This presentation covers IDC's top 10 predictions for the IT Services market in Asia/Pacific for 2016

1. IDC FutureScape:
Worldwide Services 2016 Predictions
APEJ Implications: Realizing Digital Transformation

2. #IDCFutureScapes
Presenter: Linus Lai
Research Director, Services, IDC Asia/Pacific
Presenter: Cathy Huang
Research Manager, Services and Cloud Research
Group, IDC Asia/Pacific

3. Agenda
Introduction / Housekeeping Reminders
IDC FutureScape:
Worldwide Services 2016 Predictions
APEJ Implications: Realizing Digital Transformation
Q&A
Wrap-up
#IDCFutureScapes

4. Introduction
#IDCFutureScapes
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• Requests for a copy of today’s presentation will only
be entertained for IDC CIS subscribers. (Asia/Pacific
IT Services Opportunities)

5. © IDC Visit us at IDC.com and follow us on Twitter: @IDCAP 5
Source: NYT, 2016
We ain’t out
of the woods
yet…

6. Asia Pacific including Japan
Total IT Services growth expectations in USD
-15%
-10%
-5%
0%
5%
10%
15%
ANZ Greater
China
India Korea ASEAN Japan
2014 2015 2016 2017
Source: Asia/Pacific IT Services Tracker, January 2016 (growth in yoy USD)
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Top Performers 2015*
7
Source: IDC Asia/Pacific IT Services Tracker for GTS markets (Oct 2013 release)
* Source: IDC Asia/Pacific Semiannual Services Tracker, 1H2015

8. Mega Trends
8© IDC Visit us at IDC.com and follow us on Twitter: @IDCAP

9. © IDC Visit us at IDC.com and follow us on Twitter: @IDCAP 9
Digital Transformation
Third Platform Adoption
Urban Corridors
Talent Quest
East-West Shift
IoT and Other Innovation Accelerators
IT Productivity

10. © IDC Visit us at IDC.com and follow us on Twitter: @IDCAP 10
Note: The size of the bubble indicates complexity/cost to address.
Source: IDC, 2015
IDC’s Worldwide Services
Top Ten Predictions APEJ Implications
1
2
3
4
5
6
7
8
9
10
5
TIME (MONTHS) TO MAINSTREAM
ORGANIZATIONALIMPACT
Asingle
department
orabusinessunit
Multiple
departments
orbusinessunitsCompanywide
0-12 12-24 24+
5 10
2
3
8
1
9
7
4
6
LOB/IT Partners
Cloud First
Ecosystems of
Engagement
Platforms
from Digital
Disruptors
Software Defined
IT infrastructure
XaaS substitutes for
managed services
NexGen
Security Mgt.
Self-Service Gains
in Customer Care
IoT changes require
outside assistance
DX a component of
65% of strategies
4
10
6
8
9
1
2
37
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 Managed Services — By 2016, 50-55%
of Traditional Outsourcing Managed Services Will Have a
Cloud Delivery Model
Self-Service Grows in Customer Care — By 2018,
Voice-based Interactions in the Contact Center Will
Decline by 25% Due to Accelerated Demand for Newer
Options Like Self-Service.
DX — By 2016, 65% of APEJ Enterprise Strategies Will
Include a Significant “Digital Transformation” Component
IoT Changes Require Outside Assistance — In the IoT
Age, Value Derived Will Be Based on the Successful
Leverage of Data, and Most Firms Will Look Outside of
Their Organizations for Help in Addressing the Broad
Changes Required
LOB/IT Partners — By 2018, 80% of Major IT Decisions
Will Involve a Partnership Between the IT Organization
and LOBs
Software-Defined IT infrastructure — By 2016, 30% of
Enterprises Will Implement Software-Defined
infrastructure in Their Datacenters
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
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

11. © IDC Visit us at IDC.com and follow us on Twitter: @IDCAP
11
Note: The size of the bubble indicates complexity/cost
to address. Source: IDC, 2016
 IT departments transform
into internal brokers of
cloud
 Realize value of integrated
DevOps
 Willing to replace/add
traditional IT with cloud-
based solutions or services
 Ensure cloud services can
be integrated with
traditional IT
 Build OpenSource-based
solutions and services
capabilities
Impact
Guidance
TIME (MONTHS) TO MAINSTREAM
ORGANIZATIONALIMPACT
Asingle
department
orabusiness
unit
Multiple
departments
orbusiness
unitsCompanywide
0-12 12-24 24+
Cloud First
Strategy
1
Services Opportunities
Prediction #1. 33% of APeJ enterprises will pursue
a “Cloud First” strategy and the share of overall IT
budgets dedicated to cloud services will increase
to 26% by 2016

12. © IDC Visit us at IDC.com and follow us on Twitter: @IDCAP 12
Note: The size of the bubble indicates complexity/cost
to address. Source: IDC, 2016
 Use of pay-as-you-go
services combined with
increase of shadow IT
spending
 Greater security and
continuity risks
 Enterprises may lose
critical IP
 Break down cost
structures between
business units
 Service catalog based on
service levels
 Measuring business
outcomes will become
important
Impact
Guidance
TIME (MONTHS) TO MAINSTREAM
ORGANIZATIONALIMPACTAsingle
department
orabusiness
unit
Multiple
departments
orbusinessunitsCompanywide
0-12 12-24 24+
XaaS Substitutes
Managed
Services
Prediction #2. By 2016, 50–55% of traditional
outsourcing managed services will have a cloud
delivery model
2

13. Services: Realizing Digital Transformation
© IDC Visit us at IDC.com and follow us on Twitter: @IDCAP 13
Note: The size of the bubble indicates complexity/cost
to address. Source: IDC, 2016
TIME (MONTHS) TO MAINSTREAM
ORGANIZATIONALIMPACT
Asingle
department
orabusinessunit
Multiple
departments
orbusinessunitsCompanywide
0-12 12-24 24+
4
DX a key component of
65% of enterprise
strategies
4
8
TIME (MONTHS) TO MAINSTREAM
ORGANIZATIONALIMPACT
Asingle
department
orabusinessunit
Multiple
departments
orbusinessunitsCompanywide
0-12 12-24 24+
10
NexGen
Security
Management
10
9
Platforms
from Digital
Disruptors
Ecosystems of
Engagement
6
IoT changes require
outside assistance
3 Self-Service Gains
in Customer Care

14. Prediction #4. By the end of 2016, 65% of APeJ
enterprise strategies will include a significant
“digital transformation” component
© IDC Visit us at IDC.com and follow us on Twitter: @IDCAP 14
Note: The size of the bubble indicates complexity/cost
to address. Source: IDC, 2016
 Source and deliver IT in
an agile, flexible and
efficient manner
 IT functions evolve to
become more as of
business service
provider
 Greater risk &
compliance
requirements
 Educate the
procurement team
 Upskill IT resources &
invest in staff training
 Agility is increasingly a
given expectation
Impact
Guidance
TIME (MONTHS) TO MAINSTREAM
ORGANIZATIONALIMPACT
Asingle
department
orabusinessunit
Multiple
departments
orbusinessunitsCompanywide
0-12 12-24 24+
4
DX a key component of
65% of enterprise
strategies
4

15. Prediction #6. In the IoT Age, value derived will be
based on the successful leverage of data, and
most firms will look outside for help
© IDC Visit us at IDC.com and follow us on Twitter: @IDCAP 15
Note: The size of the bubble indicates complexity/cost
to address. Source: IDC, 2016
 Create new challenges
and opportunities to
convert "human,
machine" data into
business insights
 Push data at the core
of the new DX
ecosystem
 Asses your current
information mgt.
process and data
governance
 Invest in tools and
processes to collect
and analyze
unstructured data
 Develop a competency
center
Impact
Guidance
TIME (MONTHS) TO MAINSTREAM
ORGANIZATIONALIMPACT
Asingle
department
orabusinessunit
Multiple
departments
orbusinessunitsCompanywide
0-12 12-24 24+
6
IoT changes require
3rd party vendor
support
6

16. Prediction #10. By the end of 2017, 55% of
enterprises will rely on third party management
of their security infrastructure
© IDC Visit us at IDC.com and follow us on Twitter: @IDCAP 16
Note: The size of the bubble indicates complexity/cost
to address. Source: IDC, 2016
 Broadens the scope,
size, and impact of
attacks
 Relate the business
outcomes and risk
appetite
 Analytics improves
security management
 Strive to have modern
IT, not futuristic IT
 Invest based on
quantified IT risk
metrics.
 Constantly educate
board members on
the topic of security
Impact
Guidance
TIME (MONTHS) TO MAINSTREAM
ORGANIZATIONALIMPACT
Asingle
department
orabusinessunit
Multiple
departments
orbusinessunitsCompanywide
0-12 12-24 24+
10
NexGen
Security
Management
10

17. © IDC Visit us at IDC.com and follow us on Twitter: @IDCAP 17
Essential Guidance
Technology Buyers
Technology Suppliers
 Digital transformation (DX) is a
multipart journey
 Prepare for sourcing strategies to
change
 Governance and risk management
play an important role
 Support buyer shift to digital business
that encompass end-to-end capabilities
 Focus on providing business value and
enduring services quality values
 Choose your battleground and establish
ecosystems of partnerships that can
provide access to new buyers and
opportunities
Please refer to www.idc.com for the full report #AP4032115

18. IDC:AP Services Research CY 2016 Schedule
(Syndicated Research)
18
Document Title Document Type
Publication
Date
Asia/Pacific Services FutureScape Top 10 Predictions Futurescape Published
Analysis of Top IT Services Deals in the APeJ Region IDC Presentation Published
Value of hyperconverged solutions in building private cloud Insight Q1 2016
Professional Services Market Opportunities for Analytics and its Key Players Market Forecast Q1 2016
Digital Transformation, Next-gen Security: Tech buyer perspective Survey Insight Q1 2016
Asia/Pacific IT Services Survey 2016 Result Analysis IDC Survey Q1 2016
Asia/Pacific Infrastructure Services and DevOps-- Tech buyer perspective IDC Presentation Q2 2016
Best practices for security and risk management in a cloud environment PeerScape Q2 2016
ITO, ISO and managed services: Market forecast for APEJ and countries Market Forecast Q2 2016
IT Ops in a DevOps world: ITSM meets BSM Insight Q2 2016
ITO, ISO and managed services: Market shares of managed services providers Market Share Q3 2016
Enterprise Application Transformation: Impacts on Services IDC MarketScape Q3 2016
Market Analysis Perspective: Asia/Pacific: Security Services Market 2016 IDC Presentation Q3 2016
ITO, ISO and managed services: BuyerPulse deal analysis IDC Presentation Q4 2016
IDC MarketScape: Asia/Pacific Managed Security Services 2016 Vendor
Assessment
IDC MarketScape Q4 2016
The actual number of publications under this program is 29 in 2015. See more details
http://to.idc.asia/AP_ITServices_PublishedResearch

19. FutureScapes Documents
IDC FutureScape: Worldwide Cloud 2016 Predictions – APeJ
Implications
IDC FutureScape: Worldwide Services 2016 Predictions –
APeJ Implications
IDC FutureScape: Worldwide Telecommunications 2016
Predictions – APeJ Implications
IDC FutureScape: Worldwide Big Data and Analytics 2016
Predictions – APeJ Implications
IDC FutureScape: Worldwide Manufacturing 2016
Predictions – APeJ Implications
IDC FutureScape: Worldwide CIO Agenda 2016 Predictions –
APeJ Implications
#IDCFutureScapes

20. FutureScapes Documents
IDC FutureScape: Worldwide IT Security Products and
Services 2016 Predictions – APeJ Implications
IDC FutureScape: Worldwide Digital Transformation (DX)
2016 Predictions – APeJ Implications
IDC FutureScape: Worldwide IT Industry 2016 Predictions –
Leading Digital Transformation to Scale – APeJ Implications
3rd
Platform Innovation: Leading Digital Transformation to
Scale
IDC FutureScape: Worldwide Internet of Things 2016
Predictions
IDC FutureScape: Worldwide Datacenter 2015 Predictions
#IDCFutureScapes

21. #IDCFutureScapes
FutureScapes
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22. Q&A
Presenter: Linus Lai
Research Director, Services, IDC Asia/Pacific
Email: llai@idc.com
Twitter: @linuslai
Presenter: Cathy Huang
Research Manager, Services and Cloud Research
Group, IDC Asia/Pacific
Email: chuang@idc.com
Twitter: @cathyhuang
#IDCFutureScapes

23. Thank you!
www.ap.idc.asia
@IDCAP
IDC Asia/Pacific Group
#IDCFutureScapes