IDC's Global Services Team Presents Top 10 Predictions for 2007: Services Leveraging New Delivery Models Are Key Growth Area.FRAMINGHAM, Mass. -- As the model for services delivery continues to rapidly evolve, the market for IT and business services - whether labor-based, delivered through "software" or by online, hosted models - will clearly expand, presenting key opportunities, a recent IDC study reveals. These new models are dynamic, on-demand, scalable, and accessible. In 2007, those companies wishing to succeed must work harder than ever to maintain customer and employee loyalty, innovate in·no·vate v. in·no·vat·ed, in·no·vat·ing, in·no·vates v.tr. To begin or introduce (something new) for or as if for the first time. v.intr. To begin or introduce something new. continuously, and leverage technology and hosted models. IDC believes services firms must embrace in both word and deed the concepts of standardization standardization In industry, the development and application of standards that make it possible to manufacture a large volume of interchangeable parts. Standardization may focus on engineering standards, such as properties of materials, fits and tolerances, and drafting , leveragability, and componentization for their own internal use as well as that of their customers. This a period where key investments will need to be made to ensure current and future competitive capabilities "From consulting to outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. , customers have more choices than ever before, and we are at an extremely exciting time in our industry when delivery models actually enable the profitable delivery of enterprise-class services and functionality to a much broader range of customers," said Rebecca Segal, vice president, Global Services Markets and Trends. "To succeed in 2007 and beyond, service firms must be increasingly creative to grow their businesses in a profitable way. Customers are taking advantage of newer and lower-cost solutions such as hosted applications that lessen the need for both hard-to-find internal resources and complex outsourcing agreements and encourage standardization." Offshore sourcing is completely mainstream and has branched into even greater numbers of business and IT markets, IDC's research shows. These developments come at a time when the small and medium-sized business (SMB (1) (Small to Medium-sized Business) Also called "SME" (small to medium-sized enterprise), it refers to companies that are larger than the small office/home office (SOHO), but not huge. ) markets in the developed nations, and perhaps more significantly in developing nations such as Asia, Africa, and Eastern Europe Eastern Europe The countries of eastern Europe, especially those that were allied with the USSR in the Warsaw Pact, which was established in 1955 and dissolved in 1991. , are blossoming as massive consumers of technology and services. IDC's predictions for 2007 focus primarily on the leverage of new business models that have emerged and taken hold in the past few years -- things like hosted applications, homeshoring, and greater productization of the services portfolio. The top 10 predictions presented and analyzed in IDC's study are: * While Battles Will Be Fought for the Megadeals in 2007 (Those Over $1 Billion), the War Will Be Waged for the Midsize ($50 Million to $500 Million) Deal * Acquisitions by Offshore Service Firms Will Accelerate as They Seek to Add Scale to Compete in the Outsourcing Business and Buy Greater Specialization and Industry Expertise to Address High-Value Consulting * Competition for the Midmarket Brass Ring brass ring n. Slang An opportunity to achieve wealth or success; a prize or reward: "missed the brass ring of American success" Lewis H. Lapham. Noun 1. Will Intensify in·ten·si·fy v. in·ten·si·fied, in·ten·si·fy·ing, in·ten·si·fies v.tr. 1. To make intense or more intense: as Key ISVs Oracle and SAP Focus on This Segment and Hosted Applications Make Enterprise-Class Performance Available to Smaller Companies * Service Productization Will Gain Traction as Service Firms Seek to Increase Profitability Through Standardization * SOA (1) (Start Of Authority) The first record in a DNS zone file. See DNS records. (2) (Service Oriented Architecture) The modularization of business functions for greater flexibility and reusability. Adoption Will Accelerate as Companies Move Beyond the Pilot Stage and Advance to the Enterprise Level * Homeshoring, the Use of Home-Based Customer Care Agents to Field Customer Care Inquiries, Will Flourish as It Addresses the Need for Better Agent Quality, Lower Turnover, and the Seasonal Nature of Many Businesses * The Human Resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. Market Will Consolidate as Large Firms Seek to Grow Their Client Base and Niche Players Broaden Their Portfolios * Enterprise Risk Will Drive Investment Across the Consulting Services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" Spectrum, with the Big 4 Firms Leveraging Their Expertise and Fueling Their Growth Engines * Network Complexity and Skills Shortage Will Combine to Heighten height·en v. height·ened, height·en·ing, height·ens v.tr. 1. To raise or increase the quantity or degree of; intensify. 2. To make high or higher; raise. v.intr. Opportunities for Network Infrastructure Consulting and Integration Services * Search Will Transform the Training Content Markets This IDC study, Worldwide Services 2007Top 10 Predictions: A Time for Business Model Change, (IDC #205267) identifies IDC's Global Services research team's top 10 predictions of the services marketplace for 2007. It highlights the major trends and critical developments that will impact the wide spectrum of the services industry, from business consulting to learning to talent management to IT and applications outsourcing. The predictions leverage the collective wisdom of over 70 IDC analysts tracking the services marketplace worldwide. About IDC IDC is the premier global provider of market intelligence, advisory services advisory services advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal , and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. Over 850 IDC analysts in 50 countries provide global, regional, and local expertise on technology and industry opportunities and trends. For more than 42 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG IDG International Data Group IDG Integrated Drive Generator IDG Installation Design Guide IDG Internet Discussion Group IDG Inset Dielectric Guide IDG International Dangerous Goods (mail, shipping) , the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion