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300 DEFINING THE PSA MARKET

Gartner’s market research leads them to conclude that:

• One hundred percent of customers say they cannot meet their IT service
needs internally.

• Seventy-five percent of customers say that, within the next 12 months, they
plan to conduct some portion of B2B or B2C transactions over the Web.

• Thirty percent are currently using or planning to use an IT utility service.
• Thirty percent of enterprise organizations are planning on becoming vir-

tual companies.
• Fifteen percent of Fortune 1,000 CIOs do not want to own their IT infra-

structures.

This creates an environment wherein the current skill sets of External Service
Providers will have to grow from Process Management to include Resource Man-
agement, Demand Management, and Financial and Business Management.
These expanded skill sets will include:

• Process Management TEAMFLY• Demand Management
Process Engineering. Business Development.
Measurement and Metrics. Relationship Management.
Quality Assurance. Sales.
Marketing.
• Resource Management Communications.
Strategic Sourcing. Market Research.
Capability Management.
Skills Management. • Financial & Business Management
Recruitment/Retention. Competitive Analysis.
Continuous Development. Financial Management.
Compensation/Rewards. Product Development.
Product/Service Bundling.
Pricing Strategies.

To support the needs expressed in the list, above, PSA solutions are being de-
veloped to automate a large variety of business functions. According to a report
by SPEX, the specific functions supported may consist of any or all of these:

• Administration—The tools provided to monitor and optimize the workings
of the system. This includes support for automated deployment, the ability
to configure alerts, customization of the user interface (UI), support for
databases, and so on. There are no clear leaders in terms of administrative
functionality, but each solution may approach the same problem differently.
This is why we include it as a differentiator.