- Forrester Councils
- Councils Overview
- log in
Posted by Fred Giron on October 17, 2012
I recently reviewed a portfolio of about 600 software artifacts from 16 large IT service providers. This daunting exercise complements a research stream I have been working on since the beginning of the year on the future of the IT services industry. While I believe the move to software asset (SA)-based IT services will drive maturation of the services industry and help IT service providers remain relevant to their clients, the analysis of this SA inventory raises a few significant challenges:
What does this means for service providers? The good news is that most now understand the importance of software assets as a means to remain relevant to their customers in a perfect storm of technology change and are accelerating their SA-related investments. The bad news is that most IT service providers today take a linear approach to the move to SA-based services and leverage their traditional operating models. While the move to an SA-based approach will ultimately prove correct in the long term, a lack of scale of these offerings due to the absence of the right governance processes and organizations will put the profitability of these providers at risk in the near term.
Save Money On Your Next Software Negotiation
Work with our software negotiation experts to save 10–20% on your next contract »
Lead BT Transformation
Develop customer-obsessed strategies to drive growth »
Forrester's CX Index
Predict how actions to improve CX will affect revenue performance.
Measure the customer experiences that matter most »