IT Services Demand on the Rise

As the economy starts to turn around, one positive that can be taken from the economic downturn is that business executives see the value of IT increasing (according to a recent report from Accenture and the Economist). The majority of the executives questioned said that the economic downturn has increased awareness among business unit managers of the importance of the company’s IT objectives to the overall business.

IT service executives have always understood the importance of IT to the business unit. IT service executives structure client agreements to improve processes and keep a business at peak operating performance. Maybe this is why many IT service providers have actually gained business during this economic downturn. For 2010, Gartner is projecting IT outsourcing will grow 6.6% and, based upon discussions with services executives within CompTIA, we anticipate top-level IT Service providers will exceed this growth projection.  No one knows for certain, but if the pent-up demand becomes reality, growth in IT services could well exceed the slow growth projections. The issue this year could change from “how to maintain existing customers” to “finding technical talent fast” in order to meet the service business growth. No matter what the economy is doing, managing IT services is like changing a tire on a moving vehicle, there is never a dull moment.

With the growth prospects of new IT service business looking favorable, it is important to examine how the economic conditions may have affected customer outlook. If the aforementioned study is correct, executives will be looking to IT for productivity gains in the coming year. The pricing and margin pressure should start to subside, suggesting it may be time to advise current customers on Green IT, new technologies and expanding your services in your business. Once businesses shift from budget reductions to investing in the future, services executives may have to move faster than ever to ramp up their delivery capabilities.

What other will cause changes with IT services businesses in 2010? There are so many candidates, from the Green IT movement’s ability to drive more business (will customers demand more efficient products be deployed?) to how customer service can be influenced by messages on social networking sites? Will businesses expand their use of IT to get closer and more personalized to their customers, or will service providers discover new ways to optimize services to reduce cost and create a competitive edge? In addition, many may ponder how IT services will be affected if a large percentage of data starts moving to the Cloud.

What we do know is that complexity and change will continue to drive the value of IT services.  The increasing value of IT services in the eyes of the customer is a new driving force for growth this year.  It may be time to re-assess your key customers’ business needs and evaluate your service organization’s capabilities to perform should new business opportunities grow faster than anticipated. You need to assess the key metrics of your business, examine the capabilities of your service staff and your partners, as well as suppliers’ capabilities to meet demands at various growth levels.  Don’t be forced into turning down business. Be prepared – IT Services is moving forward.

Rich Rysiewicz is Senior Director Member Relations for CompTIA and the organization’s leader of the IT Services and Support Executive Forum. Feel free to contact him at Rrysiewicz@comptia.org.