IT Outsourcing Market in APAC 2016-2020

Overview of the IT outsourcing market in APAC

Technavio’s market research analyst predicts the IT outsourcing market in APAC to grow at a CAGR of almost 6% during the forecast period. Much of this growth can be attributed to the presence of large firms that seek to outsource their infrastructure management services to this region. The outsourcing of IT functions will allow enterprises to focus on core competencies and achieve improvements in operational efficiency to stay ahead in the competition. Furthermore, factors such as the automation of essential IT outsourcing functions through cloud computing services will fuel the prospects for growth in this market during the predicted period.

A critical factor that will impel growth in this market is the advent of cloud computing. Due to the change in technology and business requirements, companies require IT solutions that can quickly replace outdated technologies. In recent times, it has been observed that almost all enterprises are in the process of moving their business applications and processes to the cloud. Smaller companies or SMEs with limited budgets can also avail cloud services through pay-per-use models. Cloud-based services help to automate almost all basic functions that are time-consuming. Its ability to bring down the total cost of operations by allowing enterprises to focus on core competencies will result in its augmented adoption during the forecast period.

Competitive landscape and key vendors

The IT outsourcing market in APAC is highly fragmented due the presence of numerous large and small players. The market competition is anticipated to intensify with many players foraying into the market space. The players in this market are working to increase their market shares through partnerships and strategic acquisitions. To survive and succeed in this market, the vendors have to differentiate themselves by offering innovative, cost-effective services to the end users.

 Key vendors in the market are -

• Accenture
• Fujitsu
• HP
• IBM
• TCS

The other prominent vendors include Aegis, Amdocs, AT&T, Atos, BT, Capgemini, Cognizant, CGI, CSC, Dell, HCL, iGate, Infosys, ITC Infotech, Mahindra Satyam, Unisys, Wipro, and Xerox. 

Segmentation by services and analysis of the IT outsourcing market in APAC

• Infrastructure outsourcing
• Application outsourcing

In this market study, analysts have estimated the infrastructure outsourcing segment to account for a market share of more than 73% during the forecast period. Infrastructure outsourcing helps companies to cut IT infrastructure costs by reduction of total cost of ownership, improved efficiency and network security, better ROI on IT investments, and adherence to governance and compliance. Its ability to improve efficiency by conferring flexibility, scalability to business operations will result in this segment’s steady growth during the forecast period.

End-user segmentation of the IT outsourcing market in APAC

• Government
• BFSI
• Telecom

In this segmentation analysis, Technavio’s market research analysts have estimated the government segment to be the largest market segment during the predicted period. At present, this segment accounts for a market share of more than 27% and is envisaged to retain its hold over the market by 2020 owing to the augmented spending on e-governance initiatives by governments in APAC countries. The rising popularity of e-governance and e-payment solutions is another key factor, which will foster the need for IT outsourcing in the government sector until the end of 2020.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the IT outsourcing market in APAC?
• What are the key market trends impacting the growth of the IT outsourcing market in APAC?
• What are the challenges to market growth?
• Who are the key vendors in this market space?
• What are the market opportunities and threats faced by the vendors in the IT outsourcing market in APAC?
• What are the key outcomes of the five forces analysis of the IT outsourcing market in APAC?

Technavio also offers customization on reports based on specific client requirement.

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