Subscribe / Unsubscribe Enewsletters | Login | Register

Pencil Banner

Managed print services to be a US$1 billion market in Asia Pacific

Jack Loo | Aug. 29, 2012
But enterprises in emerging markets less likely to be keen on MPS strategy.

The region's managed print services market will break through the US$1.5 billion barrier within the next five years, and become a mainstay in enterprise, according to an IDC report.

The study Asia/Pacific Managed Print Services 2011-2016 Forecast and Analysis said that while emerging economies like China and India will certainly achieve strong growth rates for the forecast period, it is the Australia and New Zealand region that will continue to be the most valuable MPS market over the next few years.

"For print vendors and their channel partners operating in APEJ, it is clear that the traditional print business model must be supplanted with a services and software strategy, one that IDC sees providing better margins and arguably tighter, longer relationships with clients, as is already happening in the developed markets in the region," said Trevor Clarke, research manager, IDC Asia/Pacific.

"However, the MPS maturity of each country in terms of adoption will remain fragmented in the short term and many opportunities will be in specific markets that host organisations with similar characteristics," said Clarke.

IDC research with enterprise organisations across the region shows that end-user indifference in emerging economies to print practices continues to hinder MPS growth, especially as they continue to focus on building out IT infrastructure and allocate spending to hardware.

Low labour costs also mean there is little incentive to outsource, as skilled internal staff that can manage the print environment, to the extent of doing mechanical repairs, are often easy to come by. 


Sign up for CIO Asia eNewsletters.