New TMV Lead for Application Services – Duncan Aitchison

It is a fascinating time to be joining TechMarketView. The IT services industry is in the throes of its most profound change and nowhere more so than in Application Services (AS).

As we highlighted in Enterprise Software and Application Services Market Trends and Forecasts 2017-2020, the overall demand for AS will increase at a CAGR of c.2% to generate a meagre £200m - £300m of additional revenue opportunity each year. This slow rising tide cannot lift the increasing number of boats small and large that sail these vast waters to anywhere near their collective revenue ambitions. Fuel the swell with wave upon wave of technological disruption, add in the maelstrom caused by unparalleled political turbulence and we are now in uncharted, potentially treacherous seas. That’s why I will be focussing on clarifying how demand for AS will evolve, identifying where the opportunities for growth and value creation will be found and evaluating the strategic responses that will be required.

Beneath the surface of this £14bn market much is changing. Customers are struggling with the “how” of unlocking their intelligence and executing real transformational change, at both pace and affordable cost. The boundaries with the other traditional towers – in particular Business Process Services and Infrastructure Services - are also fast eroding.

Success in the AS arena will require much more than the mastery of an ever expanding and developing array of technologies and capabilities. It will demand radical changes to current business models; service portfolios and mixes, skills strategies, supply chains, pricing and contractual constructs and beyond.

I will be taking a closer look at these challenges. Working with my TMV colleagues I’ll be analysing the changes in the AS market, anticipating its future direction and assessing the implications for all who seek their fortune there. It promises to be an exciting voyage of discovery.

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Posted by HotViews Editor at '08:00' - Tagged: applications