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The hidden danger in the optimistic data

ISG is reporting on the state of the European IT and business services market.       It’s up, 20% year on year, citing managed services and cloud services growth.   

Boston Consulting thinks outsourcing is increasingly part of the solution, just in new ways.

79% said that they asked service providers for help in some form, such as longer payment terms (47%), price reductions (45%), or free support for more processes or additional services (41%).

Gartner researchers say it’s continued growth – 4.4% growth in 2021, which is compared with a previous reduction in spend.  

Why do we care?

That data about the pressures on the provider is what interested me.  It’s easy to just see the positive growth data and assume all is well.    It wasn’t easy, and let’s not get out over our skiis going forward.   Caution doesn’t mean holding back, it means planning for the pressure.