A Tale of Two APACs: New Industry Report Reveals a Deepening Services Divide

As leaders in the services industry, we often look at global trends to guide our strategy. But as I work with customers across the Asia-Pacific region, it’s clear that a one-size-fits-all approach doesn’t work. Our 2025 Global Service Dynamics Report confirms this in a lot of detail. While the report is packed with global insights, I was most struck by the story it tells right here in our region.

When reviewing the data from Singapore and Australia/New Zealand (ANZ), I realised they’re operating with fundamentally different rulebooks for success. Here are some of the most significant findings that every APAC services leader should be thinking about today.

1. The Great Strategy Divide: Customer – Centric Growth vs. Profit-Driven Efficiency

Globally, the top two objectives for Professional Services Organisations (PSOs) were clear: “Increase Profitability” and “Improve Operational Efficiency.” Every region agreed—except one. Singaporean leaders chose neither. Their top two goals for 2025? “Increase Customer Satisfaction” and “Increase Professional Services Team Size.” This signals a bold, human-centric strategy focused on capturing market share through outstanding service and capacity growth.

2. The AI Conversation is More Mature Than You Think

When we asked about obstacles to AI adoption, most regions pointed to a familiar culprit: a lack of internal AI skills. Not Singapore. Leaders there were the only ones whose top concern was that current AI solutions fail to deliver the expected business value. This mature perspective tells us the market has moved beyond the initial hype and is now critically evaluating ROI, a sign that the demand for proven, value-driven AI is about to intensify.

3. A 22-Point Gap in Agentic AI Adoption

This difference in mindset is matched by action. When it comes to Agentic AI, the two sub-regions are on different timelines. A remarkable 52% of Singaporean PSOs have already started using agentic AI, while only 30% in ANZ have done the same. This 22-point gap represents a significant divergence in technology strategy, with Singapore aggressively leaning into innovation while ANZ takes a more measured, pragmatic approach.

4. Customer Success Isn’t an Idea, It’s a Department

How important is a dedicated Customer Success (CS) team? The answer depends heavily on where you are. In Singapore, 79% of companies have a CS team that is distinct from sales and support. In ANZ, that number is just 55%. This 24-point difference is one of the largest strategic divides we saw in the data, highlighting a major difference in organizational structure and the formalization of the customer journey.

5. The NRR Story: Linking Structure to Results

Does that structural difference matter? The data on Net Revenue Retention (NRR) suggests it does. The most commonly reported NRR for Singapore in 2024 was in the 71-80% range. For ANZ, the most popular range was 51-60%. While many factors influence NRR, the strong correlation between Singapore’s investment in dedicated CS teams and its world-leading retention rates is impossible to ignore.

What This Means for Leaders in APAC

The data tells a clear story: APAC is not a monolith. We’re seeing a tale of two regions playing out.

• Singapore is the aggressive innovator, betting on customer satisfaction and advanced technology to fuel hyper-growth.
• ANZ is the measured pragmatist, focusing on established business objectives while taking a more cautious approach to new technology and organisational structure.

This divergence challenges every leader to look inward. As you plan for 2025, ask yourself: Is our strategy supported by a foundation that can handle what’s next? Is our operational data truly ready for the coming agentic AI wave? Can our current tech stack provide the cross-functional visibility needed to truly manage the end-to-end customer journey? Most importantly, can we draw a clear line from our daily operations to critical financial outcomes like Net Revenue Retention?

Ensuring you have the right answers – and the right platform to deliver them – will be the defining challenge for services leaders in the year ahead. If you’re grappling with how to do this for your organization, a great first step is to download the full 2025 Global Service Dynamics Report.

Beyond the report, I welcome you to reach out to me directly. Our team is already helping leaders across the region turn these very challenges into their greatest opportunities.