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, according to 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.
In its top ten IT and Business Services predictions pertaining to APeJ, IDC also predicts that by 2026, managed hybrid cloud services spending will eclipse US$10 billion driven by firms shifting their sourcing strategies increasingly to public cloud providers as their primary providers.
