Opportunities for systems integrators in Asia-Pacific
Why are service organisations as diverse as IBM, Verizon, Logicalis and Siemens spending billions of dollars investing in setting up delivery operations, creating commercial entities, and focusing their energies within the relatively underdeveloped Asia-Pacific market where, from an enterprise perspective, the focus has traditionally been on commodity, cheap offerings and low margins?
With the Asia-Pacific market having hit over $41 billion in systems integration revenues in 2009 and the majority of countries already out of or, in some cases, not even having come close to recession, the levels of maturity being achieved by the Asia-Pacific region are creating whispers of a shift of the global balance of economic power to the east. Any self-respecting systems integrator will want to be part of that.
However, tread carefully, as making a success out of this region, especially in such a fickle market as systems integration, takes more than simply turning up with a hymn sheet of ‘best practices’. It requires cultural awareness, a wide set of capabilities and solutions and, above all, patience.
With the Asia-Pacific market having hit over $41 billion in systems integration revenues in 2009 and the majority of countries already out of or, in some cases, not even having come close to recession, the levels of maturity being achieved by the Asia-Pacific region are creating whispers of a shift of the global balance of economic power to the east. Any self-respecting systems integrator will want to be part of that.
However, tread carefully, as making a success out of this region, especially in such a fickle market as systems integration, takes more than simply turning up with a hymn sheet of ‘best practices’. It requires cultural awareness, a wide set of capabilities and solutions and, above all, patience.
Executive summary
The Ovum view
Key messages
Expansion in the Asia-Pacific market is a key growth strategy
Asia-Pacific is as diverse as they come and needs to be handled flexibly
A longer-term, trust-based engagement cycle – not a 12-month ‘test’
A portfolio view (by service and country) rather than just the ‘global’ approach
First-mover advantage plays a role, especially in Asia-Pacific
Market entry is very different from market expansion
Asia-Pacific clients want to understand direction, best practices and how to prepare
Observations
Recommendations
Analysis
A key market area
What is it about Asia?
Regional hype – is Asia-Pacific the world’s growth engine?
Why has Asia defied the recession or recovered more rapidly?
Risks still exist
Asia-Pacific engagement strategies
Perspectives on the market
Why do organisations enter foreign markets?
Market entry
Country-specific analysis
Overview
China
Overview of China
Who is operating in China
Engagement models
Risks
Recommendations for China
South Korea
Overview of South Korea
Who is operating in South Korea
Engagement models
Risks
Recommendations for South Korea
Malaysia
Overview of Malaysia
Who is operating in Malaysia
Market entry practices
Recommendations for Malaysia
The Ovum view
Key messages
Expansion in the Asia-Pacific market is a key growth strategy
Asia-Pacific is as diverse as they come and needs to be handled flexibly
A longer-term, trust-based engagement cycle – not a 12-month ‘test’
A portfolio view (by service and country) rather than just the ‘global’ approach
First-mover advantage plays a role, especially in Asia-Pacific
Market entry is very different from market expansion
Asia-Pacific clients want to understand direction, best practices and how to prepare
Observations
Recommendations
Analysis
A key market area
What is it about Asia?
Regional hype – is Asia-Pacific the world’s growth engine?
Why has Asia defied the recession or recovered more rapidly?
Risks still exist
Asia-Pacific engagement strategies
Perspectives on the market
Why do organisations enter foreign markets?
Market entry
Country-specific analysis
Overview
China
Overview of China
Who is operating in China
Engagement models
Risks
Recommendations for China
South Korea
Overview of South Korea
Who is operating in South Korea
Engagement models
Risks
Recommendations for South Korea
Malaysia
Overview of Malaysia
Who is operating in Malaysia
Market entry practices
Recommendations for Malaysia
LIST OF TABLES
Table 1: Comparison of economic indicators
Table 2: Sample entry approaches
Table 3: PEST analysis for China
Table 4: PEST for Korea
Table 5: PEST for Malaysia
Table 1: Comparison of economic indicators
Table 2: Sample entry approaches
Table 3: PEST analysis for China
Table 4: PEST for Korea
Table 5: PEST for Malaysia
LIST OF FIGURES
Figure 1: Systems integration growth and resourcing model
Figure 2: GDP growth from 1978 (WTO accession) to 2008
Figure 1: Systems integration growth and resourcing model
Figure 2: GDP growth from 1978 (WTO accession) to 2008
