Our growth prospects on the IT services market are promising. Tomorrow’s successful companies are ones like us who have the ability to combine new digital services and comprehensive services with traditional IT services.
We operate in both the traditional IT services market and the new digital services market:
Traditional IT services include the adoption and development of back-end systems and ERP, delivering enterprise software (e.g. CRM and e-commerce software) and maintaining and developing IT platforms. In the company management’s view, traditional IT services are characterised by long development projects where IT is primarily a support process.
New digital services are typically based on customer-centric and user-centric service design coupled with agile and experimental software development in creating digital services in parallel with companies’ core processes, working locally in a close partnership with the customer.
The market for new digital services in Finland is growing faster than the traditional IT services market – by an estimated 15% per year. On the other hand, the market for traditional IT services is significantly larger and according to Bilot’s view, the role of these services will remain significant especially in large and medium-sized enterprises.
The growth of the IT services market in Finland and Bilot’s market position
The positioning of IT companies by their main target audience and service areas on the Finnish market
Source: Inderes (1/2020)
The market for new digital services is growing faster than the market for traditional IT services
The focus of the IT services market continues to shift from traditional IT systems development and maintenance towards new digital services. Simultaneously, the traditional IT systems development market is also expected to grow and provide good growth conditions for IT services companies that can operate efficiently in both market segments.
Companies invest in customer experience
The importance of customer experience continues to grow and constitutes a key competitive advantage for businesses. Data that improves customer experience, advanced analytics, and artificial intelligence are emerging as key market trends that companies invest in.
The importance of data and artificial intelligence is growing
Data and analytics solutions that utilise artificial intelligence and machine learning have evolved rapidly. The company estimates that artificial intelligence will become a part of conventional analytics and software development relatively quickly and come to be standard functionality in enterprise software.
Leading technology platforms shape demand for services and development
Large enterprise software and technology platforms (including Microsoft, Amazon, SAP, Oracle, IBM and Salesforce) still have a significant market share, especially among large companies.
The need for integration expertise is growing as systems become more complex
IT companies are expected to provide comprehensive solutions that are characterised by, among others, extensive data architecture, complex and demanding development of an enterprise resource planning system, integration of technical systems and processes, use of multi-channel user interfaces and development of cloud-based software development.
Digital solutions are increasingly close to the core business processes of companies
The focus of customers’ IT investment activities is shifting away from support processes and towards supporting core business processes. Digitalisation is increasingly seen as a source of competitive advantage for core business and IT investment decisions are increasingly made by companies’ senior executives.