Top vendor challenges of 2009

2009 will present IT service providers with a slew of new challenges including cloud computing, economic flux and 'high-pressure IT'.

Analyst firm Ovum has released its predictions for the top worries that will face IT vendors, their partners and end users.

“In this challenging economy, IT services providers will need to navigate a host of new and continuing challenges as they attempt to maintain and grow their business,” said Eamonn Kennedy, practice leader of Ovum’s IT Services team.

The so-called ‘Ovum Eight’ is as follows:

1. Cloud computing, which Ovum says has the potential to disrupt traditional models of infrastructure and application outsourcing. Vendors are scrambling to offer competitive cloud-based products, while customers wonder what use the technology could have.

2. Quality assurance. As the economy worsens, businesses want more value from their applications and services. Developers and service providers must therefore ensure that their products do the task they purport to, with a minimum of error.

3. High-pressure IT. While many vendors claim their products and services are delivered under high pressure, this is only true for some, according to Ovum. In reality this is about high-profile projects delivered under high levels of scrutiny, with no mistakes.

4. Retained organisations. Outsourcers will struggle to cope with the fallout of short-term contracts, which have been negotiated in haste and without thought for medium- or long-term ramifications. These outsourcers will require great skill to make these contracts work past their initial agreed-upon period.

5. Fixing BPO. In 2009, the outsourcing market will feel the influence of business process outsourcing (BPO). Vendors without a BPO plan will miss out on the spoils of this change.

6. Efficient use of resources. IT management will be required to ensure people and resources are used efficiently, meaning many will turn to ITIL and the like.

7. Enterprise 2.0. Business will continue to scrutinise collaboration systems for their purported potential to increase productivity of groups. Vendors will be asked to demonstrate the business benefits to organisations.

8. Economic flux. Despite the consequences of economic troubles, clients will continue to expect quality services at appropriate prices from vendors. But vendors should curb their expectations for the economy; the market will continue to evolve and vendors must evolve with it.