Aug, 2003 : Gartner: IT Providers Selling Via Other Providers

📅 August 12, 2003 - IT service providers are increasingly using other IT service providers to drive sales and meet the changing dynamics of customers demand, according to a recent survey by research and analysis firm Gartner (gartner.com).

According to the survey, 80 percent of companies are currently selling their IT service offerings either to, through or with other IT service providers. The survey also found that more IT service sales via other IT service providers will be made in 2003 than were made in 2002.
"Economic challenges and the need to penetrate new markets are serving as catalysts for IT service providers to seriously investigate and consider all possible strategies for growth in their businesses," said Michael Haines, principal analyst for Gartner. "One of the strategies is to leverage other IT service companies, either as a target market or as a conduit to new markets."
The Stamford-based firm predicts that while the trend is moving upwards, IT service providers will not become the predominant buyer. Gartner projects 26 percent of IT services to be sold through other providers with that number reaching 40 percent by the year 2006.
"The portion of services sales made via other IT services companies may be driven higher than predicted because of changing customer preferences to deal with less providers, coupled with the emergence of services value chains," said Haines. "These market shifts will serve as catalysts to accelerated levels of collaboration that will find other IT services companies becoming a more significant buying audience."
The survey also found that operational and support services are the IT service offerings most frequently sold via other IT service providers.