Professional services remain core to successful technology enablement, but although buyers recognize that professional services are far from a commodity, they find themselves in a sourcing conundrum: Professional services firms spout value propositions that sound too similar. A narrow pool of C-suite and senior IT and line-of-business executives are hounded for exclusive relationships by a mass of professional services firms. It’s no wonder that professional services firms find themselves struggling to differentiate and form coveted “trusted advisor” relationships.

This report provides critical insight into the prevailing buying reality for IT professional services and solutions providers. By breaking new ground, pushing the envelope, or exceeding expectations, IT professional services leaders stake their ground in ways that are reinforced by perceptions of their brands and market positioning. Understanding the participants in IT professional services purchase decisions is the first step in addressing the sourcing conundrum.

The 2007 edition of this survey represents the ninth annual installment of ITSMA’s flagship multiclient brand tracking research focused on the IT professional services market.

Study Scope

ITSMA’s The Sourcing Conundrum: 2007 Professional Services and Solutions Brand Tracking Study focuses on providers of IT professional services and solutions. This study delivers the data study sponsors need to validate internal assumptions, improve marketing strategies and tactics, and hone their brand communication. Included are new data and analyses on key market indicators and topics, such as:

• Market knowledge. Who are the leaders and followers? Are providers recognized for their services capabilities? Are they making credible claims?
• Provider preference. To which firms do clients turn first? Are they familiar with others? Can firms leverage positive brand equity, or do they carry baggage?
• Services decision influences. When there are a number of qualified providers, what breaks the deadlock?
• Competitive differentiation. Is what’s different really different? Does it really matter?
• Alternative service delivery models. Does offshore services provision matter in a global economy? Are attitudes changing?
• Report card. Are professional services firms meeting expectations? Which ones are hitting home runs?

Study Methodology

ITSMA recruited sponsors for The Sourcing Conundrum: 2007 Professional Services and Solutions Brand Tracking Study in late 2006 and early 2007. Primary sponsors of the study included Capgemini, Cognizant, Hitachi Consulting, and SAP.

ITSMA conducted 401 telephone interviews with U.S.-based senior IT and business decision makers (CXOs, vice presidents, and directors). The sample includes two types of professional services buyer (information technology executives/CIOs and business executives) and spans eight industry segments, including:

• Communications
• Energy/utilities
• Financial services
• Healthcare providers
• Manufacturing/consumer products
• Manufacturing/industrial products
• Public sector
• Retail trade

Organizations eligible to participate in the study reported annual revenue or operating budget of $300 million or greater. Participants qualified for inclusion based on their decision-making authority. ITSMA donated money to charity in return for participants’ contribution to the study.

Respondent Characteristics

ITSMA recruited 401 senior-level respondents in midmarket and large organizations and further qualified them based on their roles in selecting IT professional services and solutions firms. We imposed quotas to distribute representation across eight vertical industries and two organizational perspectives.

Figure 2.1 Respondent Title

Source: ITSMA, 2007 Professional Services and Solutions: The Sourcing Conundrum

Figure 2.2 Respondent Role in Purchasing IT Professional Services

Source: ITSMA, 2007 Professional Services and Solutions: The Sourcing Conundrum

Figure 2.3 Respondent Perspective

Source: ITSMA, 2007 Professional Services and Solutions: The Sourcing Conundrum

Figure 2.4 Respondent Industry Group

Source: ITSMA, 2007 Professional Services and Solutions: The Sourcing Conundrum

Figure 2.5 Organization Size by Annual Revenue or Operating Budget

Source: ITSMA, 2007 Professional Services and Solutions: The Sourcing Conundrum

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