GartnerGroup's Dataquest Says Professional Services Providers Positioning Now for New Business Opportunities after Year 2000 Crisis
New Report Examines Post-Year 2000 Survival Strategies for Professional Services Vendors
San Jose, Calif., July 13, 1999—With the new millennium approaching, professional services providers are currently identifying opportunities to replace year 2000 compliance services revenue, according to a new report by Dataquest Inc., a unit of Gartner Group, Inc. (NYSE: IT). Dataquest surveyed leading professional services vendors to determine their post year 2000 survival strategies. All services providers surveyed intend to continue to offer year 2000 professional services over the next 12 to 18 months or until demand disappears, but they will also be implementing a business development strategy to replace the anticipated decline in year 2000 professional services revenue.
"Although each business development strategy is unique, there is one common theme embraced by every vendor," said Ted Kempf, analyst for Dataquest's Consulting and System Integration North America program. "Use Year 2000 professional services as a stepping stone for capturing new business."
Survey participants were also asked to list the top three offerings they would devote the most energy toward developing. Based on responses, the largest emphasis will be targeted toward electronic commerce, followed by legacy migration/conversion, and enterprise resource planning.
An integral part of the business development strategy for every company surveyed is the inclusion of partnering or the acquisition of product companies or other professional services providers. Many survey participants said they would actively seek to form partnerships or purchase companies, which would allow the participants to expand newly developed service offerings or grow already established practices. For example, Keane and Sterling Commerce have already formed a partnership to provide end-to-end solutions for e-business. Similarly, HCL James Martin Inc. has a strategic plan to acquire companies with a strong stable of experience in the e-business space.
Additional information on this market is available in the Dataquest Market Analysis Perspective Post-Year 2000 Survival Strategies. This report provides an in-depth analysis of the business development strategies professional services providers are structuring to replace declining revenue from year 2000 engagements, as well as recommendations on how to support those plans both internally and externally.
This report is produced by Dataquest's Consulting and System Integration North America program. This program provides analysis about how vendors can approach the rapidly changing North American markets by improving service content, packaging, selling, pricing, and delivery. Additional information on this program is available on Dataquest's Web site at http://www.dataquest.com/dq/static/offer/programs/pfstnads19981130.html.
To purchase the report or subscribe to the program, please call 800-419-DATA or 408-468-8009. More information about Dataquest's programs, descriptions of recent research reports, and full text of press releases can be found on the Internet at http://www.dataquest.com.
GartnerGroup's Dataquest is the recognized leader in providing the high-technology and financial communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software, and services sectors of the global information technology industry.
As the world's leading authority on IT, GartnerGroup provides clients with a wide range of products and services in the areas of IT advisory services, measurement, research, decision support, analysis, and consulting. Founded in 1979, with headquarters in Stamford, Conn., GartnerGroup is at the center of a global community serving Fortune 1000 clients from 80 locations worldwide. Additional information about the company is available on the Internet at www.gartner.com.
CONTACT:
Christy Pettey
(408) 468-8312
christy.pettey@gartner.com