Enterprises in Asia Pacific, embracing AI and other advanced technologies, are embarking on network transformations with service providers as the need for faster, more secure and more flexible networks grows, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2024 ISG Provider Lens™ Enterprise Managed Network Services report for Asia Pacific finds that companies in the region are quickly adopting new technologies to replace legacy infrastructure. As their networks expand to reach distributed workforces and more locations, amid rising maintenance costs and constrained budgets, enterprises are seeking the least expensive network and security solutions that can meet their growing needs.

“The adoption of new technologies, including AI, adds layers of complexity to already overworked systems and further accelerates the need for network transformation,” said Dieter Thompson, partner and president, Global Network Services, at ISG. “Providers are helping enterprises in Asia Pacific build next-generation networks with service intelligence, visibility and automation.”

Modern networks are becoming central to business in the region, the report says. Many companies are seeking comprehensive engagements with service providers that incorporate network transformation. Through software-defined networks and observability tools, these transformations provide application-centric intelligence that can help organizations achieve their business objectives.

A growing number of enterprises in Asia Pacific are exploring network as a service (NaaS) offerings for on-demand connectivity across multiple network types, ISG says. NaaS allows companies to rent cloud-based networking services, paying per use. It can reduce complexity for enterprises with networks that span multiple WANs, access networks, clouds and vendors. NaaS is the smallest but the fastest-growing segment of the enterprise network services market in the region.

Increased internet access in Asia Pacific is driving moderate growth in direct internet access (DIA) services, which give enterprises an exclusive ISP link for applications that require high performance and security, the report says. Among other managed enterprise connectivity solutions, demand for VPN services is steady and VoIP is in decline.

ISG expects contracting for managed network services to gain momentum in Asia Pacific in 2025. Falling interest rates and rising interest in broad digital transformation engagements are expected to generate growth, particularly among companies in retail, manufacturing, transportation, energy and the banking, financial services and insurance sector.

“Enterprises in Asia Pacific are gravitating toward comprehensive solutions, especially those that include advanced analytics and AI tools to enhance decision-making,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Adaptable services that meet evolving industry requirements help clients compete and grow.”

The report also examines other managed network service trends in Asia Pacific, including the growing need for high-speed network capacity for AI training and moves to simplify security management.

For more insights into the network challenges facing enterprises in Asia Pacific, and ISG’s advice for addressing them, see the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ Enterprise Managed Network Services report for Asia Pacific evaluates the capabilities of 40 providers across three quadrants: Managed Network Services Evolution, Managed Enterprise Connectivity Solutions (DIA, VoIP and VPN) and Network as a Service (NaaS).

The report names Accenture, NTT DATA, Orange Business, Singtel, Tata Communications and Telstra as Leaders in all three quadrants. It names BT, Verizon Business and Wipro as Leaders in two quadrants each. AT&T, GTT, Kyndryl, Megaport, PCCW Global, Tech Mahindra and Telekom Malaysia are named as Leaders in one quadrant each.

In addition, Bharti Airtel, HCLTech and Microland are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

A customized version of the report is available from Tata Communications.

In the area of customer experience, Accenture is named the global ISG CX Star Performer for 2024 among enterprise managed network services providers. Accenture earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.

The 2024 ISG Provider Lens™ Enterprise Managed Network Services report for Asia Pacific is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

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