The traditional network provider and datacenter hosting role played by service providers has given them a basis to move confidently into network management services, security and increasingly application management and soon, mobility services.

As a mature market in the region, Hong Kong has witnessed this trend emerge strongly in the past year. Managed services and IT outsourcing growth for 2006 over 2005 is expected to reach 6-7 percent for Hong Kong, compared to the 12 percent overall growth for Asia Pacific, according to Adrian Ho, research manager for managed services and enterprise networking, IDC.

Hong Kong's overall growth in managed services has been slower than in emerging markets due to its more mature marketplace. But Ho added that its maturity means it is more likely to lead in adoption of emerging services like managed security and mobility services.

"Markets like Australia and New Zealand are always first to pick up on new technologies and services, with Hong Kong and Singapore closely behind," said Ho. Service providers should expect further interest in security, mobility and applications such as IP telephony, he added.

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