Half of Asia-Pacific's top 10 IT service providers experienced revenue declines in 2014 as the ascendency of cloud, social, analytics and mobility technologies shook up the market, IDC said.
A study of the region's leading IT services providers conducted by the research firm finds that the rise of competitive players from China and India is also shaking up the market.
Revenue declined at each of the region's top three vendors - IBM, HP and Samsung SDS. By contrast, China's Huawei was the fastest growing of the region's top providers, and Chinese vendors such as Pactera and 21ViaNet are also looking to expand their reach in the region.
"The APEJ IT services market is at an interesting juncture and is seeing the rise of resilient India and China players looking to build their presence in the region,” said report author Sherrel Roche, a senior market analyst for IT services at IDC.
“The challenge hence for global IT services vendors is twofold — one from the emergence of these Asian players but more importantly the need to innovate to keep up with third platform technologies such as cloud."
'Third platform' is IDC's name for the convergence of cloud, social, analytics and mobility technologies. Roche said technology providers will need to adapt to the growing popularity of these technologies or risk being left behind.