E-Service Providers Face Challenges and Will Consolidate in 2001, According to the Yankee Group

Dec 13, 2000, 00:00 ET from Yankee Group

    BOSTON, Dec. 13 /PRNewswire/ -- A new Report from the Yankee Group boldly
 predicts that in 2001 mobile solutions projects will transition from beta
 stage to full-scale deployments.  The Yankee Group also highlights the fact
 that users will demand more strategic work and fewer prototypes from service
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20000609/YANKEELOGO )
     According to the Report, titled "2001:  A Service Provider's Odyssey: Who
 Wins and  ... " most service vendors have been investing heavily in new
 initiatives.  The top ten key factors impacting service firms include: mobile
 solutions, smart cards, staffing, collocation/netsourcing, application service
 providers (ASPs), changing consulting firms, product firm initiatives in
 consulting, vertical opportunities, multi-geography delivery, and distributed
     "We believe the technology marketplace will continue to grow selectively,"
 said Andy Efstathiou, a program manager in the Yankee Group's E-Sourcing
 Strategies Planning Service.
     "However, the market will get much harsher on ill-considered initiatives.
 Therefore, the cost of not getting it right will be higher in 2001, and the
 benefits for getting it right will be higher as well," added Efstathiou.
     Additionally, this Report examines service provider's accountability and
 the ever-present demand for varied sourcing options.  "Not only will users
 seek a single point of responsibility to deliver complete solutions, but
 flexibility in sourcing options will be a key source of competitive advantage
 for vendors," continued Efstathiou.  "We expect and illustrate in this Report
 that vendors will build more technologically robust offerings through various
 hosting options: ASP, netsourcing, and offshore development."
     This Report is available immediately from the Yankee Group's E-Sourcing
 Strategies Planning Service.
     NOTE TO EDITORS: For more information or to schedule an interview, please
 contact Andy Efstathiou at 617-880-0259 or aefstathiou@yankeegroup.com.
     About the Yankee Group
     The Yankee Group is an internationally recognized leader in technology
 research and strategic consulting, whose broad-reaching analysis encompasses
 all areas essential to e-business success: the Internet, electronic commerce,
 communications, wireless/mobile, computing, and enterprise applications.  The
 Yankee Group specializes in assisting companies with their e-business,
 enterprise networking, and Internet technology and electronic market
 initiatives while maintaining synergy with their overall business strategies.
 Headquartered in Boston, the company's research and sales staff is located
 throughout North America, Europe, Latin America, and Asia-Pacific.  With over
 30 different planning services, complete consulting capabilities, and a full
 calendar of technology-focused conferences and seminars held around the globe,
 the Yankee Group is truly a "one-stop shop" for strategic analysis and advice
 on the information technology industry as a whole.  The Yankee Group continues
 to distinguish itself by providing comprehensive research, electronic content
 delivery, and the industry's only personalized one-to-one approach for client
 inquiry.  For additional information regarding the Yankee Group and the
 services it offers, please visit the company's Web site at

SOURCE Yankee Group