Trends Report

Selling IT Services In An Economic Downturn

When Economic Conditions Are Poor, Segmentation And Positioning Matter More Than Ever

November 4th, 2008
Christopher Andrews, VP, Research Product Management
Christopher Andrews VP, Research Product Management
With contributors:
Pascal Matzke , Edward Radcliffe

Summary

The global credit crunch is beginning to affect providers of IT services and outsourcing. Vendors in this market have spent years building up their value-added service offerings in an effort to generate higher margins and foster more strategic relationships with clients. But now they will face a customer base seeking to cut costs, eliminate nonessential services, and reduce the risk associated with long-term contracts. Still, not all customers will be hit equally, and this increases the importance of segmentation and positioning for technology vendors. The companies that can identify the core needs of their customer base — and meet those needs with targeted offerings — will be in a stronger position to weather this economic crisis and emerge with even stronger customer relationships.

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