Gartner Survey Shows 80 Percent Of IT Services Companies Are Selling Their Services Via Other IT Services Companies
STAMFORD, CT., August 12, 2003 — Driven by enormous pressures to improve performance in the current unstable business environment, IT services providers are increasingly utilizing other IT service providers in order to meet the changing dynamics of customer demand, according to Gartner, Inc. (NYSE: IT and ITB).
According to a May 2003 survey of 40 leading IT services companies, 80 percent of the participating companies are currently selling their IT services offerings either to, through, or with other IT services providers. The survey also showed that measurably more IT services sales are expected to be made via other IT services providers in 2003 than were made in 2002.
"Economic challenges and the need to penetrate new markets are serving as catalysts for IT services providers to seriously investigate and consider all possible strategies for growth in their businesses," said Michael Haines, principal analyst for Gartner. "One of the strategies is to leverage other IT services companies, either as a target market or as a conduit to new markets."
While sales activity among IT services providers has increased, it is not likely to become the predominant buying center for IT services providers. This year, participating IT services providers expect to sell 26 percent of their services via other IT services providers. Gartner predicts that this buying segment will account for 40 percent of IT services sales by 2006.
"The portion of services sales made via other IT services companies may be driven higher than predicted because of changing customer preferences to deal with less providers, coupled with the emergence of services value chains," said Haines. "These market shifts will serve as catalysts to accelerated levels of collaboration that will find other IT services companies becoming a more significiant buying audience."
According to the survey, operational and support services are the IT services offerings most frequently sold via other IT services providers, as well as the most revenue-generating. However, professional services are seeing a notable increase in volume and sales impact. In particular, the services seeing the greatest increase in activity are IT outsourcing, storage services, packaged or T&M consulting, and project management.
Additional information is available in the Gartner Dataquest report Selling IT Services via Other IT Services Providers. This research examines the degree of IT services sales activity via other IT services companies. This report can be purchased on Gartner's web site.
To help address the unique business issues faced by service line executives, including how to deliver growth while maintaining margins, Gartner offers the Service Line Management Membership Program. The Service Line Management Membership Program offers access to the full power of Gartner in a program that combines focused Gartner research, targeted services and valuable decision-support assessments. For more information on the Gartner Service Line Management Membership Program, visit www.gartner.com/mp/slmgmt or call Gartner at 203-316-1277.
About Gartner:
Gartner, Inc. is the leading provider of
research and analysis on the global information technology industry. Gartner serves more
than 10,000 clients, including chief information officers and other senior IT executives
in corporations and government agencies, as well as technology companies and the
investment community. The Company focuses on delivering objective, in-depth analysis
and actionable advice to enable clients to make more informed business and technology
decisions. The Company's businesses consist of Gartner Intelligence, research and
events for IT professionals; Gartner Executive Programs, membership programs and peer
networking services; and Gartner Consulting, customized engagements with a specific
emphasis on outsourcing and IT management. Founded in 1979, Gartner is headquartered in
Stamford, Connecticut, and has 3,700 associates, including more than 1,000 research
analysts and consultants, in more than 75 locations worldwide. For more information,
visit www.gartner.com.
[an error occurred while processing this directive]
