IDC Government Insights observed that the translation of stimulus package announcements into real project initiations occurs at varying paces across segments such as infrastructure, health, education, tourism, aviation, and social protection.
As governments continue to deploy fiscal and monetary packages, it is vital for the business community to strategize accordingly.
The IDC report, Stimulus Packages to Revive the Economy: Governments' Response to the COVID-19 Pandemic in Asia/Pacific, emphasizes the need for governments to ensure that stimulus funds reach the most affected sectors and to revisit the outsourcing model to mitigate offshoring risks.
"Governments would be wise to keep a close eye on the motivating factors for widespread constituent digitalization; size the opportunity to understand what technologies and use cases worked, and what didn't; as well as continually track the flow, outcomes, and value-creation of domestic stimulus spending," said Gerald Wang, head, Asia Pacific Public Sector.
To establish public trust in the government's capacity to turn around the economy through stimulus funds, he believes proper audits and regular visibility on funding outcomes will be critical.
With large-scale projects lined up to further boost the economy, the report suggests that businesses leverage COVID-19 stimulus measures to propose collaboration with government bodies in tech and non-tech projects.
Vendors are encouraged to forge partnerships with government bodies in projects that not only cover planning and technological support in deployment but also maintenance and operations stages.
- A multitude of businesses in the Asia/Pacific countries is at risk of going out of business, as a result of the pandemic's widespread socio-economic impact. Micro, small, and medium-sized enterprises (MSMEs), and their employees have been hard hit by the crisis.
- The year 2021 will see continued growth and implementation of government-initiated projects in the sectors severely affected by the pandemic.
- ICT investments, as part of stimulus packages, were prominent in countries such as Singapore, Australia, China, and South Korea.
"Presently, Asia/Pacific nations are notably struggling to cope with socioeconomic stagnation as governments continue to leverage controlled lockdowns to battle new COVID-19 virus strains and rising infection numbers. This meant that an unprecedented, widespread use of digital technologies became essential tools as constituents adapted to the new normal of 'live, learn, work, and play.' The question remains; however, will such deep use of digital technologies continue after countries emerge from the pandemic?" continued Wang.
The report reveals that uplifting SMEs and strengthening connectivity infrastructure are key focus areas during the crisis. ICT investments had a major focus on healthcare particularly telemedicine, 5G infrastructure, and digitalization of businesses as part of crisis management.