Monday, March 13, 2017

Customer Experience is at the Core of Digital Strategy

Digital disruption is a borderless phenomena that has reached all parts of the globe -- including the Asia-Pacific region. According to the latest worldwide study by IDC, digital transformation (DX) is a key growth driver of the services market, requiring business and IT organizations to work together toward shared goals.

Transformation, as a part of an enterprise organization's digital growth journey, is emerging as the top theme requiring significant change across the board; including alteration of legacy business processes, IT infrastructure, applications, and the traditional enterprise data center environment.

Furthermore, vendor DX deals are getting smaller in nature because they need to be agile and create opportunities for enterprises to strengthen their relationships with customers, flatten organizational structures, and redefine traditional industries.

Cloud Services Market Development

Business leaders are challenged to move their enterprises to the next level by employing digital technologies coupled with organizational, operational, and business innovation engagements to create new ways of operating and growing their company.

"As digital strategy picks up pace in the region, there is an increasing number of digital-related engagements being signed with focus on transformation, including expansion into new markets, and driving innovation throughout the organization," said Sherrel Roche, senior analyst at IDC.

With the growing importance of DX technologies, established service providers need to continue to focus on solidifying their advisory, consulting, integration, and ITSM automation skills.

The outsourcing services market will continue to be challenged by a combination of more cloud players, fluctuating economy, new delivery models, and increasing pressure on customers to do more with less. These changes will involve shifts in annual contract value, annual contract length, and activity metrics.

Furthermore, the rate of substitution of cloud services for traditional outsourcing-managed services is accelerating among enterprises. There is a growing preference for bundled cloud computing services with traditional capabilities or hybrid cloud services as part of a single outsourced-managed services engagement.

IT executives are struggling to manage their traditional IT infrastructure as demand for delivering higher service levels and new technology capabilities as well as accelerating application delivery while controlling costs keeps increasing.

Meanwhile, end users are demanding more automated cloud-based services, including 24 x 7 operations of IT environments, mainframe modernization, and transformation of infrastructure and software applications.

Outlook for Cloud Services in Asia-Pacific Region

According to the IDC assessment, service providers and systems integrators in the region must position themselves as value-added hybrid cloud computing experts -- emphasizing on managed and professional services capabilities of their organization as a key component of their core value proposition.

In addition, IT service providers in the region must focus on growing wallet share within the key existing clients, and provide clear digital growth roadmaps to senior enterprise buyers -- assisting them to essentially leapfrog to the next-generation of digital business technologies.