Competitive Landscape The GR 170724

G00170724
Competitive Landscape: The Growth Potential

of Singapore, Malaysia and Thailand for IT
Services
Published: 13 October 2009
Analyst(s): Jacqueline Heng, TJ Singh
The Association of Southeast Asian Nations (also known as ASEAN) is today

an economic block that promotes economic growth, social progress and
regional peace. The 10 nations that make up ASEAN — Brunei, Cambodia,
Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand
and Vietnam — had a combined gross domestic product (GDP) of US$1.5
trillion in 2008 (based on ASEAN Secretariat statistics [9 June 2009]) and a
population of 560 million.
This report focuses on the IT services competitive landscape of three of

ASEAN's largest IT services countries by domestic demand: Singapore,
Malaysia and Thailand. It also evaluates the IT services competitive
landscape from the business segment perspective: government; the
"bamboo network" of the overseas Chinese conglomerate buyers;
government-linked companies (GLCs); multinational corporations (MNCs);
large local companies; and small or midsize businesses (SMBs).
Key Findings
■ The competitive IT services economic profile of each of the three large ASEAN IT services
markets of Singapore, Malaysia and Thailand varies because of the different rates of economic
growth. Singapore accounts for 47.5% of the total ASEAN IT services business, and Malaysia
and Thailand are emerging markets, accounting for 18.7% and 12.5%, respectively, of the total
ASEAN IT services market.
■ Although ASEAN markets are fragmented, they are also similar in terms of identified buyer
types. Targeting multinational buyers is not difficult, but challenges lie in penetrating the
government and local buyer segments, in which costs of projects are usually low, and fostering
close relationships, which are important in emerging markets.
This research note is restricted to the personal use of tanlb@viettel.com.vn.

■ ASEAN countries are somewhat similar in the type of customer groups operating in each
market. However, differences exist in terms of the growth rates, the cultural nuances, business
practices and the competitive nuances within the three large ASEAN countries of Singapore,
Malaysia and Thailand.
Recommendations
Multinational Service Providers
■ Partner and/or develop a business partner network with established local service providers.
This approach will help when targeting large local businesses, which typically do not have a
large information and communication technology (ICT) budget yet need the best practices and
methodologies of a multinational service provider. This strategy will also help the service
provider to reach the Tier 2 and Tier 3 cities, which are developing, and generate new revenue
opportunities in the midmarkets and local governments, especially in Malaysia and Thailand.
■ Upsell and cross-sell IT services into the existing installed base to enhance your business value
proposition to increase your share of wallet, especially if your prime business is selling
technology. Leverage your existing "ecosystem" by identifying gaps and opportunities in your
clients' current procurement practices.
Large Local Service Providers
■ Cultivate relationships with multinational service providers to develop expertise and best
practices and to be a part of a multinational value chain offering that creates a niche for your
business. Multinational service providers that haven't been established long in a country
typically will need to build up local resources, a distribution IT network and localized templates,
and if your business has those capabilities, you will be able to offer complementary go-to-
market solutions.
■ Develop localized vertical-specific solutions to be attractive to multinational service providers
for joint ventures or potential acquisitions.
■ To compete against multinational service providers, build up skills and capacity in Information
Technology Infrastructure Library (ITIL), Project Management Professional (PMP; see Note 1)
and other standards.
■ Develop methodologies and delivery capabilities to target multinational global delivery
ecosystems, both as a partner and a customer.
Table of Contents
Analysis.................................................................................................................................................. 3
1.0 Market Definition.........................................................................................................................3
Page 2 of 27 Gartner, Inc. | G00170724

2.0 Competitive Situation and Trends............................................................................................... 4
2.1 Current Competitive Structure.............................................................................................. 6
3.0 Market Players..........................................................................................................................13
4.0 The Future of Competition........................................................................................................ 14
5.0 Competitive Profiles of IT Services Providers in ASEAN............................................................ 15
5.1 Competitive Profile of the Top Five ASEAN IT Services Providers........................................16
5.2 Competitive Profiles of Two Other Significant IT Services Providers With IT Services Activities
Across ASEAN......................................................................................................................... 20
5.3 Competitive Profiles of Malaysia-Based IT Services Providers in Malaysia........................... 21
5.4 Competitive Profiles of Thai-Based IT Services Provider in Thailand.................................... 23
6.0 References and Methodology................................................................................................... 25
7.0 Recommendations................................................................................................................... 25
Recommended Reading.......................................................................................................................26
List of Tables
Table 1. Competitive Differences in Singapore, Malaysia and Thailand..................................................10

Table 2. 2008 Market Share of Top Five ASEAN IT Services Providers (Includes Singapore, Malaysia,
Thailand and Rest of Asia/Pacific).........................................................................................................16
List of Figures
Figure 1. IT Services Asia/Pacific Market Size and Growth by Country/Market........................................4

Figure 2. ASEAN IT Services Market, 2008.............................................................................................6
Figure 3. Differences Across ASEAN Service Providers' Competitive Landscape.................................. 13
Analysis
1.0 Market Definition
This document presents a view of competition for the domestic ASEAN IT services market. The
analysis focuses on types of service providers competing in the market and targeting various
customers' demand. It does not rate, score or rank service providers in a quantified way. Gartner
defines the service offerings, along with product support and professional services, in "Dataquest
Guide: IT Services Market Research Methodology and Definitions." Recently published Gartner
research was used as reference points for this document. In addition, this document does not
Gartner, Inc. | G00170724 Page 3 of 27

discuss the offshore services market in the ASEAN markets. However, there are key elements of the
offshore service market landscape that overlaps with ASEAN's domestic IT services market — most
notably, a number of key service providers are concurrently seeking market opportunities in both
arenas: domestic market provider and offshore delivery provider.
ASEAN was formed in 1967 to promote economic growth, social progress, protection of peace and
stability for the region and an opportunity for peaceful dialogue, and today it is an economic block.
This regional block includes Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the
Philippines, Singapore, Thailand and Vietnam, and spans an area of 4.5 million square kilometers. It
has a combined GDP of US$1.5 trillion in 2008 (based on ASEAN Secretariat statistics [9 June
2009]) and a population of 560 million.
In this report, Gartner focuses on the IT services competitive landscape of three of ASEAN's larger
IT services markets: Singapore, Malaysia and Thailand. Gartner groups the other ASEAN markets
into the rest of Asia/Pacific category, in which it is estimated that 75% of the IT services revenue
within this category falls among the rest of the ASEAN markets. Gartner estimates ASEAN's IT
services spending for 2008 was US$7.8 billion — larger in size than China's US$7.5 billion — with a
five-year compound annual growth rate (CAGR) of 5.8% from 2008 through 2013 (see Figure 1).
Figure 1. IT Services Asia/Pacific Market Size and Growth by Country/Market
40
35
30 Australia
Percentage of Total Asia/Pacific
25
20 South Korea
Market Size
China
15 ASEAN
10
Taiwan India
5
New Zealand Hong Kong
0
-4 -2 0 2 4 6 8 10 12 14 16 18
-5
2008-2013 CAGR (%)
Source: Gartner (September 2009)
2.0 Competitive Situation and Trends

The competitive IT services economic profile of each of the three large ASEAN IT services markets
of Singapore, Malaysia and Thailand varies because of the different rates of economic growth (see
Figure 2).

Singapore accounts for 47.5% of the combined ASEAN IT services business, and Malaysia and
Thailand are emerging markets accounting for 18.7% and 12.5%, respectively, of the total ASEAN
IT services market. Singapore, with its base of headquartered MNCs, has a more sophisticated and
matured IT services profile.
Across the three ASEAN countries, the cultural nuances and rate of growth are different, but what
remains similar are the fundamental groups of influencers:
■ Government as a buyer
■ GLCs as buyers
■ Telecommunications (telecom) companies as buyers
■ Banks, financial institutions and insurance businesses as buyers
■ MNCs as buyers
■ Bamboo network of the overseas Chinese conglomerates as buyers
■ Large single-industry family-owned local businesses as buyers
■ Large public-listed local businesses as buyers
■ SMBs as buyers
These groups of customers contribute to the top five verticals in the three ASEAN countries:
banking, financial services and insurance; government; communications; manufacturing; and
services.

Figure 2. ASEAN IT Services Market, 2008
Rest of Asia/Pacific
21.3%
Singapore
47.5%
Thailand
12.5%
Malaysia
18.7%
Market = US$7.8 Billion, 2008-2013 CAGR = 5.8%
Note: Gartner estimates 75% of rest of Asia/Pacific (including the large emerging markets of Indonesia, Vietnam and Brunei) is a part of
ASEAN.
2.1 Current Competitive Structure

Selling value to the different IT services customer groups is not simple. This is because of the
different stages of business practices used within each customer group and within markets. We
strongly recommend to our readers of this report to approach specific questions through Gartner's
inquiry process. In Section 2.1.1 (IT Services Buyers section), Gartner identifies the IT services
customer groups, and in Section 2.1.2 (How Service Providers Compete section), Gartner tries to
provide an overarching response in terms of how service providers compete to win businesses
within these customer groups and within these nations/markets.
2.1.1 IT Services Buyers
2.1.1.1 Government as a Buyer
Gartner estimates the combined three markets' government IT services spending is at US$1.16
billion. The Singapore government plans to spend approximately S$1.73 billion (US$1.1 billion) in
2009 on ICT contracts, which includes hardware, software and services. Based on Gartner's
forecast projections, the Singapore government's ICT spending is expected to grow by a CAGR of
2.4% from 2008 through 2013, and government IT services revenue is 22.8% of total IT services
revenue. The Malaysian government is expected to spend approximately US$1.1 billion in ICT-

related contracts in 2009 at a CAGR (2008 through 2013) of 7.4%, and government IT services
revenue is 17.7% of Malaysia's IT services. The Thailand government is expected to spend
approximately US$785 million in ICT-related contracts in 2009 at a CAGR (2008 through 2013) of
3.8%, and government proportion of Thailand's IT services revenue is 7.7%. During the past two
years, with the political unrest in Thailand, government spending has lessened due to distractions
caused by the social and political problems. In the emerging markets of ASEAN, business
confidence over government intervention is usually more difficult to achieve because of red tape
and underdeveloped governance in regard to government spending and enforcement of policies.
2.1.1.2 GLCs as Buyers
Over the decades, governments in Southeast Asia have invested in companies through state
pension funds — for example, Central Provident Fund (CPF) in Singapore and Employees Provident
Fund (EPF) in Malaysia, as well as through state investment organizations, such as Temasek
Holdings (Singapore), Khazanah Nasional (Malaysia), Petroleum Authority of Thailand (PTT) and
Permodalan Nasional Berhad (PNB; Malaysia). After the Asian financial crisis in 1997, a new
business landscape emerged, whereby commercial companies with significant financial investments
from large government investment organizations grew into what is termed "government-linked
companies" or GLCs. These companies include SingTel, TM (also known as Telekom Malaysia),
Singapore Power, Tenaga, Petronas, PTT, Singapore Airlines, Malaysian Airlines, Thai Airways, Sime
Darby, etc. These companies have grown into conglomerates with domestic and overseas
operations. Although operated like a commercial entity, the GLCs are governed by strict
government supervision and key performance indicators (KPIs). As GLCs with significant
government investments, these conglomerates have a very low chance of going out of business.
The GLCs are highly profitable, primarily because of the near-monopolistic domestic market that the
governments have designed for them. Temasek Holdings' portfolio of investment activities account
for about S$185 million (US$1.2 million) in 2008, and it has a high corporate rating by Standard &
Poor's as well as Moody's. Malaysia's Khazanah Nasional has a net investment portfolio of 53.1
billion ringgit (US$14.9 billion) in 2008, while PNB has a net investment of 49 billion ringgit (US$13.8
billion).
2.1.1.3 Telecom Companies as Buyers
Gartner estimates IT services spending for the combined three countries for the communications
vertical is US$981 million. Telecom is an important vertical, in which typically a business will use
telecom as its first startup point by purchasing voice and data services. With increasing reliability of
broadband infrastructure, Gartner is seeing the potential for telecom companies in these three
countries to reach out to businesses with more-reliable Web-based services, such as software as a
service (SaaS). Thailand's True Corp. has just reported broadening its online shopping sites across
seven countries in Southeast Asia. At the end of 2008, True Corp.'s online shopping site had about
200,000 customers visited daily and a transaction value of 8 billion baht. Singapore's SingTel
launched its SaaS platform last year for the domestic market, with plans to venture through its
overseas operations and partners.

2.1.1.4 Banks, Financial Institutions and Insurance Businesses as Buyers
Financial institutions' IT services spending for the three countries is estimated at US$1.5 billion.
Singapore, being one of the financial hubs for Asia/Pacific, has the most foreign banks in the
ASEAN region, and all three of its local banks have ventured overseas. Malaysia's banking sector
went through a consolidation after the 1997 financial crisis, and today, local conventional banks and
Insurance companies exist. Islamic- or Sharia-based banks and insurance companies, also known
as Takaful services, are also available. Malaysia is fast emerging as the global hub for Islamic
banking and financial services. Thai banks are using IT to enhance their customer experience and
reduce costs with service-oriented architecture (SOA) adoption. For more information on banking
and finance for Malaysia and Thailand, refer to "Emerging Market Analysis: IT, Malaysia, 2009 and
Beyond" and "Emerging Market Analysis: IT, Thailand, 2009 and Beyond."
2.1.1.5 MNCs as Buyers
The significant number of MNCs in ASEAN countries shows the continued importance of this
subregion within Asia/Pacific supporting the world. MNCs use each country for different motives;
Singapore's foreign direct investment (FDI) in 2007 was S$345 million, and many MNCs use
Singapore as its base of activities in ASEAN. Added to this, the strength and stability of the financial
institutions, R&D science labs, multimedia, enforceable business privacy laws and proliferation of
data centers are just some of the reasons for continued foreign investments. Malaysia's FDI in 2007
accounted for 25.3 billion ringgit, and many MNCs use the country for its base for offshore centers
and manufacturing. Before the political tensions in Thailand, foreign investors took advantage of the
country for its inexpensive resources to build large manufacturing bases. Thailand is known as the
"Detroit of the East" because of the significant investments made by automotive manufacturers in
the country.
2.1.1.6 Bamboo Network of the Overseas Chinese Conglomerates as Buyers
The vast migration of Chinese from the coasts of Southern China in 1949 to the ASEAN region
generated the bamboo network of overseas Chinese. These pioneering Chinese families in the
region started out poor but are now one of the richest entities in the region. For example, in
Indonesia, the businesses of Liem Sioe Liong, founder of the Salim Group, at one time accounted
for 5% of the country's economy (reference taken from Booz Allen Hamilton by Murray
Weidenbaum, co-author of "The Bamboo Network").
The economic influences of these homegrown conglomerates are synonymous with the economic
backbone of ASEAN countries and are very similar to entrepreneur Li Ka-shing's empire in Hong
Kong. Some of the largest businesses that still wield strong economic influences are Singapore's
Hotel Properties Ltd. (HPL); Charoen Pokphand (CP) Group in Thailand; Kuok Group, Genting
Group and YTL Corp. in Malaysia; and Lippo and Salim Group in Indonesia. These businesses are
operated, most of the time, based on internal- or external-influenced relationships.

2.1.1.7 Large Single-Industry Family-Owned Local Businesses as Buyers
Unlike the widespread conglomerates of the family-run overseas Chinese businesses, ASEAN
economies also grew from single economic backbone industry family-run businesses, such as
construction, manufacturing, plantation, timber, oil, steel, automotive, etc. These companies may
not be as rich as the bamboo network, but their contribution to the countries' economies are
significantly large. Their prominence is still seen in the emerging markets of Malaysia, Thailand,
Indonesia and Vietnam, where natural resources are still mined. Along with the Chinese, ASEAN
also attracted migrants of Indian origin, who, like the Chinese, set up family-operated businesses,
but unlike the Chinese, not in commodities but in the wholesale and retail markets, professional
services (i.e., legal and accounting services) and money-lending businesses.
2.1.1.8 Large Public-Listed Local Businesses as Buyers
In Thailand and Malaysia, many of these businesses are still growing strong. Some, such as Scomi,
Gamuda, Projek Lebuhraya Utara-Selatan (PLUS), HeiTech Padu, etc. in Malaysia are homegrown
large public-listed companies that have significant business interest across the region. Unlike the
conglomerates, these companies focus in only one or two industry sectors.
2.1.1.9 SMBs as Buyers
The SMB market in Southeast Asia is not the easiest to sell services into, but yet, it has the most
number of companies. Telecom companies and hardware/software resellers are probably the best
channels to reach in this group of the market. With the exception of Singapore, selling into the SMB
market in ASEAN will involve the establishment of service delivery centers in most Tier 2 and Tier 3
cities. Most large MNC service providers either forfeit this segment or engage local service
providers or partners that have extensive geographical coverage.
2.1.2 How Service Providers Compete
Although ASEAN countries share, and are somewhat similar, in the type of customer groups
operating in each market, the rates of growth and the competitive nuances are different. Table 1
lists key competitive differences that service providers pay attention to so they can compete
effectively.

Table 1. Competitive Differences in Singapore, Malaysia and Thailand
Competitive What This Means Singapore Malaysia Thailand

Differences
Best Practi- World-class best practices, ro- Organizations are already at globally ac- Organizations are emerging and need to transform key busi-
ces, Method- bust methodologies and innova- cepted standards but are constantly com- ness sectors into world-class organizations. This is critical, and
ologies and tive technologies are very much peting on, and challenged by, global is- there is a lot still to be done.
Innovative in demand for IT services buyers sues. In addition, Singapore's intellectual
Technology to keep up with competitive ad- property laws are enforceable, and the
vantage in the market. government has provided the needed in-
Service providers will use Singa- frastructure of technology innovation. For
pore as a test bed for new solu- more information, see "Analysis of Singa-
tions and to base consultants to pore as an Offshore Services Location."
deploy into Malaysia and Thai-
land.
Strength of Governments in these three Government bids are transparent, and Transparencies in government bids are still not at the desired
Government countries will attempt to protect tenders are open to any provider that is levels, and a number of deals are going through the "direct ne-
Relationships the interests of local service pro- able to demonstrate ability to meet the gotiations" route; hence, it is usually not surprising that govern-
viders. government's requirements, standards ment links and ties are still a strong bidding card at tenders.
Multinational service providers and pricing. Government projects are at-
will walk away from projects that tractive because of the volume of work;
are margin-challenged. the government is reputed as a "good
paymaster" and is an early adopter of new
technology solutions. Expect pricing to be
challenging.
Ability to Businesses in ASEAN countries Businesses find the population size limi- The country's cultural, lan- Local businesses are also
Scale Across are growing and need to expand ted in market size and the real estate pri- guage and religious affinity to trying to capture the trading
the Asia/ outside the region to increase ces too high for large low-cost operations. the Middle East, specifically in markets of the Middle East.
Pacific and revenue or reduce operating When these organizations expand — es- the areas related to religion, Thailand is ranked seventh
Middle East costs. pecially to emerging geographies — it is such as Islamic banking. in the world as an exporter
Region Service providers will usually use typical to rely on trusted current service of "halal" food; for example,
this ASEAN region to leapfrog in- providers to expand with them. For exam- animals are slaughtered and
to other parts of Asia/Pacific or ple, many IT services providers in Singa- prepared in a specific reli-
the Middle East. pore moved with their customers into Chi- gious way dictated by Islam
na when China was emerging and did not law.
have as many choices of providers in the
IT services landscape then.

Foster Rela- Fostering close face-to-face busi- In most Singapore-based businesses, es- This is still rampant across organizations and industries. Many
tionships to ness relationships is still essential pecially public-listed businesses, the old- businesspeople are still making purchasing decisions based on
Win Con- in the ASEAN region, especially in style relationship fosters better working closely knitted ties.
tracts Malaysia and Thailand. relationships but doesn't necessarily guar-
Service providers will cultivate antee a win of a contract,.
the relationships through foster-
ing personal friendships and en-
tertainment.
Price Sensi- Size of contracts are smaller in Service providers, such as the Indian Organizations in these countries are not able to pay for services
tivity scale and value compared with service providers, have done well in Sin- offered/converted in U.S. dollars because of lower exchange
the Western markets. gapore because of the attractive rates and rates to the dollar. In addition, the emerging nature of organiza-
Service providers will use differ- quality of service rendered. Organizations tions also means that the value of paying for services is often
ent rate cards. in Singapore do not require the frills of not fully appreciated.
public relations but will demand quality of
service and delivery relative to the price
paid for a contract.
Partnerships Conglomerate style of govern- Partnerships are common in both Singapore and Malaysian government This is not rampant.
With the Gov- ment bids, collaboration and deals. The governments use partnerships to mitigate risks and to provide op-
ernment transfer of technology. portunities to local service providers that would otherwise not have a chance
Service providers are very fo- to compete in a high-value tender. The IDA of Singapore started a collabora-
cused on the margins related to tion of deals directly with a service provider, most often linking a service pro-
the nature of these deals; they vider with a government agency.
will walk away if they find the
margins too tight.
Partnerships In emerging markets, it is difficult This does not happen. This is still rampant, especially because of language and cul-
With the to break into the market if the ture barriers and business practices. In addition, a new entrant
Commercial service provider is a new entrant. does not have established working relationships with local
Sector MNC service providers will need channel partners.
to work with local providers be-
cause the local providers will
know how to reduce red tape,
deal with the complicated local
business practices and lower the
cost of contracts.

IDA = Infocomm Development Authority

3.0 Market Players
In Section 2.0 (Competitive Situation and Trends), Gartner identified the type of IT services
customer groups present in all three countries. In this section, we distinguish eight types of service
providers that basically provide services in Singapore, Malaysia and Thailand. Figure 3 shows the
presence of these eight service provider types in each of the country markets.
Figure 3. Differences Across ASEAN Service Providers' Competitive Landscape
Multi- Multi-
Pan- India- national national Local Local
ASEAN Based Service Service Telecom Service Service
Service Service Providers Providers Management Service Providers Providers
Providers Providers Tier 1 Tier 2 Consultants Providers Tier 1 Tier 2
Singapore
Government l l l l l l
Telecom l l l l
GLCs l l l
Banks l l l l
MNCs l l l l l
Large Locals l l l l l
SMBs l l l l
Malaysia
Government l l l l
Telecom l l l
GLCs l l l l
Banks l l l l
MNCs l l l l
Large Locals l l l
SMBs l l l
Thailand
Government l l l l
Telecom l l l
GLCs l l l
Banks l l l l
MNCs l l l l
Large Locals l l l
SMBs l l l
l Denotes prominent presence in the markets. This is based on Gartner's understanding of the market through
interviews with both service providers and customers in Singapore, Malaysia and Thailand.

■ Pan-ASEAN service providers — The only two Pan-ASEAN service providers are NCS and
Singapore Technologies Electronics (ST Electronics), which are homegrown in ASEAN and have
substantial revenue presence globally in more than two major regions.
■ Telecom service providers — These refer to service providers that specifically target
telecommunications providers, such as Nokia, Ericsson, Alcatel-Lucent and Nortel.
■ India-based service providers — These providers have been in ASEAN for more than 10 years
and have made significant contributions to the ASEAN markets, such as Tech Mahindra-Satyam
in Malaysia working with the MSC Malaysia (formerly known as the Multimedia Super Corridor)
to train Malaysian IT graduates. Also, Tata Consultancy Services (TCS) established its roots in
Singapore with the Singapore Airlines account.
■ Multinational service providers, Tier 1 — These are the top 10 multinational service providers in
ASEAN, such as IBM, HP, Accenture (system integration and outsourcing), Fujitsu, CSC, Oracle
and Siemens.
■ Multinational service providers, Tier 2 — These refer to a large group of multinational service
providers that are present in ASEAN but are not in the identified Tier 1 group.
■ Management consultants — These management consultants refer to Accenture (consulting),
Deloitte, KPMG, PricewaterhouseCoopers (PwC) and Ernst & Young, Bain & Co., McKinsey &
Co. and Boston Consulting Group, of which they are heavily relied on by the governments and
top local industries.
■ Local service providers, Tier 1 — The technology nuance by these large IT services companies
can be seen more from the emerging markets of Thailand, Malaysia and Indonesia. In some
cases, the conglomerates in the countries have attempted to create spinoffs of their captive
units — for example, HeiTech Padu and iPerintis — to generate external commercial businesses
by providing support and integration services to other local businesses. Most of these
organizations are able to deliver services based on international standards, such as Capability
Maturity Model Integrated (CMMi), PMP and ITIL but they lack the scale and industry depth that
the multinational service providers bring to an engagement.
■ Local service providers, Tier 2, and resellers — Most of the local Tier 2 service providers are
those with 500 or less full-time equivalent (FTE) employees and are typically challenged when it
comes to scale, vertical depth and large project management skills. Most do not have the
necessary certifications — PMP, ITIL and/or CMMi. Some of these service providers are owned
by large local listed companies or GLCs and have emerged as a potentially large IT services
customer needing multinational advisory services to create internal shared services among the
conglomerate group. Resellers, on the other hand, have typically focused on their hardware and
software business and have, of late, ventured into low-level service with their principal partners
(i.e., their hardware and software product vendors).
4.0 The Future of Competition

This current global financial crisis will only compel service providers in the region to change their
business and service delivery models to fit the new economic realities. Based on our research into
the market in these countries, the business and economic trends there, our research of buyer

priorities and technology trends, Gartner sees the following as key competitive factors in the next
three to five years:
■ Consolidation and shakeout — From 2007 to 2008, Singapore saw a huge shake-up through
consolidation of the domestic service provider landscape among the top 10 providers in the
country, with large multinational service providers and large local service providers acquiring
similar-size service providers. BT purchased Frontline Solutions, HP purchased EDS, and NCS
purchased Singapore Computer Systems (SCS). In Malaysia, VADS, an IT services provider,
was acquired by TM, the country's largest fixed-line telecom service provider. Gartner expects
more consolidation to occur, especially among the multinational service providers and possibly
one or two other large local providers in ASEAN. The key drivers for the consolidation among
the service providers are improved geographical presence, better vertical coverage, larger scale
and a more comprehensive service offering.
■ The growth of midsize local businesses — Midsize businesses, especially in Malaysia and
Thailand, are still being supported by Tier 1 and Tier 2 local service providers. This business
group is still buying support, infrastructure and application integration services. Very few of
these businesses have moved into business process services or IT outsourcing services —
albeit, these types of services are apt for midsize businesses that have fewer skilled resources
and would not own too much IT assets. These businesses are also growing domestically and
overseas. Multinational service providers in ASEAN have been trying to tap into the midsize
markets, offering lowered-cost options or utility-type services.
■ Accelerated introduction of alternative delivery and acquisition models (ADAMs) — Gartner
expects that with increasing pressures on cost containment and labor arbitrage, the drive
toward ADAMs will be accepted. Service providers in Singapore have reported sporadic pilot
projects or ad hoc customers willing and wanting to test-drive these services. ASEAN
businesses are typically conservative when it comes to investing in technology and related
services and will need success stories to booster their confidence level in adopting these new
types of delivery models. In addition, SingTel has been providing utility-based services in
infrastructure, e-mail exchange, etc., as part of its bundled jump-start packages for any new
SMB. It has begun selling its SaaS platform with strategic partners.
■ Increased use of regional delivery models to offset costs — Cost pressures and labor arbitrage
continue to be an issue that must be addressed in ASEAN. Although this is globally true in every
country in the world, in ASEAN, pricing pressures continue to be a key determinant in many
tenders. Though the cost differentials may not be as attractive, achieving economies of scale,
as well as consistency of service quality and delivery, is important. Hence, multinational service
providers need to use regional delivery centers to offset costs and compete with the lowered
costs offered by local Tier 1 providers.
5.0 Competitive Profiles of IT Services Providers in ASEAN

We provide competitive profiles of the following:
■ Top five ASEAN IT services providers by market share (IBM, HP, NCS, ST Electronics and
Accenture)

■ Two significantly sized ASEAN IT services providers with strong presence across ASEAN
(Fujitsu and CSC)
■ Three upcoming local IT services providers in Malaysia (HeiTech Padu, Kompakar and
Symphony House)
■ Top two local IT services providers in Thailand (CDG Group and Loxley Public Co. Ltd. [PCL]
Information Technology Group [referred to as Loxley IT Group]).
5.1 Competitive Profile of the Top Five ASEAN IT Services Providers

Table 2 shows the top five ASEAN IT services providers.
Table 2. 2008 Market Share of Top Five ASEAN IT Services Providers (Includes Singapore, Malaysia, Thailand
and Rest of Asia/Pacific)
2008 Market Share (%)
IBM 10.4
HP 8.0
NCS 7.1
Singapore Technologies Electronics 6.2
Accenture 4.3
5.1.1 IBM
5.1.1.1 Market Overview and Revenue
IBM is the largest IT services provider in Southeast Asia, with estimated revenue of US$817 million
in 2008. IBM has offices and branch offices in Singapore, Malaysia and Thailand (as well as in
Indonesia, the Philippines and Vietnam). In ASEAN, IBM has six software development centers, nine
data centers (four in Singapore, two in Malaysia, one in Indonesia, one in the Philippines and one in
Thailand), three call centers and two global delivery centers (one in the Philippines and another in
Vietnam).
5.1.1.2 General Product/Service Marketing Strategy
IBM has been in ASEAN for more than 75 years and has a diverse portfolio of IT services, including
product support services, business consulting and technology services, outsourcing and business
process services. Its vertical focuses are on financial services, telecommunications, public sector,
industrial sector, distribution sector and general business sector.

5.1.1.3 How IBM Competes
IBM has a strong brand name and is strong in all three countries, specifically in the government
sector, GLCs, large local conglomerates and MNCs (customers). In Singapore, IBM has a
partnership with NCS and leverages Optus as a service provider. In Malaysia, IBM uses local
partners, such as Mesiniaga and VADS, while in Thailand, IBM has extensive relationships with
partners, such as G-Able. Most of these service providers deliver on-site IT services, such as on-
site desktop support, storage support, etc., in the countries that they operate in. IBM is, however, in
some instances still perceived to be expensive and less flexible in the SMB market in Singapore,
Malaysia and Thailand. IBM has established a "business partner organization" team that identifies
opportunities to cross-sell and upsell services into existing accounts. IBM also uses a blended
service delivery model that leverages its extensive technology (such as remote management) and
partnerships with local service providers to help maintain a lower cost of service delivered. These
partners are also used to identify and manage opportunities in their respective territories. IBM
typically focuses on Tier 1 cities and leverages partners in Tier 2 and 3 cities in Malaysia and
Thailand.
5.1.2 HP
HP's IT services revenue in ASEAN is estimated at US$623 million in 2008. HP was established in
1970, and Singapore is the headquarters for Asia/Pacific. In 2008, HP Global acquired EDS; which
helped to elevate HP's positioning in the professional services segment globally. In Singapore, EDS
was not a top three provider; however, in 2007, an EDS-led consortium won the Singapore
government's SOEasy deal worth S$1.3 billion, providing IT utility and infrastructure services to 74
government agencies. Hence, with the acquired skills of EDS, HP is now a top-tier provider in the
professional services in Singapore. HP has three application software development centers in
ASEAN (Singapore, the Philippines and Thailand) and more than five data centers.
HP's consulting and development and Integration capabilities focus on a selection of vertical
sectors, and accounts processes and solutions, and HP has key verticals in manufacturing, financial
services, government and communications.
5.1.2.3 How HP Competes
The company leverages an extensive alliance network to add capabilities and services to its broad
portfolio. In some smaller deals, HP leverages its extensive partner and reseller network to sell and
cross-sell services. HP is able to extend its reach for support services to Tier 2 and Tier 3 cities
through its business partner organization and networks. In countries where the margins are
relatively low, HP would look to enable its partners to provide such IT services. In some large deals
in Tier 1 cities, HP would engage its partners to deliver lower-margin, people-intensive services.

5.1.3 NCS
Gartner estimates NCS's IT services revenue in ASEAN at US$560 million. About 82% of global
NCS's IT services revenues are derived from Singapore, and the remaining 18% is from overseas
markets. NCS was established in 1981 as an IT arm for the then National Computer Board, which is
now known as IDA. NCS is a wholly owned subsidiary of SingTel Group. It has overseas businesses
in China, Australia, South Korea, the Middle East, the Philippines, Malaysia and Hong Kong. NCS
also has an engineering subsidiary that provides communications engineering services, such as
airport facility consultancy and management services, engineering and radio communications,
intelligent building, smart security solutions and transportation solutions. In late 2008, NCS finalized
its acquisition of SCS, which is one of the contractors working with HP on the Singapore
government's SOEasy project.
NCS's offerings range from electronic government (e-government) consultancy services, system
integration, application development and maintenance, infrastructure management and solutions, IT
outsourcing, business process outsourcing (BPO) to enterprise solutions.
5.1.3.3 How NCS Competes
NCS's top five verticals are the government, communications, financial services institutions (FSIs),
education and healthcare. NCS has a good track record in providing e-government services to
governments outside Singapore. This service provider has also helped to educate students through
programs with education institutions; for example, it has worked with ILOG in collaboration with
Nanyang Polytechnic to build up Asia's first Enterprise Business Rule Solutions Centre (EBRSC).
NCS has also moved overseas with its customers into new markets, such as China and the Middle
East.
5.1.4 Singapore Technologies Electronics
Gartner estimates ST Electronics' revenue in ASEAN to be about US$482 million, and 68.1% of
global ST Electronics' IT services revenue is derived from its IT services in Singapore. ST
Electronics is the electronics arm of Singapore Technologies Engineering Ltd., an integrated
engineering group providing solutions and services in the aerospace, electronics, land systems and
marine sectors. ST Electronics specializes in information communications systems, system
integration and e-government solutions, satellite communications and sensor systems, software
solutions, intelligent transportation and rail electronics solutions, training and simulation systems,
and managed services, as well as interactive digital media and virtualization. ST Electronics is one
of Singapore's defense contractors, with about half of its revenue contributed by this industry.
However, its commercial revenue share has been growing at a faster rate than its defense revenue,
as it continues to globalize.

ST Electronics' business covers the full life cycle of R&D, production, operations and services in
many key and specialist verticals, such as defense, homeland security and public safety; satellite,
wired and wireless communications; intelligent transportation systems for road and Mass Rapid
Transit (MRT); interactive digital media; education and e-learning solutions, including simulation
training; and e-government solutions.
5.1.4.3 How ST Electronics Competes
ST Electronic maximizes its skills in these specialized verticals and works with its numerous
divisions of businesses and overseas business ventures. ST Electronics has a number of
commercial deals internationally, including traffic and transportation solutions in Singapore, China
and the Gulf States; rail electronics in China, Hong Kong, Middle East, the Philippines, Taiwan,
Thailand and Turkey; fleet management systems in India, Taiwan and the United Arab Emirates
(UAE); port management and security solutions in Bangladesh and Singapore; e-learning in
Kazakhstan and Singapore; satellite communications solutions to more than 80 countries; and
creation of the first Virtual World platform for the Singapore 2010 Youth Olympic Games.
5.1.5 Accenture
Accenture first established an ASEAN office in Singapore in 1975, followed by Thailand in 1978 and
Malaysia in 1979. Gartner estimates Accenture's ASEAN IT services revenue at US$334 million. In
ASEAN, Accenture has an application and business process center in the Philippines.
Accenture goes to market with strong vertical skills, especially in communications, high tech,
government, financial services, airlines and natural resources.
5.1.5.3 How Accenture Competes
Accenture's consultancy expertise is embedded into its vertical offerings. Accenture is extensively
being used by the governments of ASEAN for the countries' ICT strategies and positioning. This
year, Accenture in Singapore opened its first Management Consulting Innovation Centre in the
world. This innovation center brings thought leadership and ideas through facilitated and interactive
workshop experience, to help organizations to think differently to compete with new business
solutions.

5.2 Competitive Profiles of Two Other Significant IT Services Providers With IT Services
Activities Across ASEAN
5.2.1 Fujitsu
Fujitsu Asia was established in Singapore in 1997; making Singapore its Asian headquarters.
Gartner estimates Fujitsu's ASEAN IT services revenue at US$204 million in 2008.
Fujitsu's strength is in its hardware, infrastructure, disaster recovery, "green" data centers, IT
outsourcing and enterprise solution services.
5.2.1.3 How Fujitsu Competes
In the ASEAN region, Fujitsu Asia, is still known predominantly for its technology-led solutions rather
than consulting services, as opposed to Australia and New Zealand, where its consulting services
are more prominently used. Although Fujitsu has many Japan-based customers who moved out of
Japan and have continued using Fujitsu in the region, Fujitsu has built up its reputation in providing
services to both MNCs and local businesses. In July 2009, Fujitsu and saleforce.com formed a
partnership, in which Fujitsu will provide application development and integration services on
saleforce.com's Force.com platform, including consulting services for salesforce.com's cloud
applications.
5.2.2 CSC
CSC's headquarters in Asia (excluding Australia/New Zealand), is in Singapore, and it has been
established since 1970. Historically, CSC had a strong partnership with CSA Holdings (an Asia-
based system integrator with presence in ASEAN, China and Hong Kong). CSA Holdings served as
CSC's delivery arm for this region for many years. In 1999, CSC acquired 51% share of CSA
Holdings, and in 2005, CSC completed its acquisition of the offices in Singapore, China and
Indonesia and in 2008, finalized its full acquisition of the offices in Malaysia. Gartner estimates
CSC's ASEAN IT services revenue at US$231 million in 2008. In ASEAN, CSC has data centers, call
centers in Singapore and Malaysia, and an application support center in Vietnam.
With the combination of CSC and CSA Holdings, this service provider is vendor-independent and
offers IT outsourcing, desktop, help desk and support services, infrastructure transformation
services, data center hosting services, enterprise applications and maintenance, system and
solution integration services, disaster recovery and security services, and it leverages its global
delivery network.

5.2.2.3 How CSC Competes
CSA Holdings has had a strong and steady reputation as a local system integrator in Singapore and
Malaysia without the maturity of service delivery management of CSC. With the acquisition, the
combination of CSC and CSA Holdings had helped to bring in significant IT outsourcing deals, such
as winning the Maybank project in Malaysia.
5.3 Competitive Profiles of Malaysia-Based IT Services Providers in Malaysia
5.3.1 HeiTech Padu
Gartner estimates HeiTech Padu's ASEAN IT services revenue at US$50 million. Ninety-six percent
of its IT services revenue is derived from Malaysia. Formed in 1994, HeiTech Padu was the former IT
department of the formerly known PNB Information Technologies (PNBIT) of Permodalan Nasional
Berhad (PNB), a state investment fund. Today, HeiTech Padu is a public-listed company and a
wholly owned "bumiputra" company. HeiTech Padu is a key Malaysian ICT solution and service
provider to the government sector and GLCs. The company continues to support PNB Group's IT
needs throughout Malaysia and in ASEAN. The company's staff strength as of 2009 is just over
1,000 FTE employees. HeiTech Padu continues to focus in the following key industries/vertical
markets: government, GLCs, banking, insurance, automotive, manufacturing, utilities, media and
broadcasting.
HeiTech Padu has three key business groups — HeiTech e*Business Solutions, HeiTech Managed
Services and HeiTech Strategic Business. These business groups provide the following services:
managed data center services, managed network and communication services, system integration
services, solution and consultancy offerings Content development and distribution, data
management and processing, electronic commerce and IT outsourcing.
5.3.1.3 How HeiTech Padu Competes
HeiTech Padu leverages its position with its parent company, PNB, which is the largest government
investment company, with equity in most large Malaysian companies. It targets government and
GLC contracts that require a bumiputra status company as the prime contractor (for example, e-
government and smart school projects). HeiTech Padu also leverages its consulting arm — Vantage
Point Consulting — to spearhead thought leadership and industry-specific engagements.

5.3.2 Kompakar
Gartner estimates Kompakar's IT services revenue is approximately US$20 million, of which 100%
is derived from Malaysia. Kompakar was established in 1983 and is today one of the few regional
companies that is CMMI Level 5 and IT service management (ITSM)-certified. It has delivery centers
and offices in seven country locations — namely, Malaysia, Singapore, Thailand, Brunei, Hong
Kong, China and Australia. Kompakar is a key solution and service provider to the Malaysian
healthcare, financial services, oil and gas and government sectors. The company's staff strength as
of 2009 is just over 500 FTE employees. Kompakar's focus is on the following key industries/vertical
markets: government, healthcare, oil and gas, telecommunications, utilities, retail and financial
services.
Kompakar has three key business units — Kompakar CRC, Kompakar eHealth and Kompakar Inc.
These business units provide the following services: healthcare solutions and services, retail
solutions and services, managed services, IT infrastructure services, data center services, business
continuity services, human resources management systems, and procurement solutions.
5.3.2.3 How Kompakar Competes
Kompakar leverages its position in the market and relationships of its key executives, especially
with the Malaysian government sector and GLCs. It targets key government sector contracts (for
example, e-government and telehealth). Kompakar positions its healthcare solutions as a
beachhead for more-attractive service contracts in the healthcare industry. Kompakar has also been
successful in providing IT services to other industries, such as financial services, and the
downstream oil and gas sector in Malaysia and across the Asia/Pacific region.
5.3.3 Symphony House
Gartner estimates Symphony House's ASEAN IT services revenue is US$22 million. Seventy-seven
percent of Symphony House's IT services revenue comes from Malaysia. Symphony House is
Malaysia's largest BPO service provider. Listed on the main board of Bursa Malaysia (the Malaysian
Stock Exchange), the company claims to have more than 3,000 local clients in corporate services
and more than 50 global clients throughout Asia/Pacific and Europe. With delivery locations in
Malaysia; Pune, India; and Osaka, Japan delivering services such as CRM BPO, HR outsourcing
(HRO), financial and accounting (F&A) BPO, share issuance and registration, and check processing
services. The company also develops and implements vertical solutions, such as wealth
management software solutions for the financial institutions throughout Asia/Pacific. Symphony
House focuses on the following key industries/vertical markets: banking, financial services,
telecommunications, high technology and manufacturing.

Symphony House's strategy is to target clients with a multicountry and multidomain requirement.
Key outsourcing services include: CRM BPO, HRO, F&A BPO, share issuance and registration, and
check processing services.
5.3.3.3 How Symphony House Competes
Symphony House focuses on providing clients with services that lower operating costs through
labor arbitrage and the implementation of best-of-breed technology and processes. It improves
business performance and productivity, and it integrates business processes and systems for
higher levels of process automation, centralized control and better operations visibility.
5.4 Competitive Profiles of Thai-Based IT Services Provider in Thailand
5.4.1 CDG Group
Gartner estimates CDG Group's Thailand IT services revenue is US$40.4 million, and 100% of CDG
Group's IT services revenue comes from Thailand. CDG Group can trace its origins to Control Data
(Thailand) Co. Ltd (CDT), established in 1968 as a Thai subsidiary of U.S.-based Control Data Corp.
Today, the CDG Group is a wholly owned Thai company with a local management team. The
company currently has staff strength of approximately 1,200 FTE employees. The group has three
key business areas: hardware and software sales (including network equipment); consulting and
system integration; and IT outsourcing. The company has extensive service delivery capabilities in
Thailand, with 22 provincial service locations throughout Thailand. The CDG Group is made up of
four key subsidiaries: CDT; CDG Systems Ltd. (CDGS); Computer Peripherals and Supplies Ltd.
(CPS); and ESRI (Thailand) Co. Ltd. (ESRI). The CDG Group's current focuses are on the following
market segments: banking, financial services, manufacturing, telecommunications, government,
retail and wholesale, education, and utilities.
The CDG Group focuses on IT planning, IT consulting, systems/network (design, development,

integration and implementation), applications (design, development, integration and
implementation), system management, security management, database management, and business
continuity and recovery services.
5.4.1.3 How CDG Group Competes
The CDG Group's deal sizes vary significantly from one to another; typically, the smaller deal size is
between approximately 3 million baht and 5 million baht per contract, with small manufacturing
players or retailers. The larger-than-normal account sizes are possible because of large accounts,
such as government agencies, managed by CDG. Companies within the group work closely with

one another (within CDG Group) in acquiring more project leads and customers. In most instances,
more than one subsidiary would work together to deliver one project/contract for a customer (for
example, CDGS and CPS will work together in a turnkey IT project).
5.4.2 Loxley IT Group
Gartner estimates Loxley's Thailand IT services revenue is US$26.5 million, and 100% of Loxley's IT
services revenue comes from Thailand. Loxley PCL was founded in 1939 under the name Loxley
Rice Co. (Bangkok) as a joint venture between Ng Yuk Long Lamsam and Andrew Beattie of W.R.
Loxley Co. of Hong Kong. The original activities of the company focused on exports of rice and
lumber. The main business of Loxley shifted to the import and sale of industrial products and
advanced technology products. The company now engages in numerous joint ventures with large
foreign corporations. Currently, Loxley PCL is a conglomerate with businesses ranging from
chemicals to telecommunications. The Loxley IT Group is an integrated provider of IT products and
services based in Thailand and has a presence in Indonesia and Vietnam. Today, the Loxley IT
Group has staff strength of approximately 1,200 FTE employees. The Loxley IT Group is composed
of: Loxdata Co. Ltd., CS LoxInfo, Mobile Innovation, NP PointAsia Co. Ltd., Loxley Hardware and
Services, LOXBIT Co. Ltd., M-Focus Co. Ltd., NetONE Network Solution Co. Ltd., Professional
Computer Co. Ltd., Progress Information Co. Ltd. and Thai Gateway Co Ltd. Loxley PCL's key
industries are banking, financial services, telecommunications, utilities, manufacturing and the
government sector.
Loxley focuses on business expertise in financial/banking and telecommunications segments with a

strong customer base. The company tends to manage human capital by adopting Western culture
to maintain its staff; the company has a low turnover rate and has a strong management team with
expertise in the IT market. Its service offerings include IT consulting, application services, system
integration, network services, electronic payment systems and services, and CRM BPO services.
5.4.2.3 How Loxley Competes
Loxley IT Group maintains a significantly high number of customers, and the company classifies the
customer base into two major groups that are based on deal sizes:
■ Small to midsize — Typical deal size would fall between 1 million baht per contract to 99 million
baht per contract
■ Large — Deal size of more than 100 million baht per contract
However, it should be noted that in some large contracts, the deal size could be as much as 500
million baht per contract, for example, for LOXBIT. These large contract/project/shipment cases for
LOXBIT are normally from banking/financial institutions and telecom customers.

6.0 References and Methodology
Each year, Gartner publishes market share statistics, based on our current, comprehensive revenue
models of approximately 120 IT services providers by service line, geography, vertical market, major
hardware platform and service provider's headquarters. In addition, Gartner publishes a strength,
weakness, opportunity and threat (SWOT) analysis of service providers — key service providers'
profiles that include both ASEAN and global service players that execute business in the ASEAN
region. This fundamental market share data, as well as insightful SWOT analysis, provided
information for this document.
Besides analyzing large internal databases, we also analyzed a large volume of publicly available
information to enable us to develop this market landscape, which is based on high-level secondary
research and modeling. Sources of information include, but are not limited, to the following:
■ Face-to-face interviews with service providers

■ Service providers' briefings to analysts
■ Published company financial reports
■ Government data
■ Reports from financial analysts
■ Input from Gartner analysts and EXP members
■ Service provider factual information review
Gartner understands that various companies, government agencies and trade associations may use
slightly different definitions of service categories and regional groupings, or they may include
different companies in their summaries. Consider these differences when making comparisons
between data and analysis provided by Gartner and those provided by other research
organizations.
7.0 Recommendations
Recommendations are as follows:
■ Multinational service providers

■ Partner and/or develop a business partner network with established local service providers.
This strategy will help when targeting large local businesses that typically do not have a
large ICT budget yet need the best practices and methodologies of a multinational service
provider. This approach will also help the service provider to reach the Tier 2 and Tier 3
cities that are developing, and to generate new revenue opportunities in the midmarkets
and local governments, especially in Malaysia and Thailand.
■ Upsell and cross-sell IT services into the existing installed base to enhance your business
value proposition to increase share of wallet, especially if your prime business is selling

technology. Leverage your existing ecosystem by identifying gaps and opportunities in your
clients' current procurement practices.
■ Large local service providers
■ Cultivate relationships with multinational service providers to develop expertise and best
practices and be a part of a multinational value chain offering that creates a niche for your
business. Multinational service providers that haven't been established long in a country
typically will need to build up local resources, relationships, a distribution IT network and
localized templates, and if your business has those capabilities, you will be able to offer
complementary go-to-market solutions.
■ Develop localized vertical-specific solutions to be attractive to multinational service
providers for joint ventures or potential acquisitions.
■ To compete against multinational service providers, build up skills and capacity in ITIL,
PMP and other standards.
■ Develop methodologies and delivery capabilities to target multinational global delivery
ecosystems, both as a partner and a customer.
Recommended Reading
"Dataquest Insight: What Service Providers Need to Know About Growth Opportunities in Asia/
Pacific in 2010"
"Disruptive Utility Service Makes Its Way Into the Singapore Government"
Note 1 Project Management Professional

PMP certification is offered by the Project Management Institute (PMI), and companies that obtain
this certification demonstrate a proficient level of project management.
This document is published in the following Market Insights:

Consulting & Solution Implementation Services Worldwide
IT Services Asia/Pacific

GARTNER HEADQUARTERS
Corporate Headquarters
56 Top Gallant Road
Stamford, CT 06902-7700
USA
+1 203 964 0096
Regional Headquarters
AUSTRALIA
BRAZIL
JAPAN
UNITED KINGDOM
For a complete list of worldwide locations,

visit http://www.gartner.com/technology/about.jsp
© 2009 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. This
publication may not be reproduced or distributed in any form without Gartner’s prior written permission. If you are authorized to access
this publication, your use of it is subject to the Usage Guidelines for Gartner Services posted on gartner.com. The information contained
in this publication has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy,
completeness or adequacy of such information and shall have no liability for errors, omissions or inadequacies in such information. This
publication consists of the opinions of Gartner’s research organization and should not be construed as statements of fact. The opinions
expressed herein are subject to change without notice. Although Gartner research may include a discussion of related legal issues,
Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner is a public company,
and its shareholders may include firms and funds that have financial interests in entities covered in Gartner research. Gartner’s Board of
Directors may include senior managers of these firms or funds. Gartner research is produced independently by its research organization
without input or influence from these firms, funds or their managers. For further information on the independence and integrity of Gartner
research, see “Guiding Principles on Independence and Objectivity.”

Competitive Landscape The GR 170724

Uploaded by

Copyright:

Available Formats

You might also like

Competitive Landscape The GR 170724

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Competitive Landscape The GR 170724

Uploaded by

Copyright:

Available Formats

G00170724

Competitive Landscape: The Growth Potential

Analyst(s): Jacqueline Heng, TJ Singh

The Association of Southeast Asian Nations (also known as ASEAN) is today

This report focuses on the IT services competitive landscape of three of

This research note is restricted to the personal use of tanlb@viettel.com.vn.

Large Local Service Providers

Page 2 of 27 Gartner, Inc. | G00170724

This research note is restricted to the personal use of tanlb@viettel.com.vn.

Table 1. Competitive Differences in Singapore, Malaysia and Thailand..................................................10

Figure 1. IT Services Asia/Pacific Market Size and Growth by Country/Market........................................4

Gartner, Inc. | G00170724 Page 3 of 27

This research note is restricted to the personal use of tanlb@viettel.com.vn.

Figure 1. IT Services Asia/Pacific Market Size and Growth by Country/Market

Source: Gartner (September 2009)

2.0 Competitive Situation and Trends

Page 4 of 27 Gartner, Inc. | G00170724

This research note is restricted to the personal use of tanlb@viettel.com.vn.

Gartner, Inc. | G00170724 Page 5 of 27

This research note is restricted to the personal use of tanlb@viettel.com.vn.

Market = US$7.8 Billion, 2008-2013 CAGR = 5.8%

Source: Gartner (September 2009)

2.1 Current Competitive Structure

2.1.1 IT Services Buyers

2.1.1.1 Government as a Buyer

Page 6 of 27 Gartner, Inc. | G00170724

This research note is restricted to the personal use of tanlb@viettel.com.vn.

2.1.1.2 GLCs as Buyers

2.1.1.3 Telecom Companies as Buyers

Gartner, Inc. | G00170724 Page 7 of 27

This research note is restricted to the personal use of tanlb@viettel.com.vn.

2.1.1.5 MNCs as Buyers

2.1.1.6 Bamboo Network of the Overseas Chinese Conglomerates as Buyers

Page 8 of 27 Gartner, Inc. | G00170724

This research note is restricted to the personal use of tanlb@viettel.com.vn.

2.1.1.8 Large Public-Listed Local Businesses as Buyers

2.1.1.9 SMBs as Buyers

2.1.2 How Service Providers Compete

Gartner, Inc. | G00170724 Page 9 of 27

This research note is restricted to the personal use of tanlb@viettel.com.vn.

Competitive What This Means Singapore Malaysia Thailand

Page 10 of 27 Gartner, Inc. | G00170724

This research note is restricted to the personal use of tanlb@viettel.com.vn.

Gartner, Inc. | G00170724 Page 11 of 27

This research note is restricted to the personal use of tanlb@viettel.com.vn.

Source: Gartner (September 2009)

Page 12 of 27 Gartner, Inc. | G00170724

This research note is restricted to the personal use of tanlb@viettel.com.vn.

Figure 3. Differences Across ASEAN Service Providers' Competitive Landscape

Source: Gartner (September 2009)

Gartner, Inc. | G00170724 Page 13 of 27

This research note is restricted to the personal use of tanlb@viettel.com.vn.

4.0 The Future of Competition

Page 14 of 27 Gartner, Inc. | G00170724

This research note is restricted to the personal use of tanlb@viettel.com.vn.

5.0 Competitive Profiles of IT Services Providers in ASEAN

Gartner, Inc. | G00170724 Page 15 of 27

This research note is restricted to the personal use of tanlb@viettel.com.vn.