User organizations will look to leverage their business process and industry expertise by forming partnerships with providers and creating the next wave of consolidation in the IT services sector.
IT services providers must ensure that sales models effectively target all pertinent buyers and address buying behaviors, requirements and psychographics at the lowest possible selling cost.
In addition to services capabilities, IT services companies are refocusing on customer priorities to drive solutions, to select appropriate technologies and to identify a proper vertical expertise.
Opportunism is driving many services providers into the business process outsourcing market. This could do serious damage to the still immature BPO market.
Tier 2 consulting and systems integration companies offering mainly technology-based skills will struggle to survive future shifts in the IT services market.
IT services and solutions providers must shift their strategic focus in financial services to meet unique segmentation and business process needs of the sector or risk being squeezed out of the sector.
State and local governments increasingly are turning to external service providers to develop new technology solutions. This has affected both sourcing vehicles and the types of services being outsourced.
Two years of intense competition for small and midsize business market share has seen weak results. Vendors that tried and failed are shifting their strategies and are beginning to show results.
