Letter From the Editor Lisa Stone - 19 November 2001 This issue examines the major events of 2001 — most notably, the September 11th tragedy, and the impact those events have had, and will have, on the IT services market. The attack on America came at a time when service providers had already experienced a period of less-than-stellar financial performance. The combination of the attack and an emerging recession has created an environment of heightened competition among service providers and a need for enterprises to invest in IT services with increased caution. Gartner has identified significant shifts in what services enterprises are willing to spend on, and how they will be buying IT services in 2002 and beyond. These spending and buying shifts present opportunities and challenges for IT service providers. Beyond these immediate issues, there will be facets of how service recipients and providers interact that will change and become business standards going forward.

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	Overview Enterprise Service Spending Drivers Post-September 11th Jeremy Grigg, Lisa Stone - 19 November 2001 As the world faces massive economic and sociopolitical uncertainty, enterprises are wary of making IT investments. We consider how these trends will manifest and mature in 2002 and beyond.

Security Concerns Bring Regulation to the Service Industry Cassio Dreyfuss - 15 November 2001 As enterprises become more dependent on the Internet, they also increasingly rely on ESPs to host their operations. We discuss the security risks that are involved and present guidelines that ESPs and enterprises need to follow.		Tough Economy Leads to Outsourcing Commodity Services Richard Matlus - 16 November 2001 During slow financial periods, enterprises look to control costs while maintaining or improving quality. As many reevaluate how IT functions are delivered, there will be an increase in outsourcing commodity/utility services in 2002.
Economy Makes Providers Turn to Performance-Based Fees William Maurer - 14 November 2001 Through 2002, there will be an increase in outsourcing deals that are focused on performance for pay. We explore the reasons behind this trend and provide enterprises with an approach to ensure they pick the right service providers.		Decline in Mega-Deals Spells Promise for Clients Lorrie Scardino - 16 November 2001 Throughout the 1990s, there were regular announcements about mega-outsourcing deals, with one deal topping another deal's revenue. In 2001, there has been a slowdown in mega-deals and Gartner expects this trend to continue.
Large Government Outsourcing Has Arrived: Will It Stick? Christopher Ambrose - 16 November 2001 Although selective and tactical outsourcing of critical IT services will dominate in 2002, enterprisewide outsourcing initiatives will begin to evolve, building on lessons learned in measuring value- and performance-based contracting.		Government Reliance on ESPs Will Grow in 2002 Lorrie Scardino - 16 November 2001 Government reliance on ESPs will grow in 2002 because of an increase in high-priority projects. ESPs will be sought for deliverable-based projects in the application/infrastructure domains, and as prime contractors in complex initiatives.
ASPs in 2002: Disappointing 2001 Market Goes Mainstream Rita Terdiman - 15 November 2001 Regarding the state of the ASP industry, two things are clear — the ASP delivery model is here to stay, but few of the current ASPs are going to succeed.		The 'Big Five': Past, Present and Future Frances Karamouzis - 15 November 2001 Many of the largest professional service providers have recently made numerous changes to their organizational models and core legal structures. We summarize key events and explore what the future holds for these providers.
Indelible Marks of E-Business Specialty Consulting Firms Frances Karamouzis - 16 November 2001 The e-business ESP market crashed in 2001. As a result, consultants and systems integrators have learned some valuable lessons that will help them as they enter into 2002.		ESPs: Reskilling for 2002 Lisa Stone - 15 November 2001 As a result of the horrific events of September 11th, a change in spending related to IT services will drive ESPs to refocus their staff around skill sets that play to new spending patterns. We explore the ways ESPs will respond.