The revenue from the Asia Pacific Application Management services market rose 6.7 percent to $5.06 billion in 2021, IDC report said.
IDC’s analysis of the AM services market said Accenture led AM market in 2021. Tata Consultancy Services (TCS) is the second leading vendor in Application Management services market.
IBM is in the third rank in Application Management services market during 2021. Infosys and DXC Technology completed the top 5 in IDC’s 2H21 APEJ IT and Business Services Tracker.
Application Management services vendors are bolstering their expertise in areas such as cloud, security, customer experience, analytics, and automation, to drive value across the life cycle of application services for customers.
Vendors are also focusing on their efforts to elevate current AM service engagements as a stepping-stone for larger digital transformation (DX) or application modernization engagements. AM services contracts are also bundled as part of these engagements or post new implementations, giving vendors the flexibility to propose new engagement models for strategic customers.
“As enterprises shift their IT sourcing strategy from cost efficiency to value, IT players with expertise in AI, Automation, security, and application modernization continue to see steady demand in their deal pipeline,” Rijo Thomas, Research Manager, IDC Asia Pacific Software and Services Research Group, said in a news statement.
Enterprises find the technical expertise, business, and industry alignment of AM SPs a critical value-add, making substitution harder. Additionally, with AM SPs now bolstering their ecosystem partnerships with cloud hyperscalers, enterprises remain positive about opening new avenues for innovation.
Traditional AM SPs are facing challenges from different vectors, such as software-as-a-service (SaaS) substitution, cloud migration, and automation. Service providers invested in client success by pivoting their value propositions beyond cost arbitrage to support the transformation ambitions of clients will find success going forward.