We have relaunched: What's new at ZDNet Asia?

IDC: Infrastructure outsourcing on the rise

Summary

Asian companies are now outsourcing beyond hardware support into infrastructure management, as they mature in their use of IT, finds new study.

Events

Microsoft MSDN/Developer Event
25 Mar 2010

One Marina Boulevard, Microsoft Singapore

IT Architect Regional Conference Singapore 2010
20 - 21 Apr 2010

Singapore Management University, Singapore

The Internet Show 2010
21-22 Apr 2010

Suntec Singapore

Companies in the Asia-Pacific region, excluding Japan, are contracting out more work related to the management of IT infrastructure, according to a new study by research house IDC.

As companies mature in their use of IT, they progress from farming out just their hardware support to include network and desktop management as well, the IDC report noted. This movement is true across the entire region, it added.

IDC explained that the progression not only shows that organizations are seeking out "greater relationship depth offered by network and desktop outsourcing", but also signifies the general shift toward more sophisticated engagements with external IT service providers.

Findings from the report Support to Management: The Continuum of Infrastructure Services in Asia-Pacific, indicated that increase in infrastructure outsourcing activities will double the growth of hardware support services across the region. Countries covered in the study include Australia, China, Hong Kong, India, Indonesia, Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan and Thailand.

IDC estimated that the network and desktop outsourcing market will grow from US$2.1 billion in 2005 to US$4.5 billion in 2010. This represents a compound annual growth rate (CAGR) of 15.8 percent over the forecast period.

The region's hardware deployment and support market will grow at a CAGR of 7.8 percent to reach US$6 billion by 2010 from US$4.1 billion in 2005, IDC said in a statement released Wednesday.

Richard Pirrit, research manager of support services at IDC Asia-Pacific, said: "As far as the infrastructure is concerned, this means a progression throughout the region from less-intensive hardware maintenance contracts to the outsourcing of the network and desktop environment."

Pirrit noted that organizations throughout the region are "maturing in their understanding of IT's role in driving business strategic functions, as opposed to merely sustaining operations".

"Businesses can achieve competitive advantages and increased efficiencies by leveraging IT, [and] as businesses begin to understand the potential value-add that IT can bring, they are increasingly looking toward service vendors for value-add services" he said.

In addition, the IDC said there will be an increase in the supply of outsourcing services as new players enter the market.

Eugene Wee, senior market analyst for IT services at IDC Asia-Pacific, said: "While the provision of outsourcing had previously belonged to the domain of IT giants like IBM, EDS and CSC, we are seeing an increase in the supply of these services as niche players and telecommunication service providers have begun to offer these services to compensate for the decline of their core business."

Talkback

Add your opinion

In order to post a comment, you need to be registered. (Sign In or register below)

Post your comment
Transform your business interactions with real-time voice, video and telepresence solutions.
Tech Vendor: Cisco

ZDNet Asia Live

Zdnetasia.com Estimated Worth $178,365 USD. Daily Ad Revenue:$244 USD, Daily Views:81,445 Pages... - http://www.haplog.com/www.zdneta...

recently estimated website net worth of zdnetasia.com - http://www.haplog.com/www.zdneta...

7 hours 15 minutes ago by haplog on topsy

When I create an event, I click on an approximate time during the day when I want the event to occur, then I click "edit event detail...

21 hours 51 minutes ago by bessellbrowne on Google Calendar gets 'smart' rescheduling

ipads break alott i had one it broke three times in the month i had it so i got rid of the damn thing id just go for the laptop Top Grade...

21 hours 53 minutes ago by bessellbrowne on Report: 'Hundreds of thousands' of iPad preorders

There are a number of websites that still require Internet Explorer to view and IE for Mac Stinks (it is really ies4osx which is the Wind...

21 hours 55 minutes ago by bessellbrowne on Microsoft: Only minor tweaks in Windows 7 SP1

The receivers don't transmit back to the satellite. Unless there is a phone line attached to the receiver, they don't have any wa...

21 hours 58 minutes ago by bessellbrowne on Apple to join the geolocation craze?

What to expect from open source Symbian http://is.gd/aPIGL

22 hours 13 minutes ago by rebelk0de on topsy

"Lead Cognos BI Developer Insurance - Jobs - ZDNet Asia" http://bit.ly/bRcxOG

22 hours 52 minutes ago by rhrcognos on topsy

whatever little understanding I have we 'll only progress toward end of the world if we use HPCs to lenthen life of human being. Huma...

1 day 4 minutes ago by abhi32002@gmail.com on High computing promises elixir of life

Thanks for the knowledgeable article on SDDs. Allas...when all this reasearch will happen in Indian Universities. Hope the new bill on Fo...

1 day 17 minutes ago by abhi32002@gmail.com on APAC HPC users eye solid-state drives

It was a good article. This brings a good opportunity for Indian IT firms to come up with new solutions in this field. HPC can become a b...

1 day 36 minutes ago by abhi32002@gmail.com on High computing most-wanted job in Asia

COL KR DHARMADHIKARY(RETD) its very late to reply the link, but if it is still alive and looking for opportunity, i would like to know th...

1 day 33 minutes ago by deb021280 on Education takes off in rural India, helped by PCs

It was just a matter of time until google was marginalised anyway. I'm afraid this will be forgotten in China very quickly. Still, it...

1 day 38 minutes ago by robinsmith on Report: Google to leave China on April 10

High performance computing (HPC) most-wanted job in Asia http://bit.ly/9vFC3i (via @zdnetasia) #singapore

He doesn't care if her shoes are of glass, All he wants to see is a huge rack and nice a*s. Sleeping beauty's not awoken by true ...

1 day 7 minutes ago by warlowdavies on One pair of 3D glasses to rule them all

RT @zdnetasia: EMC COO, Pat Gelsinger, on bridging gaps in the organization and its cloud ambitions in Asia. (cont) http://tl.gd/i5jjd

EMC COO, Pat Gelsinger, on bridging gaps in the organization and its cloud ambitions in Asia. http://bit.ly/9etOZW

Asian SMBs need to pay more attention to disaster recovery planning http://bit.ly/bDet08 via @zdnetasia

Asian SMBs need to pay more attention to disaster recovery planning http://bit.ly/bDet08

[TECH] URL Shorteners slow Web redirection. - http://bit.ly/bySnWK @zdnetasia

URL shorteners are great but they can slow web redirection & you pray it would never go down http://bit.ly/bySnWK via @zdnetasia

Temasek Holdings eyeing tech stocks, indicating optimistic outlook on IT sector. http://bit.ly/aM7VwU

URL shorteners slow Web redirection. http://bit.ly/bySnWK

Chinese agencies cry foul over Google. http://bit.ly/by6rwV

Philippine antipiracy drive focuses on enterprises. http://bit.ly/aWryDC

Gartner: China to become world's fastest-growing enterprise software market. http://bit.ly/bqJTtb

all of sg's isps have been practising compulsory invisible proxy for all home subscribers at their backend since many years back alre...

2 days 17 minutes ago by melvinchia on Web filters mean bad news for business

it is not to good for china.
Proactol

2 days 1 minute ago by nathonastle on Chinese ad partners beg Google for information

RT @zdnetasia: HP touts new products and management and productivity tools to address business computing pain points. http://bit.ly/dudgA6

For those with a computer science background, or interested in the high performance computing scene: http://bit.ly/9vFC3i

IT security insiders rob casinos of $50K http://is.gd/aPIKR

3 days 33 minutes ago by rebelk0de on topsy

Very good explanation of JMX

3 days 7 minutes ago by Babith B on Managing applications with JMX

The reaction to a report issued Tuesday by Flurry Analytics managed to completely overlook some interesting news--the Android-based Motorola Droid outsold the original iPhone over the same period of time following their respective launches--to focus instead on the sales numbers for the Nexus One.

3 days 10 minutes ago by lonemavericks on diggs

Another ZTE story....

4 days 12 minutes ago by Moderate Your Greed on Philippines opens bid for final 3G license

We at www.fifosys.com have also seen a growth in IT outsourcing and anticipate it as a growing field.

4 days 45 minutes ago by sarah Jane on Companies' outsourcing spend to increase