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Feb 2017 - IDC Presentation - Doc # AP42299317

Analysis of Services Deals Signed in Asia/Pacific (Excluding Japan) Region: 'Transformation' with Focus on Customer Experience Emerges as the Crux of Digital Strategy

Author: Sherrel Roche Senior Market Analyst, Services Research, IDC Asia/Pacific
On-line Presentation

This IDC Presentation provides an analysis and assessment of the Asia/Pacific (excluding Japan) (APEJ) business and IT services and cloud services deals based on a rolling four-quarter view from 3Q11 through 2Q16 (period ending June 30, 2016) by leveraging IDC's BuyerPulse Services Deals Database, which currently houses 68,000 deals and is the most comprehensive offering of services deals in the market.

Digital transformation (DX) is a key growth driver of the services market, requiring business and IT to work together toward shared goals. "Transformation" as a part of an enterprise digital journey is emerging as the top theme, with transformation being driven across the board, including business processes, infrastructure, applications, and datacenter environment.

Furthermore, IT executives are struggling to manage their traditional IT infrastructure as demand for delivering higher service levels and new technology capabilities as well as accelerating application delivery while controlling costs keeps increasing. As enterprises move toward a "cloud-first" strategy, they are interested in substituting traditional IT outsourcing deals for cloud services. End users are demanding not just traditional (more labor-oriented) services but also cloud-based (more automated) services, including 24 x 7 operations of IT environments, modernization, and transformation of infrastructure and applications.

Service providers (SPs) continue to be challenged by a combination of more players in the ecosystem, fluctuating economy, new delivery models, and increasing pressure on customers to do more with less. These changes involve shifts in annual contract value, annual contract length, and activity metrics. IDC illustrates that success in deal making will require SPs to pursue key markets, incorporate strategic capabilities, and ensure that they are positioned optimally.

This presentation addresses the following questions:

  • Where is the spending occurring in business, IT, and cloud services deals by geography, IT services market segments, deal sizes, and industries?
  • Where is the spending occurring in outsourcing deals by geography, outsourcing services market segments, deal sizes, and industries?
  • Which vendors are winning deals in the region?
  • Where will the opportunities be in the next 12–36 months?
  • Where is the business and IT services and cloud services market going in the long term?