By Dhaval Valia
 From the array of views provided by the captains of the IT industry in their Outlook for 2009, it is amply clear that the year ahead is going to be tough.
There is a general consensus that while the overall economic growth will be low, the IT sector is likely to outperform other sectors. However, the rules of doing business have changed. With fewer market opportunities, there will be fierce competition in the industry.
Customers have already turned cautious about where they spend their IT budgets. The three factors that will drive their IT investments for the next couple of years are: effectiveness, efficiency and measurability. How effectively can IT help them address challenges in tough times? Will it help cut costs and increase organizational efficiency? And lastly, are the benefits (read ROI) of the IT solutions measurable?
Most would agree that during difficult times customer-centricity is paramount. Staying closer to customers and understanding their needs better is the only way to prove your relevance. Also, focusing on customer retention should get higher priority than acquiring new ones. Deep selling and cross selling to existing customers should take precedence.
Additionally, partners will have to rethink their vendor alignments. Working closely with a few but leading vendors may help you get better pre-sales, marketing and financing support. In a downturn, customers too prefer to invest in trusted brands.
Differentiating yourself will be key, in terms of geographical coverage, vertical focus, solutions portfolio and services offerings, to stay relevant to both your customers and vendors.
Collaboration definitely will prove beneficial. Partnering with peers with complimentary skills will be decisive in providing comprehensive solutions to customers. Not to forget that collaborating with a network of partners helps in addressing more opportunities, which may otherwise not be within your bounds.
Bottomline, in 2009, the rules of business have changed and those who adapt to the new dynamics faster and more effectively, will succeed. |