Malaysia Network and Desktop Outsourcing Services Market: Replacing Outsourcing?

This IDC study reflects an extension of IDC Tracker studies on the Malaysia network and desktop outsourcing services market. The Malaysia network and desktop outsourcing services market attained revenue of US$43.95 million in 2004 and is expected to increase further at a compound annual growth rate (CAGR) of 17.4% from 2005 to 2009. IDC expects this market as well to reach a value of US$52 million in 2005.

Network and desktop outsourcing services are often natural extensions of entry-level services such as hardware and software used for maintenance. The Malaysia network and desktop outsourcing services market, a subsegment of the managed services market, serves as the missing link between entry-level service solutions such as maintenance and support services and large complex engagements such as providing IT outsourcing services.

"At present, end users have become more acceptable of more annuity-based contracts seeing cost reduction, control, and predictability, which serve as positive drivers for market growth. At the same time, both SPs and buyers are moving up the value chain, wherein the former was only introduced as new value-added services (VASs) that provide higher profit margins while the latter still needed to continuously demonstrate improved overall IT infrastructures to create huger opportunities for both local and global managed SPs," says Katherine Chan, research analyst, IT Services Research, IDC Malaysia.