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

Summary

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

Introduction

  • 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

Gartner Recommended Reading

©2020 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Become a client

Learn how to access this content as a Gartner client.