The public sector continues to be one of the largest IT spending vertical in the region. IDC predicts a strong compound annual growth rate (CAGR) of 8.7% from 2006-2010 with expenditure to reach $31.67 bln by 2010. China, with the largest public sector market at $6.5 bln in 2006, is expected to almost double by 2010 to $11.7 bln. India and emerging economies like Vietnam will see CAGR of over 16% as they attempt to accelerate the modernization of their government and the learning curve of the economy.