Malaysia Enterprise to Increase Spending on Managed Services in 2007
06 November, 2006
Kuala Lumpur, November 06, 2006 –
The growing complexity of managing an enterprise's IT infrastructure drives the demand for managed services. As t he Malaysian ICT market steadily progresses on the back of government initiatives, an array of new and traditional information and communication technology (ICT) service providers are entering the fray — and they are not necessarily battling each other. Although more players are entering the managed services market, service providers are increasingly pursuing partnerships and alliances due to the range of services and solution sets demanded by modern-day enterprises.
According to IDC's latest study, Asia/Pacific Managed Services Survey completed in June 2006, 40% of Malaysian enterprises plan to increase their managed services expenditure in 2007. Amongst these enterprises, higher spending on the management of applications, networks, storage and security will drive the demand for managed services in 2007. The market is ripe for service providers who have expertise in managing these particular functions and IDC also notes the great importance that enterprises place on employing a service provider who has specific vertical experience and expertise. "As enterprises the world over continually emphasize lowering IT operational costs whilst keeping up with innovation; managed services is seen as a key component to achieve such goals and runs in-line with staying up-to-date with technological developments," says Mark Seah, Associate Analyst, Telecommunications Research, IDC Malaysia. "IDC sees managed services as becoming a key focus area for various groups of service providers. Effective partnerships will drive adoption, where building trust amongst organizations is essential for revenue growth to accelerate."
As partnerships and alliances become more commonplace between various categories of managed service providers, the acceptance of "one-stop shop" type services is likely to grow as service providers essentially bundle the services of more than one vendor in their managed services agreements. The success of working with other managed service providers will vary on a project-to-project basis, but pairing with the right managed service providers whose skill set and culture complement one another will be vital to successful partnerships, ensuring that both client and service providers are satisfied.
"The intersecting nature of managed services requires service providers to actively seek partnerships as the complexity of managing enterprise IT and communication systems grows. Progressing simultaneously with ICT advancements, the managed services market will continue growing and will account for a greater proportion of overall enterprise ICT spending in the near future," added Mr. Seah 
Contact
For more
information, contact:
Chee-Kian Chong
Events & Marketing Executive
Tel: +603-2169-7521
Fax: +603-2163-5098
Email:ckchong@idc.com
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