2017 prediction 3 – fewer suppliers, greater leverage of expertise for ITC offerings

Figure 3 – category and offering forecast

Source: ITCandor, 2017

Figure 3 shows my 2017 forecast for ITC products and services by type; it shows growth (the blue bars) and profitability (pink) predictions for each; I’ve circled the total and 3 category totals in red. By adding estimates for the size of these sub-markets and assumptions for the expertise and economies of scale needed to participate effectively it’s possible to assess the comparative standing of each.

In 2016 there were numerous organisational changes among vendors trying to focus on their core business. Dell and HPE respectively disposed of their Perot and EDS outsourcing/managed services businesses as well as much of their software businesses for instance. The rationale? Outsourcing is relatively large, but lacks strong growth and profitability and, although software has reasonable growth and the highest profitability, its revenue potential is small in comparison with hardware and services markets.

My third prediction is that suppliers will address product and services markets in genuinely innovative ways, while redefining their core businesses.

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