Analyst Report: IT Services Market in Asia Pacific to Grow to US$55.9 Billion by 2011

0

Written on Tuesday, March 25, 2008 by Gemini

India to remain the fastest growing IT Services country in the region, while Greater China will represent the largest regional opportunity by 2011…

The IT Services market in Asia Pacific (excluding Japan) will grow from US$37.5B in 2007 to US$55.9B in 2011, representing a compounded annual growth rate (CAGR) of 10.5% from 2006 to 2011, according to the ‘Asia Pacific IT Services Market and Forecast, 2006-2011’ report by Springboard Research, a leading innovator in the IT Market Research industry. According to the report, the Indian IT Services market with a CAGR of 18.6% will remain the fastest growing in the region, although as a region Greater China will offer the largest market opportunity in dollar terms at the end of the forecast period.

“The Asia Pacific IT Services market is arguably the global leader in terms of growth, supplemented with a mix of mature and emerging markets,” said Phil Hassey, Vice President – Services Research at Springboard Research. “The markets of interest are not just the top four – China, India, Australia and Korea – but the emerging ones like Indonesia and Vietnam, which will register significant growth going forward,” Mr. Hassey added. The report uses Springboard’s Market Attractiveness Index to rank countries and individual IT Services markets on the basis of growth opportunities. According to the Market Attractiveness Index, the top ten countries in the region are:

1. People’s Republic of China

2. India

3. Australia

4. Korea

5. Indonesia

6. Vietnam

7. Malaysia

8. Rest of ASEAN

9. Singapore

10. Philippines

“For India and China, local capabilities, offerings and presence is just the start of a list of essential requirements for success. On the other hand, existing relationships, marquee clients and strong partnerships can provide capabilities for expansion in markets such as Hong Kong and New Zealand with relatively limited opportunities,” Mr. Hassey added. According to the report, Application Hosting with a CAGR of 19.5% between 2007 and 2011, will register the fastest growth during the forecast period, although Enterprise Application Integration at US$ 7.8billion will continue to be the largest component of the market by 2011. While Enterprise IT Outsourcing is the largest market in 2007, the reluctance of PRC firms to use the Enterprise IT Outsourcing model will reduce its relative size and weighting in the market by 2011.

As part of the report’s overall assessment of the APEJ IT Services market, Springboard Research has several key outcomes and predictions for the industry in 2008. The report predicts that challenges in accessing and retaining IT Skills will accelerate the shift to external services providers, as enterprises will struggle to retain in-house key individuals and skill sets. Also, China will not challenge India as the home of offshore service delivery especially for English language requirements – as skill levels, quality, culture and governance are all more suited to India being a hub of global delivery against the PRC.

About this report

Springboard Research ‘Asia Pacific IT Services Market and Forecast 2006-2011’ report offers an extensive and insightful perspective on IT Services market across Asia Pacific (excluding Japan) region. It outlines 15 individual IT Services markets – including Infrastructure Support, Desktop Management, Enterprise Application Integration and IT Outsourcing - and 15 countries with respect to market size, key players and growth dynamics and forecasts demand and growth for each of them. The report also contains predictions for the IT Services industry for 2008.

About Springboard Research

Springboard Research is a next-generation IT market research and advisory firm. Springboard leverages its pioneering research model to deliver greater agility and flexibility in IT market research and helps its clients lead rather than follow market trends. Springboard works with the leading IT companies in the world in the software, services, telecommunications and hardware sectors. Founded in 2004, Springboard has a worldwide presence with offices in the United States, Australia, Singapore and Japan, as well as global research centers in India, Pakistan, and Morocco. Springboard has been acknowledged as an emerging leader and was recently named ‘Rising Star’ in the global IT market research industry by Outsell, the leading research and advisory firm for the information industry. For more information, please visit www.springboardresearch.com

Posted in , , , , |

Look who wants to read your emails - the Indian government!

1

Written on Tuesday, March 18, 2008 by Gemini


When Canadian company Research In Motion (RIM) launched BlackBerry in 1999, within no time the revolutionary mobile device that enabled users to browse the Net, read emails in real-time and send fax documents earned the nickname, CrackBerry, an allusion to its notoriously addictive features. Like all secure internet services, RIM uses an encryption code that scrambles the email messages sent out from a BlackBerry device and then unscrambles it again when the message reaches its target. Only, Blackberry uses a highly complex algorithm for the purpose — a 256-bit advanced encryption standard process. The Intelligence Bureau (IB) of The Government of India allegedly can decode messages with an encryption level of up to 40 bits. (According to cyber security experts, there’s a rigid decryption technology hierarchy in the world: The US has the most advanced software, Europe gets tech that’s one generation behind and countries like India have even older decoders.)

So, if intelligence agencies cannot crack BlackBerry’s email code, they can still do one of two things — get the government to force RIM to scale down its encryption code to 40 bits, or better still, ask for the “keys” that will unlock the code. The Section 69 of the IT Act, 2000 does give the government the power to intercept electronic information, but such sweeping surveillance is clearly stretching the law. And, what impact will it have on ecommerce? People will be extremely concerned about sending business details through the Net. For instance, the licensing norms for ISPs in India were created in 1998-99. Accordingly, licenses issued to ISPs forbid encryption above 40 bits. Today, a 40-bit code can be cracked in no time. A browser like Internet Explorer 7 has a 128-bit code. So, any web provider using an encryption of over 40 bits has to provide the keys to the government. This means that the government has the means to track transactions and correspondences in these websites — an access it doesn’t have in the BlackBerry platform since the ISPs providing these services were, for some reason, never asked to hand over the encoding key.

Terror organizations are constantly changing their footprint and upgrading their technology. Today if we have tracked say, 555 web-pages linked to the terror network, tomorrow they may all disappear and return modified. It’s a nightmarish scenario for security agencies. However, the powers of surveillance can be misused. That’s a devil you have to live with. Unfortunately, the legal and political framework needed to check misuse of cyber-snooping by our politicians is lacking in the country. That’s a point many cyber experts are making. Can the intelligence agencies ensure fairplay? People may be willing to give up some of their civil liberties for dealing with the security threat to the country. But there should be a clear-cut policy framework and laws on what kind of invasion is lawful and what’s not. Clearly, there’s room for legislative action and transparency in cyberspace.

SHORT CUT TO ENCRYPTION

What? – In IT, encryption is a software that uses advanced algorithms to scramble a message being sent out in cyberspace. The message is unscrambled when it reaches the recipient.
Why? – It’s a security measure to prevent internet data being read by unintended persons.
Who Uses It? – All web browsers, e-commerce, banking sites and email service providers use encryption software to ensure secure transactions and confidentiality.
Does It Change? – Yes, encryption technology is constantly evolving. A few years back, codes that were 40 bits long were considered safe. Now, 128-bit codes are default in most sites. BlackBerry uses a more advanced 256-bit algorithm.
Can It Be Cracked? – Software can be developed to crack encryption codes. Security agencies use these to monitor data flow in cyberspace. Obviously, longer codes are harder to crack.
What Is A Key? – This is the sequence of bits used by an encryption algorithm to scramble a message and put it back again. It unlocks the code.

Source: Sunday Times, March 16, 2008

Posted in , , , |

Local System Integrators Push SOA Penetration in Major Asian Markets - Springboard Research

0

Written on Tuesday, March 11, 2008 by Gemini

China leads the pack with SOA integration dominated by local players…

Singapore, March 11, 2008: Springboard Research, a leading innovator in the IT Market Research industry, today reported that local System Integrators (SIs) and Independent Software Vendors (ISVs) are playing a significant role in SOA vendors’ ability to penetrate four major domestic markets in Asia. This is especially evident in the Chinese market that is dominated by local players. These are the findings of Springboard’s latest research covering Asia’s Service-Oriented Architecture (SOA) market, based on a survey of 354 CIOs and IT managers of large and mid-market enterprises in China, India, Singapore, and Australia.

“Local SIs and ISVs form an important part of the SOA ecosystem by integrating systems well, and by building customized applications on vendor platforms,” said Balaka Baruah Aggarwal, Senior Manager for Emerging Software for Springboard Research. “While international software vendors also offer integration and consulting services directly, ISV/SI partners are key providers of these services,” added Ms. Aggarwal.

The local ISV/SI partner landscape is very unique throughout most of Asia because up until now, many multinational vendors worked in the region with their top tier global integration partners. However, the Indian market is a notable exception where global IT companies such as IBM, HP and Microsoft dominate mindshare as SOA players, despite the presence of home-grown IT giants like TCS, Infosys, Wipro, HCL and Satyam.

“The Indian players are now beginning to expand both in the domestic market and neighbouring markets in the region. The case for Chinese integrators is just the opposite, as they have established their hold on the domestic market and are now on the prowl to expand their regional and global presence,” added Ms. Aggarwal.

Springboard has scanned the SOA partner landscape and identified some key vendors who are prominent in Asia. These SOA local leaders include:

  1. Kaz Group- Australia
  2. Kingdee- China
  3. TongTech- China
  4. Patni Systems- India
  5. Satyam Computers- India
  6. TCS- India
  7. Wipro- India
  8. TmaxSoft- Korea
  9. Samsung SDS- Korea
  10. NCS- Singapore

“Integration skills of partners have a critical role in successful SOA projects as SOA involves bringing together disparate IT systems,” Ms Aggarwal explained. “The battle for SOA has extended from simply marketing SOA solutions to seeking out partners who have good integration skills and reach in the local markets. Ultimately it is good partners who will make the difference in vendors’ ability to woo customers,” she added.

The study also found that price is not the number one reason for vendor selection. Important reasons for vendor selection are proven products and solutions, clearly defined roadmaps for deployment and vendor reputation. On the other hand, the perception of SOA being expensive emerged as the top inhibitor for SOA deployment.

“As SOA is a strategic initiative, the process requires investment and a long-term organizational commitment. Further, since business managers typically control the budget in an organization, particularly for extended strategic projects, vendors need to target business managers along with technology managers,” said Ms. Aggarwal.

About This Study

Service-oriented architecture (SOA) has been one of the IT industry’s hottest buzzwords over the past several years. IT vendors are evangelizing SOA and many organizations are looking at SOA to help them better integrate and leverage their existing and future software applications and infrastructures. SOA’s popularity lies in its promise to help organizations improve operations, cut costs, and boost efficiencies, while IT vendors see the technology as a way to tap into new revenue streams and acquire larger enterprise accounts. Springboard Research’s SOA Market Canvas is an ongoing research service that provides extensive SOA market coverage for the Asia Pacific region. The SOA Market Canvas examines key trends in the Asia Pacific SOA market and offers an array of SOA market data on an ongoing basis. Springboard’s Market Canvas service delivers a deeper level of research than other reports of its kind and assesses data from a granular level to help IT vendors formulate better SOA go-to-market plans.

About Springboard Research

Springboard Research is a next-generation IT market research and advisory firm. Springboard leverages its pioneering research model to deliver greater agility and flexibility in IT market research and helps its clients lead rather than follow market trends. Springboard works with the leading IT companies in the world in the software, services, and telecommunications & hardware sectors. Founded in 2004, Springboard has a worldwide presence with offices in the United States, Australia, Singapore and Japan, as well as global research centers in India, Pakistan, and Morocco. Springboard has been acknowledged as an emerging leader and was recently named ‘Rising Star’ in the global IT market research industry by Outsell, the leading research and advisory firm for the information industry. For more information, please visit http://www.springboardresearch.com/.

Posted in , , , , , |

Subscribe to: Posts (Atom)