Midtier Services Firms Must Build Specific Vertical and Business Process Expertise to Stay Competitive, IDC Finds.

FRAMINGHAM, Mass. -- In a newly published study, IDC explores the rapidly changing services industry and finds that while the market will continue to be dominated by large services firms that have the size and scale to deliver both raw infrastructure and business process expertise, smaller services firms that build specific expertise in select vertical markets and even within specific business processes will also stay competitive. Increasingly, however, midtier firms may find themselves seeking partnerships with those companies able to provide the infrastructure platform upon which the dynamic enterprise of the future will be based.

"To succeed and grow, midtier services companies must exploit the benefits of being smaller companies that can offer a more personal and customized service to their customers," stated Rebecca Segal, vice president of IDC Worldwide Services. "Success will be based on the delivery of external services that provide customers with real business solutions at the lowest possible cost," added Segal.

This IDC study, U.S. Midtier Services 2004 Vendor Profiles: Firms to Watch in 2005 (IDC #32701) provides detailed profiles of 34 midtier services companies with annual revenues ranging from $25 million to $250 million. It is a companion piece to Midtier Services Providers: An Aggregate Analysis of the Capabilities and Practices of Midsize Services Firms (IDC #31730). The midtier services companies profiled fall into three general categories:

--Companies providing services to complement their other products, such as software

--Companies providing tailored services to specific verticals

--Companies providing general IT services

Companies profiled in this document are, AMC Computer, Bluecrane Inc., CAST, CMS Software, CNSI, Computer Design and Integration, Computer Enterprises, Consist International, Core Business Technology Solutions, CorpInfo Services, Daly Computers, Datatec Systems, Dewpoint, Digitas, Electronic Systems, Enterprise Computing Solutions, Epicor Software Services, Exact Software Services, Fortress Systems, Greenbrier & Russel, Hitachi Consulting, Impact Innovations Group, MIRUS, MTC Technologies Inc., NIIT Inc., NueVista Group, QAT, Sapient, Sigaba, Surebridge, Syntel Inc., Tripwire Inc., Visionary Integrations Professionals Inc., and Zone Labs.

To purchase this document, call IDC's Sales hotline at 508-988-7988 or email [e-mail].

About IDC

IDC is the premier global market intelligence and advisory firm in the information technology and telecommunications industries. We analyze and predict technology trends so that our clients can make strategic, fact-based decisions on IT purchases and business strategy. Over 700 IDC analysts in 50 countries provide local expertise and insights on technology markets. Business executives and IT managers have relied for 40 years on our advice to make decisions that contribute to the success of their organizations.

IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. Additional information can be found at www.idc.com

All product and company names may be trademarks or registered trademarks of their respective holders.