This IDC Presentation provides a detailed analysis of the market and competitive landscape in IT services in Malaysia from January to June 2019 (1H19). 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 analysis 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 part of the Asia/Pacific Semiannual Services Tracker research, which covers 14 foundation markets across 14 Asia/Pacific countries.
The economy of Malaysia grew at a modest pace, reflecting the global economic slowdown. Private and public sectors' consumption drove the nation's first quarter growth of 4.5%, but weaker overall investment sentiment is expected to dampen the gross domestic product (GDP) growth in the coming quarters. The country's GDP growth for 2019 is forecast to be moderate, falling short of last year's performance.
The transition to a digital economy is a key driver of growth and development because it can provide a boost to the country's productivity across all sectors and create an attractive environment for new investments from outside Malaysia. As the fourth industrial revolution becomes a key driver of the digital economy, entrepreneurs and small and medium-sized enterprises (SMEs) need to assess fundamental aspects of their business, including what products and services they sell, how they deliver them to the market, the new skillsets required, and how they need to organize to support their operations.
In 2019, IDC expects that the systems integration market in Malaysia will grow at a faster rate because of the increasing pace of cloud migration among local enterprises. This trend will pick up after a slowdown in IT spending last year because of the change of governance. Thus, most local enterprises are expected to execute their plans of improving their business processes that were halted after the election results.
IDC expects the managed services market will continue growing, driven by the growing demand for cloud and security services. These are the main areas of focus for enterprises that are in the process of integrating new technologies into their current business model. In addition, Malaysian enterprises will increasingly look for the right partner that can help them boost their internal capabilities to enhance operational efficiency through automation, artificial intelligence (AI), and cognitive solutions.
As organizations in Malaysia become more receptive toward adopting 3rd Platform technologies, such as AI and IoT, cloud adoption will pick up as platforms for these technologies are increasingly hosted on the cloud. In addition, IDC expects that vendors in the services market will look to capitalize on the growing demand for new technologies, which will be a catalyst for service providers to launch innovative offerings and solutions tailored for the unique needs of local organizations.
HCL Technologies Limited, IBM, Oracle Corporation, Tata Consultancy Services Limited, Cisco Systems, Inc., Telekom Malaysia Berhad, HeiTech Padu Berhad, NTT, Accenture plc, Hewlett Packard Enterprise, Hitachi, Ltd., DXC Technology Co.
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