Features

IDC: 'Excellence in Delivery' Key Success Factor in IT Support Services

By Sophia Mayengbam

Asia Pacific market is the hub for information technology support services to the U.S. and the European countries. This emerging market in Asia/Pacific excluding Japan is expected to grow at a steady rate, according to a recent study by IDC. IDC points out that the market is becoming increasingly competitive and vendors who differentiate themselves from the pack and display consistent excellence in delivering market requirements will be awarded with opportunities.

From a growth point of view, IDC has forecast that the market will grow from USD 6.02 billion in 2005, to USD 9.23 billion in 2010. This represents a compound annual growth rate (CAGR) of 8.9 percent over the forecast period.

"The IT support services market will continue to be fragmented with lower-cost third party vendors entering the marketplace," says Richard Pirrit, Research Manager, Asia/Pacific Services Research. "This will place pressure on the technology vendors to react to increasing competition and customers demanding for 'more for less' in their support services requirements."

IDC said to emerge among the stiff competitions vendors have to come up with services that gives value-added services to the clients. Price pressure is one factor that hinder the growth of the vendors. IDC said to deal with it, vendors differentiate themselves through the continual development of technologies such as remote diagnostics and predictive/preventive maintenance that will achieve both internal efficiencies and improved service levels.

Furthermore, these tools will aid vendors in developing and delivering on new managed support models that can help their customers manage their increasingly complex IT infrastructures as enterprises more reliant on robust and reliable support services to drive their business. Finally, through excellence in delivery, vendors will display a good understanding and readiness to react to the needs of their customers.

Asia/Pacific (Excluding Japan) IT Support Services Forecast, Country Breakdown 2010

The People’s Republic of China (PRC) overtook Australia to become the largest IT support services market in the region in 2005. The PRC, growing at a CAGR of 14.2% over the forecast period, is expected to significantly increase its gap with other markets in the region. In contrast, Australia is forecast to grow at a CAGR of 3.0% over the same period. High growth rates are predicted for the maturing economies such as the PRC and India as businesses take advantage of the economic boom and continue their rapid build-up of their IT infrastructure.