APAC network consulting, integration market to outgrow IT services

BANGALORE: The Asia Pacific Network Consulting and Integration Market is expected to grow faster than the overall IT Services market in the region. The market, forecasted to reach $912 million in 2002, is poised to grow at a CAGR of 22 percent raking up $2,124 million in revenues by 2006. On the other hand IT Services is predicted to grow at a CAGR of 21 percent. The Asia Pacific Network Consulting and Integration Market totaled $791 million in 2001. These forecast and predictions are given by IDC in its latest study on the market.

On a year-on-year basis, both the Network Consulting and Integration Market and the IT Services Markets will grow 20 percent in 2002. This will change in 2003 as the former is expected to grow at 23 percent against the IT Services’ market growth of 22 percent.

The Network Consulting and Integration Market in Asia Pacific will begin to outgrow the IT Services Market in 2003, as demand for network infrastructure enhancements and buildups, at both central and remote sites, fuel the demand for network integration and consulting services. "One factor fueling the growth is the fact that the past few years have seen the cost of networking products declining. Price performance is now a critical component when selecting technologies and brands. Small and medium companies are also increasingly networking their work environments," said IDC Asia Pacific, Market Analyst, IT services, Nicholas Yong.

"However the general attitude towards intangible IT services, such as network consulting and installation, is still lacking," Yong noted. "As networks grow in both scope and complexity, major opportunities will continue to emerge in the area of network consulting services, including the measuring and planning of users' network capacity needs and in designing appropriate networks to meet these needs."