This IDC study predicts that the Asia/Pacific (excluding Japan) managed services spending will increase from US$13.32 billion in 2004 to reach US$23.30 billion in 2010, representing a compound annual growth rate (CAGR) of 9.7%.

"Managed services brought together a panoply of players in 2004 as it was seen as rich pickings," says Adrian Ho, senior market analyst, Networking Research, IDC Asia/Pacific. "Telcos across the region rolled out managed services offerings and made acquisitions to mitigate stagnant data revenue. Network equipment vendors pursued strategic tie ups with telcos, while IT service providers refreshed their managed services portfolio to mark their territory against new competitors."