Technology Services: A Market In Transition

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The market for technology services is changing dramatically, driven by macro forces of cloud computing, virtualization, mobility and data growth.

Listed below are some of the major trends impacting services organizations, including:

– The shift to cloud-based spending is pressuring services organizations to shift business models and capitalize on cloud-based offerings – either directly or through partnerships and acquisitions.

– Large outsourcing deals are drying up, projects are getting smaller and more tactical; favoring services companies with greater speed, good cost structures and the ability to pivot off of emerging trends.

– Services organizations are specifically gearing up to provide services designed to accelerate the adoption of emerging technology, especially those that are driving the macro trends of the industry (cloud, big data, mobile, etc).

– IT Services companies are innovating, adopting new technologies to better organizations and resolve problems more quickly – these include the use of chat and big data analytics to provide more proactive service.

– Consulting and strategic alignment is an increasingly important area for services companies and many are beefing up their consultative staff and capabilities.

– The mobile enterprise. Demand for mobility in the post-iPad introduction era is spawning new demand on services organizations to architect mobility into the enterprise. We are seeing the transition from a PC-era to a mobile device era, dramatically pressuring IT infrastructure and organizational tensions.

– Big data analytics. Quantitative geeks are becoming more important as data and information become the new source of competitive value. Services organizations are increasingly becoming focused on exploiting big, fast data architectures for competitive advantage. What does this mean and what is the angel? The market is in transition, with new entrants forcing changes to competitive models on established players. IT buyers will be required to determine if existing suppliers can navigate through the change and will be forced to pick winners and losers.