Letter From the Editor 17 December 2001 In this month's Spotlight, Lewis Clark and Suresh Gunasekaran lead a team of analysts charged with arriving at the predictions that will change, shape and define the IT services opportunity in the coming year. For a briefing on some of the predictions. The Spotlight articles cover a range of issues and predictions, from the strategic top-level view of market forecasts to a detailed snapshot of the dynamics of particular market sectors. Specific issues addressed include the evolution of business process outsourcing to business service provider, the impact of the IT utility on the outsourcing opportunity, developments in the security services competitive landscape, and the evolving market niche for application service providers. Sincere wishes for a prosperous and successful 2002, Allie Young Editor in Chief IT Services

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	Overview IT Services Predictions 2002: Major Evolution for a Modest Recovery 17 December 2001 Lewis Clark   Suresh Gunasekaran The IT services market will see modest recovery and growth in 2002. Major market forces will include globalization, xSP model maturation, and client focus on technology optimization and business value.

IT Services Growth Shifts to Less-Developed Regions 12 December 2001 Lewis Clark   Debashish Sinha Changes in technology adoption rates, cross-border investment and political priorities will shift the IT services growth opportunity more to the developing world.		Focus on Operations Requires IT Services for Process Automation and BAM 14 December 2001 Lewis Clark   Alex Soejarto As IT services evolve, improved productivity is evident in successive generations. However, effectiveness of IT falls off during transition periods preceding the next IT wave.
Anemic Progress: A Tale of Confidence and Innovation in IT Services 6 December 2001 Michael Palma Two critical factors will impact end-user spending on IT services in the midterm: vendor exploitation of technology and decision-maker sentiment.		Economic Hardship Will Force IT Support Program Innovation 13 December 2001 Anthony Adams Customers will choose value delivery programs for product support in a much more granular fashion. Many IT product support vendors must alter support program content and design significantly.
Enterprise Application Outsourcing: The Truth Is in Here 12 December 2001 Ben Pring Outsourcing or hosting of enterprise application software products is the often-overlooked "sweet spot" of the ASP market.		Managed Security: Pruning for New Growth in 2002 6 December 2001 Kelly Kavanagh Several managed security services providers will leave the market as consolidation will channel demand to fewer players and create stronger, more viable models from which the market can choose.
Outsourcing Uptake Will Surge as IT Utility Matures 11 December 2001 Bruce Caldwell Outsourcing, applied and advanced by large corporations and global enterprises over the past decade, will become more attractive and accessible to SMBs as the IT utility matures.		Adoption of the BSP Model Is on the Rise 7 December 2001 Rebecca Scholl The emergence of the BSP model will fundamentally change the way that IT services are sold and delivered.
Industry-Specific Sourcing Solutions Key to Delivering Business Value in IT Services Market in 2002 11 December 2001 Suresh Gunasekaran The events of Sept. 11 and the recession have impaired business confidence and IT investment. Service providers that have industry-specific sourcing solutions will have a competitive advantage in 2002.