Resources Consolidation, Security Enhancement and Business Innovation Spur 2015 IT Services Spending in Asia Pacific: IDC
Singapore and Hong Kong, December 12, 2014 – IDC’s 2014 IT Services Survey results reveal that the top five focus areas for IT services spending in the coming 12 months are: IT infrastructure resources consolidation; security enhancement; IT-enabled business innovation; social applications; and Big data & Analytics.
“As we look ahead to 2015, the industry is entering the most critical period of disruptive transformation — what IDC calls the “innovation stage” of the 3rd Platform era. IT services (inclusive of Cloud services) will be the most important catalyst and enabler, to facilitate this trend,” says Cathy Huang, Research Manager, Services and Cloud Research Group, IDC Asia/Pacific.
The results are in line with findings of the IDC Asia/Pacific C-Suite Barometer 2014 study: APEJ CIOs’ top priorities are saving to invest and innovate, security the business.
The opportunities are not only found in the professional services market (which IDC expects to double in the next three years), but also in the managed services and outsourcing markets. The 2014 IDC IT Services Survey also asked respondents the primary services types they engage for each critical investment focus area.
Among the top three areas, the results showed more than 39% of respondents chose outsourcing/managed services as the primary service types they will engage in 2015. The business innovation theme is highest at 54%, which means more than half of the respondents chose the outsourcing/managed services model when it comes to meeting business innovation needs.
“This finding is in line with the current transformation happening in the offshore and Business Process Outsourcing (BPO) market. Customers who are currently outsourcing their business processes are moving away from pure cost reduction metrics to more business insights-driven metrics which can help them innovate,” says Huang.
Huang further explains, “IDC believes customers will select partners who can help provide business data/insight and consulting services to help them enhance their competitive positioning. Moreover, the BPO service delivery is moving toward a platform-based model, and customers expect a high level of automation. The promise of Business Process-as-a-Service (BPaaS) is to provide the next quantum of reducing costs, speed of service delivery, better financial management, and the ability to integrate more easily with other business processes. ”
Better security when IT resources are consolidated in datacenter
On a five point scale, majority of respondents (i.e. 63.7% of respondents) chose “agree” and “extremely agree” for the statement “When I consolidate my IT resources in the datacenter, it allows me to have better security controls and management.”
The average mean score for this statement across APEJ region, 4.04, is the highest score among other assumptions tested in the survey. This result is in sync with the top two focus areas identified from the survey for IT services spend: IT resources consolidation and security enhancement.
“We have seen a growing number of organizations across the region leveraging their consolidated datacenter as part of their security strategy. Datacenters across the region are undergoing a major revamp and security is a priority for the updates.”
Huang believes consolidating resources in datacenters will benefit network security vendors, and other facets of security players, such as mobile security and content security.
Security and the Cloud
The IDC IT services survey also revealed that the primary services types for security enhancement are consulting/system integration and managed/outsourcing services, in order of priority.
“Security is a critical topic for CXOs, and the traditional product-oriented sale is no longer sufficient. Customers need to ensure the maximum value and protection they can gain from the security technology investment, and as such, the engagement has become more consultative in nature,” Huang explains.
Other than the top two identified services types, 37.1% of respondents chose “use of cloud to deliver” as well. That, combined with the option of managed/outsourcing services (which includes all the cloud-based managed/outsourcing services), is in sync with one of IDC IT services predictions for 2015: 60% services for security will be dependent on cloud-enabled tools and service delivery.
About IDC’s IT Services Survey
This is an annual survey that presents results on emerging trends and buying patterns impacting the consumption of IT services and captures the use of IT services, IT outsourcing, and managed IT services in different markets in the Asia/Pacific region. The survey was conducted from September to November 2014. 1,307 respondents across industries were interviewed in 13 countries: Australia, China, Hong Kong, India, Indonesia, Korea, Malaysia, New Zealand, the Philippines, Singapore, Taiwan, Thailand, and Vietnam. Respondents provided insights about IT transformation, vendor engagement, security and application services. The four reports based on the survey results are scheduled to be published in the coming six months.
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 48 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world’s leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.
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