The solutions services market will recover slightly in late 2003 and 2004 after experiencing a decline in 2002, according to a study by IDC.
With the exception of e-commerce services, during 2002 the solutions services market was hindered by the economic slowdown, upheaval in the competitive landscape and tight IT budgets, IDC said.
IDC has predicted the supply chain management (SCM) services market will grow the most reaching $40.5 m in 2007, and in 2005 will beat out enterprise resource management (ERM) to be the largest in this part of the market.
With SCM and ERM becoming numbers one and two respectively, IDC predicted customer relationship management (CRM) will represent the third largest growth opportunity with a compound annual growth rate of 8.5%, staying ahead of e-commerce services.
However, the fastest-growing market opportunities - content management (CM) services, knowledge management (KM) services and globalisation and localisation (G&L) services - are also the smallest, and will grow at 12.8%, 16.8%, and 13.9% respectively.
IDC’s study also found that customer services, information security and supply chain are a priority for investment, and that customers are looking to optimise technology rather than invest in new products. Customers are also looking for client-focused service forms that will provide holistic solutions.
Some dark clouds are still hanging over the IT market, such as the war in Iraq and the poor economy, which will still curb spending. However, IDC believed the industry would weather the storm well because of the diverse nature of the solution services sector.
For more information visit www.idc.com.