90 pct of Asian companies tend to outsource in resolving IT issues

KUALA LUMPUR, April 12 (Bernama) -- NTT Communications Corporation (NTT Com) in a survey found that 90 per cent of Asian companies look to managed services providers (MSPs) to resolve issues in handling information technology (IT) in-house.

The survey titled "Asia Firms Partner to Capitalize on Innovative Services for Future Growth " also explored key considerations for chief information officers to expand outsourcing and their planned technology projects in the next 18 months, a statement said.

Further findings on the survey are : +Security risks (59 per cent), talent scarcity (51 per cent) and skills shortage (50 per cent) are the top challenges to manage IT in-house.

+49 per cent of businesses plans to move to hybrid cloud.

+Security (58 per cent) and cloud infrastructure (55 per cent) were found to be the most outsourced technologies and expected to grow to 66 per cent and 74 per cent respectively.

+Over 50 per cent of organizations outsource systems and applications management (enterprise resource planning, customer relationship management) and expected to grow by an additional 10 per cent.

+The number of companies using hybrid cloud remains low at 18 per cent, but almost half of businesses surveyed expect to deploy.

+Singapore companies lead with 58 per cent considering moving to hybrid cloud, followed by Hong Kong at 33 per cent.

+Half of Asian businesses are considering deploying SD-WAN, which is an enabler of hybrid cloud, and Azure Stack a sharp increase from the current deployment rate at 18 per cent and 13 per cent respectively.

The full findings can be accessed at http://www.nttcominsight.com/asiams-survey/ The research was also commissioned to better understand trends in the world´s fastest growing managed services market

Asia Pacific, which is expected to grow from US$28.03 billion (RM108.7 billion) to US$64.01 (RM248.22 billion) by 2021.

The APAC market is also forecast to see the world´s highest compound annual growth rate at 18 per cent, surpassing North America and Europe at 7.7 per cent and 7.2 per cent respectively.

On behalf of NTT Communications, IDG Connect surveyed 200 organisations with at least 500 employees to large enterprises, across verticals in Hong Kong, Indonesia, Malaysia, Philippines, Singapore and Thailand in 2018 - more than half of respondents were most aligned with the IT department.

--BERNAMA