Story image

Third platform driving IT services spend

14 Dec 2015

ANZ is expected to record a small increase in IT services growth next year, with the overall Asia Pacific IT services spend forecast to post a 6.5% value growth, year on year.

IDC says the IT services market faced difficulties this year due to the depreciation of many currencies in the region against the US dollar, and the slowdown in the China economy.

Despite this the analyst firm believes ApeJ IT services will remain positive next year as digital transformation and smart city initiatives drive demand.

Vidhika Sehgal, IDC Asia Pacific sneior research manager, services, says demand is primarily being driven by digital transformation initiatives across verticals, particularly banking, retail and public sectors.

“Enterprises are increasingly leveraging third platform technologies to build a cohesive digital agenda that focuses on achieving business outcomes,” Sehgal says.

She says smart city initiatives in countries such as China, India and Singapore have also fuelled demand for cloud, analytics, mobility and security solutions.

Sehgal says within IT services segments, the market is being driven by growth in IT consulting, systems integration and hosting infrastructure service, mainly because of an increased migratio nto the cloud.

These three segments together contribute nearly 30% to ApeJ’s IT services market.

IDC says consulting and integration services are in demand as companies look for third party services for identifying and implementing third platform solutions to migrate legacy systems and also complement the existing IT architecture and contribute to business outcomes.

The company says growth in traditional outsourcing services continues to be adversely impacted by the shift to cloud, especially as deal size, duration and structure moes in favour of a more hybrid IT environment.

Microsoft appoints new commercial and partner business director
Bowden already has almost a decade of Microsoft relationship management experience under her belt, having joined the business in 2010.
Zoom’s new Rooms and Meetings features
Zoom has released information about the upcoming releases for its Rooms and Meeting offerings for 2019.
Aussie company set to democratise direct-to-orbit IoT access
Adelaide-based Myriota has released a developer toolkit that has been trialled and tested by a smart waste management platform.
Apple's AirPods now come with 'Hey Siri' functionality
The new AirPods come with a standard case or a Wireless Charging Case that holds additional charges for more than 24 hours of listening time.
Dynatrace takes pole position in APM Magic Quadrant
It placed highest on Ability to Execute and furthest on Completeness of Vision in the 2019 Quadrant for Application Performance Monitoring (APM).
HCL and Xerox expand strategic partnership
Under the terms of the agreement, HCL will manage portions of Xerox’s shared services, including global administrative and support functions.
Avaya expands integration with Google Cloud AI
This includes embedding Google’s machine learning within conversation services for the contact centre, enabling integration of AI capabilities.
Forrester names Crowdstrike leader in incident response
The report provides an in-depth evaluation of the top 15 IR service providers across 11 criteria.