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For Sourcing & Vendor Management Professionals

Non-Tech Companies Become The New Market For Software Product Development Services

New Software-Is-The-Brand Companies Replace Traditional ISV Buyers

August 6, 2013


  • By John McCarthy,
  • Charles Green
  • with Christine Ferrusi Ross,
  • Fraser Tibbetts

Why Read This Report

Historically, one of the main segments of product development services (PDS) has been software product development for independent software vendors (ISVs). However, two parallel dynamics are reshaping this part of the market. First, the "not invented here" mindset of software company management and the cost of serving a large portfolio of small startup accounts have hindered growth in the ISV space over the past three years. At the same time, the emerging software-is-the-brand commercial accounts increasingly require those software product development skills. Industries like information/data providers, media, retail, and financial services have IT-like projects that demand a product development mindset and skill set. These software-is-the-brand companies will drive the bulk of PDS growth over the next several years.

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Table of Contents

  • Software PDS Vendors Find A New Buyer Market Among Non-Tech Firms
  • Software-Is-The-Brand Firms Face High-Skill, High-Risk Requirements
  • Providers Face Challenges In Realigning To New Segments
  • recommendations

  • SVM Pros Need To Understand The Roles Of Both PDS And IT Providers