The IT services market is obsessed with launching new offerings to target mid-market clients ($0.5–3 billion), but clients care far less about new offerings than providers think.
Based on our recent research with 150 mid-market clients to understand their expectation from IT service providers – talent followed by cost and ability to share the risk matters most when selecting the service provider.
The trust deficit created over the last several years due limited access to senior talent and inconsistent teams from large IT service providers have made them wary of working with the large IT service providers. The recent frenzy of service providers rebadging their enterprise offering or in many cases taking the same enterprise offering to mid-market has made them more wary of working with the providers.
For mid-market growth aspirations outweigh capacity constraints and constant survival mode makes cost of failure deciding factor.
Getting the talent that can understand the intent and context to build the right solution and prove outcome governance has a higher chance to win the market that is focal point of attraction not only for IT service providers, but also SaaS vendors and frontier model professional services firms. Players like Accenture, NTT DATA, Genpact and others who are building talent and operating model catering specific to mid-market stands relatively more differentiated.
