June 14, 2006

A rising demand for integrated IT and telecom services

The McKinsey Quarterly writes - CIOs increasingly want just "one throat to choke" when it comes to IT and telecom services. So far, the providers haven't stuck out their necks. As CIOs seek to reduce costs and complexity, many of them say they would prefer to purchase end-to-end service-level agreements from providers offering a combination of IT and telecommunications services rather than contract for each separately.

They want standardized services that can be developed inexpensively and delivered wherever their employees conduct business. These findings come from a recent McKinsey survey of more than 50 European CIOs and industry experts. The survey sought to assess their priorities for IT and telecom services.

Most service providers still fall far short of addressing the needs of CIOs. While 98 percent of those in our sample agreed that they would like to purchase integrated IT and communications services that offer "distinctive value," few providers have sufficient skills in both domains to offer a complete package. Thus an opportunity exists for companies that can deliver both types of servicesóin particular, for telecom providers that can boost their IT skills and for IT service providers that can expand into networking and telecommunications.

Read the full article here.

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