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TECH SUPPLIER Aug 2019 - Market Perspective - Doc # US45448019

Move to Digital Services: Trying to Stay on Top of the Pancake as It Gets Flipped

By: David TapperProgram Vice President, Outsourcing and Managed Cloud Services

Abstract

This IDC Market Perspective highlights how the revenue base of services firms is increasingly shifting to one driven by digital services, the strategies being deployed to make this shift, and critical challenges that services firms in the digital services market are facing while trying to ensure long-term growth.

"Maintaining growth for traditional services firms is becoming more challenging every day as both customers elevate their expectations of the services they need and new competitors continue to pour into the market with new, disruptive business models of services that are increasingly becoming substitutes for traditional service options involving digital capabilities," says David Tapper, VP, Outsourcing and Managed Cloud Services at IDC. "Ensuring success will require service providers to assess brand image based on impact on future opportunities, define core competencies and degree of potential change, understand cultural uniqueness and idiosyncrasies along with the limits of change, utilize critical financial factors and performance metrics, assess portfolio of talent based on changing business models, and understand the degree of change required of ecosystem structure."


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