IT services market to continue growth momentum in 2011
ConvergenceAsia staff
05/12/2010

According to the latest IDC’s Asia/Pacific Semiannual IT Services Tracker, the overall IT services market in the Asia/Pacific excluding Japan (APEJ) region will continue its growth momentum in 2011 after a strong recovery in 2010. IDC forecasts the market to experience a 9.4 per cent year-on-year growth in 2011, largely driven by outsourcing and project-oriented services, as well as uptake of cloud services.

“New technologies and service models are changing the IT landscape. IT-as-a-service and pay-as-you-go models have triggered the market to explore alternatives to traditional outsourcing models. This has resulted in increasing interest in hosted application management as a transition to a public cloud along with data centre consolidation and virtualisation projects,” says Natalie Wan, Senior Research Manager of IDC’s Asia/Pacific Services Research Group.

Key findings from the study include:

- Consultancy-led and business transformation projects, especially cloud related initiatives, are picking up fast to enable enterprises to capture opportunities in the recovered economic environment.
- Server, storage and desktop virtualisation, along with transition to next-generation data centre, continue to fuel the growth of network consulting and integration services.
- Business analytics solutions are growing fast as more enterprises are demanding predictive capabilities to capitalise on the value of information and enhance competitiveness and time-to-market.
- Enterprises are looking for end-to-end managed services. Extending the partner ecosystem will be critical to address the growing requirements for compliance and disaster recovery.
- Given the uptake of mobile technology, cloud computing, social networks and Web 2.0, security and risk assessment services remain high on the agenda to assist enterprises to evaluate the security posture prior to deploying new technologies and build stronger information governance for managing corporate information in the cloud.

“Transforming IT infrastructure, modernising applications, as well as streamlining business processes, are key drivers for enterprises’ IT investment. The pressure on reducing CAPEX remains and this will continue to fuel innovation in outsourcing services over the next 12 months, as governance and IT service management take centre stage in the value proposition for outsourcing services,” concludes Linus Lai, Associate Director, IDC's Asia/Pacific Services Research Group.

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