IT Services Firms Have A Vested Interest In Their Internet Clients' Success, IDC Says.Consulting and IT services firms are buying into the dot-com (1) Refers to the period (dot) followed by the abbreviation of the commercial domain (.com) at the end of an Internet address. Since the .com domain is so widely used, the Internet became known as the "dot-com" world, and dot-com companies are those formed to offer services or phenomenon and have an increasing stake in Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the startups' success. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. IDC, an increasing number of IT services firms are swapping their services for equity in their Internet clients' businesses. "Attracted by the prospect of revamping their image as Internet services firms, by the unique value of working with startups that have cutting-edge business models and technologies, and by the potentially enormous financial returns, consulting and IT services firms are taking equity stakes in their Internet clients," says Sophie Mayo, program manager for IDC's Worldwide Services research. "This trend confirms how powerful the Internet's influence is on the consulting and IT services industry. Not only is it affecting services firms' offerings, but it is also changing their business model." However, this strategy may prove to offer only short-term gains Short-term gain (or loss) A profit or loss realized from the sale of securities held for less than a year that is taxed at normal income tax rates if the net total is positive. . "Ultimately consultancies may end up jeopardizing their relationships with clients," Mayo warned. "Investments in companies that may potentially become rivals to existing clients will create considerable controversy in the marketplace and shake confidence in these advisors." Nevertheless, consulting and IT services firms will increase the frequency and amount of equity stakes they accept as compensation. According to IDC, most Internet service firms that took equity in their clients in 1999 plan to double the number of similar arrangements this year. Moreover, the service firms are now offering a wider variety of services to meet their dot-com clients' needs. For now, IDC believes they can get away with this strategy. "The competitive landscape of the Internet marketplace See vertical portal and Web hub. is constantly changing - companies enter and exit the market in the blink blink the involuntary movement of one or both eyelids of both eyes simultaneously. The frequency varies between species. Cats blink the least, with the possible exception of owls. In birds it is the lower eyelid which is moved up to meet the upper lid. of an eye. It's, therefore, difficult for companies to determine whom they are competing with," Mayo said. "As long as this turbulence turbulence, state of violent or agitated behavior in a fluid. Turbulent behavior is characteristic of systems of large numbers of particles, and its unpredictability and randomness has long thwarted attempts to fully understand it, even with such powerful tools as continues, investors may be able to avoid conflict-of-interest issues. However, once the market stabilizes, consultancies will no longer be able to ignore these issues." |
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