annual growth rate of 19.5% through 2010.

While federal IT spending accounts for 72% of all expenditures, Springboard is seeing increased growth in spending at the next level, comprised of state, regional, provincial and local governments.

Key sub-verticals within the public sector include education (public and private), which will account for 22% of spending in 2007. Other key sub-verticals are healthcare (public and private) and defense/security, with healthcare being the fastest growth sub-vertical across the region.

"In regards to technology opportunities, the majority of revenue will still come from hardware as infrastructure is built up and expands, but the area of higher growth will definitely be software,” said Jingwei Liu, market analyst for Springboard Research. “This specifically will be enterprise applications and industry-specific solutions, which will grow at about 11% across the region. Countries like China and India will see close to 20% growth in these areas,” added Liu.