By 2026, 40% of Asia/Pacific* Service Providers’ Revenues Will Come From New Digital Business Models and Digital Products/Services

SINGAPORE, February 15, 2022: IDC predicts that by 2026, the need to increase resiliency will drive large enterprises to create new digital business models and digital products/services, which will account for 40% of service providers’ revenues. This is just one of IDC’s predictions unveiled in its latest report Worldwide Services 2023 Predictions – APeJ Implications.

Economic expectations from 2023 in the Asia/Pacific excluding Japan (APeJ) region remain moderately pessimistic (but more positive than the global average). Although IT spending plans remained stable throughout 2022 as enterprises continued to invest in digital readiness, going forward, IT projects will have a renewed focus. IT projects will continue contributing to organizations’ Digital Business agenda, pushing enterprises to engage with competent IT services vendors for closely tracked digital transformational projects.

“The high degree of volatility and uncertainty in the business environment over the last few years has dramatically changed enterprise expectations of their IT Service Providers. Enterprises will increasingly look to engage services firms with the agility to anticipate and overcome environmental changes and associated operational challenges, rather than purely on technical prowess,” says Pushkaraksh Shanbhag, Associate Research Director, Asia/Pacific Services, IDC Asia/Pacific.

IDC’s research also indicates that the APeJ region demonstrates a highly progressive approach to ESG and see it as key to risk mitigation and business viability. The next few years will see a strong sense of corporate purpose driving ESG investments, and enterprises will increasingly turn to IT Services vendors for ESG Business Services as they make an effort to make sustainability an integral part of their corporate/brand identity.

IDC’s top ten IT and Business Services predictions identify the most important trends and related areas of opportunity in APeJ:

#1: Acceleration of cybersecurity measures: By 2025, 75% of enterprises will seek help with cybersecurity measures to counter vulnerabilities created by investment in emerging technologies and to exploit the full digital business value chain.

#2: DX becomes digital business: By 2026, the need to increase resiliency will drive large enterprises to create new digital business models and digital products/services, which will account for 40% of service providers’ revenues.

#3: Crisis management’s rising importance: By 2024, 40% of organizations will have a business continuity crisis management strategy that includes continuous intelligence and enables an agile reaction to future economic shocks and disruptions.

#4: Attrition/skills gaps will spawn M&A: By 2025, rising demand for digital talent, coupled with high attrition rates, will force enterprises to increase outsourcing and pay their service providers a 10% premium on all contracts.

#5: Ecosystem control plane services: By 2027, 70% of organizations with advanced digital ecosystem participation have internal teams that use digital control planes to operate as value integrators to the business.

#6: Skills gaps leading to technology vendor/advisory partnerships: By 2025, 50% of large enterprises will use alliances between tech vendors and advisory firms to develop strategies and utilize technologies to reduce the skills gap for existing and future workforces.

#7: Off-/near-/right-shoring evolves given inflation: By 2024, 70% of enterprises will recalibrate their IT delivery model mix, adopting a sourcing model with a higher degree of automation and rightshoring to reduce costs and leverage experienced skills.

#8: Hybrid cloud disrupts industry: By 2026, managed hybrid cloud services spending will eclipse $10 billion driven by firms shifting their sourcing strategies increasingly to public cloud providers as their primary providers.

#9: ESG adds managed services: By 2025, 40% of ESG business services projects will include managed services to address large enterprises’ ESG data and analytics demands, given the lack of internal expertise to meet these needs.

#10: Joint creation of IP: By 2027, 30% of IT services providers will collaborate with enterprises and technology vendors to develop innovative industry-specific niche products/IP that will be jointly commercialized globally.

These predictions are discussed in greater detail in the new IDC report, IDC FutureScape : Worldwide Services 2023 Predictions — Asia/Pacific (Excluding Japan) Implications (IDC #AP48485822). Each year, IDC releases its Top Predictions through its IDC FutureScape reports to give a crystal ball view of what is ahead for the rapidly changing AI and Automation industry. These predictions have been used to shape the strategies and business objectives of technology leaders and business executives in the next 1-5 years. To learn more about IDC FutureScape reports, please click HERE.

For the first time ever, Asia/Pacific Japan FutureScape Reports will come with a complimentary report that provides specific recommendations for tech vendor sales and marketing leaders. Leverage IDC insights to better understand clients’ priorities and enhance your storytelling and go-to market plans, access the IDC FutureScape: Worldwide Services 2023 Predictions — Asia/Pacific (Excluding Japan) Implications: Positioning for Success — Opportunities for Tech Sales and Marketing Leaders (Doc #AP49986423) market presentation HERE. For more information on our role-based guidance, please visit Tech Impact Business Reports | IDC FutureScape 2023.

In case you missed IDC FutureScape Asia/Pacific earlier, you may visit IDC Arena to view the keynote sessions led by IDC Analysts. IDC Arena is IDC’s new integrated content hub that takes IDC thought leadership events online, and exclusive analyst essential guidance videos on-demand.

For more information on this IDC FutureScape document, contact Pushkaraksh Shanbhag [email protected]. For media inquiries, please contact Miguel Carreon at [email protected] or Michael de la Cruz at [email protected].


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International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC’s analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world’s leading tech media, data and marketing services company. To learn more about IDC, please visit Follow IDC on Twitter at @IDCAP and LinkedIn. Subscribe to the IDC Blog for industry news and insights.