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CHAPTER 11.1
DEFINING THE PSA MARKET
In the introduction to this section, we started to define PSA and the market that
it serves. Let’s move on to look at some of the pertinent questions in this area.
Who are the people served by these solutions? What problems are they trying to
solve? What parts of the IT industry are involved? And, perhaps the most impor-
tant, what conditions have precipitated and influenced the birth and growth of
this market?
Gartner Group has been active in defining the PSA market and in following
developments in that area. The following are extracted from analyses conducted
in 2001.
• Virtually no enterprises can meet all of their IS service requirements inter-
nally. E-enabled enterprises’ reliance on External Service Providers (ESPs)
will continue to grow, to unprecedented levels.
• As internal IS service providers become more profit-minded and value-
focused, their business models will begin to mirror ESPs’.
• By 2003, 50 percent of large enterprises will use ESP prime contractors to
help manage the complexity of IS contractor services.
• By 2003, most enterprises will use computerized collaborative practices ex-
tending beyond the enterprise for RFPs, resourcing and project manage-
ment, and other administrative functions.
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