IT services market in APEJ to grow by 9.1 percent in 2012

by CXOtoday Staff    Feb 15, 2012

Economic forecasts for 2012 remain at the same levels of growth as seen in 2011, giving an indication that IT consumption will continue at previous rates, says IDC.

The overall IT services market in the Asia/Pacific excluding Japan (APEJ) region is expected to grow by 9.1 percent in 2012, according to the latest IDC’s Asia/Pacific Semiannual IT Services Tracker Report.

“The outlook for 2012 has been tampered with concerns over sovereign debt issues from Europe, resulting in the potential impact on the flow-on effect that would have in Asia. In spite of these, economic forecasts for 2012 remain at the same levels of growth as seen in 2011, giving us indication that IT consumption will continue at previous rates,” said Linus Lai, Associate Director, IDC’s Asia/Pacific Services Research Group.

According to IDC, 2011 was a tumultuous year for some countries in the region that saw flooding in Australia at the start of the year and then in Thailand, economic inflation in Vietnam, political unrest in ASEAN and a less than expected growth in India.

This year also marked mega projects such as the national ID project in India and Indonesia, as well as the National Broadband Network (NBN) development in Australia, lifting the spend in project-oriented services in the region.

IDC said that the overall impact of cloud computing, as a viable delivery of IT resources, from software to IT infrastructure, has been far reaching.

Some examples include how Singapore is aiming to take the lead in the region to address data sovereignty issues, how enterprises like banks are leveraging cloud to lift and shift some of their workloads away from traditional outsourcing constructs into newer service delivery models.

The research firm said that it expects 2012 to shift from asset-class based pricing to a service-based delivery with lesser reliance on intensive human resource and more automation, judging by the launch of several new data centre projects that have been in planning for some time from both the enterprise and service provider segment.

The boom in information platforms and around big data will see a renaissance of Enterprise Resource Planning (ERP) type projects that mark a cycle of investment in business platforms every decade.

IDC believes that 2012 will be the year that kicks off this boom due to impressive new capabilities and technology investments from the vendor community in the previous 12 months. The potential for services surrounding the information layer is fraught with challenges and opportunities for service providers with deep vertical industry knowledge and capability to deliver business driven outcomes.

Enterprise mobility and redefining the next generation workplace will create new constructs for services- and cloud-oriented delivery models and drive the demand for network and communications services.

Investments in social media, location based services, mobility management platforms and security services will garner much interest from leading enterprises seeking to enable and motivate a younger workforce in Asia for competitive advantage.

“As Asian enterprises embark more aggressively on expansionary strategies, IDC expects Asia to take a leading role in next generation IT constructs,” said Lai.