KPMG outlines key investment areas in IT in Central Asia

Companies in Central Asia (CA) and the Caucasus are considering fewer areas for IT investment compared to the global average. One of the key areas for investments in 2025 is XaaS, which is any service rendered via cloud computing, according to a tech report by KPMG, a global network of professional firms providing audit, tax and advisory services. The data for the report has been collected through a survey of more than 70 managers responsible for implementing the tech agenda in companies based in CA and the Caucasus.

According to the report, 93% of enterprises in these regions plan to invest in XaaS. This interest is driven by organizations’ intentions to enhance operational flexibility, reduce capital spending and shorten the time frame for introducing innovative solutions. These factors are particularly important in a rapidly changing business environment.

Furthermore, companies in both regions are placing significant emphasis on investments in cybersecurity and data analysis tools (70% and 63% of companies in CA and the Caucasus, respectively).

«It is quite obvious that, over the past two to three years, businesses have become more aware of emerging cybersecurity threats and the importance of data protection. Security systems are no longer perceived as routine tools but as a key element of digital transformation,» the report said.

The document also reads that, even though investments in data management technologies used to be relevant in recent years, they have eventually moved to the back burner. Nevertheless, market leaders are continuing to actively invest in data management tools, including those designed for handling data quality, modelling and so on.

The majority of companies that participated in the survey plan to cover their needs in all IT sectors both globally and regionally within five years. However, the proportion of businesses considering investments in artificial intelligence, low-code automation, quantum and edge computing is significantly smaller. All in all, the business doesn’t see anything that could hinder their IT projects from being implemented, according to the survey. 

Notably, IT and video game development emerged as the largest sector within the creative industry in Kazakhstan, generating roughly $887 million in gross value added (GVA). In 2023, it accounted for 38% of the entire industry’s GVA.