Story image

Third platform driving IT services spend

14 Dec 15

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.

Proofpoint launches feature to identify most targeted users
“One of the largest security industry misconceptions is that most cyberattacks target top executives and management.”
How blockchain will impact NZ’s economy
Distributed ledgers and blockchain are anticipated to provide a positive uplift to New Zealand’s economy.
McAfee named Leader in Magic Quadrant an eighth time
The company has been once again named as a Leader in the Gartner Magic Quadrant for Security Information and Event Management.
Symantec and Fortinet partner for integration
The partnership will deliver essential security controls across endpoint, network, and cloud environments.
Review: Blue Mic’s Satellite headphones are good but...
Blue Mic’s newest wireless headphones deliver on sound, aesthetic, and comfort - but there is a more insidious issue at hand.
Is Supermicro innocent? 3rd party test finds no malicious hardware
One of the larger scandals within IT circles took place this year with Bloomberg firing shots at Supermicro - now Supermicro is firing back.
Forcepoint and Chillisoft - “a powerful combination”
Following Chillisoft’s portfolio expansion by signing on Forcepoint, the companies’ execs explain how this is a match made in cybersecurity heaven.
David Hickling in memoriam: “Celebrate the life and the music it made”
Dave was a well-respected presence in the IT channel and his recent death was felt by all the many people who knew him as a colleague and a friend.