The Differentiation Challenge for North American IT Services Vendors

by Karen Monks, September 20, 2010
Industry Trends
North America

Abstract

IT services vendors face five challenges when attempting to differentiate themselves from their competitors.

In a new report, The Differentiation Challenge for North American IT Services Vendors, Celent analyzes data provided by IT services vendors as well as their North American customers. A close look at the data gathered for the Celent report IT Services Vendors Solution Spectrum: North American Version, 2010 shows that vendors face a daunting task to differentiate in this crowded industry.

Some of the data includes staff skill sets and service offerings as well as customer reasons for choosing vendors and customer satisfaction levels. Celent also proposes an approach for IT services vendors to differentiate themselves.

“The market for IT services in the insurance industry has expanded as insurers attempted to reduce costs,” says Karen Monks, Celent Analyst and author of the report. “This growing need from insurers has resulted in an expansion of companies serving the insurance IT market, from global, large consultancies and software vendors to niche players. This has implications for vendors trying to differentiate. This report points to five approaches that IT services vendors might use to become more competitive.”

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

3

Introduction

5

Limitations of the Data

6

Key Findings

8

Potential Differentiators

9

 

Evolve Technology Skills

9

 

Develop a Partner Mindset

11

 

Rebalance Offshore Delivery Capabilities with Onshore Branding and Presence

13

 

Expand Service Offerings without Appearing to Do Everything

14

 

Improve Satisfaction with Bread and Butter Services

17

Conclusion

18

Leveraging Celent’s Expertise

20

 

Support for Financial Institutions

20

 

Support for Vendors

20

Related Celent Research

21

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