The Yankee Group has predicted a healthy demand for IT services sourced from external service providers during the next 10 years.
This includes demand for IT outsourcing, Business Process Outsourcing, systems integration, and consulting.
According to a report released this week by the research company, a combination of business and technology changes; internal IT shortfalls; year-2000-compliance initiatives; and the need for user education in new technologies and implementation methods, will fuel a 10 per cent or more annual growth in systems integration spending during the next three years.
Integrators generated almost $US100 billion in 1997 revenues, including year-2000 projects, the Yankee Group claimed. The company expects the integration industry to grow at a compound annual growth rate of almost 18 per cent through 2000.
"Qualified staffing shortages will continue to be experienced by both users and vendors alike over the next three years ... users are looking to form sustained relationships with integration firms that have innovative and progressive approaches to staffing and retention," the report stated.