Worldwide Services 2007 Top 10 Predictions: A Time for Business Model Change

This IDC study identifies IDC's Global Services research team's top 10 predictions of the services marketplace for 2007. It highlights the major trends and critical developments that will impact the wide spectrum of the services industry, from business consulting to learning to talent management to IT and applications outsourcing.

"From consulting to outsourcing, customers have more choices than ever before, and we are at an extremely exciting time in our industry when delivery models actually enable the profitable delivery of enterprise-class services and functionality to a much broader range of customers," said Rebecca Segal, vice president, Global Services Markets and Trends. "These predictions leverage the collective wisdom of over 70 IDC analysts tracking the services marketplace worldwide."

Predictions

In This Study

Situation Overview

Future Outlook

1. While Battles Will Be Fought for the Megadeals in 2007 (Those Over $1 Billion), the War Will Be Waged for the Midsize ($50 Million to $500 Million) Deal

2. Acquisitions by Offshore Service Firms Will Accelerate as They Seek to Add Scale to Compete in the Outsourcing Business and Buy Greater Specialization and Industry Expertise to Address High-Value Consulting

3. Competition for the Midmarket Brass Ring Will Intensify as Key ISVs Oracle and SAP Focus on This Segment and Hosted Applications Make Enterprise-Class Performance Available to Smaller Companies

4. Service Productization Will Gain Traction as Service Firms Seek to Increase Profitability Through Standardization

5. SOA Adoption Will Accelerate as Companies Move Beyond the Pilot Stage and Advance to the Enterprise Level

6. Homeshoring, the Use of Home-Based Customer Care Agents to Field Customer Care Inquiries, Will Flourish as It Addresses the Need for Better Agent Quality, Lower Turnover, and the Seasonal Nature of Many Businesses

7. The Human Resources Market Will Consolidate as Large Firms Seek to Grow Their Client Base and Niche Players Broaden Their Portfolios

8. Enterprise Risk Will Drive Investment Across the Consulting Services Spectrum, with the Big 4 Firms Leveraging Their Expertise and Fueling Their Growth Engines

9. Network Complexity and Skills Shortage Will Combine to Heighten Opportunities for Network Infrastructure Consulting and Integration Services

10. Search Will Transform the Training Content Markets

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Synopsis