Friday 12 March 2021

*NEW RESEARCH* Applications Operations Supplier Prospects 2021 and beyond

From an Applications Operations (AO) demand perspective, the impact of the pandemic has been one of limited short-term pain now followed by steady longer-term gain.

When we published our annual Market Trends and Forecasts report in June 2020, we estimated that sales of AOCover services would decline by 2-5% in 2020. We revisited this analysis towards the end of last year (see here) and concluded that the decline will be at the less severe end of this range. The market should recover well through this year regaining the vast majority of the ground lost in the prior twelve months.

As with all operations services, continuous cost reduction remains high on the agenda of customer requirements as the look to free funds for investment in the new capabilities. Post-COVID, these pressures will only intensify. Cannibalisation of the heritage estate will accelerate as organisations squeeze run budgets every more heavily and look to move to cheaper platform-based service provision.

Indeed, demand for “new” AO will strengthen significantly and enjoy a CAGR of over 20% though to the end of the forecast window. Revenues from heritage services will, conversely, decline significantly falling to less than a half of last year’s level in 2023.

This is the market context for our Applications Operations Supplier Prospects 2021 and beyond report which is now available to download (click here). Subscribers to TechSectorViews can read the full analysis of the challenges facing the players in this market over the coming year, what they need to do to be successful and the ways to win in the longer term. The document also includes profiles of the Top Ten leading players (by revenue) in the UK SITS AO market.

If you are not currently a TechSectorViews subscriber and would like to gain access the report, please contact Deb Seth.

Posted by Duncan Aitchison at '07:00' - Tagged: applications   suppliers   newresearch   operations  

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