2013 Services Purchase Intentions North America. November 2012
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- Helena Simon
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1 2013 Services Purchase Intentions North America November 2012
2 Findings Most common buying scenario for services is that IT initiates the project/identifies the pain, IT researches the problem, and business leaders make final decision Phase 1 Project Initiation Phase: 57% of service projects begin in IT Phase 2 Project Research/Vendor Selection: 81% of service projects rely on IT to conduct research, identify vendor and recommend a solution Phase 3 Project Final Decision Makers: IT makes 33% of the final decisions for services purchases. Business makes 60% of the final decisions for services purchases 2
3 North American IT service budget outlook: Increasers beat decliners 2 to 1 Over the next 12 months do you expect your IT services budget to: 8% 7% 6% 12% Decrease by more than 10% Decrease by 5 10% Stay the same Increase by 5 10% Increase by more than 10% We have no plans to use outside services 25% 33%+ of services budgets are increasing in 2013 with significant growth in Business Process Outsourcing at mid and large sized organizations. 42% 3
4 IT service budget deflators 2013: It s the economy What is the key driver for the change in your budget for IT services in 2012/2013? 18% Less than 100 employees employees employees Delayed expenditures means Foot in the door approach is critical to service firm success 9% 0% Aligning expenditures with economic projections No new projects/ we have postponed or delayed projects Hiring staff with skills, so no need for IT services 4
5 Services purchase cycle: Under 5000 seats IT lead, business does not research solutions Generally, who starts, researches, and makes final decision on services purchases? Less than 100 employees employees employees 40% 30% Small business projects start most often with IT Large enterprise projects see business and IT collaborate 20% 10% 0% IT starts and researches, Business decides IT starts, researches, and decides Business starts, IT researches and decides Business starts, researches, and decides Business starts and researches, IT decides 5
6 VARs/consultants most used at all co. sizes; larger firms prefer systems integrators, MSPs Has your firm used the services of any of the following types of services vendors in the last 36 months for IT related service projects? (select all that apply) 60% Less than 100 employees employees employees VARs and consultants diverse skill sets, ability to take on smaller projects, and existing relationships is what sets them apart. 30% 0% Local, regional, or national Value Added Resellers (VARs) Systems integrators Independent IT consultants that did not work for a hardware or software vendor Management consultants Managed service providers 6
7 Types of services leveraged vary by organization size Has your firm used the services of any of the following types of services vendors in the last 36 months for IT related service projects? (select all that apply) Less than 100 employees employees employees 46% Mid-market firms most likely to leverage hardware/software vendors directly Large Enterprises more likely to leverage 3 rd party services 23% 0% IT outsourcing services IT application development services Facilities Management (FM) companies Hardware/software vendor fee-provided application/systems consulting We have not used outside IT services in past 36 months 7
8 Projects: Networking most popular, BPO, desktops, & DC design most growth Has your organization used or plan to use outside services for any of the following? (select all) Networking Storage, DR, or backup installation/upgrade Server installation/upgrade/services Enterprise application installation/upgrade/custom. serv.* Application development Virtualization (any) Compliance/IT security related services Industry specific applications Desktop deployment/management/upgrade Data center facility design/redesign Cloud computing (any) Asset management/license management Business process outsourcing None of the above Used Planned * ERP/CRM/ 0% 25% 50% 8
9 Mid tier projects: Targeting important to find, strong IT focus in this group Has your organization used outside services for any of the following? (select all that apply) Less than 100 employees employees employees 36% 18% 0% Enterprise application installation/upgrade/ customization services (ERP, CRM, ) Application development Compliance/ IT security related services Data center facility design/ redesign We have not used outside IT services in the past 36 months 9
10 Planned services purchases: Midmarket has strongest plans to leverage 3rd parties Does your organization plan to use outside services to aid in any of the following in the next 24 months? (select all that apply) Less than 100 employees employees employees 50% Mid-market firms most likely have complex needs without on-staff specialists to address them 25% 0% Network, wide area network, and unified communications installation/ maintenance/upgrade Storage, disaster recovery, and backup installation/upgrade Server installation/ upgrade/ or services Industry specific applications 10
11 General provider attributes: Expertise, price & relationship drive selection When selecting an IT service provider for your firm, which are the most important properties for that firm to have? (select up to 3 responses) Specific expertise Price Vendor with existing relationship Authorized/certified by hardware vendor Is well known/recognized in vertical ind. Top Tier Provider with a global reputation Local/Lives in my community Is the vendor that sold us the product being serviced Independent not from the hardware or software vendor Less than 100 employees employees employees 0% 20% 40% 60% 80% 11
12 About this survey North American cut of global survey IT Research Panel November 2012 Examines service purchase history and plans for cloud, security & compliance, enterprise applications, data center services, storage & DR 175 qualified completes 12
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