Service Providers Start To See The Implications Of The Credit Crunch

During recent weeks, we have seen some unprecedented events in the global financial markets that will also have a profound impact on the tech sector, including the services business. Service providers are already seeing their clients and prospects taking proactive measures to mitigate the risk of coming under severe financial pressure themselves. As a result, clients are deferring project decisions, consolidating their vendor relationships, and starting to renegotiate prices with their existing providers. While this is not the time to panic, service provider strategists need to be prudent about their actions and focus on key priorities, such as expanding global delivery capabilities, offering flexible payment and billing schemes, and positioning the underlying business value of their services.