Gartner Research

Market Trends: Providers Must Exploit the Changing Nature of IT Modernization Services

Published: 10 February 2017

ID: G00314612

Analyst(s): Allie Young, Patrick Sullivan


Technology product management leaders at IT services providers can leverage modernization services to help clients in their digital journey. Past modernization approaches won't work — develop new market offerings, value messages and skill sets to be business-relevant in the digital age.

Table Of Contents


  • Business Influence Drives Modernization Engagements Today

Market Trend

  • Cost Takeout Goals Remain a Top Driver, but Business-Driven Modernization Priorities Gain in Importance
    • Implications for Providers
  • New Norms for Modernization in the Digital Era: Collaboration — A Phased Approach to Modernization, Transparency, Flexible Contracting and Smaller Engagements
    • Implications for Providers
  • Bimodal Work Styles Create New IT Dynamics — Which Will Often Require Modernization Services
    • Implications for Providers
  • Modernization Service Offerings Will Require a Full Array of Life Cycle Competencies
    • Implications for Providers
  • Market Structure Trend
  • Buyer Trend
    • Buyers Are Successful in Aligning Business and IT — but Are Not Mature in Defining and Measuring Business Outcome Performance Metrics
    • Enterprises Will Rely Upon Partnering With External Service Providers for Modernization

Contrarian View

  • Unanticipated Financial, Geopolitical Events or Cloud-Based ERP Adoption Explosion Change All of These Trending Trajectories

Vendors to Watch

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