Latest IDC Study Shows that Malaysia Lags Be­hind ASEAN on Dig­i­tal Trans­for­ma­tion

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In a new re­search ti­tled ‘How Dig­i­tal Trans­for­ma­tion (DX) is Re­shap­ing the IT Ser­vices Mar­ket in Malaysia’, IDC found that Malaysia will ex­pe­ri­ence a pos­i­tive growth in dig­i­tal trans­for­ma­tion, driven by the grow­ing de­mand for or­ga­ni­za­tions to cre­ate new rev­enue streams, re­duce ex­penses, im­prove cus­tomer ex­pe­ri­ence, and stay ahead of the com­pe­ti­tion.

The re­search also re­veals that 34 per­cent of the or­ga­ni­za­tions in Malaysia are cur­rently un­der­go­ing Dig­i­tal Trans­for­ma­tion projects. How­ever, en­ter­prises in Malaysia are only at the early stage of Dig­i­tal Trans­for­ma­tion adop­tion, due to lack of clear un­der­stand­ing. There­fore, a high per­cent­age of or­ga­ni­za­tions are still not pre­pared for the Dig­i­tal Trans­for­ma­tion tran­si­tion, with most de­cid­ing to wait and watch.

Ac­cord­ing to a re­cent IDC sur­vey, or­ga­ni­za­tions in Malaysia are lack­ing the re­quired in­ter­nal IT skills. In turn, these or­ga­ni­za­tions are in­creas­ingly in­ter­ested in en­gag­ing with ex­ter­nal ser­vice providers to build Dig­i­tal Trans­for­ma­tion, and in­te­grate Dig­i­tal Trans­for­ma­tion so­lu­tions with their ex­ist­ing ar­chi­tec­ture. This in­di­cates a grow­ing op­por­tu­nity for ser­vice providers to pro­vide con­sult­ing and in­te­gra­tion ser­vices in re­la­tion to Dig­i­tal Trans­for­ma­tion.

“Nowa­days, en­ter­prises in Malaysia are un­der great pres­sure to serve their in­creas­ingly de­mand­ing and dig­i­tally savvy cus­tomers. This, in turn, prompts them to relook at their Dig­i­tal Trans­for­ma­tion strat­egy and make quick decisions in trans­form­ing their busi­ness pro­cesses to achieve busi­ness goals,” said Sreenath Kan­darpah, IT Ser­vices Re­search Man­ager, IDC Asia Pa­cific.

En­ter­prises are also facing chal­lenges in build­ing busi­ness cases and mea­sur­ing re­turn on in­vest­ment (ROI), while lever­ag­ing dig­i­tal so­lu­tions. This in­di­cates growth op­por­tu­ni­ties for ser­vice providers in cre­at­ing aware­ness, build­ing use cases, and de­liv­er­ing value to these en­ter­prises.

IDC ex­pects or­ga­ni­za­tion’s spend­ing on Dig­i­tal Trans­for­ma­tion so­lu­tions will grow by an av­er­age of 13 per­cent per year through 2020. There­fore, ser­vice providers need to take the lead role and drive in­dus­try-spe­cific Dig­i­tal Trans­for­ma­tion so­lu­tions.

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