3) The rise of subscription-based models and their inherent risks
In IT services, the move towards a subscription-based model is being driven by software vendors and customers who are increasingly expecting pay-as-you-go arrangements.
Choosing a subscription-based model can increase flexibility and cost efficiency, and lets the organisation align quickly whenever there are changing business requirements.
While subscription-based licensing offers benefits, it also poses risks that organisations will need to be aware of in 2015.
Organisations need to be on the lookout for ill-prepared software resellers looking to prop up falling licence revenues, or ‘rebadged’ software resellers who look like services players but are unproven with limited experience, shallow pockets, limited IP maturity, lack of process and no service-oriented culture.
New IT services companies also need to avoid ‘buying’ experience by hiring executives and delivery teams from more established providers without the necessary infrastructure to back it up.
Companies looking to capitalise on the benefits of subscription-based models in 2015 need to look for partners that have good staff and customer retention rates, experienced project managers, and solid data and security controls.
4) The move to packaged enterprise resource planning (ERP) systems
The rise of packaged ERP systems will lead to increased ERP adoption. These packages deliver the collective benefits of new technologies such as cloud, business intelligence and CRM, while avoiding the old problems of disparate and siloed information systems.
Organisations can reap all the benefits of ERP without needing to create and maintain complex system integration and software customisation.
“In 2015, decision makers will value business outcomes over technology," Stroop adds.
"They will expect that solutions providers can deliver commercial and financial insights, address business challenges and needs.
"Technology will continue to be about adding value and achieving specific business outcomes.”