APAC firms to focus IT services spend on consolidation, security

Apart from IT infrastructure resources consolidation and security enhancements, Asian businesses will also be spending on IT-enabled innovation, social apps, and data analytics, reveals IDC survey.

Enterprises in the Asia-Pacific region will be focusing their IT services expenditure on consolidation and security over the next year, choosing outsourcing and managed services as the primary delivery.

Apart from IT infrastructure resources consolidation and security enhancements, they will also be spending on IT-enabled innovation, social apps, and big data analytics, according to an IDC survey. The study polled 1,307 respondents in 13 countries including Singapore, Australia, India, Malaysia, and China.

The research firm's Asia-Pacific research manager for services and cloud research, Cathy Huang, said 2015 will mark the year of "disruptive transformation" as enterprises look to drive innovation across their business. "IT services, inclusive of cloud services, will be the most important catalyst and enabler to facilitate this," said Huang.

IDC noted that growth opportunities would emerge in the professional, as well as managed and outsourcing services segments. More than 39 percent of respondents pointed to outsourced and managed services as the primary delivery models they planned to engage in 2015, the survey found. At 54 percent, business innovation was the primary driver for such services.

"This finding is in line with the current transformation happening in the offshore and business process outsourcing (BPO) market. Customers who are currently outsourcing their business processes are moving away from pure-cost reduction metrics to more business insights-driven metrics which can help them innovate," she said.

The IDC analyst added that enterprises would select IT vendors able to offer business insights and consulting services to boost their own competitive advantage. Huang also noted that the BPO service delivery was shifting toward a platform-based model, with customers expecting high levels of automation.

"The promise of business process-as-a-service is to provide the next quantum of reducing costs, speed of service delivery, better financial management, and the ability to integrate more easily with other business processes," she said.

According to the IDC survey, 63.7 percent of respondents agreed that consolidating their IT resources in the data center would provide better security controls and management. Huang added that security had been a primary driver of major enhancements being carried out in data centers throughout the Asia-Pacific region.

Survey respondents were also turning to consulting or systems integrations as well as outsourcing and managed services as the main support model for security enhancements.

"Security is a critical topic for CXOs, and the traditional product-oriented sale is no longer sufficient. Customers need to ensure the maximum value and protection they can gain from the security technology investment, and as such, the engagement has become more consultative in nature," Huang explains.

Some 37.1 percent of respondents chose cloud as the service delivery platform, which IDC said was in line with its 2015 prediction that 60 percent of security services will be dependent on cloud-enabled tools and service delivery.

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