Cost reduction is the name of the game in 2009 and as a result, projects are being postponed, changed in scope and broken down into smaller pieces that have a faster ROI, according to a new report from IDC.
The report titled, New Zealand Consulting and Integration 2009 - 2013 Forecast & Analysis states that the overall consulting and integration market is forecast to reach $1.3 billion in 2013, representing a compound annual growth rate of 3.1 per cent over the coming five years. By the end of the forecast period, this market is projected to account for 38.8 per cent of the entire IT services market.
Much of the growth is expected to come from areas such as virtualisation 'cloud computing' which in turn will help to drive service oriented-architecture, primarily in laying a foundation that will make it easier to integrate cloud-based solutions.
"Coordinated approaches of these technologies can give IT the opportunity to respond more quickly and lower costs to make the business cases for new projects more attractive as well," says IDC senior market analyst Rasika Versleijen-Pradhan.
The report also analyses the relatively under tapped SMB portion of the local market.
IDC is observing a growing trend towards productised services, which is helping to drive system integration growth. As a result, productised services and cloud-based offerings are becoming vehicles for vendors to scale down their offerings in order to target the SMB segment.
"Ultimately, as clients become heavily reliant on technology in order to meet business objectives, the more uptake there will be for consulting and integration services.
The key for service vendors will be a high level of expertise and knowledge of a customer's internal business processes and goals, and the ability to blend these sets together and deliver cost efficiencies, whilst ensuring the IT investment meets expectations," adds Versleijen.
Join the CIO New Zealand group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.