Feeds

IT services: don't forget the little guys

Room enough?

  • alert
  • submit to reddit

Designing a Defense for Mobile Applications

With offshore service providers applying pressure on billing rates for systems integration and consulting work, economies of scale are increasingly important if services companies are going to be able to handle projects profitably. But there is still room for small and medium-sized services providers.

Despite the apparent focus on size and scope of major IT services providers in recent years, there is a growing trend for clients to work with a number of best-of-breed or niche suppliers on large contracts. Likewise, big services vendors are subcontracting work to smaller parties to fill in the gaps where their own expertise falls short.

Multi-source contracts are becoming increasingly popular due to the greater flexibility they give the client. The difficulty of changing single outsourcing suppliers means that 95% of outsourcing contracts are re-signed with the original supplier, which typically owns the relationships with essential subcontracted partners. However, multi-sourcing enables the customer to pick and choose the different members of a consortium to provide outsourced services.

In the US, a certain percentage of the value of large federal government IT services deals has to go to small and medium-sized businesses. This trend is also on the increase in the UK after the government had its fingers burned on several major projects given to a single supplier.

A quick glance at some recent deals shows that multi-source and subcontracted deals are on the rise. The Royal Mail has awarded a $2.4 billion contract to outsource its IT infrastructure to a consortium of CSC, UK-based Xansa and BT Ignite. Hardware maintenance and business continuity services provider Synstar and server management specialist Itnet have both secured multimillion-dollar, multi-year deals as subcontractors to CSC, and managed network service provider Vanco has just won its largest contract to date as a subcontractor on one of CSC's large international outsourcing deals.

Despite the tough market conditions, there is still a role for small and medium-sized IT services providers outside the top tier. Clients are looking for greater flexibility and focus on outsourcing deals, and the real winners of this trend will be project managers whose skills will be at a premium for handling multiple supplier relationships.

© datamonitor logo

Datamonitor is offering Reg readers some of its technology research FOC. Check it out here.

The Power of One eBook: Top reasons to choose HP BladeSystem

More from The Register

next story
Apple fanbois SCREAM as update BRICKS their Macbook Airs
Ragegasm spills over as firmware upgrade kills machines
Attack of the clones: Oracle's latest Red Hat Linux lookalike arrives
Oracle's Linux boss says Larry's Linux isn't just for Oracle apps anymore
THUD! WD plonks down SIX TERABYTE 'consumer NAS' fatboy
Now that's a LOT of porn or pirated movies. Or, you know, other consumer stuff
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
FLAPE – the next BIG THING in storage
Find cold data with flash, transmit it from tape
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.