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Productized Business Process Services: Redefining Software and Services
Ovum, Dec 2006, Pages: 21
Two of the biggest, most important trends in the IT industry – the emergence of service-oriented architecture (SOA), and the growing demand for flexible business process-based solutions – are converging into one of the most profound changes in the IT industry: the emergence of productized business process services.
The use of SOA-compliant components to create modular, reusable business services that can be tailored to the needs of the customer, will slash the time and cost of development and deployment of business processes. This, in turn, will give companies much greater flexibility in adapting their business models and processes to ever-changing business needs. This revolution may also cause a fundamental realignment of two key segments of the IT industry: application ISVs and IT services firms.
Given the embryonic stage of this revolution, and the rapidly changing nature of ISV/SI engagement models, it is far too soon to confidently predict the outcome. However, it isn’t too soon to explain what productized business process services are, why they are so important and how they will evolve. The strategies of five leading companies (SAP, Oracle, Microsoft, IBM and Accenture) are most likely to shape this industry. We can identify potential scenarios for the future of an increasingly converged application software/IT services industry, and lay out some of the hints or telltales that will suggest how this future will play out.
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