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| Gartner Dataquest Says Adoption of Global Service Offerings are Required for IT Services Providers to Succeed |
| IT Services Trends to Be Discussed at Gartner Symposium/ITxpo 2001 |
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LOWELL, Mass., October 1, 2001 - As companies increasingly globalize their business, IT services providers must provide truly worldwide IT service solutions to their customers' global needs in order to succeed, according to Dataquest Inc., a unit of Gartner, Inc. (NYSE: IT and ITB).
A recent survey among IT services providers found that 94 percent are selling services in multiple geographic regions, if not globally. Three quarters of the participating IT services providers indicated that over 20 percent of their customers are currently demanding global sales capabilities. More than half of the IT services providers said they have experienced 20 percent sales growth and 10 percent profit because of global sales efforts. "For most IT services providers, opting out of selling globally is not an option. A significant portion of customer demand is for solutions that can be sold and delivered on a global, or at least multi-country, basis," said Michael Haines, principal analyst for Gartner Dataquest's IT services worldwide group. "The predominant IT service offerings being sold globally are project management and IT consulting. Companies in all industries are struggling to grow their businesses globally and these companies must leverage IT solutions that can contribute to the timely and successful achievement of this strategy." The ability to offer consistent service level agreements across geographic locations is the most important administrative and delivery issue, according to the survey. The ability to offer standard contractual terms and conditions globally is also cited as an important issue. Finally, the ability to bill on a single invoice in a single currency is often an important and valuable requirement for global customers. "The challenge for IT services companies is to build sufficient flexibility into the contracting, invoicing and service level establishment policies to address the global requirements of customers without compromising acceptable profit levels and the availability of resource capacity to serve the overall opportunity base," said Haines. Customer's global service solution requirements are usually complex in content and broad in scope. In most cases, the requirements of the solution are beyond the capacity of a single IT services provider, so partnering with other services provider is a necessity. The primary factor for deciding on a global service partner is customer preference. Another frequently used factor is the provider's historical preference. IT service providers tend to partner with other providers that they have had success with in the past and that are known for global experience. "IT services companies that grasp the potential impact on sales, profits, market share, new market opportunity, and partnering opportunity and leverage will emerge as the global industry leaders," said Haines. "Attaining this global leadership position requires that IT services providers adopt a pervasive and comprehensive "global culture" within their organizations." Additional information is available in the Gartner Dataquest Focus Report "Selling IT Services Globally: Part 1, The Strategy." This report examines the moves made by the IT services sector to reinvent itself. This information is produced by Gartner Dataquest's IT services group. This group provides a complete picture of the IT services industry including network integration and support, hardware services, consulting and system integration, outsourcing, life cycle service, strategic partnering and services marketing, software support, and vertical markets, including communications, education, financial services, government, healthcare, manufacturing, and retail. To subscribe to one of Gartner Dataquest's IT services programs, please call 408-468-8000. Reports can be purchased on the Internet at www.gartner.com. Gartner analysts will provide further analysis on the IT services market during the Gartner Symposium/ITxpo 2001, October 8-12, in Orlando, Florida. Attendees will be able to choose from more than 250 in-depth, analyst-led sessions that explore IT inside and out. Gartner analysts will show how companies can align and manage their IT strategies and investments for bottom-line advantage. More information on Gartner Symposium/ITxpo 2001 is available on the Gartner Web site at www.gartner.com/symposium/us. Members of the media can register by contacting Lisette Kwong at 212-320-2330 or at lkwong@tsicomm.com. Gartner Dataquest is the recognized leader in providing the high-technology and financial communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software, and services sectors of the global information technology industry. Gartner, Inc. is a research and advisory firm that helps more than 10,000 clients understand technology and drive business growth. Gartner's divisions consist of Gartner Research, Gartner Consulting, Gartner Measurement and Gartner Events. Founded in 1979, Gartner, Inc. is headquartered in Stamford, Connecticut, and consists of 4,600 associates, including 1,400 research analysts and consultants in more than 80 locations worldwide. The company achieved fiscal 2000 revenue of $855 million. For more information, visit www.gartner.com. |
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Contact: Christy Pettey 408-468-8312 christy.pettey@gartner.com |
