IDC Predicts a Locus of Power Shift to Cloud and Services Vendors as Enterprise Customers Look to Ride the Recovery Wave in 2010

Key predictions for this part of the Asian market include 1. Locus of Power Will Move from the Enterprise Customer to the Provider of Services 2. 'Chargeback' will “Charge Back” onto the CIO Agenda 3. Services 'Productization' to Move Up the Value Chain 4. System Integration 3.0: New Models = New Services 5. Emergence of Intelligent X: The Services Opportunity

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"In its annual Top 10 Predictions of the IT services market in Asia/Pacific excluding Japan (APEJ), IDC expects the industry to rebound to its growth trajectory in 2010, after the drastic impact left by the economic crisis in 2009. IDC predicts the APEJ IT services market to follow the upward incline of the recovery curve to and grow at 9.3%, compared to 6.5% in 2009 (using the 2008 constant currencies exchange rate). The market value is expected to grow to US$48.7 billion in 2010, driven by a continued demand for outsourcing, particularly since hosted and managed services are gaining prominence in a market where the enterprise continues to focus on remaining competitive. "Cost management continues to be the key mantra for most organizations. However, with cautious optimism returning to the market, selective investments are being made to take advantage of a potential recovery in the coming year. More than ever, CIOs will need to align technology road maps and architectures with potentially volatile business demands for IT to provide the necessary level of innovation and in order to drive organizations to take advantage of the upsides available in the new state of play."

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