HONG KONG, 18 MAY 2009 Asia's managed print services market is forecast to grow at a compound annual growth rate (CAGR) of 15.5 per cent, from US$419.9 million in 2008 to US$863.4 million in 2013, said research firm IDC.
IDC's 2009-2013 analysis and forecast of the managed print services (MPS) market in Asia Pacific excluding Japan (APEJ) sees double-digit growth for the industry, despite the current economic condition.
In the emerging economies of China, India, Indonesia and Malaysia, MPS is expected to see rapid growth in the next five years.
Albeit at a declining rate, mature markets such as Australia, South Korea and Singapore will also continue to see growth, according to IDC.
Growth despite economic downturn
Suchitra Narayan, research manager for IDC's Asia/Pacific IT Services Research, said that the MPS market will see growth sparked, to a certain extent, by the global economic downturn.
"The current economy is turning organisations away from capital investments, resulting in an increase in demand for extension of warranties and increased services and maintenance contracts, said Narayan. The decline in hardware sales is being adequately balanced by the demand for MPS. IDC expects a significant segment of the hardware refresh cycles scheduled for 2010 to be delayed to early 2011, therefore improving the services demand for 2010.
Cost management is still the common and key focus across verticals and countries. While early 2008 saw a migration from basic cost savings to value-added services such as business process improvements and green technologies, the current economic conditions have forced organisations to revisit their focus on the basics cost management.
MPS fits well into the new demand from organisations which are migrating CAPEX top OPEX and increasing the lifecycle of hardware, said IDC.
Only bright spots: China & India
IDC expects to see double-digit CAGRs for MPS market from 2009 to 2013, especially in China, India and Indonesia, assuming political stability in these markets. The China and India markets, in particular, represent large opportunities that are the only bright sparks in IT services for the APEJ market given the current economy.
IDC believes that India will see robust growth of 6.7 per cent in 2009 for IT services and for China IT services, growth of 11.7 per cent.
Although Indonesia accounts for only 3.5 per cent of the total MPS market in APEJ, the country is keen to adopt proven models and is looking for document management systems that have been tried and tested by neighboring countries. The Indonesia MPS market is projected to grow at 18.6 per cent year-on-year.
Seeking document-related solutions
Despite the uncertain economic times, the financial and government sectors, which are key proponents of document management solutions in the APEJ region, will continue to invest in the same.
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