Opportunities In The IT Services Market

1. Opportunities In The IT Services Market Fred Ng Senior Research Analyst IT Services And Outsourcing Technology and Service Provider Research Nov 15, 2012

2. Agenda • What’s New In IT Services? • IT Services Market Opportunities • Competitive Landscape • The Future Of IT Services • Positioning Vietnam for Now and The Future

3. What’s New In IT Services? "Hot" IT Services- THE NEXUS OF FORCES Buyers &Behaviors IT Business Own Access Effort Outcome Delivery Models Labor Automated Scaled Custom Cloud Information / “Big Data” Mobile Social Global Offshore Continuous Change is the ‘New Normal’ 2

4. IT Services Market Opportunities • End-user IT services Market grew 7.7% in 2011 (4.0% in constant currency). • Top 10 leaders account for 27% of market. • India-based vendors, with 6% of market, grew 19.5% in 2011. Worldwide Market: $845 Billion (X%) = provider's annual growth; X% = market share Source: Gartner IT Services Market Share, 2011

5. IT Services Competitive Landscape Understanding Your Competitors and Partners In The IT Ecosystem • Smaller Niche Boutique Players • Business And IT Consulting Firms • IT Hardware Software Providers With IT Services Divisions • Large Multinational Systems Integrators And Outsourcers • Pan Regional Systems Integrators and Outsourcers • Offshore Providers • IT Services Divisions Of Network Carriers Source: Gartner IT Services Market Share, 2011

6. The Future of IT Services Business enterprises own NO IT assets Evaluation of external providers on their partners and value chains Asset-Lite Ecosystems Externalization The first choice of buyers is to consider "sourcing" instead of building IT solutions Service-Led Buyers want prebuilt "service" business “solutions”* NOTpiecemeal IT services

7. Gartner Offshore Services Survey 2012 • Conclusion • There is clearly interest in Vietnam as an offshore alternative • Need to convert this into real revenues / investments • Drive focus at 3 levels – governments, individual IT companies and consolidated industry association.

8. Positioning Vietnam IT Market Branding • Moving Vietnam Up The IT Value Chain As… • a preferred global & pan-regional offshore destination for IT outsourcing services • Developing & Growing Talent… • a business and IT workforce equipped with “T”-shaped technology skills • Take a Stand…Align skill development and promotion to the Nexus of forces

9. Recommendations for IT Service Providers In Vietnam: • ACCEPT & EMBRACE THE REALITY: The Nexus of Forces • The nexus of forces will render many existing IT architectures, delivery channels and models obsolete. • Prepare to Collaborate and Compete With Foreign Providers as well as domestic consortia. • ADOPT & ORIENT ON CHANGE & CHOICE: Mobility, BYOD , Consumerization of IT • The Cloud is the Conduit for these! • Design apps for devices that run on open platforms and assets that are not proprietary-owned. • ADAPT & APPLY: The Opportunity with and for Big Data • Hyperdigization and The Internet of Everything = opportunities in Big Data Analytics.

10. Vietnam ICT Brand 2012 Fred Ng Senior Research Analyst IT Services And Outsourcing Technology and Service Provider Research Nov 15, 2012