Skip to main content

Managed Services will Grow in Asia-Pacific

The Asia-Pacific (excluding Japan) IT services market is expected to remain healthy and grow to $49.4 billion in 2009 -- despite IDC's recent downward adjustment of the region's overall IT spending forecast.

The optimistic outlook is driven primarily by continued demand for managed or hosted IT and network services, as cost management becomes a key focus for organizations in the region.

In addition, the relatively stronger resistance to the global economic recession in the IT services market is being helped by continued double-digit growth in the developing markets of India and China -- as well as contribution from emerging countries such as the Philippines, Thailand, and Vietnam.

According to IDC's latest poll conducted in October, more than 12 percent of 400 organizations surveyed indicated they would increase their spend on managed or hosted out-tasking services in 2009.

Apparently, this is the only category in which there are double-digit percentages across the spectrum of hardware, software and services. It does highlight that opportunities will exist in the services space in 2009.

IDC found a significant proportion of survey respondents indicating that they would invest in cloud-based services, as well as other managed services, and were looking to allocate higher budgets for such out-tasking related services.

They anticipate that the impact of IT services will vary across the different service lines, countries and verticals. For example, project-based services -- such as systems integration -- are likely to suffer the most.

They expect organizations to scrutinize portfolios of strategic versus non-strategic projects with a view to putting certain initiatives on hold, if not canceling them altogether.

Managed service adoption will grow as organizations move IT assets off their books and scrutinize their operating expenses more closely. New support contracts in conjunction with new hardware sales are likely to decrease, but organizations will look to lengthen the life-cycle of existing infrastructure, delay refresh cycles, and will therefore look to procure extended support services as warranties expire.

From a vertical perspective, the public sector is expected to be a potential bright spot, as spending in this sector tends to be anti-cyclical in nature. Markets with good potential for government investment in new IT services between 2009 and 2010 include Australia, Singapore, China, India and Hong Kong.

Popular posts from this blog

Mobility-as-a-Service Creates Disruptive Travel Options

Building on significant advances in big data, analytics, and the Internet of Things (IoT), more innovative transit service offerings aim to increase public transport ridership and reduce emissions or congestion within metropolitan areas. By providing these services through smartphone apps, the transit services also significantly increase user convenience, providing information on different human mobility offerings -- including public transport, ridesharing, and autonomous vehicles. Mobility-as-a-Service Market Development According to the latest market study by Juniper Research, Mobility-as-a-Service (MaaS) subscribers will generate $53 billion in revenue for MaaS platform providers by 2027 -- that's rising from $5.3 billion in 2021. Let's start with a basic definition. MaaS is the provision of multi-modal end-to-end travel services through single platforms, by which users can determine an optimal route and price. The study identified a monthly subscription model as key to incr

Hybrid Work: How to Enhance Employee Productivity

When you hire qualified talent for a key role and trust them to perform, you'll likely achieve the best outcome. Skilled and experienced people will deliver results, regardless of the challenges. That's a key lesson learned from the pandemic experience as most knowledge workers were asked to work from their homes. However, some resist returning to an open-plan office. It's unacceptable. Meanwhile, forward-thinking leaders decided a "return to normal" is undesirable, and in hindsight, everyone should aspire to be more accomodating than before. Therefore, location flexibility is okay. Hybrid Workforce Market Development How will people adapt to these changes? They'll apply the modern IT tools at their disposal. They'll learn new skills and thrive. Nearly 80 percent of employees are now successfully using online collaboration tools for work in 2021 -- that's up from just over half of workers in 2019, according to the latest market study by Gartner. This g

Robocall Mitigation Solutions to Halt Criminal Threats

If you answer the phone and hear a recorded message instead of a live person, it's likely a robocall. A robocall is a phone call that uses a computerized autodialer to deliver a pre-recorded message. In 2020, the U.S. Federal Trade Commission (FTC) received 2.8 million consumer complaints about robocalls. Offering solutions to robocalling and associated fraudulent business practices, computerized mitigation platforms are an integral part of the solution. Platforms that are focused on actionable systems to disrupt unsolicited and potentially criminal phone calls help telecom service providers and industry regulators. Issues of whether one-size-fits-all developments are sufficient to be effective across the spectrum need to be addressed, and whether a single telecom network operator working unilaterally with a third-party platform could compromise desired or mandatory industry-wide standards. Robocall Mitigation Market Development According to the latest worldwide market study by Jun