Internet Integrator Industry Returns to Normalcy; 'Down But Not Out' Says the Yankee Group

Dec 20, 2000, 00:00 ET from Yankee Group

    BOSTON, Dec. 20 /PRNewswire/ -- Rewind back one year ago, and Internet
 integrators were the "toast of the town."  Aptly put, in today's market, many
 are "burnt toast."  In a Report published today, the Yankee Group predicts
 that although a majority of firms' revenues are currently down, future demand
 for specific e-business services such as wireless integration will remain at
 healthy levels.
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     The newly published Report, "Internet Integrators: Down But Not Out,"
 explores several reasons behind the industry's downturn, identifying such
 factors as shifting demand and the emergence of an alternative user base.  It
 details various other issues facing integrators such as differentiation,
 lengthened sales cycles, increased project complexity, and a shift from
 "enterprise-wide" to "worldwide" initiatives.  Further, the Report recommends
 how integrators should re-tool and differentiate themselves to rebound and
 once again remain competitive.
     "The most significant trend affecting the industry is that demand has
 shifted, while leveling off to a more realistic pace," stated Richard Young,
 an analyst in the Yankee Group's E-Sourcing Strategies Planning Service.  "The
 industry has transitioned from its 'hyper growth stage' and 'returned to
 normalcy.'"  According to Young, the services in high demand include:
     -- Transaction processing;
     -- Supply chain infrastructure integration;
     -- Wireless integration;
     -- BtoB; and
     -- Application monitoring/management.
     "A majority of integrators find themselves categorized under a single
 'bumper sticker,' despite their unique strengths and offerings.  This
 confusion will increasingly be a detriment to those firms trying to sell to an
 alternative user base - the Global 2000," said Young.
     Several organizational steps Internet integrators must address to adapt in
 today's new environment, include:
     -- Re-tool service offerings and focus business units;
     -- Partner with ASPs and MSPs;
     -- Bolster business development; and
     -- Expand international presence.
     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 Richard Young at 617-880-0236 or
     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