APEJ IT services market to grow 9.4% in 2011, say IDC

Outsourcing, project-oriented services and cloud services boost IT services growth

Asia/Pacific excluding Japan (APEJ) region overall IT services market is expected to grow 9.4% year-on-year in 2011, driven by outsourcing, project-oriented services, and cloud services, according to market research firm IDC.

The research firm said that 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 offerings are growing fast as more enterprises are demanding predictive capabilities to capitalise on the value of information and enhance competitiveness and time-to-market.

Further, 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, IDC said.

The report said that 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.

IDC Asia/Pacific services research group associate director Linus Lai said transforming IT infrastructure, modernising applications, and 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," Lai said.