IT services spend in the Asia-Pacific region, which suffered a "slight" slump during the global recession, is on the rebound and predicted to grow at a compound annual growth rate (CAGR) of 6.6 percent over the next four years to hit US$205 billion by 2015.
According to an Ovum report released Wednesday, the forecasted growth rate is also likely to top 9 percent in 2015.
A large proportion of the growth will be fueled by applications and consulting due to demand from businesses to "upgrade, transform and modernize" their IT environments, to support economies in Asia that are rapidly expanding.
Hansa Iyengar, Ovum's senior analyst of market intelligence, said in the report that enterprise customers throughout the region have resumed "investing for growth" after curtailing spending and putting many transformative projects on the backburner during the 2008 economic downturn.
Elaborating on the market in 2010, the market research firm noted that global vendors continued to dominate in most markets across Asia, with the exception of Japan where large domestic providers remained major players. This pointed to a preference for "home-bred" market players but also indicated a growing desire to learn and engage with established vendors, it said.
Ovum noted that both regional and local players continued to show strong growth in core areas of expertise and industry-specific offerings, particularly in financial services, telecommunications and mining.
The research firm stated in an earlier report Tuesday that "pent-up demand and a slowly improving economy" are driving the global IT services market, which will clock an estimated CAGR of 4.4 percent over the next four years to hit US$756 billion by 2015.
While 2011 growth is not back to pre-recessionary levels, the global market will return to "healthy growth" of over 4.5 per cent in 2013, it added.
Ovum's latest figures are in line with other studies chronicling the rebound of IT services markets in Asia and the global landscape post-recession.
IDC in December last year said Asia's IT services market will see a 9.4 on-year increase in 2011, driven primarily by outsourcing and project-oriented services and cloud services. It also stated that consultancy-led and business transformation projects, especially cloud related initiatives, as well as greater demand for business analytic solutions would push the growth momentum of the region's IT services market.
Gartner last May also noted that the global IT services revenue increased a record 3.1 percent to hit US$793 billion in 2010, from US$769 billion in 2009.