IT Services Marketing Association » Focus Report http://www.itsma.com Marketing and sales insight, business results Thu, 09 Feb 2012 22:07:11 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 The Rise of the B2B Social Buyer: Results from the ITSMA How Buyers Consume Information Survey, 2011 http://www.itsma.com/research/how-b2b-buyers-consume-information-2011/ http://www.itsma.com/research/how-b2b-buyers-consume-information-2011/#comments Tue, 29 Nov 2011 14:23:35 +0000 ITSMA Research http://www.itsma.com/?p=8329 Where do buyers of large B2B solutions get information on solution providers? For years, the answer was “my peers.” However, according to ITSMA’s “How Buyers Consume Information Survey,” peers are no longer the most influential source of information for buyers of large B2B solutions. We are seeing the rise of the B2B social buyer, who consumes information voraciously and from a variety of sources, including solution provider sites, online communities and social media. Yet, traditional buyers still look to their peers and even to print-based marketing materials first.

What’s a marketer to do? Read this report to find out how to most effectively reach and engage with today’s buyer.

ITSMA conducted the 2011 version of its acclaimed How Customers Choose research across four continents. Specifically, the study answers questions such as:

  • How are buyers using social media during the purchase process?
  • When creating a short list of providers, what sources of information do they use?
  • What is the most important criteria used to select solution providers?

Study Methodology

In Fall 2011, ITSMA surveyed, via the Web, 465 business and IT executives from companies that purchase business or technology solutions for individual contracts over $500,000. These respondents represented larger enterprises, with 60% having $1 billion or more in annual revenue from seven different countries: US, UK, France, Germany, Australia, Brazil, and India.

Respondents were interviewed in the following vertical markets:

  • Manufacturing (Consumer/Industrial, process/discrete)
  • Financial Services (Banking, Insurance (except healthcare), and investments)
  • Communications (Telecom, media, entertainment)
  • Energy/Utilities/Oil/Mining/Gas
  • Government/Public Sector (Federal/State; no local or education)
  • Healthcare (Payer, provider, and benefits)

Respondent Characteristics

Purchase Involvement

Which of the following best describes your involvement with your organization’s purchase of major technology solutions for contracts over $500,000? % of Respondents (N=465)

Source: ITSMA, How B2B Buyers Consume Information Study, 2011

Geographic Distribution

In which country or region do you currently reside? % of Respondents (N=465)

Source: ITSMA, How B2B Buyers Consume Information Study, 2011

Job Role

Are you a business, IT, or procurement/ finance professional? % of Respondents (N=465)

Source: ITSMA, How B2B Buyers Consume Information Study, 2011

Job Title

Which of the following most closely describes your job title? % of Respondents (N=465)

Source: ITSMA, How B2B Buyers Consume Information Study, 2011

Verticals Represented

What is your company’s primary business? % of Respondents (N=465)

Source: ITSMA, How B2B Buyers Consume Information Study, 2011

Annual Revenue of Organizations Represented

Approximately, what is your company’s annual revenue? % of Respondents (N=465)

Source: ITSMA, How B2B Buyers Consume Information Study, 2011

Special Offer

$1,495 for the complete study (The complete study consists of two documents – Region Roll-up: US, UK, France, Germany, Australia, Brazil, and India; plus separate EU data only, detailed reports)
$795 for Europe data only (UK, France, Germany)  Available Soon!
]]> http://www.itsma.com/research/how-b2b-buyers-consume-information-2011/feed/ 0 How Customers Choose Solution Providers, 2010: The New Buyer Paradox http://www.itsma.com/research/how-customers-choose-solution-providers-2010/ http://www.itsma.com/research/how-customers-choose-solution-providers-2010/#comments Thu, 06 Jan 2011 16:20:35 +0000 ITSMA Research http://www.itsma.com/?p=7193 2010 was the year of marketing transformation. One of the key drivers behind marketing’s need to transform is that the buyers themselves are transforming. ITSMA’s research with buyers shows that buyers are saying one thing, but their behavior shows something else. We are calling this the New Buyer Paradox.

What is the New Buyer Paradox?

  • Cost conscious, yet investing. Buyers are dealing with numerous business challenges, sometimes contradictory: being cost-cautious and supporting growth
  • Cloud wary, yet hopeful. Buyers see cloud computing as a major disruptive technology wave with many benefits, forcing them to re-think their IT landscape
  • Self-reliant, yet dependent. Buyers are pushing salespeople out of the early stages of the buying process with search, industry influencers, their peers, and social media, yet they demand strong relationships
  • Short on time, yet content hungry. Time-constrained buyers maintain a robust appetite for relevant content, but they want it packaged and delivered on their terms
  • Individualistic, yet collective. Buyers want customized solutions based on their unique business needs, but they want to see where solution providers have done it before
  • Thoughtful, yet pragmatic. Buyers are looking for both visionary thought leadership and realistic solutions

ITSMA, in partnership with Pierre Audoin Consultants (PAC), conducted the 2010 version of its acclaimed How Customers Choose research across three continents.

Specifically, the study answers questions such as:

  • How has the current economic situation impacted the way customers make buying decisions?
  • What are buyers’ plans for cloud-based solutions?
  • What role does thought leadership and epiphany marketing play in the buying process?
  • When customers have a need, how and where do they look for potential alternatives?
  • How are buyers using social media during the purchase process?
  • When creating a short list of providers, what sources of information do they use?
  • What is the most important criteria used to select solution providers?

Study Methodology

In Fall 2010, ITSMA surveyed, via phone, 486 business and IT executives from companies that purchase business or technology solutions for individual contracts over $500,000. These respondents represented larger enterprises, ranging from $100 million to $20 billion or more in annual revenue from six different countries: US, UK, France, Germany, China, and India. They
also represented a variety of vertical markets, including:

  • Manufacturing
  • Financial services
  • Communications
  • Public sector
  • Healthcare
  • Energy/utilities
  • Life sciences

Respondent Characteristics

Role in Purchase Decision Process

Source: ITSMA and PAC, How Customers Choose Study, 2010

Geographic Distribution

Source: ITSMA and PAC, How Customers Choose Study, 2010

Job Role

Source: ITSMA and PAC, How Customers Choose Study, 2010

Job Title

Source: ITSMA and PAC, How Customers Choose Study, 2010

Verticals Represented

Source: ITSMA and PAC, How Customers Choose Study, 2010

Annual Revenue of Organizations Represented

Source: ITSMA and PAC, How Customers Choose Study, 2010

This report is free to ITSMA member companies (password required) and for sale to nonmembers. See our special offer below.

$1,495 for the complete study (The complete study consists of three documents – 3 Region Roll-up: US, UK, France, Germany, China, and India; plus separate EU data only and US data only, detailed reports)
$795 for Europe data only (UK, France, Germany).
$795 for United States data only.
Free Download Download an Abbreviated Summary of this How Customers Choose Study!
Download the datasheet (including order form) PDF icon PDF (358KB)
]]> http://www.itsma.com/research/how-customers-choose-solution-providers-2010/feed/ 2 How Customers Choose Solution Providers, 2009: The Importance of Personalization, Epiphanies, and Social Media http://www.itsma.com/research/how-customers-choose-solutions-2009/ http://www.itsma.com/research/how-customers-choose-solutions-2009/#comments Mon, 26 Oct 2009 13:35:48 +0000 ITSMA Research http://www.itsma.com/?p=4404 Without doubt, the troubled world economy has had a significant impact on buyer behavior. Heightened scrutiny and lengthy decision cycles are changing the effectiveness of different marketing and sales tactics. The key to success lies in understanding changing buyer behavior at each stage of the sales cycle and using that knowledge to craft the right marketing programs and vehicles to deliver better results.

ITSMA, in partnership with Pierre Audoin Consultants (PAC), conducted the 2009 version of its acclaimed How Customers Choose research across three continents. Specifically, the study  answers questions such as:

  • How has the current economic situation impacted the way customers make buying decisions?
  • What are the best ways to introduce new ideas and new approaches to customers?
  • When customers have a need, how and where do they look for potential alternatives?
  • When creating a short list of providers, what sources of information do they use?
  • What is the most important criteria used to select solution providers?
  • Which customer relationship programs do customers perceive as providing the most value?

Study Methodology

In Summer 2009, ITSMA surveyed, via phone, 355 business and IT executives from companies that purchase business or technology solutions for individual contracts over $500,000. These respondents represented larger enterprises, ranging from $200 million to $20 billion or more in annual revenue from five different countries: US, UK, France, Germany, and Brazil. They also represented a variety of vertical markets, including:

  • Communications
  • Financial services
  • Manufacturing
  • Public sector
  • Healthcare
  • Energy/Utilities
  • Retail/Distribution
  • Business services

Respondent Characteristics

Respondents were screened to ensure that their job titles were director or above. They were also
screened to ensure their involvement in the purchase of business and technology solutions.

Role in Purchase Decision Process

Source: ITSMA and PAC, How Customers Choose Study,
2009

Geographic Distribution

Source: ITSMA and PAC, How Customers Choose Study, 2009

Job Title

Source: ITSMA and PAC, How Customers Choose Study, 2009

Job Role

Source: ITSMA and PAC, How Customers Choose Study, 2009

Verticals Represented

Source: ITSMA and PAC, How Customers Choose Study, 2009

Annual
Revenue of Organizations Represented

Source: ITSMA and PAC, How Customers Choose Study, 2009

Special Offer

$1,495 for the complete study (The complete study consists of three documents – 3 Region Roll-up: US, UK, France, Germany, and Brazil; plus separate EU data only and US data only, detailed reports)
$795 for Europe data only (UK, France, Germany)
$795 for United States data only
Download the datasheet (including order form) PDF icon PDF (488KB)
Free DownloadDownload an Abbreviated Summary of this How Customers Choose Study!
]]> http://www.itsma.com/research/how-customers-choose-solutions-2009/feed/ 8 How Customers Choose Solution Providers, Europe 2009: The Importance of Personalisation, Epiphanies, and Social Media http://www.itsma.com/research/how-customers-choose-solution-providers-europe-2009/ http://www.itsma.com/research/how-customers-choose-solution-providers-europe-2009/#comments Sun, 25 Oct 2009 13:44:39 +0000 Julie Schwartz http://www.itsma.com/?p=4545 Without doubt, the troubled world economy has had a significant impact on buyer behaviour. Heightened scrutiny and lengthy decision cycles are changing the effectiveness of different marketing and sales tactics. The key to success lies in understanding changing buyer behaviour at each stage of the sales cycle and using that knowledge to craft the right marketing programs and vehicles to deliver better results.

ITSMA, in partnership with Pierre Audoin Consultants (PAC), conducted the 2009 version of its acclaimed How Customers Choose research across three continents. Specifically, the study answers questions such as:

  • How has the current economic situation impacted the way customers make buying decisions?
  • What are the best ways to introduce new ideas and new approaches to customers?
  • When customers have a need, how and where do they look for potential alternatives?
  • When creating a short list of providers, what sources of information do
    they use?
  • What is the most important criteria used to select solution providers?
  • Which customer relationship programs do customers perceive as providing
    the most value?

Study Methodology

  • 150 telephone interviews with buyers in Europe
  • Conducted June and July 2009
  • Three countries:
    • UK
    • France
    • Germany

In Summer 2009, ITSMA surveyed, via phone, 355 business and IT executives from companies that purchase business or technology solutions for individual contracts over $500,000. These
respondents represented larger enterprises, ranging from $200 million to $20 billion or more in annual revenue from five different countries: US, UK, France, Germany, and Brazil. They also represented a variety of vertical markets, including:

  • Communications
  • Financial services
  • Manufacturing
  • Public sector
  • Healthcare
  • Energy/Utilities
  • Retail/Distribution
  • Business services

Respondent Characteristics

Respondents were screened to ensure that their job titles were director or above. They were also
screened to ensure their involvement in the purchase of business and technology solutions.

Role in Purchase Decision Process

Source: ITSMA and PAC, How Customers Choose Study, Europe 2009

Geographic Distribution

Source: ITSMA and PAC, How Customers Choose Study, Europe 2009

Job Title

Source: ITSMA and PAC, How Customers Choose Study, Europe 2009

Job Role

Source: ITSMA and PAC, How Customers Choose Study, Europe 2009

Verticals Represented

Source: ITSMA and PAC, How Customers Choose Study, Europe 2009

Annual Revenue of Organisations Represented

Source: ITSMA and PAC, How Customers Choose Study, Europe 2009

Special Offer

$1,495 for the complete study (The complete study consists of 3 documents – 3 Region Roll-up: US, UK, France, Germany, and Brazil; plus separate EU data only and US data only, detailed reports)
$795 for Europe data only (UK, France, Germany)
$795 for United States data only
Download the datasheet (including order form) PDF icon PDF (452KB)
Free DownloadDownload an Abbreviated Summary of this How Customers Choose Study!
]]> http://www.itsma.com/research/how-customers-choose-solution-providers-europe-2009/feed/ 0 How Customers Choose Solution Providers, United States 2009: The Importance of Personalization, Epiphanies, and Social Media http://www.itsma.com/research/how-customers-choose-solution-providers-united-states-2009/ http://www.itsma.com/research/how-customers-choose-solution-providers-united-states-2009/#comments Sun, 25 Oct 2009 13:42:44 +0000 ITSMA Research http://www.itsma.com/?p=4591 Without doubt, the troubled world economy has had a significant impact on buyer behavior. Heightened scrutiny and lengthy decision cycles are changing the effectiveness of different  marketing and sales tactics. The key to success lies in understanding changing buyer behavior at each stage of the sales cycle and using that knowledge to craft the right marketing programs and vehicles to deliver better results.

ITSMA, in partnership with Pierre Audoin Consultants (PAC), conducted the 2009 version of its acclaimed How Customers Choose research across three continents. Specifically, the study answers questions such as:

  • How has the current economic situation impacted the way customers make buying decisions?
  • What are the best ways to introduce new ideas and new approaches to customers?
  • When customers have a need, how and where do they look for potential alternatives?
  • When creating a short list of providers, what sources of information do they use?
  • What is the most important criteria used to select solution providers?
  • Which customer relationship programs do customers perceive as providing
    the most value?

Study Methodology

  • 175 telephone interviews with buyers in the United States
  • Conducted June and July 2009

In Summer 2009, ITSMA surveyed, via phone, 355 business and IT executives from companies that purchase business or technology solutions for individual contracts over $500,000. These
respondents represented larger enterprises, ranging from $200 million to $20 billion or more in annual revenue from five different countries: US, UK, France, Germany, and Brazil. They also represented a variety of vertical markets, including:

  • Communications
  • Financial services
  • Manufacturing
  • Public sector
  • Healthcare
  • Energy/Utilities
  • Retail/Distribution
  • Business services

Respondent Characteristics

Respondents were screened to ensure that their job titles were director or above. They were also
screened to ensure their involvement in the purchase of business and technology solutions.

Role in Purchase Decision Process

Source: ITSMA and PAC, How Customers Choose Study,
United States, 2009

Job Title

Source: ITSMA and PAC, How Customers Choose Study, United States,
2009

Job Role

Source: ITSMA and PAC, How Customers Choose Study, United States,
2009

Verticals Represented

Source: ITSMA and PAC, How Customers Choose Study, United States,
2009

Annual
Revenue of Organizations Represented

Source: ITSMA and PAC, How Customers Choose Study, United States,
2009

Special Offer

$1,495 for the complete study (The complete study consists of 3 documents – 3 Region Roll-up: US, UK, France, Germany, and Brazil; plus separate EU data only and US data only, detailed reports)
$795 for Europe data only(UK, France, Germany)
$795 for United States data only
Download the datasheet (including order form) PDF icon PDF (452KB)
Free DownloadDownload an Abbreviated Summary of this How Customers Choose Study!
]]> http://www.itsma.com/research/how-customers-choose-solution-providers-united-states-2009/feed/ 0 How Customers Choose Solution Providers, North America, 2008 http://www.itsma.com/research/how-customers-choose-solution-providers-north-america-2008/ http://www.itsma.com/research/how-customers-choose-solution-providers-north-america-2008/#comments Tue, 11 Nov 2008 18:11:55 +0000 Katie Espinola http://65.202.39.44/?p=2044 ITSMA’s 2008 How Customers Choose Solution Providers Study revealed a number of important insights. Through detailed research and analysis of customer buying behavior, we have concluded that marketers need to engage customers earlier than ever before—during what we call the epiphany phase of the buying cycle. Based on interviews with 216 U.S.-based business and IT buyers of business and technology solutions, the report helps marketers better understand the marketing activities that will deliver the desired results at three major stages of the buying cycle: epiphany, awareness, and interest.

Key issues addressed in the report include:

  • Changes in spending for technology-enabled business initiatives
  • Thought leadership evaluation criteria
  • The most valuable customer relationship programs
  • Sources of information for alternative solutions and solution providers
  • Effectiveness of various marketing vehicles
  • Decision criteria for solutions and solution providers
  • Buyer perspectives of Account-Based Marketing (ABM)

Study Methodology

In Spring 2008, ITSMA surveyed, via phone and the Web, 216 business and IT executives at U.S.-based companies that purchase business or technology solutions for individual contracts over $500,000. These respondents represented larger enterprises, ranging from $200 million to $20 billion or more in annual revenue. They also represented a variety of vertical markets, including:

  • Communications
  • Financial services
  • Manufacturing
  • Public sector
  • Other vertical markets

Respondent Characteristics

Respondents were screened to ensure that their job titles were director or above. They were also screened to ensure their involvement in the purchase of business and technology solutions.

Role in Purchase Decision Process

Source: ITSMA, How Customers Choose Study, North America, 2008

Job Title

Source: ITSMA, How Customers Choose Study, North America, 2008

Job Role

Source: ITSMA, How Customers Choose Study, North America, 2008

Verticals Represented

Note: Other includes: Healthcare (7), Retail (3), Wholesale Distribution (3), Education (3), Legal (2), Consulting (2), IT Services (2), Multi-industry, Energy, Nonprofit Ministry, IT Outsourcing, Distribution, Transportation Services, Information Management, Oil and Gas, Utilities, Marketing, Wholesale, Construction, Nonprofit, Defense Contractor, Biotechnology.
Source: ITSMA, How Customers Choose Study, North America, 2008

Annual Revenue of Organizations Represented

Source: ITSMA, How Customers Choose Study, North America, 2008

]]> http://www.itsma.com/research/how-customers-choose-solution-providers-north-america-2008/feed/ 0 2007 How Customers Choose Solution Providers http://www.itsma.com/research/how-customers-choose-solution-providers/ http://www.itsma.com/research/how-customers-choose-solution-providers/#comments Fri, 02 Nov 2007 06:00:00 +0000 Julie Schwartz http://itsma.northboroughgroup.com/?p=184 ITSMA’s 2007 How Customers Choose Solution Providers Study reveals insights into customer buying behavior that can help marketers fine-tune their strategies. Key issues addressed in the report include:

  • The selection criteria customers use for evaluating and selecting solutions and a solution provider
  • The steps customers take to identify solution-provider alternatives
  • The effectiveness of different marketing vehicles in getting customers’ attention
  • The value propositions most likely to entice customers to want to learn more about a vendor and solution
  • The solution-provider-sponsored programs that are most valuable to customers
  • The top three drivers of loyalty for customers

Study Highlights

  • Buyers’ number-one source of information is their professional colleagues and peers
  • Push marketing techniques can still be effective as long as the content is relevant to the buyer’s business
  • Buyers want solution providers who have available resources and a proven track record; a prior relationship is less important
  • Buyers are more willing to experiment with new providers and choose lower cost alternatives
  • High-touch, content-rich customer relationship programs, such as executive-level business events, user groups, and private briefings, are the most effective solution-provider-sponsored programs

Study Methodology

In spring 2007, ITSMA conducted 346 surveys, via phone and the Web, with business and IT executives at U.S.-based companies that purchase business and technology solutions, including consulting, systems implementation or integration, or outsourcing for contracts over $200,000. These respondents represented larger enterprises ($200 million to $20 billion or more in annual revenue) from five vertical markets:

  • Financial services
  • Manufacturing
  • Government
  • Healthcare
  • Communications

Respondent Characteristics

Respondents were screened to ensure their involvement in the purchase of business and technology solutions. In addition, respondents were screened to ensure their job titles were director or above.

Figure 2.1 Respondent Role in Purchasing IT Professional Services

Figure 2.5 Respondent Title

Figure 2.4 Respondent Job Role

Figure 2.8 Respondent Industry Group

Figure 2.7 Organization Size by Annual Revenue or Operating Budget

Download an Abbreviated Summary (including order form) How Customers Choose Solution Providers PDF (244KB)

]]> http://www.itsma.com/research/how-customers-choose-solution-providers/feed/ 0 Key Trends in Software Maintenance and Support: Listening to the Voice of Your Customer http://www.itsma.com/research/key-trends-in-software-maintenance-and-support-listening-to-the-voice-of-your-customer/ http://www.itsma.com/research/key-trends-in-software-maintenance-and-support-listening-to-the-voice-of-your-customer/#comments Tue, 11 Jul 2006 06:00:00 +0000 Julie Schwartz http://itsma.northboroughgroup.com/?p=222

The software industry is in the midst of major change due to the ramifications of software commoditization, the rise of open source, and renewed interest in buying software as a service (SaaS). To better understand maintenance and support practices and preferences for system software, development tools, and application software among executives of large enterprises, ITSMA surveyed 150 buyers for this Focus Report.

Key questions addressed in the report include:

  • To whom do customers turn for software support?
  • Are third-party maintenance providers gaining traction?
  • Which value propositions for software support resonate most?
  • How satisfied are customers with software support providers?
  • Do customers still see value in their ongoing relationships with software vendors?

Methodology

ITSMA conducted phone interviews with 150 U.S.-based customers representing enterprises with annual revenue of $200 million to $20 billion or more from four vertical markets:

  • Manufacturing
  • Financial services
  • Healthcare
  • Public sector

Respondents were screened to ensure their involvement in the purchase or renewal of software support and maintenance services. Typical titles included:

  • CIO
  • VP of IT
  • ERP director
  • Director of development
  • Director of enterprise applications
  • IT manager

]]> http://www.itsma.com/research/key-trends-in-software-maintenance-and-support-listening-to-the-voice-of-your-customer/feed/ 0 Connecting with Customers: Generating Awareness, Interest, and Confidence for Technology Services http://www.itsma.com/research/connecting-with-customers-generating-awareness-interest-and-confidence-for-technology-services/ http://www.itsma.com/research/connecting-with-customers-generating-awareness-interest-and-confidence-for-technology-services/#comments Mon, 09 May 2005 06:00:00 +0000 Julie Schwartz http://itsma.northboroughgroup.com/?p=249 For technology services providers, reaching customers has never been more difficult. Not only is there more competition, but customers themselves are more savvy and discerning. Buyers educate themselves on all the options; they narrow their choices, evaluate alternatives carefully, and demand proof that providers can deliver on their promises.

Connecting with Customers: Generating Awareness, Interest, and Confidence for Technology Services provides detailed data and analysis to help marketers deliver the most effective information at each stage of the buying cycle. It provides insight into how customers first learn about services providers, which marketing vehicles are most effective at each stage of the buying cycle, and the most influencial third-party input.

Based on interviews with 211 key decision makers for purchases of technology services in U.S. companies and government entities, the report is designed to help marketers build programs that increase customer acquisition, retention, and advocacy.

Key findings in the report include:

  • Initial sources of information used by executives
  • Effectiveness of marketing vehicles and content
  • Influence of third parties
  • Purchase decision drivers
  • Attributes a services provider should possess

Study Methodology

In Spring 2004, ITSMA conducted and analyzed 211 telephone interviews with key IT and business executives involved in the purchase of technology services. Study respondents represent Fortune 1000 corporations and their divisions and subsidiaries from the manufacturing and financial services sectors as well as federal or state government organizations. The interviews focused on how vendors secured their awareness, interest, and confidence.

Respondent Demographics

Respondent Titles
Director-level 46%
Vice President 30%
C-level/GM/President 17%
Senior Manager 7%
Organization Size
$200–499 million 15%
$500–999 million 10%
$1–4.9 billion 20%
$5–9.9 billion 11%
$10–20 billion 12%
>$20 billion 32%
Industry Represented
Financial services 34%
Manufacturing 34%
Government 32%

Download the Report Datasheet (including order form) PDF (201KB)
Download Table of Contents PDF (138KB)
]]> http://www.itsma.com/research/connecting-with-customers-generating-awareness-interest-and-confidence-for-technology-services/feed/ 0 Buyer Views on Outsourcing and Offshoring: Marketing Implications for ITO and BPO Providers http://www.itsma.com/research/buyer-views-on-outsourcing-and-offshoring-marketing-implications-for-ito-and-bpo-providers/ http://www.itsma.com/research/buyer-views-on-outsourcing-and-offshoring-marketing-implications-for-ito-and-bpo-providers/#comments Thu, 30 Sep 2004 06:00:00 +0000 Julie Schwartz http://itsma.northboroughgroup.com/?p=266 ITSMA’s Buyer Views on Outsourcing and Offshoring provides detailed data on U.S. business buyers’ attitudes toward outsourcing, as well as the marketing implications for outsourcing providers. The report is based on an extensive survey of business and IT executives at large U.S.-based companies and public agencies. The report examines both IT outsourcing (ITO) and business process outsourcing (BPO).

Specifically, the report explores:

  • The perceived benefits of outsourcing—whether outsourcing is viewed as a strategic or tactical decision and which specific business problems buyers are trying to solve
  • Predilection to outsource—likelihood to enter into either an ITO or BPO contract over the next two years
  • Preference for offshore vs. domestic service provision
  • Experience with offshore services providers
  • Perceived political and economic implications of offshore services

ITSMA’s research suggests that more than half the study respondents are likely to enter into ITO agreements over the next several years, and more than one third are likely to consider BPO deals. Taking advantage of these opportunities, however, will require ITO and BPO providers to develop sophisticated marketing strategies, especially given the business and political controversies surrounding outsourcing in general and offshoring in particular.

The report includes a series of recommendations for those firms considering or trying to expand their outsourcing offerings, including:

  • The importance of vertical market and benefits-based segmentation
  • The necessity of highly-targeted marketing campaigns
  • The potential value of account-based marketing programs
  • The need to treat offshoring as a capability rather than a value proposition in itself

Study Methodology
 In Spring 2004, ITSMA conducted telephone interviews with 211 business and IT executives at U.S.-based entities who had been involved recently in the purchase of IT professional services. These 211 study respondents represent Fortune 1000 corporations and their divisions and subsidiaries from the manufacturing and financial services sectors as well as federal or state government organizations.

Respondent Demographics

Job Role
Director 46%
Vice president 30%
C-level/GM/president 17%
Senior manager 7%
Company Size
$200–499 million 15%
$500–999 million 10%
$1–4.9 billion 20%
$5–9.9 billion 11%
$10–20 billion 12%
>$20 billion 32%
Industry
Financial services 34%
Manufacturing 34%
Government 32%

Download an Abbreviated Summary PDF (176KB)
 View Table of Contents PDF (132KB)
Download the report datasheet PDF (203KB)
Read “Offshore Tensions” from October E-ZINE

]]> http://www.itsma.com/research/buyer-views-on-outsourcing-and-offshoring-marketing-implications-for-ito-and-bpo-providers/feed/ 0