Enterprises Engage in Discrete Affair with Outsourcing as a Trinity of New Opportunities Emerges in Asia/Pacific Excluding Japan, says IDC

November 07, 2006

Singapore and Hong Kong, November 07, 2006 – According to IDC's inaugural Asia/Pacific ICT Outsourcing and Managed Services study (Doc # AP144106N), the total ICT Outsourcing and Managed Services market in the region topped US$10.9 billion in first half of 2006. IDC expects the total market for 2006 to reach US$23 billion, or an annual growth rate of 12% over 2005. However, Value Added Managed Services (VAMS) is expected to outpace the entire market with a growth rate of close to 20%. This compares favorably with growth rates of 5-6% for enterprise wide outsourcing and 9-11% for managed connectivity.

"The VAMS market was the dog that continued to bark in 2006. There is an undeniable shift in sentiments towards a more discrete form of outsourcing as Asian enterprises continue to quench their insatiable appetite for cost savings," said Adrian Dominic Ho, Research Manager for IDC's Asia/Pacific Managed Services and Enterprise Networks.

"There has been a recent frenzy of activities amongst the vendor community especially in the established markets like Australia and Singapore," notes Adrian. "New partnerships are being formed, existing players are innovating to stay ahead of the game, and newer players like Google are throwing their hat into the ring."

IDC has identified a trinity of emerging Managed Services that will provide service providers the next lap of growth. The trinity consists of Managed Security Services, Managed Converged Networks and Managed Mobile Services.

"This trinity of opportunities is providing exciting times for the industry. We are finally seeing applications and solutions in the market place that will enable enterprises to realize the full potential of both an IP and wireless networks" Adrian continues, "IDC's 2007 growth projection for managed intrusion and detection (managed security) is almost 30%. If service providers are not looking into these markets, they will miss out on the next big wave of growth."

Asia/Pacific (excluding Japan) ICT Outsourcing and Managed Services Market, H106

Source: IDC, 2006

Notes:

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