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Governing the Infrastructure.

David A. Kelly

IDC Sees Rising Importance of Corporate Governance in 2009

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In a recently released IDC report on IT services market in Asia/Pacific (excluding Japan), IDC sees a 'back-to-basics' forecast for 2009, with an increased role for corporate governance, as organizations try to balance governance and cost savings.

According to its press release, as a result of the current global economic crisis and its impact on the region, IDC has lowered its growth rate forecast for the APEJ IT services market for 2009 to a 'post-crisis' forecast of 9.6% from the previous forecast of 11.2%.

"The impact of the global economic crisis on the services market has to be viewed from a number of perspectives and these are changing constantly," said Philip Carter, Associate Research Director for IDC Asia/Pacific Services research. "The recent Satyam saga is a very good example. The implication in terms of IT governance for clients dealing with services vendors, the offshore players in particular, highlights how clients have to maintain a constant balance between cost and value."

One of the results of all this will be a focus on getting back to the basics. According to the report:

"With the global recession hanging over economies in Asia, IDC expects overall IT services growth in the region to slow down, forcing organizations to move back to basics with an increased focus on cost management and less so on business transformation projects. However, the Satyam scandal has shown that low cost delivery of services needs to be complemented by impeccable corporate governance and financial transparency and this is the balance that customers will be assessing intensely in the challenging year ahead."

The end result? An increased focus on governance for 2009 and perhaps a realization that good governance and corporate transparency can help organizations weather difficult economic times.

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David A. Kelly's blog explores how organizations can increase the effectiveness and efficiency of their business processes and IT infrastructure through proper governance.

David A. Kelly

David A. Kelly is a monthly columnist and Blogger for ebizQ. View more


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