Competition on pricing and reliable equipment spell trouble for service providers

2013 to be a ‘make or break year’ for UK IT services

The analyst TechMarketView has warned that this year could see hard times for the IT services market.

According to Channel Register, the analyst’s figures show that the UK IT and support market shrank by 3.5 per cent in 2012 and is set to decline by the same amount this year and a further 2.5 per cent in the two following years.

The increasing competition on service contracts coupled with the increasing reliability of equipment means that the services market is likely to contract in the near future.

TechMarketView’s research director Kate Hanaghan warned that the only companies to gain market share are likely to be those that are run well and focus on high-end services.

“Providers of generic, non-differentiated services break-fix services will suffer acutely in a market that is declining,” said Hanaghan.

“Providers of generic, non-differentiated services break-fix services will suffer acutely in a market that is declining. For the foreseeable future, the market for shared support services will be especially tough.”

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