The next big - small thing in IT services

The product placement in IT industry is quite a difficult job until the significant, right kind of market is captured. After the successful product placement, the next stages of operations and revenue generations are considerably easier for the company. The enhancements follow with each release every year or twice a year with value addition on the product or bug fixing activities. Some of the IT companies focus on development and enhancement of the product and outsource the placement and implementation.
The nature of IT products are so dynamic that the client will have to decide on the life cycle of the product, which is relatively short. The ROI could not be decided as the write off period is short . The changes in the technology are very fast and the source companies stop the support after certain period and innovate on new product development. This is necessary strategy for revenue management as well as the market/technology dynamics due to long gestation period and short span for ROI.
Now let us think of a client who has invested in the product and tends to write off the cost of product after long term, where the target IT expenditure (inclusive of both IT infrastructure and application) is 1.5% - 2% of their total budget. Write off at a short term is costly affair for small companies.
This opens a fairly greater chance of IT application support businesses to extend the service on AMCs for small and medium companies which can sustain the product even after the product life cycle is completed. These IT companies can negotiate with the product provider for the source code, technology copy write, know how and work on a service contract for small and medium enterprises as a mutually beneficial model. This is an area where large service providers could not sustain either with the services or capture the same market for their latest releases.
As more and more businesses going increasingly IT oriented, there will be largely untapped opportunities await the service providers.