Refining Value Proposition Key to Weathering Short-Term Contraction in IT Consulting Market, IDC Says
FRAMINGHAM – MA, MAY 27, 2003 – The global IT services market, including IT consulting, is undergoing a period of turmoil and uncertainty. According to newly published IDC research, the worldwide IT consulting market is expected to finish 2003 with a 1% decline in spending and return to positive growth by the end of 2004. From 2003 to 2007, the global IT consulting opportunity is forecasted to grow at a 5-year compound annual growth rate (CAGR) of 3.5%. IDC predicts the U.S. discrete IT consulting market will experience a similar decline and recovery.
"During times of industry transformation, it is imperative for consulting services firms to continuously monitor, analyze, and proactively address changes in end-user needs in order to be ready for the tremendous opportunities of the near future," said Anna Danilenko, program manager for Consulting Services market research at IDC. "The keys to success for consulting vendors this year are expected to be value generation, business transformation, and shared risk."
In addition to the decline in spending on discrete IT consulting services, IDC believes that the key trend in the IT consulting market in 2003 will be the growth of the IT consulting services opportunity as an activity as opposed to a standalone offering. IDC also predicts that escalating pricing pressures, further market consolidation, offshore labor sourcing, and the blending of business and IT consulting service offerings will play important roles in shaping the IT consulting market in 2003.
IDC's examination of the global business consulting services market reveals that this market has also had better years in terms of market growth, stability of demand, and competitiveness. However, IDC believes that global business consulting services are experiencing a powerful, exciting, and revolutionary transformation. IDC predicts that worldwide business consulting services spending will increase from $29 billion in 2002 to more than $33.7 billion in 2007, growing at a 2002–2007 CAGR of 3.1%. U.S. business consulting spending will experience a decline in 2003 and return to positive growth in 2004.
Among the trends IDC sees occurring in the business consulting market in 2003 are better alignment of end-user business and IT needs and an increased role for business consultants and their competency in large business process outsourcing deals. In addition, IDC expects business consulting vendors to redefine the value proposition of their services and change the established practices for selling, pricing, delivery, and knowledge transfer as well as the
way these services are currently perceived by the buyers.
IDC's study, Worldwide and U.S. IT Consulting Services Forecast and Analysis, 2003-2007 (IDC #29187), presents readers with a comprehensive view on the global and U.S. IT consulting services markets. It analyzes major market trends and developments, provides an update on the competitive landscape, and discusses future IT consulting opportunities. In addition, the document publishes the updated market forecast for discrete and total IT consulting by region and activity groupings, and gives IDC predictions and recommendationsfor IT consulting services players.
The IDC study, Worldwide and U.S. Business Consulting Services Forecast and Analysis, 2003-2007 (IDC #29226), presents a comprehensive analysis of the global and U.S. business consulting services market. It analyzes major market trends and developments; publishes the updated market forecast by regions, activity groupings, and industry verticals; shares major performance metrics for this business; and provides IDC predictions and recommendations for business consulting players.
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For additional information about IDC's Consulting Services research, please contact Virginia Lehr at 508-935-4188 or email email@example.com.
IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at www.idc.com.
IDC is a division of IDG, the world's leading IT media, research, and exposition company.
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