This IDC Presentation provides a detailed analysis of the market and competitive landscape in IT services in Malaysia from July to December 2016 (2H16). It covers the market size movements and growth trends in each of the macromarkets (i.e., project-oriented, outsourcing, and support and training services) as well as 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 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.
Malaysia's gross domestic product (GDP) grew at a slower pace of 4.2% in 2016. It was still evident in 2H16 that the downsides of global growth continued to prevail. Sustained growth is seen on the back of healthy private investments and consumption, which are primarily driven by implementation of infrastructure projects and spending in the manufacturing and services sectors. IDC observed that these sectors contributed through high-valued professional services contracts, which accelerated the growth of IT consulting and systems integration services.
More Malaysian companies have embraced 3rd Platform technologies and planned to move toward digital transformation (DX). Enterprises have started building responsive business processes so their design and process changes can be handled rapidly. IDC believes that this can help reduce lead time to roll out new products and address customer complaints quickly, which is evident in the banking, financial services, and insurance (BFSI), telco, and retail sectors. In addition, this has led enterprises to tap external SPs given the lack of in-house skills and expertise.
IDC has observed that the size of the DX deals in general are smaller in 2H16. This is because of their agile nature, creating opportunities for enterprises to strengthen their relationships with customers, flatten organizational structures, and redefine traditional industries. Key business executives in the country are being pressured to move their enterprises to the next level, employing digital technologies coupled with organizational, operational, and business model innovation to create new ways of operating and growing their revenues.
Deloitte, IBM, Oracle Corporation, VADS Professional Services Sdn Bhd, Tata Consultancy Services Limited, Cisco Systems, Inc., HEITECH PADU BERHAD, Nippon Telegraph and Telephone Corporation, Accenture plc, Hewlett Packard Enterprise, Computer Sciences Corporation
Application development services, Application management, Hosted application management, Hosting infrastructure services, IT consulting services, IT education and training, IT maintenance and support, Network and desktop outsourcing services, Systems integration services