|
|
| Gartner Says IT Services to Account for 45 Percent of IT Spending by 2004 |
| Gartner Analysts Discuss IT Services Industry Trends during Gartner Symposium/ITxpo |
|
LAKE BUENA VISTA, Fla., October 9, 2001 - Much of the spotlight for the IT industry has been on hardware and software technologies, but research by Gartner, Inc. (NYSE: IT and ITB) shows end users spend more on IT services. Gartner Dataquest market sizing and forecasts showed more than 40 percent of user external IT spending was for IT services in 2000, and by 2004, IT services will account for 45 percent of all end-user spending on IT.
Gartner analysts provided their detailed analysis on the IT services market during Gartner's flagship conference, Gartner Symposium/ITxpo 2001, which is taking place October 8 - 12 in Lake Buena Vista, Fla. "IT services transform technologies and infrastructure assets into business solutions that aid organizations in achieving their goals in a more effective and/or efficient manner. IT services providers have begun to focus more of their capabilities on leveraging technology to help generate new business, open new markets and deliver measurable business results," said Jennifer Beck, vice president and worldwide director for Gartner Dataquest's IT services worldwide group. "Concurrently, new service models are emerging, further accentuating the need for timely, cost-effective business solutions, moving technology into 'second place' in the value proposition to clients." Gartner analysts said successful organizations will embrace the notion of a multisourced environment to support their business needs and will re-skill IT to effectively manage and optimize external service provider (ESP) relationships. During the past three years, Gartner Dataquest user survey results revealed a growth in the use of ESPs. The tendency to prefer existing suppliers rose across all company size categories. Fifty-six percent of those surveyed showed interest in using independent consultants and are considering outsourcing strategies of various types. More than half of the companies sampled expressed a willingness to form joint-venture relationships with ESPs. "Buyer behavior - not technology - will be the primary force that will shape the IT services demand and ESP opportunity in the future. Users' sourcing strategies must be continuously under surveillance to uncover when business objectives are in transition or imminently changing," said Linda Cohen, managing vice president for Gartner. "The most successful ESPs will develop distinct and dedicated business models for each type of service opportunity they pursue to achieve competitive differentiation, adapt to changing market needs, meet profit objectives, ensure identifiable user value, and retain and satisfy clients," said Cohen. Gartner Symposium/ITxpo is the IT industry's largest and most strategic conference, providing business leaders with a look today at the future of IT. For more than 10,000 IT professionals from the world's leading enterprises, Gartner's annual Symposium/ITxpo events are key components of their annual planning efforts, and a place to gain insights into how their organizations can use technology to address business challenges and improve operational efficiency. For more information online, go to www.gartner.com/symposium. Gartner, Inc. is a research and advisory firm that helps more than 10,000 clients understand technology and drive business growth. Gartner's divisions consist of Gartner Research, Gartner Consulting, Gartner Measurement and Gartner Events. Founded in 1979, Gartner, Inc. is headquartered in Stamford, Connecticut and consists of 4,600 associates, including 1,400 research analysts and consultants, in more than 80 locations worldwide. The company achieved fiscal 2000 revenue of $855 million. For more information, visit www.gartner.com. |
|
Contact: Christy Pettey 408 468 8312 christy.pettey@gartner.com |
