Most companies will choose to engage a service firm to help fulfill their IT and business aspirations but will be seeking new ways of contracting, new types of capabilities, and new delivery models in the years ahead. These preferences will heavily impact the way that service firms come to market, invest, and transform themselves to be better and more effective partners
Companies utilizing the services of outside firms may have noticed some significant changes in the types and delivery models leveraged by outside firms. Key themes across the services firm landscape that are most relevant include:
- Greater use of analytics and intelligent automation as well as platforms for service delivery
- Greater understanding of the needs of the lines of business (LOBs) even in IT-centric engagements
- Greater understanding of the dynamics of digital transformation (DX), including a focus on services firms’ own digital transformation
- Broader capabilities to help unite IT and the lines of business as well as increased domain expertise in particular business and operational processes.
Top 10 Services 2019 Predictions
The following are IDC’s top 10 predictions for 2019–2023:
- Prediction 1: By 2020, 90% of all organizations will have adjusted project plans, delayed product/service releases, or incurred costs due to lack of IT skills, with losses worldwide totaling $390 billion annually.
- Prediction 2: By 2023, 80% of organizations carrying out IoT initiatives will partner with a services firm able to offer key skills and capabilities to strategize, plan, implement, and/or manage the IoT initiative.
- Prediction 3: By 2019, 70% of IT divisions will be undergoing cultural transformation to “unlearn” analog processes and to adopt DX-enabled processes, agile development practices, and collaborative workflows.
- Prediction 4: By 2021, more than 25% of organizations’ spending related to outcome-based services contracts will entail non-IT-based outcomes, whether relational, transactional, or financial.
- Prediction 5: By 2022, 40% of the IT services that organizations receive will be delivered via a mix of non-AI and AI-enabled automation.
- Prediction 6: By 2020, the breadth of digital ecosystems will have grown 55% for services buyers and suppliers, with buyers increasingly favoring suppliers that can help them innovate using more complex ecosystems.
- Prediction 7: More than 36% of organizations use waterfall as their primary development methodology today; by 2022, that will dip to 12%, with 88% opting to use DevOps or a hybrid DevOps/waterfall approach instead.
- Prediction 8: By 2022, 19% of managed services spending will be on digital services, driven by enterprises’ need to achieve greater business agility via cloud, IoT, blockchain, cognitive, and analytics adoption.
- Prediction 9: By 2023, three-quarters of companies looking to drive revenue growth will only consider partnering with consulting firms that combine strategy, creativity, and IT services.
- Prediction 10: By 2022, because of increasing technology standardization and growing LOB participation in sourcing, 70% of enterprises will prioritize business capabilities over technology capabilities when sourcing IT.
Learn more about the 2019 Services Predictions
For context around these predictions, including the IT impact and guidance on how to integrate each prediction in the digital strategy of the enterprise, view the IDC FutureScape: Worldwide Services 2019 Predictions web conference on-demand.