The Turkish outsourcing market - comprising IS outsourcing, managed services, and datacenter services - will reach $390.31 million in 2014 and is expected to total $558.15 million in 2017, according to a new forecast from International Data Corporation (IDC). Referencing its latest 'Turkey Cloud Hosted, Managed, and Outsourced Services Market Analysis' report, the research firm also announced the value of Turkey's cloud services market is expected to reach $79.49 million in 2014, double the rate of cloud services spending seen in 2012.
"Cloud services growth will be driven primarily by software as a service (SaaS) and infrastructure as a service (IaaS) public cloud solutions," says Melih Murat, a senior research analyst for services and software solutions at IDC Turkey. "Cloud service providers will focus on targeting greenfield SMB customers as well as the enterprise segment, although both public and private cloud adoption will continue to be driven by large and very large organizations in the short term. Meanwhile, growth in the managed and hosted services space will be driven by large datacenter investments and an aggressive push from the market's key service providers."
"The significant investments made by IT service providers in educating customers on the benefits of outsourcing are expected to pay off over the coming five years," continues Murat. "However, discrete outsourcing services will continue to see greater demand than full outsourcing services over the forecast period, which can be attributed to the well-entrenched reluctance of many Turkish CIOs to relinquish full control over their IT infrastructures."
IDC also noted that the ongoing market entry of new service providers with cloud offerings has been one of the main drivers behind the market's growth. "Telecom operators Turkcell and Turk Telekom have already made their debuts with SaaS and IaaS public cloud solutions, and other service providers are also planning to launch cloud services, which will further intensify the competitive landscape," says Murat. "International software vendors (ISVs) have also introduced cloud services and are building their channel partner ecosystems for resale and service delivery, which requires a shift from the traditional pass-through partner model toward a more consultative resale approach that includes a basket of value-added services."
According to IDC's 2012 market sizing (the most recent full-year results available) for the combined outsourcing, managed, and datacenter services markets in Turkey, IBM ranked as the leading provider in revenue terms, followed by Koç Sistem and Atos. In terms of the Turkish cloud market for 2012, Koç Sistem, IBM, Google, SAP, and HP stood out as the leading providers. "Competition in this space will increase significantly over the coming years as providers strive to expand their customer bases, inevitably resulting in a narrowing of their margins," says Murat. "That said, IDC expects spending on cloud services in Turkey to expand at a compound annual growth rate (CAGR) of 37.4% over the 2012-2017 forecast period, significantly faster than the rates tipped for the IS outsourcing, managed services, and datacenter services markets over the same period."
About the Research
IDC's 'Turkey Cloud Hosted, Managed, and Outsourced Services Market Analysis' provides timely market information on the IS outsourcing, managed services, datacenter services, and cloud services markets in Turkey. The report provides valuable insights into the impact of market changes, key trends, and the results of vendors' new product, marketing, and channel activities.
Companies Covered:
Sistem Komunikasi Gelombang Sdn Bhd, SAP AG, IBM, Hewlett-Packard Company, Turk Telekomunikasyon Anonim Sirketi, Turkcell Iletisim Hizmetleri Anonim Sirketi, Google Inc.
Regions Covered:
Saudi Arabia, Turkey
"Cloud services growth will be driven primarily by software as a service (SaaS) and infrastructure as a service (IaaS) public cloud solutions," says Melih Murat, a senior research analyst for services and software solutions at IDC Turkey. "Cloud service providers will focus on targeting greenfield SMB customers as well as the enterprise segment, although both public and private cloud adoption will continue to be driven by large and very large organizations in the short term. Meanwhile, growth in the managed and hosted services space will be driven by large datacenter investments and an aggressive push from the market's key service providers."
"The significant investments made by IT service providers in educating customers on the benefits of outsourcing are expected to pay off over the coming five years," continues Murat. "However, discrete outsourcing services will continue to see greater demand than full outsourcing services over the forecast period, which can be attributed to the well-entrenched reluctance of many Turkish CIOs to relinquish full control over their IT infrastructures."
IDC also noted that the ongoing market entry of new service providers with cloud offerings has been one of the main drivers behind the market's growth. "Telecom operators Turkcell and Turk Telekom have already made their debuts with SaaS and IaaS public cloud solutions, and other service providers are also planning to launch cloud services, which will further intensify the competitive landscape," says Murat. "International software vendors (ISVs) have also introduced cloud services and are building their channel partner ecosystems for resale and service delivery, which requires a shift from the traditional pass-through partner model toward a more consultative resale approach that includes a basket of value-added services."
According to IDC's 2012 market sizing (the most recent full-year results available) for the combined outsourcing, managed, and datacenter services markets in Turkey, IBM ranked as the leading provider in revenue terms, followed by Koç Sistem and Atos. In terms of the Turkish cloud market for 2012, Koç Sistem, IBM, Google, SAP, and HP stood out as the leading providers. "Competition in this space will increase significantly over the coming years as providers strive to expand their customer bases, inevitably resulting in a narrowing of their margins," says Murat. "That said, IDC expects spending on cloud services in Turkey to expand at a compound annual growth rate (CAGR) of 37.4% over the 2012-2017 forecast period, significantly faster than the rates tipped for the IS outsourcing, managed services, and datacenter services markets over the same period."
About the Research
IDC's 'Turkey Cloud Hosted, Managed, and Outsourced Services Market Analysis' provides timely market information on the IS outsourcing, managed services, datacenter services, and cloud services markets in Turkey. The report provides valuable insights into the impact of market changes, key trends, and the results of vendors' new product, marketing, and channel activities.
Companies Covered:
Sistem Komunikasi Gelombang Sdn Bhd, SAP AG, IBM, Hewlett-Packard Company, Turk Telekomunikasyon Anonim Sirketi, Turkcell Iletisim Hizmetleri Anonim Sirketi, Google Inc.
Regions Covered:
Saudi Arabia, Turkey
