This IDC Presentation provides a detailed analysis of the market and competitive landscape in IT services in Malaysia from January to June 2016 (1H16). It covers the market size movements and growth trends in each of the macromarkets (i.e., project-oriented, outsourcing, and support and training services) and the key industries, such as finance, manufacturing and resources, public sector, distribution and services, and infrastructure. The report also provides a market and vendor analysis of the 3rd Platform technologies as the key market drivers. The competitive analysis section includes key strategies and activities of large global and local IT services providers in the market.
The data and insights within this presentation are a part of the "Asia/Pacific Semiannual Services Tracker" research, which covers 14 foundation markets across 14 Asia/Pacific countries.
The overall economic outlook for Malaysia this year was somewhat weaker than last year's. Malaysia's gross domestic product (GDP) is expected to grow at just 4.4% in 2016, a weaker growth compared with the 5.0% recorded for the full year 2015. Political and economic uncertainties have also impacted the private sector's spending and investments, causing a slowdown in the overall economy. Following a weak economic growth, enterprises have been cautious with IT investment, in particular enterprises from the banking, insurance, public, and utilities sectors.
Because of the weak economy, enterprises have been working toward cost optimization by improving their performance and efficiency. This could be achieved via the adoption of 3rd Platform technology, which creates more flexible and agile business environments as enterprises today prefer to have an opex model compared with a capex investment. Outsourcing services will have a significant growth as enterprises are looking at outsourcing critical workloads (services such as help desk, security, application management, and so forth) to ensure cost optimization.
Project-oriented services, particularly systems integration, grew in 1H16 because of the demand coming from enterprises that require implementation of 3rd Platform technology solutions. Systems integration services were also driven by Smart Nation initiatives moving toward Vision 2020, which includes a major partnership between the government sector and service providers for pilot projects. Therefore, systems integrators (SIs) will still see an increasing spending in the coming years as these projects get implemented.
IBM, Oracle Corporation, Tata Consultancy Services Limited, Cisco Systems, Inc., Telekom Malaysia Berhad, Unisys Corporation, HEITECH PADU BERHAD, Nippon Telegraph and Telephone Corporation, Accenture plc, Hewlett Packard Enterprise, Hitachi, Ltd.
Application development services, Application management, Hosted application management, Hosting infrastructure services, IT consulting services, IT education and training, IT maintenance and support, Systems integration services