Consulting and integration spending to rise

Businesses will soon have to start spending on consulting and integration to maintain competetiveness, according to research.

A report by analyst organisation Yankee Group, What Will Happen Next in Consulting and Integration, predicts that revenues from IT professional consulting will rise six per cent in 2003, while integration services will increase by nine per cent.

The analyst said most of the growth will occur in the second half of the year.

Andy Efstathiou, Yankee Group technology management strategies programme manager, said: "Enterprises seeking to benefit from these changes must focus less on cost and more on building relationships and projects that will deliver long-term strategic value.

"Examples include the offerings professional services firms are developing around web services, application management, and enterprise application integration.

"The current obsession with cost is short-sighted. Prudent executives will change their focus during 2003 from cost to new functionality."

The analyst said consultants should concentrate on applications management for the next 12 months, and web services beyond that.

"Change is on the way. Enterprises have kept their wallets closed for the past two-and-a-half years waiting for the economy to turn," said Efstathiou.

"However, they will soon have to reopen their wallets and install new systems to maintain cost competitiveness."