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2012 will be exciting for Asian IT services industry

Anuradha Shukla | Feb. 16, 2012
Overall IT services market in the APEJ region to grow by 9.1 percent this year, predicts IDC.

Year 2012 will be exciting for the Asian IT services industry, according to the latest IDC's Asia/Pacific Semiannual IT Services Tracker Report. 

The research firm predicts that the overall IT services market in the Asia/Pacific excluding Japan (APEJ) region will grow by 9.1 percent this year.

Although the future looks bright for this region, IDC's 2012 forecast for China's IT services is lowered to 12.8 percent year-on-year (YoY) in 2012, compared to the growth of 14.9 percent expected in 2011. 

IDC also expects that 2012 will see a shift from asset-class based pricing to a service-based delivery.

There will be lesser reliance on intensive human resource apparent by the launch of several new data centre projects by both the enterprise and service provider segment.

"2012 will be an exciting year and we will see the Asia market continue with the growth momentum we had seen in 2011. As Asian enterprises embark more aggressively on expansionary strategies, IDC expects Asia to take a leading role in next generation IT constructs," said Linus Lai, associate director, IDC's Asia/Pacific Services Research Group.

Renaissance of ERP type projects

IDC believes that 2012 will see a renaissance of enterprise resource planning (ERP) type projects that mark a cycle of investment in business platforms every decade.

This growth will be due to new capabilities and technology investments from the vendor community in the last 12 months.

The latest IDC Asia/Pacific Semiannual IT Services Tracker Report indicates that this year will offer opportunities for service providers with deep vertical industry knowledge and capability to deliver business driven outcomes.

Also, investments in social media, location based services, mobility management platforms and security services will garner much interest from enterprises who want to motivate a younger workforce in Asia to gain competitive advantage.

"The outlook for 2012 has been tampered with concerns over sovereign debt issues from Europe, resulting in the potential impact on the flow-on effect that would have in Asia.  In spite of these, economic forecasts for 2012 remain at the same levels of growth as seen in 2011, giving us indication that IT consumption will continue at previous rates," said Lai.


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