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