Overview of the global IT services industry
The global IT services market holds substantial opportunities for industry players due to increasing IT spending in the retail, healthcare, and transportation sectors. The increasing global demand for systems, services, software, and rising IT spending by governments are likely to boost the IT services market. The industry is highly associated with economic cycles as IT services are project-based and often represent discretionary spending. Apart from the conventional factors, the growing need to push companies to outsource their IT requirements is also predicted to spur the growth prospects of the IT services sector.
However, our analysis of the global ICT industry shows that IT services providers are expected to face challenges in terms of:
- Rising consumer demands: Today’s consumers are technologically driven and are not confined to less updated technologies. Therefore, prominent IT services providers must ensure that the requirements of the customers are met through customization and other relevant product offerings.
- Cyber threats: Today, organizations are inundated with data – with the rising volume of data, players in the IT service space have become the victims of various security breaches. Therefore, it becomes mandatory for the companies to streamline their efficiency and improve security in their operations.
To overcome these challenges, bridge demand-supply concerns, and meet the rising needs of the customers, organizations are facing the need for robust supplier profiling solutions. Supplier profiling solution helps firms engage with suppliers and deliver high-quality service while enhancing their economic opportunities.
The Business Challenge and Journey
Client background: An IT services major with over 15 business units spread across the globe wanted to better understand the latest ICT industry trends and identify the key suppliers.
Client issue: The company had a robust internal team that was experienced in make-versus-buy analysis but lacked an important ingredient – the capability to combine human intelligence and technology to effectively identify contract manufacturers globally at the onset of any assessment.
To help the client select the right contract manufacturing partner, SpendEdge’s supplier profiling experts followed a scrupulous research methodology and carried out discussions with prominent stakeholders in the ICT industry space. The experts also compiled information from a wide array of exclusive sources such as paid industry catalogs, company exhibits, and industry forums.
Client journey: With the help of SpendEdge’s supplier profiling engagement, the IT services provider identified the existing supplier base of contract manufacturers globally and conducted an in-depth analysis of the top contract manufacturers. The client also ensured that all proposed collaborations would seamlessly fit with their existing strategy. Furthermore, they identified areas of improvement in terms of process, output, and automation.
Key questions answered in this supplier profiling engagement
The IT services industry client conducted multiple make-versus-buy analysis for different categories and geographies simultaneously. This helped them improve time-to-market delivery of their offerings.