45% of organisations turn to ESP for provisioning their IT services
A new survey from Gartner has shown that about 37% of German firms plan to increase their IT services spending in 2010, while 49% expect their spending to remain the same in 2010.
The firm said that German organisations, beside an overall higher likelihood to invest in hardware and software support services, are also considering using ESPs for services, such as emerging technology-as-a-service, data centre infrastructure outsourcing and consulting on IT or business strategy.
Michael Von Uechtritz, research director at Gartner, said: The survey shows the positive market acceptance of ESPs to support IT initiatives, with 45% of German organisations turning to an ESP for their IT services provisioning, an increase of 16% from 2008.
“Among the factors accentuating the use of ESPs, 45% of respondents said they will turn to ESPs that can ensure they will ‘keep the lights on’ and 25% identified a reduction in the operating cost of IT as their top drivers to use ESPs.”
The survey, which interviewed 150 organisations in the German market, showed that though organisations appeared almost equally receptive to using the different broad categories of providers, nearly half the respondents (44%) were likely to contract with regional providers, followed closely by local providers at 43%.
Gartner said that respondents clearly expect ESPs to demonstrate the competencies that they can support in business operations. 87% of respondents say that the key driver for turning to ESPs is support of business operations, closely followed by reducing operating costs of IT at 86%.
Before ESPs market or sell to targeted German buying centres, Gartner recommends they assess and compare their own competencies and skills with those of their peers. The firm said that they need to communicate their identified unique differentiators and be ready to address critical economic buy-side demand for agility and certainly for further cost takeout in 2010 in their marketing plans.