IT service providers deliver services that reduce costs, improve productivity, and assert competitive advantage to their customers. Increasingly they have become part of our critical national infrastructure and they move towards more international modes of operation.
The sector is changing with mergers and acquisitions. Key challenges are value chain positioning, partnering, integration of different technologies, price pressure and new revenues sources, data security, service availability and quality and finally, sustainability issues and corporate governance.
Customers increasingly expect more advanced functionality, seamless integration between services, availability on mobile devices, and on the net, and finally 27x7 service availability with high quality. This has lead to more sophisticated and critical services, more complex systems, more complex supply chains and a need for flexibility and agility. The risks are large and increasing and to stay in business for the long run risk management and operational effectiveness continuously has to be in focus.
Environment, ethics and social responsibility is high on the news agenda around the world – mistakes or failures to comply with what is seen as responsible corporate behavior will influence reputation, market share and stock price.
In the future IT service providers will be under increasing pressure to reduce use of energy and to operate green data centres.
