13 April 2018
| Natalie Bannerman
NTT Communications has revealed the results of its multi-market survey examining why Asian companies use managed services to fix its IT problems.
The survey titled Asia Firms Partner to Capitalize on
Innovative Services for Future Growth, explores why managed
services providers (MSPs) are used in Asia, particularly Hong
Kong, Indonesia, Malaysia, the Philippines, Singapore and
Thailand, to fix a number of in-house IT issues, as well as by
CIO looking to expand outsourcing and technology projects over
the next 18 months.
Asia-Pacific has been identified as the world’s
fastest managed services market and it has been predicted to
grow from $28.03 billion to $64.01 billion by the year 2021.
The region is also expected to see the highest global compound
annual growth rate at 18%, beating North America and Europe at
7.7% and 7.2% respectively.
Executives from the businesses surveyed cited three main
challenges when it comes to managing IT in-house. 59% said that
security was the biggest challenge, while 51% said people was
the next biggest challenge, followed by lack of IT skills at
50%. Security and cloud infrastructure were found to the most
outsourced technologies coming in at 58% and 55% respectively.
Over the next 18 months outsourcing of both is expected to grow
to 66% and 74% respectively. In addition, approximately 50% of
organisations outsource systems and applications management,
which is expected to grow by 10% over the next 18 months.
In the cloud space hybrid cloud remains low with only 18% of
companies admitting to using the technology, but more than half
of participants expect to deploy it over the next 18
"While businesses are migrating to public cloud for cost
benefits, most are required to retain key user data in the
private cloud for compliance reasons. Although hybrid cloud is
an irreversible trend, building and managing a hybrid cloud
environment in-house has become increasingly complex and
challenging," said Dave Scott, solutions director at NTT Com
Regionally, Singapore leads the way in hybrid cloud with 58%
of its companies considering deploying the technology, followed
by Hong Kong at 33%. Half of Asian businesses are considering
deploying SD-WAN over the next 18 months.
"7 out of 10 large-scale transformations fail , which
explains why businesses see global managed services
partnerships as a strategic move to improve their chance of
success - addressing opportunities and obstacles in technology
integration, talent scarcity, skills shortage, and operational
excellence," added Scott.
Lastly the report found that while roughly 60% of businesses
manage more than six IT vendors, most respondents claim that
complexity leading to performance issues at 56%, complexities
of vendors work together at 54%, and the high cost of using
multiple vendors 53%, are the major concerns in a multi-vendor