HK businesses look to managed services to solve IT challenges

Two thirds of HK businesses are considering partnering with an outsourcing provider (Image LeoWolfert / iStockPhoto)

Nearly two third of businesses in Hong Kong are considering partnering with managed services providers to help design IT projects with a clear return on investment (67%) or manage migration from legacy IT platforms (61%), according to NTT Communications.

A new survey commissioned by the IT service provider found that Hong Kong businesses are struggling with IT infrastructure complexity (43%), an organizational resistance to change (43%) and security risks (52%), and increasingly believe managed services are key to addressing these challenges.

The most outsourced technology in Hong Kong is cloud infrastructure (57%), followed by enterprise network management (48%), applications management (48%) and security (50%).

Use of outsourcing is expected to continue to increase over the next 18 months, with cloud infrastructure outsourcing growing to 67%, enterprise network management to 59%, applications management to 54% and security to 50%.

Meanwhile more than Half of Hong Kong organizations are already using private cloud infrastructure (54%), and one in three are using or expect to deploy hybrid cloud in 18 months.

Likewise 30% of businesses in Hong Kong have deployed software-defined wide area networking (SD-WAN) technology, with a further 50% considering its use. Nearly as many (27%) have deployed Microsoft's Azure Stack architecture, and 61% are considering it.

MarketsandMarkets predicts that the Asia-Pacific managed services market is on track to reach US$64.01 billion by 2021, growing at the world's highest compound annual growth rate (CAGR) of 18%.