ITO in APAC: Key market research findings
- Increased adoption of application outsourcing
- Infrastructure outsourcing to be the major revenue contributor
- Key vendors include Accenture, Fujitsu, HP, IBM, and TCS.
Technavio has released a new report on the IT Outsourcing Market in APAC 2016-2020, to its ITO portfolio. The information technology outsourcing (ITO) market in APAC is anticipated to grow at a CAGR of around 6% between 2016 and 2020. This market gaining momentum with increased IT spending and associated outsourcing activities by organizations in the region to stay competitive in the globalized scenario. Several companies in APAC are implementing advanced technologies such as Big Data, analytics, mobility, and cloud services in their operations. Such advanced technologies offer innovative solutions that help client firms to add value to their service offering for their customers. With the rapid modifications in technology, the IT requirements for companies are also changing. These developments have pushed many client firms to make massive investments in IT to upgrade and equip their IT infrastructures with the latest technologies.
The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.
“The changing business requirements have prompted several companies to outsource their application development services to ITO service providers to gain a competitive advantage in the marketplace. Many organizations in the region are outsourcing their application development services as the present market conditions demand speed and agility to deliver services. They are implementing application development services with modular architectures that are compatible with advanced IT infrastructure such as the cloud. ITO service providers are also developing applications equipped with intelligent systems that can manage a high volume of data and include multiple features,” says Amit Sharma, Lead Analyst, ICT, Technavio Research
According to this market study, the infrastructure outsourcing segment will occupy more than 73% of the total market share during the forecast period. Infrastructure outsourcing helps companies to cut IT infrastructure costs by reduction of total cost of ownership, improved efficiency and network security, better ROI on IT investments, and adherence to governance and compliance. Its ability to improve efficiency by conferring flexibility, scalability to business operations will result in this segment’s steady growth during the forecast period.
The key vendors in the IT outsourcing market in APAC include Accenture, Fujitsu, HP, IBM, and TCS. This market is highly fragmented due the presence of numerous large and small players. The market competition is anticipated to intensify with many players foraying into the market space. The players in this market are working to increase their market shares through partnerships and strategic acquisitions. To survive and succeed in this market, the vendors have to differentiate themselves by offering innovative, cost-effective services to the end users.
A more detailed analysis is available in the Technavio report, IT Outsourcing Market in APAC 2016-2020.
We can customize reports by other regions and specific segments upon request.
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