Integration and development were the most lucrative segments in the industry catering 49.3 per cent of its total value. IT Consulting and service industry earned $516 billion in 2010, with a compound annual growth rate (CARG) of 3.9 per cent from 2006 to 2010. Total revenue of $254.2 billion was earned from these two sectors.
Enterprise information technology and consulting sector is dominated by large players nowadays. For instance, big corporations have been playing a mainstream role in enterprise CRM consulting service sector. This makes it difficult for small enterprises to make an entry into the market. Moreover, aggressive competition among major players to dominate the market brings in new complicacies for small startups.
The CRM industry is one of the best-known sectors of enterprise information technology and consulting domain. This is the reason why large and established organisations are preferred to new players. But young enterprises can create a space in the market by providing tailored solutions to existent CRM programmes.
A constant impact can be created in CRM sector by offering innovative features as services that utilises the core unexplored capabilities of enterprise CRM applications and, thereby, making them more productive. The enterprise service sector is yet to explore the possibilities that the existing CRM applications offer. Budding enterprises will benefit if they explore various integration opportunities, unexplored features, such as enhancement services that will help to modify existent CRM programmes turning them to be more efficient in handling operational processes as well as serving better the real cause, the customer. If done consistently, this could be an ideal way to be established in the enterprise service market. Although, the process is gradual, a number of CRM consultants will be able to make a remarkable and long-lasting impact.
The primary reason for entry barriers to new companies in enterprise IT solution and consulting market is the larger reach of industry leaders and an already established network of sales and clients. Large IT service providers have an already established structure of marketing and sales. In addition, pioneering corporations in the domain, being matured with business growth, invest massively in research and development, which is difficult for new players. A number of factors contribute to constrained entry of new companies in the IT market. Brand name, sales and distribution rates, and cost of technology are some primary barriers to the industry.
Lately, software and applications, along with CRM solutions, have become more commoditised. Innovative integration of solutions arising out of focused approach, providing better amenities and ease of usage to client enterprises brings in better prospective for young service providers.
IT applications and software form the core of business enterprises. They comprise massive and sensitive business data that needs to be pipelined round the clock for process operations. Any change in application or technology service provider could disrupt the normal flow of process operations, which could bring large risk factors to enterprises. As enterprises have adopted technology solutions and tools from existent service providers, to implement any change or process modifications costs a lot in terms of opportunity, time and, of course, money. The decision to transfer technology and services from former provider to a recent one has to be taken much cautiously, equating both side of the equation considering many crucial factors such as capabilities, time, resource, investment and strategy. Under such circumstances, many enterprises prefer to carry on with the existent system even if new tools could provide more features.
In such a scenario, to gain better grip in enterprise IT and consulting sector, new service providers will have to focus on innovations and efficient project operations. The ability to create techno functional skill-sets, attract and retain talent with a focus on exploring capabilities of existing CRM software could assist these ventures to create a space for themselves. The ability to cluster features from conventional
programmes and improve specific facets of such tools can create large difference in results from customers prospective.
Evolution is an ingrained feature of every market and enterprise IT consulting sector is dynamic. New trends and traits will emerge creating new prospective in this market. Young ventures should be open to such opportunities, implementing services that are more imperative for business enterprises.
Ravi Kumar is the Director of CRM Consulting at Cubastion Consulting Private Ltd.
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