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Service Providers Enterprise Strategies In Asia Pacific
added: 2007-02-20

With the commoditization of traditional data services, the Asia Pacific enterprises services market is witnessing increased competition. China and India are fast developing as key battlegrounds.

With most service providers in the region possessing extensive network infrastructure, there exists little differentiation in terms of regional network coverage. In order to differentiate themselves, service providers are attempting to improve customer relationships by developing deeper understanding of their customers' business and strategic needs.

To ensure their competitive edge in the demanding Asia Pacific market, service providers are increasingly moving up the value chain into managed services, including managed applications and IT services, note the analysts of this research service. While these services are still in their infancy stage, providers that excel in their market offerings are poised to assume market leadership.

Along with the growing market opportunities, there has been a notable rise in the level of competition between global and regional service providers in Asia Pacific. Global service providers such as AT&T have demonstrated their strong capabilities by winning large Asia Pacific deals. Moreover, as these companies continue to enhance their capabilities in the region, Frost & Sullivan expects more intense competition between global and regional service providers in the future. Global service providers, however, are expected to continue their dominance in the multinational company (MNC) segment, while regional service providers are likely to focus predominantly on Asia Pacific deals.

In the WAN services market, it has been observed that global service providers possess a strong advantage in capturing this market. Most MNCs have their headquarters in their home base and these corporations tend to pull the global service providers along as they venture into international markets, say the analysts. In contrast, regional service providers cannot rely on this pull factor, as large and truly global Asian MNCs (outside of Japan) are comparatively few.


Source: Business Wire

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