While 2016 is shaping up to be the banner year for DX to take root in many Asia Pacific organisations, IDC expects innovation accelerators like the Internet of Things (IoT), cognitive computing, robotics and 3D printing to boost this transformation in years to come.
According to IDC‘s latest services survey, the majority of APeJ enterprises are saying they have DX projects. It is becoming a competitive requirement and the source of a massive wave of new investments in services to support changes to business operations and customer experiences, IDC noted.
"Getting on board the DX train is going to be fraught with challenges, starting with the ability to define DX. Most early stage projects involve experience transformation but little attention is being paid on the other dimensions like information governance and worksource, which often leads to disillusionment on the benefits of DX," says Linus Lai, the Research Director with IDC’s Asia/Pacific Services Research Group.
"As part of enabling enterprises on its DX journey, service providers need to emphasise their ability to bring a full suite of services capabilities that includes integration of cloud, cognitive, mobile and analytics delivered ’as a service’. In addition, industry expertise can offer functional insights which are also needed.”
Progressive adoption of 3rd Platform technologies in the region is not only driving demand for related services, but is also fundamentally changing the way they interact with their broader ecosystem. Cathy Huang, Research manager, Services and Cloud Research Group states, "This year's services predictions highlights "cloud first", suggesting 33% of Asia Pacific enterprises will pursue a cloud-first strategy.
“The switch to cloud-first/cloud-only points to two opportunities in the APeJ services market. Enterprises are looking for differentiated capabilities or cost competitiveness based on cloud-based offerings. In addition, it also means sourcing strategies in the past may be incompatible as organisations leverage a cloud-first strategy.”
IDC FutureScape: Worldwide IT Services Predictions 2016 – APeJ Implications provides 10 predictions for services in 2016 and the implications for IT suppliers and buyers. This year’s services predictions deep-dives into the impact of 3rd Platform technologies and innovation accelerators such as IoT and next-generation security. As a result, more focus on governance between the IT organisation and the lines of business (LOB) is demanded to ensure risk, supplier choices, failover, innovation, and agile development is understood between both parties, and the value of integration, management and security is brought to the fore.
IDC reports that the rest of the predictions for the services market for the next three to five years include the following:
Cloud first: 33% of Asia Pacific enterprises will pursue a cloud-first strategy and the share of overall IT budgets dedicated to cloud services will increase to 26% by 2016.
XaaS substitutes for managed services: By 2016, 50 to 55% of traditional outsourcing managed services will have a cloud delivery model.
DX: By 2016, 65% of APeJ enterprise strategies will include a significant DX component.
LOB/IT partners: By 2018, 80% of major IT decisions will involve a partnership between the IT organisation and LOBs.
Software-defined IT infrastructure: By 2016, 30% of enterprises will implement software-defined infrastructure in their data centre.
Platforms from digital disruptors: By 2018, 20% of all enterprises will be leveraging digital platforms from such firms as WeChat, Uber, GE/Predix and PTC to achieve the DX goals.
Ecosystems of wngagement: In 2020, in excess of 75% of ideas, talent, and innovation will be sourced through ecosystems of engagement.
Next-gen security management: By the end of 2017, 55% of enterprises will rely on third-party management of their security infrastructure.
Interested?
IDC Asia/Pacific is hosting a free webcast titled Top 10 IT Services Predictions 2016 on January 29, 2016, to be led by IDC analysts Lai and Huang. Register
Buy IDC FutureScape: Worldwide Services 2016 Predictions – APEJ Implications (AP40352115)
Buy IDC FutureScape: Worldwide Services 2016 Predictions – APEJ Implications (AP40352115)
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