Skip to main content

Managed Service Providers to Outperform

According to the latest IDC Asia-Pacific (excluding Japan) Enterprise ICT Outsourcing and Managed Services Forecast, the market is expected to exceed $29.5 billion in 2008, an 11 percent increase over 2007.

IDC expects value added managed services -- or discrete outsourcing -- to outperform the market with 16 percent growth, reaching $9.1 billion in 2008.

"Despite the drumbeat of economic and corporate earnings coming out across the world that points to an economic slowdown, we continue to be cautiously bullish that the industry can withstand the headwinds of a slowing economy" said Adrian Dominic Ho, Research Manager for IDC's Asia-Pacific Managed Services and Enterprises Networks.

Cost savings continue to drive the outsourcing and managed services industry, which explains its resiliency. However, IDC expects a slight slowdown in business transformation engagements due to the growing economic uncertainty.

Despite this, organizations are still eager for true and real innovation and it is here that will provide some of the richest prizes for the managed service provider industry. According to IDC, the managed converged communication market will be the fastest growing engagement in 2008 with an annual growth rate of 26 percent.

Over the next 12 months, IDC believes that some of the major transformation themes that will feature strongly include the continued standardization and migration to an all IP converged platform.

"The real innovation here is the introduction of messaging and collaboration tools from video conferencing to instant messaging, " adds Adrian, "Enterprises believe an effective communications strategy is becoming vital and are looking for unified communication solutions to be integrated into their desktop and IP-transformation managed services engagements."

IDC believes that datacenter managed services will continue to feature prominently in the years ahead. Managing a datacenter is one of the biggest pain points for today's IT managers as a result of the escalating cost associated with it.

"The cost of managing datacenters has reached breaking point but fortunately there are technologies out there from virtualization to power and cooling that can help." adds Adrian, "Enterprises are looking for service providers that can deliver a holistic approach and solution in an outsourced and hosted model to resolve their datacenter issues."

With consolidation and centralization of datacenters, IDC also believes that application performance delivery across the WAN becomes another critical factor. Managed WAN optimization and load balancing are some of the emerging forms of managed services that are being derived out of datacenter consolidation activity.

In 2008, IDC expects datacenter-managed services to grow by 18 percent.

Popular posts from this blog

Industrial and Manufacturing Technology Growth

In an evolving era of rapid advancement, market demand for innovative technology in the industrial and manufacturing sectors is skyrocketing. Leaders are recognizing the immense potential of digital transformation and are driving initiatives to integrate technologies into their business operations.  These initiatives aim to enhance efficiency, reduce costs, and ultimately drive growth and competitiveness in an increasingly digital business upward trajectory. The industrial and manufacturing sectors have been the backbone of the Global Networked Economy, contributing $16 trillion in value in 2021. Industrial and Manufacturing Tech Market Development   This growth represents a 20 percent increase from 2020, highlighting the resilience and adaptability of these sectors in the face of unprecedented challenges, according to the latest worldwide market study by ABI Research . The five largest manufacturing verticals -- automotive, computer and electronic, primary metal, food, and machinery -

Rise of AI-Enabled Smart Traffic Management

The demand for smart traffic management systems has grown due to rising urban populations and increasing vehicle ownership. With more people and cars concentrated in cities, problems like traffic congestion, air pollution, and greenhouse gas emissions are pressing issues. Since the early 2000s, government leaders have been exploring ways to leverage advances in IoT connectivity, sensors, artificial intelligence (AI), and data analytics to address these transportation challenges. The concept of a Smart City emerged in the 2010s, with smart mobility and intelligent traffic management as key components.  Smart Traffic Management Market Development Concerns about continued climate change, as well as cost savings from improved traffic flow, have further motivated local government investment in these advanced systems. According to the latest worldwide market study by Juniper Research, they found that by 2028, smart traffic management investment will be up by 75 percent from a 2023 figure of

How Generative AI Will Reshape the Economy

The Global Networked Economy -- a term synonymous with the interconnectedness of businesses, individuals, and governments worldwide -- has undergone a remarkable transformation in 2023. Fueled by the rapid growth of digital technologies and the global internet, this phenomenon has given rise to a worldwide marketplace that has already revolutionized the way we live, work, and play. The impact of Generative Artificial Intelligence (GenAI) in 2024 will be equally disruptive to many traditional business leaders. GenAI will also create huge opportunities for the fearless pioneers. Global Networked Economy Market Development The Global Networked Economy's evolution traces back to the advent of the Public Internet. The introduction of eCommerce, social media, and cloud computing has been instrumental in reshaping how businesses operate and engage with their customers. This interconnected ecosystem empowers savvy leaders to access new markets, trim operational costs, enhance commercial e