To: John Mansfield who wrote (23933 ) 10/13/1998 7:40:00 AM From: RAVEL Respond to of 31646
Rapid Technology, Business Changes Fueling Growth BOSTON, Oct. 13 /PRNewswire/ -- A healthy growth in demand for IT services, sourced from external service providers including systems integrators, is expected over the next 10 years, according to a recent research report issued by the Yankee Group, the Boston-based information technology research firm. According to their research, the overall systems integration (SI) market will grow at a compound annual rate of nearly 18 percent through 2000, with certain segments of the market growing between 20 and 30 percent annually. Systems integration firms generated nearly $100 billion in revenues in 1997, and the Yankee Group expects these revenues to increase to $162 billion by 2000. A combination of business and technology changes, internal IT shortfalls, Y2K-compliance initiatives and the need for user education in new technologies and implementations is fueling the market growth in systems integration. These changes include: -- Faster IT lifecycles, requiring more implementations, and more complex linkages of system components, while making existing IT knowledge obsolete quicker. -- New "hurdle" technologies, enabling early adopters to define new markets and/or gain mind and market share over their nearest rivals. -- Competing demands for scarce IT talent, sharpening the focus on internal/external resource choices, prioritization, and overall resource allocation. -- Total cost of ownership, forcing management to look at budget increases closely and leverage new technologies and models from third parties. -- Increasing focus on core operations, resulting in fixed cost resources being pulled away from non-core operations such as IT. According to the Yankee Group's survey-based research, the systems integration services for which there will be the greatest demand in the next several years are implementation (i.e., applications/systems/networks development, implementation and performance-tuning) and staffing. In response to these market demands, a new breed of systems integrators will emerge, the Yankee Group foresees, with stronger business strategies, alliances, and educational capabilities. "Integrators are increasingly confronting projects that are multifaceted in character, requiring demonstration of a broad range of consulting skills for translating and solving business problems and/or exploiting new business opportunities," says Gopi Bala, Director of Management Strategies Research and Consulting at the Yankee Group. "The systems integrators who will thrive in the future are those who have access to captive experienced and trained staff with recognized depth and breadth in technology, and who can leverage their intellectual capital and best practices experiences more aggressively." About the Yankee Group The Yankee Group (a subsidiary of Primark Corporation) is an information technology market research firm, which specializes in helping users and vendors link their technology strategy to their business strategy. Established in Boston, Massachusetts in 1970, it has built a solid reputation worldwide for analysis of the key issues in information technology. Yankee Group clients number more than 700, and represent a wide range of business and industries. Each year, the Yankee Group sponsors numerous technology-related conferences around the world. Additional information is available at yankeegroup.com Primark Corporation (NYSE/PSE:PMK) is a global information services organization headquartered in Waltham, Massachusetts. Primark provides financial, economic, and market research information services to the financial, corporate and government markets. Additional information is available at primark.com