While IDC says cost reduction is the name of the game in 2009, with projects being postponed, changed in scope or broken down into smaller elements with a faster ROI, the analyst firm predicts the C&I market will grow slowly and steadily – at a compound annual rate of 3.1 per cent – to 2013. By this time, it will constitute 38.8 per cent of the whole IT services market, says the analyst.

Much of this growth will come from areas such as virtualisation ‘cloud computing’, which, in turn, will help drive service oriented-architecture (SOA), laying a foundation that will make it easier to integrate cloud-based solutions, says the analyst in its report, entitled New Zealand Consulting and Integration 2009 - 2013 Forecast & Analysis. Behind this trend is business’ cost-reduction effort.

Report author Rasika Versleijen-Pradhan says that the coordinated approaches of these technologies allow IT to respond quicker and lower costs, making the business case for new projects more attractive in the process. Versleijen-Pradhan is IDC’s senior market analyst for the New Zealand IT services market.

Her report also looks at the under-tapped SMB part of the New Zealand market and says there is a growing trend towards “productised services”, which is driving system-integration growth. As a result, productised services and cloud-based offerings are becoming vehicles for vendors to scale down their offerings so they can reach these smaller businesses.

“Ultimately, as clients become heavily reliant on technology to meet business objectives, there will be more uptake of consulting and integration services,” says Versleijen-Pradhan.

But she adds that those selling into this market will need to understand their customers’ internal business processes and goals, and blend this with their IT knowledge to deliver cost efficiencies.

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