Professional Services Firms Must Strengthen Differentiation, ITSMA Study Shows

LEXINGTON, Massachusetts—September 7, 2005—The latest research from ITSMA, a membership organization that helps companies market and sell technology services and solutions, indicates that few professional services companies can claim true competitive differentiation. ITSMA's The Quest for Marketing Differentiation: 2005 Professional Services and Solutions Brand Tracking Study evaluates the brand equity of fifteen professional services providers including Accenture, Hewlett-Packard, IBM, Microsoft, and SAP, and reveals new information about how customers perceive professional services providers and the factors that most influence their purchases.

When ITSMA rated the professional services firms' market positioning across nine business-oriented messages, it found that no single provider was able to stake out a clear advantage for eight of the messages examined. Cisco Systems, renowned for its customer-oriented culture, claimed sole ownership of the "drives business agility" message. But no vendors were perceived as able to "harness team power" or "empower customers to be independent," messages around which leading providers are trying to create differentiation. Other prominent messages examined include:

• "Acts as a trusted business partner"
• "Aligns business and technology priorities"
• "Delivers measurable business value"

While differentiation of professional services is difficult, the study shows that 63% of customers do take notice of new providers that stand out from the crowd by demonstrating particular expertise around a current business need and leveraging their references and relationships. In other words, customers notice companies that successfully differentiate themselves from competitors. Only 27% of customers take note of a new vendor for competing on price.

"As the professional services market matures, many services providers are finding themselves in the unenviable position of being exactly like the company next door," said Lori Weiner, study author and senior research director, ITSMA. "But it is clear from our findings that sharp positioning, proven expertise, and good relationships are the keys to success. Reference management, thought leadership, and techniques such as account-based marketing are proving to be particularly helpful for professional services firms that are struggling to improve their competitive positioning and attract new customers."

About the Study

Based on interviews with 401 U.S.-based IT and business executives involved in the purchase of professional services and solutions, ITSMA's Quest for Marketing Differentiation: 2005 Professional Services and Solutions Brand Tracking Study explores the buyer decision process and benchmarks the brand equity of IT professional services and solutions providers. In particular, the study addresses issues such as:

• Important attributes in and buyer influences on the selection of technology professional services and solution firms
• Aided and unaided technology professional services and solutions firm awareness, along with familiarity with and favorability ratings
• Market positioning of technology professional services and solutions firms
• Purchasing preferences
• Overall buyer satisfaction with industry performance

The following fifteen professional services providers are evaluated in the report: Accenture, BearingPoint, Capgemini, Cisco Systems, CSC, EDS, Hewlett-Packard, Hitachi Consulting, IBM, Keane, Microsoft, Oracle, Perot Systems, and SAP.

For more information visit http://www.itsma.com/research/abstracts/bps006.htm.

About ITSMA
ITSMA specializes in helping companies market and sell services and solutions more effectively. As a membership organization, we work with the world's leading technology, communications, and professional services providers to generate increased demand, strengthen customer relationships, and improve brand differentiation. ITSMA members include business leaders such as Accenture, BT, Cisco, Hewlett-Packard, IBM, Microsoft, SAP, and Tata Consultancy Services, among others. Our comprehensive research, consulting, and training on topics including ITSMA Account-Based Marketing ^SM, Brand Positioning, and Solutions Development provide the insight and experience companies need to improve business results. ITSMA is based near Boston, and has offices in London and Tokyo. Learn more at www.itsma.com.