Gartner Says Prepare for Consolidation in The IT Market to Last Until Mid 2003
Gartner Lays out Five Strategies for Succeeding in a Tactical World
Cannes, France, November 5, 2001 -Gartner, Inc. (NYSE: IT and ITB) today said businesses should prepare for further consolidation in the IT industry and that the market will not return to normal conditions until well into 2003. Adding to this, it revealed results from a new survey carried out across businesses in Europe, which showed that the number of companies planning to reduce their IT budgets increased by 10 percent points, compared to last year. It also confirmed that investments are moving away from capital investment to cost containment and business processes, adding pressure to the already troubled hardware and telecommunications industries.

Speaking at Gartner's annual European Symposium ITxpo in Cannes, France this week, Peter Sondergaard, Group Vice President and Head of Research, outlined the company's perspective of the IT industry and advised delegates that the next 12 to18 months are going to be what Gartner calls a 'gap-year'. Sondergaard said, "This is a period where the number one priority should be to tidy up and lay foundations for the future - to be ready when the tide turns."

To do this, Sondergaard presented Gartner's recommendations on the five key areas businesses should focus on over the next 12-18 months (see below). He said "Key to this is getting your house in order, and only initiate new projects where new technology can add very clear and measurable, financial business benefits."

To add to the challenge he warned that some companies are already putting the breaks on too much. Failure to invest in getting their 'house in order' will put them at risk when the tide does turn.

Five Strategies for Succeeding in a Tactical World
  1. Focus on basic enterprise enablement.
    Companies need to take back control of their business architecture to ensure key data, legacy systems and processes are integrated, internally and on supplier and customer facing systems.


  2. Revise your e-business strategy
    The e-business hype promoted a mentality of spending on 'off the peg' strategies failing to consider a business' unique needs. Swallow your pride and rewrite the strategy to focus on aggressively pursuing only the one or two key things that fully support strategic business plans.


  3. Do not start major new initiatives until you deliver return on investment (ROI) on the investments you have already made
    Insist on measurable business, not technology, targets with dollar signs. Achieving revenue per user/customer is a target, putting 30 percent of your business on-line is not.


  4. Invest in quality
    The e-business era drove the entire business world to believe time to market was more important than meeting customer needs. While time to market is crucial in the IT industry, businesses across all industries must not forsake quality for speed.


  5. Prepare to invest in new initiatives from late 2002
    At this time, businesses should have put their house in order, while a number of the hyped technologies of the last two years will start to mature and realise real business benefits. This will contribute to driving the recovery of the industry.


Gartner Symposium/ITxpo is the IT industry's largest and most strategic conference, providing business leaders with a look today at the future of IT. For more than 10,000 IT professionals from the world's leading enterprises, Gartner's annual Symposium/ITxpo events are key components of their annual planning efforts, and a place to gain insights into how their organisations can use technology to address business challenges and improve operational efficiency. For more information online, go to www.gartner.com/symposium.

About Gartner, Inc.
Gartner, Inc. is a research and advisory firm that helps more than 11,000 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 is headquartered in Stamford, Conn., and has 4,300 associates, including 1,200 research analysts and consultants, in more than 90 locations worldwide. The company achieved fiscal 2001 revenues of $952 million. For more information, visit www.gartner.com.

Contact:
Laurence Goasduf
Gartner
+ 44 1784 267-195
laurence.goasduf@gartner.com