Managed and hosted IT services are growing rapidly in the Asia-Pacific region and are expected to hit a market size of $10.25 billion (£5.1 billion) by the end of 2010, new research suggests.

Analysis from Frost & Sullivan has shown that managed and hosted services in 13 Asia-Pacific countries excluding Japan were worth $6.47 billion in 2007, according to a report on tradingmarkets.com.

Compound annual growth rate between 2007-10 is expected to be 16.6 per cent.

"Asia-Pac continues to grow both as a global demand and supply centre. In tandem, the emergence of Asian MNCs from India, China and South Korea continues to shape the demand for enhanced connectivity and related services," commented Frost & Sullivan industry manager Jay Tan.

He added that the need for a more sophisticated IT infrastructure and squeezed budgets has led to an increase in outsourcing.

An IDC report published in April mirrored this point when it suggested that the global economic slowdown could lead to a growth in the outsourcing market.

A recent Connect survey found that the two major concerns about outsourcing services like IT support were 'loss of control' (56 per cent) and 'budget over-runs' (43 per cent)