Analysts predict shift in IT services industry

The rise in cloud computing will alter the way IT services firms approach the market

Forrester Research has forecast a major realignment of the IT services market in the coming years.

The analyst firm said in a recent report that the economic downturn will combine with the emergence of web-based services and cloud computing platforms to push a shift in the way IT services and consulting firms do business.

Forrester said that the economic downturn and financial problems in Europe will result in another two to four years of slow economic growth which will limit IT budgets and spending.

The rise in cloud computing services, meanwhile, will restructure the way IT services firms approach the market.

"With IT budgets under siege, chief information officers are scrambling to bring spending into line with the new economic reality," the company said in the report.

"As such, they are looking at cloud and software-as-a-service options that were completely off their radar just 18 to 24 months ago."

To manage the change, Forrester is recommending that service vendors shift their focus from providing IT services to aiding overall business performance.

Likewise, the company predicted that the role of the chief information officer will increase in importance as firms shift from pure technological infrastructure to services that can help manage broader areas of business.