Strengths: Given both the maturity and dynamism of the IT Services industry, it should be no surprise that the community remains keenly aware of the changes taking place. Through necessity, most companies have developed an ability to adapt to new technologies. The IT Services industry is also served well by the breadth and sophistication of new service delivery tools, particularly when paired with advances in networking, such as Managed IT Services. Technology aside, the community is also quite adept at building partnerships, communicating and collaborating–each which allows the community to quickly exploit opportunities and mitigate threats. These identified strengths serve the industry well; increasing revenue, reducing costs, and improving customer service.
Weaknesses: One major weakness identified in the SWOT analysis was how to address and capitalize on increasing Green IT and recycling pressures, both from an operational and regulatory perspective. Another area of concern was the lack of longer-term strategic thinking: with many companies forced to make decisions weighted heavily on their short term needs. Interestingly, the increasing pace of technological change and higher level of technical sophistication in the SMB space were also identified as a major weakness by the participants. Lastly, industry-wide decreases in professionalism, arising from poor customer service skills and a lack of career path training, were also identified as significant industry shortcomings.
Opportunities: Healthcare IT and increased government support and funding were identified as potential growth areas for the industry. End users are increasingly dependent on technology for day-to-day operations and, though it stretches the resources of service providers, is seen as a tremendous business opportunity. Service companies are also focusing more on their clients’ security concerns and have become more willing to partner with other industry players. Lastly, the prevalence of social media and low cost marketing presents an interesting opportunity to help IT providers further drive revenue in 2011.
Threats: The high rate of societal and technical change, while identified as an opportunity, was also listed as a significant threat. This contradiction is due to higher levels of complexity in both service delivery business models and diversity of the IT services themselves. The commoditization of services and shrinking margins were also identified as significant threats. Other areas of concern that were tabled include increasing government regulation, cloud computing (and associated potential for disintermediation), decreasing levels of OEM support and ongoing risk management.
So there you have it, a very ambitious SWOT analysis; as dynamic and complex as the industry itself. I’d like to know your thoughts in this area.
- Are there strengths, weaknesses, opportunities or threats the community missed?
- How are you aligning your business to capitalize and mitigate these items?
- What can your industry association do in 2011 to help you meet these challenges?
