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Capturing Growth Out of the IT Box (Feb 2005)

Posted by Frank Gens on July 9th, 2007

[I wrote this piece as an IDC Executive Insight in February 2005.  I wrote about the growing importance for IT suppliers to look for opportunities to expand offerings beyond just the IT tools that support business services, to actually offering business services (and business outcomes) themselves.  In this piece, I highlighted the efforts of IBM and others to move "Out of the IT Box" as they expanded their their portfolios to include big-ticket Business Process Outsourcing (BPO) offerings.  But, as we've seen in the last few years, thinking about growing out of the IT box is even more important in the context of lower-ticket, more transactional "on-demand" services.  I talked about this in my IDC Directions presentation in March 2007, “Hyperdisruption and the Redefinition of the Enterprise IT Marketplace”, in which I mentioned Apple moving into media retailing (iTunes Store), salesforce.com moving into sales and marketing services, and Microsoft into online advertising (MSN).]

As lower levels of the IT business become more commoditized, IT industry leaders are seeking growth beyond traditional IT product and services markets by offering high-value business services that support sales and marketing (S&M), supply chain management (SCM), finance and accounting (F&A), and other major business operations… [MORE...]

 

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