Walter Lee, Vice President, Asia/Pacific Consulting and SMB/Partnering Research

IDC Predicts Double-Digit Growth in the IT Spending of the Small-, Medium-, and Medium-Large-Sized Businesses in APEJ in 2007

Singapore and Hong Kong, November 1, 2006 - In IDC's latest IT market prediction of the Small-, Medium-, and Medium-Large-Sized Businesses for the Asia/Pacific excluding Japan (APEJ) region, IT spending for the APEJ Small-, Medium-, and Medium-Large-Sized Businesses is predicted to exceed US$52 billion in 2007, registering a double-digit growth of 10% over 2006. In-depth findings are published in the recently updated IDC report, Asia/Pacific (Excluding Japan) Small-, Medium-, and Medium-Large-Sized Businesses: 2006 Market Overview and Prediction for 2007 and Beyond (Doc#AP747101N).

"Technology providers or vendors are paying increasing attention to the Small-, Medium-, and Medium-Large-sized business market because of its size and rate of growth," says Walter Lee, Vice President for IDC's Asia/Pacific Consulting, Partnering and SMB Research. "Due to the highly fragmented nature of the Small-, Medium-, and Medium-Large-sized business segment, efforts need to be targeted in a focused manner. The key to reach the segment effectively is to define an efficient channel strategy by partnering with vertical industry-specific solution partners who possess deep domain expertise and have access and proximity to local industry clusters."

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Enterprises Engage in Discrete Affair with Outsourcing as a Trinity of New Opportunities Emerges in Asia/Pacific Excluding Japan, says IDC

Singapore and Hong Kong, November 8, 2006 - According to IDC's inaugural Asia/Pacific ICT Outsourcing and Managed Services study (Doc #AP144106N), the total ICT Outsourcing and Managed Services market in the region topped US$10.9 billion in first half of 2006. IDC expects the total market for 2006 to reach US$23 billion, or an annual growth rate of 12% over 2005. However, Value Added Managed Services (VAMS) is expected to outpace the entire market with a growth rate of close to 20%. This compares favorably with growth rates of 5-6% for enterprise wide outsourcing and 9-11% for managed connectivity.

"The VAMS market was the dog that continued to bark in 2006. There is an undeniable shift in sentiments towards a more discrete form of outsourcing as Asian enterprises continue to quench their insatiable appetite for cost savings," said Adrian Dominic Ho, Research Manager for IDC's Asia/Pacific Managed Services and Enterprise Networks.

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