Jun 2018 - Market Presentation - Doc # AP43941418
2H17 Country Report on IT Services — Korea
This IDC Presentation provides a detailed analysis of the market and competitive landscape in IT services in Korea from July to December 2017 (2H17). 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.
In 2H17, Korea's IT services market maintained its growth momentum, supported by the increasing contract volume in the outsourcing services market and big deals in the project-oriented services market.
The systems integration (SI) services market was the main contributor to the overall IT services market in terms of revenue, largely attributed to the demand for services such as systems upgrades or the adoption of new technologies, including artificial intelligence (AI), Internet of Things (IoT), and cloud services.
The IT outsourcing market witnessed the highest growth rate, supported by the increasing deal volume of the existing contracts from affiliates in large enterprises and some new big deals, though the number of new contracts was limited.
With the increasing adoption of new innovative technologies, the hardware deploy and support services market showed an unusual rebound with low growth.
Outsourcing deals from large and medium-sized manufacturers led the outsourcing market growth, while SI deals from the public and finance sectors fueled the project-oriented market growth, particularly supported by innovative technologies, such as AI, IoT, and cloud.
As major local leading players showed relatively sound performances, they continued to reinforce new businesses, such as cloud, AI-based chatbot, big data, blockchain, and smart factory.