A structural change in the market led to a fall in revenue of top 10 IT services providers in Asia/Pacific (excluding Japan) (APEJ) in 2014, a report from the International Data Corporation (IDC) showed Tuesday.
The think-tank said the list of companies who have experienced a revenue decline include, IBM, HP and Samsung SDS.
It noted that the emergence of 3rd Platform technologies such as cloud, social, analytics and mobility has increased price pressures on traditional asset intensive markets such as IS outsourcing or hardware support and deployment services market.
The study also identified Huawei, Telstra, and Atos as the three fastest growing companies in the top 30 list. In addition, it highlighted the emergence of strong India and China players like TCS, Pactera, and 21Vianet that are looking to expand their reach in the region.
“The challenge hence for global IT services vendors is twofold — one from the emergence of these Asian players but more importantly the need to innovate to keep up with 3rd Platform technologies such as cloud,” said Sherrel Roche, one of the authors of the IDC report.
Citing the trend, IDC said IT services providers must transform their businesses to enable their customers as they embark on digital transformation journeys of their own.