The Reason for Joy This Season | Sherpas in Blue Shirts

Posted On December 17, 2014

I’ve observed an unusual acceleration of new activity here at the end of the year — a season when global services initiatives activity traditionally tapers off dramatically. It looks like this year the industry is getting a big Christmas / New Year’s present of accelerating sales. What’s the reason for this strong uptick in new initiatives, so unusual for the November-December season? It’s a little too early to tell, but I believe two big factors are driving the uptick.

Reason for joy

Both reasons are a result of the end of uncertainties in two big areas of the market. With more certainty, organizations are moving forward.

Reason #1

The first reason is the North American economy is finally starting to give organizations confidence to open their wallets and spend on transformational activities. With the GDP expanding and the U.S. economy on a much sounder footing in the third and fourth quarters, companies are kicking off new initiatives. When the economy was uncertain, organizations didn’t focus on structural changes; but with a rising economic tide, the services boat seems to be floating better.

Reason #2

The second reason for the unusual activity at this time of year is that the cloud experiment is over and organizations now have a clear path for what they want to do with cloud and other new-generation technologies.

For three years organizations have been diligently piloting cloud and new-generation technologies. We’re now at a point where organizations have sufficient confidence in the technologies themselves, whether it’s digital, mobility or cloud. So organizations are willing to adopt these technologies on a greater scale.

From false starts to strong finish

2014 has been a strange year with several false starts for the services industry. But we’re observing a strong finish. Combined, these two new certainties around the economy and new technologies are creating the long-awaited uptick in new global services. So it looks like it will be a very happy Christmas and a wondrous new year.


Photo credit: Matthew Paulson

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