COST & PERFORMANCE TRANSPARENCY FOR IT SERVICE PROVIDERS
The market for IT services is characterized by overcapacity, falling prices and deep structural changes. While the market is getting tighter in the German-speaking parts of Europe due to a lack of qualified personnel which raises prices, off-shore suppliers are entering the profitable German market in force with extremely attractive conditions. The foreign competitors successfully apply the principles of industrialization to IT – division of labor, mass production and higher transfer volumes.
To remain competitive, IT service providers are increasingly trying to consolidate organizational and service-specific basis. The important challenge for independent IT service providers is to win (back) the trust of the customers and to strengthen it.
This requires not only the ability to offer holistic solutions for the “IT to Business” requirements of the customer, but in particular the absolute transparency for all services and costs. At the same time, profitability of the service and the customer have to be closely monitored. Benchmarking and target costing are important tools as well.
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