Partnerships are increasing among IT service providers
as they lean on each other to deal with the tough economy and
changes in the market.
A survey of IT services companies by analyst Gartner found that
the volume of sales they make via other IT service providers is
increasing. Three main factors are at work, according to the
study's lead analyst, Michael Haines.
The tough economy and resulting tight IT budgets are forcing
these companies to seek every possible revenue avenue. "One way is
to leverage other IT services companies to expand your sales
reach," Haines said.
Chief information officers want to deal with fewer IT suppliers.
Thus, CIOs choose a select group of primary providers with which
they deal directly and delegate upon them the hiring and
supervision of secondary IT suppliers.
The important market of small and medium-sized enterprises is
too large and fragmented. IT service providers cannot reach their
addressable market by themselves. They need partners that know the
different market segments and have relationships there. "There are
too many potential customers," he said.
This increasing level of collaboration among IT service
suppliers is good news for CIOs, because it makes suppliers much
more receptive to teaming up to meet a client's demands, he
said.
"CIOs are looking for companies that can aggregate multiple
components of a solution on their behalf," Haines said. "This
research shows there is an increased level of partnering for
services, which should be a good indication that the kinds of
collaboration CIOs are looking for are on the increase."
For IT service providers, the message is clear: partner or
suffer the consequences. "If you want to survive in a tough economy
and in a competitive market, you had better figure out how to
partner with others and use other companies as your conduit to get
your services to the marketplace," he said.
For the report, titled "Selling IT services via other IT
services providers", Gartner polled 40 IT services companies and
found that 32 of them (80%) sell some of their services to, through
or with other IT service companies.
Respondents said they expected, on average, to generate 26% of
their service revenues from selling via other IT service providers
in 2002. That is already a significant percentage, but it is
expected to continue climbing and reach 40% in 2006.
Another sign that collaboration is increasing is in the types of
services being sold via others. Traditionally, IT services
companies sold low-level operational and support services, such as
help desk and maintenance, via other companies, Haines said. But
now there is an increase in collaboration for more sophisticated
professional services, such as consulting, project management,
outsourcing and managed services, he said.
Gartner's survey sample included suppliers of all sizes and
types. For example, it included suppliers that provide services and
suppliers that provide both products and services. It also included
both original manufacturers of products and services as well as
resellers.
Juan Carlos Perez writes for IDG News
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