This IDC Presentation provides a detailed analysis of the market and competitive landscape in IT services in Malaysia from July to December 2018 (2H18). It covers the market size movements and growth trends in each of the macromarkets (i.e., project-oriented services, managed services, and support services) as well as the key industries such as finance, manufacturing and resources, public sector, distribution and services, and infrastructure. The report also provides a market and vendor analyses of 3rd Platform technologies as the key market drivers. The competitive analysis section includes key strategies and activities of global and local IT services providers in the market.
The data and insights within this presentation are a part of the "Asia/Pacific Semiannual Services Tracker" research that covers 14 foundation markets across 14 Asia/Pacific countries.
According to Bank Negara Malaysia, the Malaysian economy grew by 4.7 percent year over year (YoY) in the fourth quarter of 2018 (4Q18), following a 4.4 percent expansion in the preceding quarter. Net external demand contributed positively to the nation's gross domestic product (GDP) growth, which helped offset the decline in private consumption and government spending. Malaysia's full-year economic growth was recorded at 4.7 percent, much lower compared with the 5.9 percent expansion in 2017.
Malaysia's government hinted in October 2018 that additional taxation might be required to help reduce the level of public debt. However, in the near term, it is unlikely that the government will impose new taxes on consumption or raising existing tax rates, as either one of these actions would drastically increase the cost of living. This would also be counterproductive to one of its core political objectives, which is to keep down the cost of living. Thus, IDC believes that inflation rate will remain low, which would lead to lower prices. In turn, this will be a catalyst for IT spending in the near future.
Based on IDC’s most recent C-Suite Barometer Survey 2018, two out of three Malaysian organizations are either planning their digital transformation (DX) strategies or are actively implementing DX-related projects. It means digital transformation awareness and adoption have enabled businesses across industries in Malaysia to start realizing desired outcomes such as improved customer experience, better workforce efficiency, and new revenue streams and business models. Thus, IT vendors in Malaysia should capitalize on this growing trend of local enterprises adopting emerging technologies by providing the right solutions required for their DX projects.
IDC foresees that the adoption of emerging technologies in Malaysia such as artificial intelligence (AI) and internet of things (IoT) will gradually increase over the coming years, as organizations realize the potential of the emerging technologies to help create new revenue streams and improve customer engagement, which have been key themes that have emerged across industries in Malaysia.
Application development services, Application management, Hosted application management, Hosting infrastructure services, IT consulting services, IT education and training, IT maintenance and support, Network and desktop outsourcing services, Systems integration services