The information technology (IT) market continues to evolve rapidly in Asia. The region has longed served as a leading outsourcing destination, offering an advanced ecosystem for foreign investors that would like to change their business structure. However, the industry is developing rapidly, driven by adoption, innovation, start-ups, and new technologies, such as artificial intelligence, cloud computing, analytics, and smart mobility. Meanwhile, as developed industries continue to hone their edge, the IT-led Industry 4.0 transformation is expected to lead the next wave of growth.
While foreign investors have many options to develop their business in Asia, where and how to invest is a key consideration given the unique offerings of tier one hubs like Hong Kong, Singapore, and Bangalore as well as emerging hubs in mainland China, Southeast Asia, and India. The industry’s rapid development in the region – underpinned by the size of the labor pool as well as the development and adoption of digital infrastructure – does, however, have to contend with existing laws and regulations in Asia that have not always been able to keep pace with the industry, especially in areas such as data privacy and cyber security. In this labor- and compliance-heavy environment, foreign investors need to be well-informed to maintain a competitive business.
Dezan Shira & Associates has successfully guided many foreign investors in understanding the market dynamics, investment conditions, and establishment consideration for the industry in Asia. Beyond this initial planning, the firm has helped many IT companies manage the evolving tax, legal, and operational environments in Asia as they adopt to best local and international practices in the industry and region.